The Washington times., 1934-10-24

Tile. Thelr own @
president has ~ w. As
sounded a key Lewis H"ney
note of amity and cooperation"
On the other hand, the Presi-
dent has become more moderate
in criticising bankers, and is ex-
pected also to talk cooperation"
Both sides will probably say
little that Is important, but the
= strong position of the banks will
be stressed by both, and coopera-
ton will reign.
The bankers are in weak posi-
ton, and fear a radical Congress.
They know that uniformed PEG
pie will say. Look at all the edit
in the banks. Let us force them
to put it into circulation" They
know that complete Government
control of banks is threatened.
They know that they are overload.
ed with Government bonds, and
will suffer severely if Government
credit is not supported.
The President, on his part, has
seen several of his main policies
collapse (notably the NRA), and
others are hanging fire. He
knows that confidence" must be
restored if his spending and lend
ing policies are to take effects He
finds several polls" showing de-
cline in the popularity of the New
Deal.
Both the President and the
bankers are concerned about GOV
eminent finances. Plainly, If the
Government is to keep on spend
ing, it must borrow. That means
floating more bonds. The only
way to float more bonds is
through the banks. In this
process, each could make the
other a lot of trouble.
Anyhow, it is the public who
must eventually pay, and both
the lender 1.-THE banks and the
borrower (the Government
want to make the debt look
good.
Both the President and the
bankers fear the trend toward
radicalism. The President is
dubious about such New Deal bed.
fellows as Upton Sinclair ana
Huey Long. The bankers fear
that the New Dealers may SWING
over to the extreme of greenback
initiation and put the Government
in the banking business.
Both are concerned about the
possibility of a radical Congress
which may demand a new New
Deal. In fact, as the radicals
prepare more radical schemes CT
monetary and social reform, y
the conservatives try to adjust
themselves to the existing re
FORMS" and the President talks
the matter over with them.
Two things are happening in
this country. One is the growth
of real radicalism in politics, and
a sharper cleavage between radl-
Gals and conservatives. The other
is a decentralization of the mil
lions now receiving relief" from
the Government
The Democratic Party is badly
split between radicals and conser-
vatives, and cannot hold both
together much longer. Just
imagine Jim and Upton sleeping
togetherD We are nearer to
having important socialist" and
labor parties than ever before.
There are more millions on
"relief" than there were a year
ago, and more of these people
are gradually getting to like it
and expect it. There is an ar-
palling breakdown in the Ameri-
can spirit of self-help.
Our people are being made will
ing to become forgotten men,
so that they may be given "se.
curity" by the Federal Govern
ment.
All this is the background for
the Presidents fort h ON n g
speech. This meeting at Wash
lngton is a meeting of the banker
creditors with the New DeaI
debtors.
If they "get together" the
New Dealers will become more
conservative, and the Old Deal
ers more radical. 1t will be a
sort of stand still agreement"
to make the existing public debt
look good, valOrize it by taxes,
and put credit initiation across.
There will be no open break.
but If they don't get together.
there will be new New Deal,
with central bank" currency
initiation, and further levies on