The midland journal. (Rising Sun, Md.) 1885-1947, 1934-09-14


industry felt 1t had gained a great vic
tory. Developments since have shown
just how wrong individuals can be.
Republican wheel-horses claim they
now have ammunition In the shape Of
Mr.. Morgenthau's
Morgenthau speech on the cost
Under Fire of the New Deal, for
which they long have
awaited. The treasury secretary spoke
over the radio. His purpose obviously
was to get as wide distribution as
possible for his conclusions that the
New Deal thus far has cost only $685.
100000, despite the fact that the treas
ury daily statements show an addi-
ton of approximately eight billion to
the national debt. The secretary was
able to show, to his way Of thinking,
that while the public debt has been
increased by the amount stated, near
ly all Of these funds eventually will
come back into the governments
money chest. He admitted, however,
that there may be losses sustained by
some of the emergency agencies and
that these losses naturally will affect
the total as he had calculated 1t.
I talked with Democratic senator
concerning Ma Morgenthau's speech
and he told me of his intention later
to make a similar speech on the sub
ject. He was somewhat disturbed,
however, as to how he could explain
the receipt by the treasury of $780,
100000, which Is the amount of profit
gained by the government as result
of devaluation of the dollar to the
point where 1t is worth only Soc In
gold. He appeared to be afraid that
opposing campaigners were going to
say that the federal government had
no way Of obtaining revenue or money
of any kind other than by taxation
and borrowing. He suggested that the
profit Of deyaluation could hardly be
described as money borrowed, nor
could it properly be called receipts
from taxation.
The Republicans are using Mr.. Nor.
genthau's own figures in an argument
that the assets of wholly government
owned agencies such as the Reconstruc-
ton Finance corporation are so far
only bookkeeping items. 1t appears to
be irrefutable that no one can fore
tell what the value Of these assets are
going to be one, two or three years
hence. Therefore, without discussing
the merits of the argument on either
side, 1t can be said definitely that the
Republicans will be doing lot of fig
uring just as Mr.. Morgenthau did fig
uring to reach the conclusions he want
ed to reach and disseminate among
the voters.
In some quarters hear expressions
of commentator for the pronounce
ments by Mr. Morgenthau. Strangely,
these concentrations do not relate to
the total which he contended the New
Deal had cost thus far, but to the fact
that the administration was going to
remain faithful to its pledge that the
deficit would not exceed eight billion
dollars in the period covered. Wash
ington has received numerous reac-
lions from business interests regard
ing this. particular phase of the Nor
genthau speech, and business seems
to regard that much of it as reassur-
ing.
AS regards the controversy that il
raging in the administration itself, OBJ
servers believe there
Real Battle is every reason to
In Ohfng expect an eventual
explosion. General
Johnson, the MIRA administrator, on
the one hand, and Miss Perkins, the
secretary of labor, and Donald Rich
berg, secretary of the Presidents ex-
ecutive council, on the other, are all
individuals Of the temperamental
makeup required as requisite to real
battle. Their differences grow out Of
the plans as to the future of the
MIRA, which, the President has said,
Is to continue as permanent part Of
the New Deal structure Washington
has not quite made up Its mind con-
CcEuluS Tic uGllullluLLOHS GOWh Ny
the two factions, but 1t is apparent
even now that Miss Perkins and Mr..
Richberg contend for expansion of the
MIRA control beyond the limits to
which the bombastic General Johnson
is willing to go. Also. it is made to
appear that Miss Perkins and Mr..
Richberg prefer to see NaA under the
domination of an individual whose
mental slants are in line with their
own. which is to say, in the opinion
of most observers, that they favor
radical tendency beyond General John
sons program. The general, having
been business executive. seems to
realize that 1t Is better to proceed
cautiously in expanding NRA super
vision, and is holding out for that
course.
The differences between these In
dividuals are the first to reach pro-
portions requiring White House inter-
vention. Whether Mr.. Roosevelt has