Evening star., 1934-10-14
BY OWEN L. SCOTT.

Donald Richberg, the New Deal
co-ordinator, says in praise of the
seven men who are taking Gen.
Johnsons place at N. R. A: There
is not a man in that group who Is
convinced he knows how to save the
world. That is a very desirable
thing"
In few words, Mr.. Richberg thus
reflects the change that is taking
place in official Washington. Not
many months ago some persons, who
we're sure they had the formula for
saving this country, If not the world,
were in the highest standing here.
Now few of their plans have been
tried and found wanting.
The hard realities of a business
and employment setback are turning
official thoughts to old-fashioned
capitalistic remedies. There is a
tendency to work with the materials
at hand. with less attention to reform
and reformers. There also is a
tendency to direct attention to the
fact that this is big country that
cannot be remade in a day.
A truce apparently is in the max
ing between President Roosevelt and
business. Recently the stage had been
set for open warfare between them.
Only few days ago Washington had
reports that New York bankers were
studying plan to curtail, if not to
stop their purchases Of Government
bonds until they could ask their
stockholders whether continued pur-
chases should be made. Some people
here began to say that industry was
copying Mahatma Ghandi's method of
passive resistance" to the New Deal.
y * 4
But now all Of that Is changed.
The bankers did not strike. They are
said to have glanced at the Presi-
dents powers, and then at the COM
ing Congress, and to have decided
that action would be dangerous. Mr..
Roosevelt, If banks stop buying
Government bonds, has ready for
use a two-billion-dolla sterilization
fund, congressional authorization to
force banks to purchase three billions
of bonds, besides authority to print
three billions Of currency. And there
is a growing number Of Congressman
who feel that private banking should
be ended, anyway, with the Govern
ment given complete control over cur
rency and credit.
So steps are being taken to effect q
peace between the Government and
the bankers. The President will ad-
dress a meeting of the American
Bankers Association. The head Of
that organization is seeking to pro-
mote an understanding where discord
has prevailed. Jesse Jones, chairman
of the r. F. c. and former severe bank
critic, Is speaking to bankers in sooth-
ing terms. In addition, business men.
who formerly were conspicuous by
their absence from the White House,
now are being called into consultation.
X n # X
Raymond Moley, presidential ad-
wiser, and Vincent Astor, friend of the
President, have been sounding business
sentiment. The National Recovery
Administration is being re-shaped to
prove less grating on business nerves.
An effort is under way to temper Ia
bor demands. All in all, the New
Deal definitely has slowed down its
reform efforts.
What has happened? Is the period
of reform definitely over? Is there
now to be swing to the right to ac-
commodate the conservatives of the
country?
Dogmatic answers are not possible.
But two things do stand out. One is
that leading business men have awak-
ened to the fact that new Congress
is coming fresh from the people in
January with a lot of notions that are
more radical than any put forward by
the President. The thought is pene-
trating to business circles that Mr..
Roosevelt may be the one man who
can keep that Congress from doing
some rather foolish things.
Business men have looked over the
list of demands that are to be offered
for congressional action. There are
demands for 30-hour week; for pay
ment of the farm debt in bright new
greenbacks; for paying depositors in
closed banks in similar currency; for
greatly enlarged public works; for in
creased relief to unemployed; for fur
ther devaluation of the dollar; for
Government ownership and control of
banks to open the way to real credit
imitation. The President has stood out
against nearly all those things. But
they have a strong appeal to some
Congressman.
X + +
Then, as a second development, busi-
ness has concluded, after a period Of
iitters, that the New Deal does not
contemplate an end to the profit sys-
tem-which Is the capitalist system.
Similarly, the New Deal has awakened
to the fact that If capitalism is going
to function SO that the millions Of un-
employed can be given Jobs, 1t must be