Evening star., 1934-01-10

He Jumped four billions Of proposed
expenditures under the r. F. G. HIS
agents explain that indefniteness by
saying the r. F. G. is making lot oi
commitments on preferred bank stock
and such things. No one else in Wash
ington thinks they need half that much
for commitments thus far apparent
(He also neglects to count around S7O0,
000, 900 repaymentS the r. F. c. expects
In six months.)
In addition, he has called on Con-
gress for SLIGO 900 more for this
year and $2,00O,O00 900 more for next
year, and refrained from Jumping these
sums under any heading.
The agents explain that by saying he
wants to take care of odds and ends In
his various relief agencies.
So you can figure that he UhL
hare around sir billion dollars
for unitemized odds and ends
The oddity OF it is APPARENT to
all Who know dboEt budgets, and
so is the end
There is only one other thing Mr.
Roosevelt could be planning to spend
these dollars for. aside from passing
them out to people. That is to inaugu-
rate free gold market.
No well informed insider here believes
that is advisable in view of the ex-
perience so far with the Warren theory.
May Adopt New Theory.
They see other strong inner evidence
that Mr.. Roosevelt does not intend to
embark on such a serious step. For in
stance, there are indications that Prof
James Harvey Rogers theory of man
aged currency, along the lines advo-
Gated by John Maynard Keynes, is
making more and more of an impress
sion at the White House. It calls not
for the Warren commodity dollar or
bidding up the gold price, but for sta
bilization
Mr.. Roosevelt himself hinted at a
change of heart in his congressional
message. He spoke of an ultimate
dollar which will have over the years
less variable purchasing and debt-pay-
ing power
Up to now Mr.. Roosevelt has been
talking about dollar which would
have exactly the same purchasing and
debt-paying power from generation to
generation. That was the commodity
dollar.
Another hint is the way we are going
after foreign trade. Creation of the
Peek bureau in the State Department
isolation through unsettled exchange
But the most important fact to the
insiders is that the dollar has been
virtually stable during the past 80 days,
Final Strategy Outlined.
These deductions suggest Mr.. Roose-
welt may evolve his strategy along the
following general lines:
1. Get his budget through
Congress and then get rid OF
Congress.
z. Feed out his money here
during an expected Spring rise,
so as to bring a strong reSHmp-
ton OF trade.
}. Devalue and stabilize the
currency in sir months or so
through an agreement Uith Great
Britain
He can pay for part of the money
fed out with profits from devaluation,
but he would have to sacrifice some
thing to get an agreement with Britain.
He might have to go back to the old
exchange level of $486.
That is a far more conservative pro-
gram than had been expected.
1t is basically different in theory
from what has been attempted SO far
The first phase Of the new deal was
to go off the gold standard and cap
italize monetary uncertainty to stimu-
late trade. The second was the bidding
up Of gold prices to stimulate prices.
Both were artificial devices which did
not fit in snugly with the domestic re-
form efforts through the N. R. A., P
w. A. ct el
The new idea fits much better. 1t
has its dangers of overspending, but
economists will certainly be more hope
full about It than they were about the
gold price theory.
NJ r. A. officials have sent out a
secret order advising all emp Dyes not
to accept gratuities of any kind from
outsiders. Employees are wondering II
1t will be interpreted to prevent them
from taking cigarette from friends
or going cut to dinner at the homes
of friends.