Evening star., 1934-01-07
BA|L|E QUITS POST
AS FISCAL EXPERT
Resignation Removes Final
Objection to Morgenthau's
Confirmation.
By the Associated Press.

BY the Associated Press.
The last senatorial objection to the
confirmation of Henry Morgenthau, jr.,
as Secretary of the Treasury was re-
moved yesterday by the resignation Of
Earle Bailie, whom he brought into the
charge Of fiscal affairs
While the Senate Finance Committee
voted favorably on the Morgenthau ap-
pointment last week, such forcible OBJ
lection to Bailie's continuance was
raised by Senator Couzens, Republican,
OF Michigan, that Senate vote on con-
firmation was postponed to keep the
controversy from flaring up on the floor
Bailie's integrity was not questioned
In any particular, the objections of
Couzens and his colleagues being based
upon his previous and continuing aSso-
citation with the New York banking firm
OF j. and w. Selgman & Co., which,
Couzens contended, had floated several
issues Of foreign bonds now partially or
wholly in default.
While Morgenthau said only last
Tuesday that he expected Bailie TO con-
tinue working with him on the tempo
rary basis upon which the latter en-
tered the department, the Secretary
yesterday announced he had accepted
his resignation, submitted by letter to
become effective at Morgenthau's con-
venience before the end of January.
Temporary Service Planned.
Bailie's communication called atten-
tion to the understanding that his SerV-
ices were to be temporary, and said
that due to the recent death of senior
partner in j. and W. Seigman g. Co.,
he felt he should devote his entire at
tention to the affairs of the firm.
Because of Bailie's long experience in
the investment banking field, Morgen-
thau's plan was for him to take active
charge Of the vast borrowing operations
which the Government must undertake
in the next six months, and for which
plans were said yesterday to be ad-
vancing.
To pay costs of the recovery pro-
gram Government securities totaling
Sc, 900, ,000, 900 must be floated. Presi-
dent Roosevelt reported to Congress
last week, and an additional four bill
lions Of Government paper must be is
sued to meet an equivalent amount OF
obligations maturing before June 30
Bailie, in his month and a half in
the department, has also been in close
touch with the development of the
Presidents monetary program, with
which he always has profeSsed full
harmony. The program has been ad-
vancing by easy stages with congress
sional inflationists demanding speed and
more definite action.
Thomas Prepares Bill.
Senator Thomas of Oklahoma. a
leader of that group, is urging that the
Government commander the gold held
by the Federal Reserve System. He has
prepared a bill to accomplish this,
which, he says, the administration Is
studying. Federal Reserve officials yes
terday said that legislation would be
necessary, although some Treasury Of
ficials have held that the authority to
do so already exists.
When the Morgenthau nomlnatlon
was brought up in committee, dlfhcult
problem arose. Members of the Demo-
cratic majority held no objection to his
confirmation, but several of them telt
as Couzens did about Bailie, and looked
upon the nomination as an eHectlve
way of approaching the question.
However. they did not want TO go on
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