Evening star., 1934-05-10
The Political Mill
By C. Gould Liseeln.

Silver, which threatened to become
an issue when the present session Of
Congress was opening, promises to be
with the Congress up till the time Of
adjournment. There has been q lot
of backing and filling about this silver
business, but there looks to be .
chance finally for legislation. II the
present effort Of the silver bloc In the
Senate to reach q compromise with
the President falls through, the mat
ter will still be hurled into the Senate
debate. The last-ditch silverites will
force action on an amendment to one
of the administration's bills-the tar
iff bill If 1t becomes necessary. They
may be voted down, but that will not
prevent lot Of debate in the Senate.
The President is still sticking out
for legislation that is entirely permis-
sive in character, legislation that will
give him leeway to use his own judg-
ment and discretion. Many Of the
members Of the silver bloc seem to
have reached the conclusion that this
Is better than nothing. although here
and there are Senators, like Borah
of Idaho and Wheeler of Montana,
who continue to insist that Congress
should demand that some definite
steps be taken, with mandatory laws
compelling the President to act with
out delay. Senator Borah, indeed, u
threatening to take the issue to the
country in coming congressional elec-
tions. II he does, there is likely to
be a lively time for candidates in the
West who wish to declare their al
legiance to the President and at the
same time stand well with their peo-
pie who are demanding, that silver
legislation be enacted.
What the silver bloc is particularly
intent upon is a law declaring that
25 per cent Of the metallic reserves
behind the countrys currency shall
be silver. This does not mean a less
ening OF the gold reserves. It merely
means adding billions of ounces Of
silver to the reserves. They are not
insisting that this silver shall be ac-
quired Immediately. But they want
a law which will give silver new
and more important status, and they
see their chance in this proposal,
which they believe the President will
accept with the understanding that he
shall use his own judgment as to
when and how and how much silver
shall be acquired. The nationaliza.
ton of the silver stocks now in the
country, amounting to some $780,
000. 900 ounces, at Q value not to ex-
ceed SO cents an ounce, Is q sop
which they hope to throw to the
advocates Of silver immediately. This
raises the question, however, Of the
increase in the price Of this silver
and of who is to have the benefit.
Some OF it was bought for 25 cents
an ounce and more at 80 and 40
cents. The administration Is not
anxious to put SIS 900 900 to $780,
600, 900 into the pockets of those who
have been investing or speculating in
silver. 1t has come forward, it is
said, with a proposal that a sizable
tax be levied on these profits and
thus the Government, and not the
spectators, will benefit from the sill
yer naturalization.
The fact that a political campaign
is in the ofing Is not too good, looked
at from the point of view of the ad-
ministration's recovery progra
Whereas the program might be per-
mitted to travel along without savage
attacks If the opposition was not in
tent upon making political capital,
under the existing circumstances the
road will be much rougher. Even
now, in many parts Of the country,
capital is being made of all the irri-
tating things that have developed in
consequence Of some of the recovery
laws. The opposition camp is shriek-
ing daily that only dangers and pit
falls lie ahead. They have their ef-
feet. People are frightened. They
are unwilling to step out with busi-
ness enterprises. They are warned
that the currency may be worth less.
They are told that there Is too much
uncertainty as to what the admins
tration will do; that imitation on a
big scale Is Just around the corner,
with the dollar diminishing in value.
Yet the President has had it in his
power to bring about huge imitation
at any time within the last year,
through the powers granted him in
the Thomas amendment to the agri-
cultural adjustment act, passed at the
hrst session Of the present Congress.
They do not seem to consider the fact
That the President is probably just as
Wen aware as they are that a huge
imitation would bring ruin to MANY:
that he has consistently refused to
be lured into any action along those
lines
Someone recently tried to place q
stumbling block in the path of SEN
ator OMahoney, who is a candidate
Tor election to the Senate out in
wyoming this year. This person. who
ever It was, circulated a rumor that
Mr.. O'Mahoney was to 20 into the
PRESIDENTS cabinet as Postmaster
General before long, with Mr.. Farley
stepping out to make the race for
Governor Of New York. The Senator
from Wyoming, who has been work.
ing like beaver in the interests of
his constituents since he entered the
Upper House last January to MI the
vacancy caused by the death of the
iate Senator Kendrick. and who is
fully intent upon remaining in the
Senate, did not take kindly to this
rumor. Indeed, he has announced
fatty that all talk of a cabinet lob
Tor himself is just bunk" that his
nat Is in the ring for the Senate and
there it will stay. His friends saw
that he has followed closely in the
footsteps Of Senator Kendrick, who
Tor years was regarded as a model
Senator by the people of Wyoming.
Only yesterday he obtained definite
assurance, he said, from the Presi-
dent that there was not the slightest
intention of including wool in any
bargaining with other countries when