Evening star., 1935-04-28
Works Relief Program to Start Second
Active Period in Life of the New Deal


berg's part to coordinate the New
Deal has broken down.
AS Mr.. Richberg slips back, Henry
Morgenthau, jr., Secretary of the
Treasury, moves up. His task is to
raise the money that the Federal
Government spends and lends. Re-
Gently the Secretary Of the Treasury
has been playing a bigger and bigger
part in the New Deal picture. He
has eXpounded the Presidents share
our-wealth" plan, based on new in
heritance taxes to raise added funds
If more money is needed to protect
the national credit. He is standing
out for sCrupulous adherence TO the
New Deal budget. His hand Is more
evident in Government affairs.
Another personality Of ascending
importance is Mariner S. EccleS.
governor Of the Federal Reserve
Board. Mr. Eccles is maneuvering
the administration effort to reorganize
the Federal Reserve banking system
so that the National Government will
gain control over bank credit. His
task Is to bulwark the position Of
Mr.. Morgenthau. If the Federal
credit ever should be questioned, with
collapse Threatened. the Eccles bank
plan would offer the controls to take
command Of the situation.
Joseph B. Kennedy takes his place
in the ranks Of leading New Deal
ers. As chairman Of the Securities
and Exchange Commission. Mr.. Ken
nedy has the job of seeing that private
industry gets credit to which it is
entitled from the investment mar
ket, without abusing the right to that
tached by officials to his recent sue
TO start reflnancing their bonds on
lower interest basis.
1t is that lineup, captained by
Mr.. Roosevelt himself, that is to at
tempt now to start the New Deal
functioning aggressively again.
What results are expected?
First. slow tempo from now until
Summer. General business is faced
just now with a normal reaction that
is proving much less extensive than
officials had expected. Trade vitality
has been much stronger than business
man sentiment. This is accepted by
New Deal economists as highly ia
vorable sign.
Second, q quickening pace in in
dustry to start in the Summer and to
continue longer than any of the pre-
viouS upward moves since the New
Deal took office. Since March, 1888,
there have been three periods OF ris-
ing business activity, each about four
months in length. and two periods Of
declining activity Of about five
months each. and now q two-month
period of leveling of.
Spending of the new $4,000, 600 900
work relief fund is expected to start
on broad scale in July and ascend
through the Fall to a January or Feb
ruary peak.
This money will be counted on to
fit In with normal recovery in in
dustry, which will be accompanied
with heavy industrial refinancing.
The desired result is push to pro-
duction that will put the country over
the depression hump and start it 60
ing ahead normally.
X X X
Then is the end of the unemploy-
ment problem in sight. If this plan
clicks?
Not as leading New Dealers see 1t.
They accept the thesis of DR.. Tugwell
that industrial unemployment is a
continuing problem that will need to
be met by third economy"
This third economy" involves a
permanent program of large-scale
public works along the lines of the
present $4,000, 100000 works program.
The Government would assume a con-
tinuing responsibility to give work to
employable persons who have neither
employment nor resources on which
to live.
How would this be paid for?
Mr.. Morgenthau has shown the
New Deal hand on that subject. He
recommended that If new expendi-
lures are approved by Congress they
should be accompanied by a new tax
on inheritances. Under this plan.
not only would estates be taxed, but
the recipient Of an inheritance would
pay regular income tax rates against
that inheritance.
Copyright. 1935)