Evening star., 1935-10-22

One Is Senator Black, chairman OF
the Senate's Propaganda Investigat-
ing Committee. II the holding COM
| panies open up a broad publicity at
| tack, it will not be necessary for any
one to stick pin into Senator Black
to get him started. Under his latest
amplified powers he can go into the
books of any corporation, haul any
corporation official to his investiga-
torial bar. You may rest assured
such preparations as are necessary
have been made.
For that reason, the odds are about
10 to l that the legitimate constitu-
tional challenge Of the holding COM
| panies act will be conducted far more
peaceably than most people now be-
lieve probable.
Russian Break Considered.
1t did not get out at the time, but
the question of breaking of diploma
tic relations with Russia was under
serious consideration at the State De-
partment not long ago.
Nearly all the United States board
Of diplomatic strategy have become
disillusioned. If not disguised. Their
hopes for substantial expansion of
trade, settlement Of the debts, nom
propaganda understandings have
proved delusions
Yet recognition was not can-
celed. The reason noD being put
torpard of-the-record by officials
| is that such a step tCould accom-
pliSh nothing; that it is better for
an unsatisfactory status quo to
| continue.
1t will be denied, but every insider
there knows this explanation is q
truthful excuse to cover a much bet
ter political reason. The strategists
really felt that retraction OF recogni-
ton would be blanket confession Of
error. The indications are that they
may continue to hold that view until
after the next election.
100000 Trade Expected.
Before recognition, the state De-
partment expected n $3.50, 100000 an
nusl American export trade out of the
deal. That was the official inside
figure. All it actually got was q
promise to purchase $50, 900. This
represents only s15,000,000 more than
exports before recognition.
But whut hurt worse ,ods the
misunderstanding on debts. In the
recognition discussions, President
Roosevelt promised trade credits
for settlement OF the 100000, 900
American debt and damage claims.
This Government offered to reduce
the claims to about 5000 ,o00, 900 and
ertend 500 0,000, 900 OF credit. But
after recognition. Litvino1 de.
nanded 500, 900, 900 in cash and
another 500, 200, 900 in credits.
Our diplomats considered Litvinoff's s
attitude a deliberate misinterpreta-
ton Of the Presidents offer. Their
faces have been the same color as the
Soviet flag ever since.
The latest subtle brain trust trial
balloon is supposed to be a book by
David Cushman Coyle. The New Deal
connection with it is being traced by
the fact that Coyle left the Resettle-
ment Board Of Review (TugwelD only
q week ago. apparently because his
book was coming out November l..
Previously he had served in a BRAIN
trusting capacity with the w. P. A.
Planning Board (Hopkins), and the
Public Works Planning Board Uckes)
Coyle advocates spending such
as no one ever heard OF before.
He suggests that $4,000, ,000, 900
should be disbursed by the Gou-
eminent merit year and an equal
amount for the nert tew years.
He wants the money to 90 only
TOR services and not TOR public
Works, epen selt-liQuiddtino ones.
He does mt Dant initiate to get
the money. He iDould raise it By
income tdres.
He should be big help to Mr.
Morgenthdu, pho has been Won-
derin9 how he can get epen a sub
stantial part OF $4,000, 100000 out
OF any kind OF tares during the
nert ttpo years.
Note-Mr. Coyle seems to trip him.
self by disclosing that the total ma
tional income in 1888 was $45, ,000,-
100000. If confiscated entirely by the
Government. it would have been
$4,000, ,000,0 short of Mr.. .Coyle's as
pirations. You may be sure that the
bigwigs of the New Deal have nothing
like this in mind. Apparently the
balloonish aspects Of the book are
based on the expectations that no
one will object to Mr.. Roosevelt
spending $4,000, 100000 after reading
Mr.. Coyle.
It Is understood, however. that Mr..
coyle is willing to put his theory into
practice by spending all the proceeds
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