, 1935-08-25
WASHINGTON
HY Raw Tucker

WASHINGTON
by Ray Tucker
Domination - President Roosevelt
and Federal Financier Eccles are
playing a slick game in restraining
their gloatings over the latest revis-
ION of the Federal Reserve System.
To paraphrase Omar, they are TAX
Ing the cash and letting the credit 20
20 Carter Glass, who refers TO Mr..
Eccles as that Mormon mission
ary."
Contrary 20 public reports, the
measure. Nj. Roosevelt signed vests
extraordinary power ove the ma
tons banking system IN the admin
iStration. It's appointees on the fed
eral board viii control the three most
vital functions that affect the sup
ply OF money. its use and interest
rates. They viii be in a position 70
determine open market operations.
the amount OF bank reserves and the
rediscount rate. No quibbling over
superficial authority withheld by
congress can change this central
fact. The administration will DOM
mate the money market.
Mr.. Roosevelt means TO WELD that
power. The Eccles declaration that
the banking system should reinforce
economic planning was cut out ~
the final bill, but the idea persists.
Only New Deal bankers need apply
when Messrs. Roosevelt and Eccles
get around TO naming the boards
new members next February.
Pressure - Mr.. Glass doesn't think
the administration outsmarted him.
But the inside story reveals that his
foes resorted TO duplicity and pres
sure when the fight came to a show
down.
Henry Steagall Of Alabama. who
handled the bill for the White House,
pretended TO balk az changes de-
manded by the Glass coterie. II
don't dare take this bill back to the
house" he moaned in conference
sessions. They'll tar and feather
me for surrendering to the senate"
But when he submitted the final
draft to the house. he praised its as
containing the ideas which the house
and the president had insisted
upon.
MI. Roosevelt interviewed person.
ally when Senator Glass insisted on
the provision permitting banks to
underwrite security issues. Writing
To the senator. Mr.. Roosevelt said II
was impossible to set up safeguards
which would prevent pre-l929
abuses. please accept this prin-
ciple (of no underwriting on the
advice Of an experienced lawyer ana
business man who viii ever remain
your affecti0nate friend" wrote the
president. The excerpt shows how
deeply Mr.. Roosevelt feels on this
question. As a certain senator says.
He must hate bankers"
Tactful - An unrelated chapter
In the Mcintyre Robinson hobnob-
bing adventure illustrates how dan
gerous II is for members OF a reform
administration TO accept food and
drink from back-slapping lobbyists.
When 3. b. Robinson, the A. @.
& z. lobbyist. appeared before the
House Rules committee for q secret
preliminary examination he told all.
With a defiant air he furnished the
committee with the names and con-
nections Of influential trends in the
social and political world az Wash
ington. He listed prominent demo-
cratic lawyers. lobbyists. politicians
and officials as his winning, dining
and dancing guests.
He apparently sought to impress
his inquisitors with the idea that he
was not a man TO be pressed too far
lest he drag down others. But
Chairman O'Connor and other mem
bers - good fellows ell = spiked his
plan. When he took the witness
stand for the public hearing they
studiously refrained from asking
Mr.. Robinson about his po~litico-so-
cial activities.
Policy - The senate's last-minute
flareup over neutrality legislation
marked the beginning OF a new Am
erican attitude toward the rest Of
the world. Everybody on the inside
brands the action as historic and
far-reaching.
The senate department has lob
bed behind the scenes for months
to block any legislation which would
tie the presidents hands by making
mandatory a general arms embargo
In event or war. The administration
wanted discretionary power SO that
IL could exert influence for peace
along with the leap1ia nv an Anolo-
French entente. To that end IL
brought pressure on Key Pittman,
chairman Of the senate Foreign Re-
lations committee and a loyal demo-
crat. But he failed the White House.
Then the administration induced
the House Judiciary committee TO
report out the %innocuous Mercy
nolds resolution for licensing - and
publicity - Of ell arms shipments.
As in postwar days the White
House and senate are nc odds over
our basic, permanent foreign policy.