Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1935-09-12


there had been delays Of seven months
preceding enactment Of the measures.
Some of the more vitriolic among the
New Deal critics even went so far as
to inquire why all Of the hullabaloo
over delay of five months when Mr..
Roosevelt made no effort to obtain
enactment Of the social security bill
the keystone Of the New Deal-in the
first session Of congress under his con-
troll. Without knowing all Of the an
swers it does appear to me that there
is quite bit Of unnecessary barking
going on about this one incident.
So, without defending filibuster in
any wise, it occurs to me that we
ought to look back into history and see
the benefits accruing from unlimited
debate in the senate, procedure which
the New Dealers now want to change.
Through all of the years that congress
has existed the senate has moved in
deliberative way. 1t has been slow,
to be sure; yet, records Of the past
make it appear that this slow pro-
cedure has resulted inevitably in bet
ter legislation. Many are the schemes
that surged forward on the ballyhoo of
a minority to passage in the house of
representatives only to be blocked and
properly examined in the senate. Many
are the times as well when the DELHI
erative character of senate debate gave
time for expression of a majority
sentiment in the country and saved it
from being precipitated into policies
of national legislation that would have
worked untold harm. l cannot but
believe that the privilege Of unlimited
debate in the senate has more good
features than bad.
Time after time in years past, de-
mands have been made for liberaliZa-
ton of rules in the house Of repre-
sentatives so that individual members
might voice their views at length. The
house never has yielded from the posi-
ton 1t has taken that its numbers were
too great to permit free-for-all discus.
sion such as takes place in the senate.
The house does its work in committees
and those committees are generally
under the guidance of the political
party in control of the government.
The house, therefore, invariably votes
the will of the administration. In con-
sequence of this, it is hard to believe
that the senate ought to bind and gag
its members and prevent their free
expression. If there is a minority,
that minority ought to be heard. The
senate is the forum. AS a personal eX.
preston, do not see where any good
at all can come from the proposed re.
strictions for senate debate and / do
not believe it will eventually.
For the first time since the Civil
war, a federal government bond issue
failed the other day
Bond Issue to attract enough
Failure subscribers to alb.
sorb the offering. II
was small offering at that. The
amount was only $100,OOO,0OO. The
bonds were not, strictly speaking,
United States government bonds. They
were being issued by the Federal
Farm Mortgage corporation but they
bore the guarantee of the United
States treasury that they would be
paid both as to interest and principal
and to all intents and purposes may
not be distinguished from government!
bonds.
When the treasury received offers
of only $S5,500,000, Secretary Morgen.
than was both surprised and chagrined
He laid the failure Of the issue to the
fact that the bonds were to carry only
TX per cent interest, a very low rate
1t was a part of the treasury policy
to sell government securities at inter.
est rates as low as possible to reduce
the burden Of the interest charge
which the government must carry on
its gigantic public debt. Nevertheless
ut amt so good"
The national debt now outstanding
is something like $30,0O0,O 100000. 1t is
approximately $9OO0,OO0,OOO higher
than when Mr.. Roosevelt took office. II
Is due to go still higher because addi.
tional money must be borrowed TO
carry out the works-relief plans of the
New Deal. Some authorities predict
that before Mr.. Roosevelt's present
term expires as President, the public
debt will aggregate something like
$35,00O,0 100000, the highest in all his.
tory for our nation.
Long experience as a student of
financial affairs prompts my conclusion
that failure of the $1O0,000,OO0 issue to
be fully subscribed does not mean that
government bonds are a bad invest.
ment. / am inclined to the opinion
that the treasury tried to drive down
the interest rate too low and that most
investors figured they could obtain q
better return than that which Mr.
Morgenthau offered them. But, after
all, there is something of warning in
this circumstance. believe the warn.
Ing is that II the Roosevelt admins.
tration continues to spend and spend
and borrow and borrow, 1t must pay
n MI Ill