Evening star., 1935-01-13
BY OWEN L. SCOTT.

a RldnCc OdCkStdSe III tllc INCW 0PChi
reveals at this juncture the need for
much adroit and firmly guided
maneuvering by President Roosevelt.
Pressure is great from both sides, but
the Presidents course still definitely
Is down the middle Of the road. avoid
ing gestures from the right and from
the left.
Cabinet members are discovered to
be muzzled-warned not even to talk
about pet legislative projects until
they have cleared through the White
House. Radicals and conservatives.
battling over policies, have learned to
keep their differences pretty much
within the New Deal family.
Developments behind the scenes
show something Of the trend.
One sharp issue is drawn over the
use to be made of the $4,000, ,000. 900
fund that Congress is asked to pro-
vide to create jobs for the unemployed.
Radicals among the New Dealers
want this money to be used as
capital investment in what might be
described as Socialist state for the
unemployed. They argue that only
in that way can "a, 4,000, 900 900 spent
in the next fiscal year by the Federal
Government have more effect than
the S4.500 ,000,0 being spent In the
present fiscal year.
How would they utilize the money?
In somewhat the same way that Up
ton Sinclair proposed to use it II Cali
fornia had accepted his Epic" plan.
Not only would unemployed be given
jobs on roads. or slum clearance prof.
ects. on wiring farm homes for elec-
tricity and on other similar develop
ments, but they would also be put
to work in rented factories turning
out goods for their own use and for
the use Of others out Of employment.
President Roosevelt turned away
from that type of plan. Its sponsors
argued that a low-wage policy would
retain the incentive for the unem-
ployed to seek private employ
ment as soon as 1t opened. But
their arguments did not prevail and
instead the country is to get modified
c. w. A. program, with q little differ
ent type Of work and definitely lower
wages.
The wage scale now under study
calls for q range from $40 to $26 per
month in country districts and from
$40 to $85 in the cities, depending on
types Of employment. prevailing pri-
vate wages and living costs. A work
week Of 80 hours is planned. The
average Of wages is expected to be
around $3.50 year. approximately
the same amount would 60 for mate
rials. The 3,500,000 jobs to be offered
on this basis will care for about half
OF the employable persons out of work,
but the spending of those who get jobs
Is expected by Mr.. Roosevelt to result
in jobs for the remainder.
Actually this type Of work-relief is
not far out of line with the proposal
OF the business group which wanted
the unemployed to work for the relief
they received. The only difference Is
that the business men wanted wages to
be lower and the use of materials
avoided 50 far as possible.
Then In the air is another move that
the radicals in the New Deal will con-
slider conservative.
1t involves prospective truce be-
tween the White House and the public
utility interests, on the Presidents
terms. This would mean promise of
substantially lower electric power rates
by private utilities In the expectation
that cheaper power would bring larger
consumption. To help step up con-
sumption, the Federal Government
would agree to extend the scope Of the
Electric Farm and Home Authority,
which provides low cost financing for
electrical appliances.
At the same time the power people
may agree to end their legal attack on
the Tennessee Valley Authority. Nego-
tiations looking toward q deal are
under way, with Frank r. McNinch,
chairman Of the Federal Power Com
mission, acting for the Government.
Any agreement Is expected to represent
an out-and-out Government victory.
But It would be short Of the general
Government ownership that the New
Deal radicals want.
X \ \ 4
On another important point, all
signs point to Q definite disagreement
between President Roosevelt and the
banker -industrialist group.
This group contends that recovery
can come only through q revival
of the heavy goods industry-involv-
ing construction, machinery making,
mining and other operations requiring
lonR.term investments. It Is in this
field that about 5000, 900 Of the un-
employed are supposed to be con-
centrated. The argument u that the
Federal Government must promote
confidence In It's money and It's credit
in order that investors will b more