, 1935-01-30
WASHINGTON
by George Durno

~
was taking an equally effective cut
az Secretary of the Treasury Henry
Morgenthau.
The background runs deep behind
the Senate Banking Committees re-
fusal 20 give the Secretary OF the
Treasury and the Director OF the
Budget final authority over Recon
struction Finance Corporation funds
Led by the venerable and caus-
tic Senator Carter Glass OF Va,
there is . group IN the upper house
which is determined MorFenthau's
aspirations to greater control OF
the nations financial structure must
be blocked.
Control - Some time back Presi-
dent Roosevelt appointed d special
committee to coordinate the func-
tons of the governments lending
agencies. On It are Morgenthau
and the heads Of all those ernergen-
cy organizations.
Morgenthau thought IL would be
. good idea 10 have q central clear
ing house for Uncle Sans leading
activities - with the treasury, OF
course. handling the job. He men
toned The idea In press confer
ences.
The idea pleased no one but the
treasury secretary. Certainly, the
heads Of RFC, Public Works. Farm
Credit. Housing Administration and
the others didn't think so much OF
10 privately.
Nevertheless. when the bin 70 X
tend RIGS life two years and per
NIT 1t to buy into private mortgage
companies was presented to the
Senate Banking COMMITTEES there
was a significant final section. re
said no obligations could be incur
red for expenditure of RFC funds
unless within estimates Of the Bud
get Director-"and to the extent
that the secretary OF the treasury
may consider practicable"
Pruned - Senator Glass appeared
for the senate committees meeting.
although he does not always attend.
He said he wanted 70 vote on Just
one section, the last, and asked
that it be considered out OF order.
A motion was made to strike out
the whole section. IL was carried
unanimously without any discussion
whatever.
Then the committee turned It's at
tention 70 the section which would
permit the RFC To buy mortgage
company stock. It struck out the
words upon the request of the Sc
cretary OF the treasury" The bill
thus pruned was reported out to
the floor.
Cooperation-Glass has been see
ing red for some time because he
foresees that the administration,
by legislation and otherwise, has
been trying to turn the treasury
into an unofficial but effective
central bank. Already Morgenthau
has trod on the toes Of Glass be-
loved Federal Reserve system.
The Virginian decided he wasn't
going to have Morgenthau overload
Of RFC 10 boot and marshalled his
forces effectively.
Somewhere In the background
might have been discerned the
figure OF Jesse Jones. boss of RFC.
That astute money lender has been
demonstrating his political and
executive ability for soma time. He
didn't relish having 10 run to
Henry for authority IN the future. IL
is a safe bet Jones shed no tears
when the reins we're restored to his
hands.
Football - Meanwhile the SnipinR
at Secretary OF Interior Ickes con-
tinues. Not all OF it comes from
Capitol Hill by " jugful.
Within the New Deal family are
a tidy few officials who more or
less secretly wish Honest Harold
Ickes back In Chicago practicing
law. They aren't doing anything
about ii openly but In many under
cover ways they have been adding
fuel 10 the fire. Scarcely q day goes
by without some unfriendly story
being planted 80 1t win make the
rounds OF the newspaper corps.
The man who was hailed as the
strong man OF the Roosevelt cabin
ct" back in 1888 now seems to be
the football with which the New
Dealers are playing that much.pub-
licized game Of theirs.
Seven A-Remarking Of MIRA and
AAA Is In the dcldrums. The Busi-
ness Advisory Council shaped up by
Secretary Roper lis marking time.
Some show Is made OF confidential
steps to reshape NRA, but the fact
is that all are waiting for more
l~isht-light from the Supreme Court
and daylight as TO labor conditions
In the automobile industry.
The last expression from the
American Federation Of Labor was
that the new NRA must have sharp
er teeth. voluntary action by IN
In adopting codes and COM
plying with the F~ederation's inter-
probation OF Section IA Az mot
enough 70 rely on"
Members Of the II. 8. Chamber OF
and National Association
Of Manufacturer privately insist
that Section IA shall not be "clari-
fled" to embody labor's demand for
majority monopoly Of bargaining.
Sorry Since this column stated
that General Hugh johnson was III
set to become president OF q new
western railroad--which is going to
need q federal loan before II starts
steaming-the general denied he
would accept any Job Of that sort.
Further. this correspondent 10 In
OF q courteous note from
Bernard M. Barush, the New York
iinancier who was reported to have
the proposition over Tor
johnson and given 70 q clean btu eff
health.
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