Evening star., 1935-12-01
New Deal Steering
a Zig-Zag Course
BY Queen L. Scott.

Se@N~N@SN~@
and advisers provide a trustworthy
barometer of the change now under way
in New Deal policy
Mr.. Roosevelt still is striving to avoid
breakup of the crew he has assembled
to help him weather the depression storm.
His technique is to steer first this way
and then that in order to recognize the
Judgment of the advisers who hold an
tagonistic viewpoints.
The country may get a bit dizzy at
tempting to adjust itself to this Zig-Zag
course. Also, ut is a course that is be-
coming harder and harder to steer But
thus far, by following it, the President
has succeeded, since the early days of
his administration in avoiding any major
internal blow-up that might scatter frag-
ments of policy far and wide
Right now Mr. Roosevelt is trying to
head straight for balanced budget. He
has turned his back on the group of fast
stepping spenders who have had his ear
during the past two and one-half years.
X r
The spenders tried to sell President
Roosevelt on the idea that they should
decide how much money they needed to
carry out their spending plans. Henry
Morgenthau after that would content
himself with finding the money for them
to spend.
That approach did not impress the
Secretary of the Treasury. His idea is
that the Treasury should determine how
far the Federal credit can be stretched
and then spenders-n Congress agrees
should cut their plans to the credit pat
tern.
A year ago at Warm Springs 1t was
''Tug" and Hop" and Harold who guided
Mr.. Roosevelt in shaping the Federal
budget. They decided that 81, $50 900 900
was needed to provide the country with
relief work and public works during this
fiscal year. Mr.. Morgenthau only Incl
dentally learned of the total he would be
expected to raise.
This year DR.. Tugwell, Mr.. Hopkins and
Mr. Ickes stayed home and worried while
the Secretary of the Treasury was on
hand at Warm Springs to help do the
deciding on next years spending.
Instead of $4,8SO 100000, the spenders
next year are likely to be offered about
$4,000, 10000 That still is a tidy sum,
but will be jolt to those accustomed to
spending more.
Then is the Federal deficit for the next
year likely to be as big as that? Nobody
can quite tell.
Mr.. Morgenthau can find unused funds
here and there that could bring the paper
deficit down to a much smaller figure. He
probably has plans to do it.
X
But about the time those plans are
offered to the country other things may
happen. The Supreme Court in January
may decide that the A. A A. processing
taxes are illegal. Odds that were two to
one on decision upholding the taxes
have swung to even money that they will
be killed. That would add half a bill
lion to the Treasury Secretary'S worries
Next, Congress is almost sure to vote
for some form of soldiers bonus Mr.
Roosevelt will veto it, according to pres
ent prospects, and the veto may readily
be overridden. Two more billions then
would be Tailed on the red ink side of
the ledger. What Mr. Roosevelt may offer
in January as deficit of billion and
half could by February be full -fedged
four billion-dollar deficit.
Among the spenders there are clashes
over the question of who is to spend the
smaller amount of money that will be
available.
Mr.. Roosevelt is called on to decide
between Mr.. Hopkins and Mr.. Ickes.
Hopkins won out this year. but now he
is worried over the possibility that Mr..
Ickes may get his big chance next year.
The P. w. A. administrator urges back
stage that relief of the unemployed be
turned back to the individual States. The
States would try to carry the load. If
the States found the task too great, loans
L. ~
up the difference.
Then Mr.. IckeS would have the Gov
ernment use for promotion of large
scale public works any money that was
left over from relief loans. These public
works should be of a character to appeal
to the public imagination-big DAMS
flood control, housing and other similar
projects.
But Mr.. Hopkins argues: Why carry
on large-scale ventures of this type that
cost lot of money for each job created?
Why not provide work on useful jobs
involving small amounts of material in
order to give the unemployed an income
and the localities improvements that they
otherwise would not have?
President Roosevelt has tried to steer
between these two spending points of
Mr.. Ickes and Mr. Hopkins happy. Now,
If he continues to play along with Mr..
Morgenthau, he may offend both.
~ 4
There are troubles, too in field that
the President had thought rather remote.
George N Peek, former A. A. A. admin
istrator and until recently special adviser
to Mr.. Roosevelt on foreign trade, has
hit the warpath. He has revived his feud
with Cordell Hull, Secretary of State. The
issue is foreign trade, and foreign trade
Is something that has not had special
attention during most of the New Deal
history
Mr.. Peek is planner in the field of
foreign commerce. He believes in doing
business with foreigners on the basis of
business they do with us, and he would
arm the country with weapons to carry
on planned foreign trade.
Mr.. Hull is an old-fashioned, conserva-
tive foreign trade advocate, who believes
that the freer the trade the better. His
interest is in scrapping weapons that the
world has created during recent years to
fight trade battles. Tariffs to him are
iniquitous.
President Roosevelt, who has been sold
on planning of various sorts for internal
commerce and agriculture, is siding with
Mr.. Hull on laiSsez faire for foreign COM
merce. His approval of the trade agree
ment with Canada and his interest in the
negotiation of other agreements aimed