Evening star., 1936-06-07
Hopkins the Center
of the Coming Fight
BY OWEN L. SCOTT.

The central battle Of the coming
presidential campaign will revolve
around man not seeking office, and not
even known by the people Of this coun-
try four years ago.
Harry Hopkins was an obscure social
worker before Mr.. Roosevelt picked him
to administer relief in New York State.
When he came to Washington in 1888,
his Job chiefly involved allotment of
Federal funds to individual States that
needed help in caring for their unem-
ployed. A score of officials outranked
| him at the White House.
Yet, today, Mr.. Hopkins stands next
TO President Roosevelt in the power he
| wields, as we'll as in presidential favor.
He has moved ahead while others
slipped into the background. Just now
he is about to tangle in fight that in
wolves the fate of the New Deal.
The explanation is that, as w. P. A.
administrator, Harry Hopkins has more
money to spend and is spending it faster
| than any other man on earth. Whether
he knows it or not, he has come to be
| the symbol of theory OF recovery on
| which the New Deal rests and which
| the country will accept or reject in NO
vember.
President Roosevelt definitely has tied
his fortunes to W. p A. and its 3.0OO'OOO
work-relief jobs and its $4,000, 100000 an
nual cost.
Congress sealed the decision this past
week with its action on approprlatlng
| 81, AIS, 900 900 for work relief, to be added
to the 81, 500. 900 900 which is expected TO
be left over from old appropriations. .
To Harry Hopkins goes the Joo OF
spending that money in campaign
year. His qualifications are atteSteo ny
success in disbursing about S5,oOO,OoOOOo
in three years. His plans call for push"
ing ahead aggressively, taking the OIL
fensive in meeting criticism and attack:
1t is on that basis that the central
issue of the campaign will be drawn.
Harry Hopkins will be on one side.
representing the idea that the Federal
Government owes job to those not
able to find work in industry and yet
able to work. And representing the
idea, too, that government, by pouring
money into the stream of purchasing
power. actually provides the boost to IN
dustry that brings recovery. Economy
on this side is a detriment; extraVa-
gance a probable goal.
On the other side, the Republican
nominee, representing the idea that the
Federal Government should spend on
the unemployed enough, but no more
than enough, to make sure that they
have subsistence from their State gov
ernments. But representing the idea,
too. that Government spending, with its
unbalanced budget, instead OF giving
boost to industry, actually retards It's
progress.
Voters will say in November which
nolicv they favor-that of spending for
recovery or that of economizing for re-
coverv. On their choice is expected TO
hinge the outcome of the election.
When Harry Hopkins threw w. P. A.
into full operation. he returned at least
500 900 families, classed by him as un-
employable back to the States for care.
All evidence is that these families are
living in one way or another at cost
to the individual States Of only frac-
ton Of the w. P. A. cost.
In New Jersey where State aid has
been denied to localities, cities are purg-
ing their relief rolls of all cases involv-
ing families with any income what
soever. They have reduced their cases
and costs by an amount ranging from
| Is per cent to rs per cent, without bring
ing demonstrations from the unem-
ployed.
The Federal Government by the simple
expedient of shifting from work-reliet
to direct relief, could cut its relief bill
| from about S3,000,00000 year down to
| 81, 500 100000 a year Some officials be-
ueve that another s500,O0o,ooo could be
squeezed out by careful administration.
reducing the relief cost to the Federal
| Government from the present figure TO
about $1,000 ,000,0o
On that basis the outgo from the
Treasury and the income from taxes
| could lust about be balanced without
| additional taxes.
President Roosevelt, working through
Harry Hopkins. goes on the theory that
for the Federal Government to curtall
its spending at this time would be TO
cause a shift away from recovery back
| to another depression tail spin.
The spending theory, which w. P. A.
| now symbolizes, is that the deficit OF
the last few years, instead Of being a
drag on recovery, really accounts Tor re-
| covery For three years the Federal
Government has been pouring out with
no strings aLJaCneO, aOOuL SZoo,ooO,OoO
| each month. This money went to those
who were forced to spend it quickly for
the necessities of life.
These expenditures are referred to by
some as pump printing" outlays and by
others as Income increasing" eXpendl-
lures. They add to the purchasing
mower in the hands of individuals. The
| New Deal economists contend that this
money largely accounts for the recovery
| that has occurred.
How long can spending OF that klnd
continue? Isn't it jeopardizing the Gov
ernment's credit?
The answer offered to those questions,
according to the spending theorists, is
given by the June experience Of Henry
Morgenthau, jr., Secretary Of the Treas
| ury. Mr. Morgenthau asked investors to
| let him have 81 600, 900 900 of new money
at interest rates lower than ever before
| in the country's history. He was
swamped with offers Of nearly $7OO0'-
| 000, ,000
That money, Mr.. Morgenthau said, was
I "cash on the barrel head" Investors
clamored to let the New Deal take their
money for spending on work-relief and
on the soldiers bonus. They were will
| ing to let the Government have it for
as long as 18 years at cost OF 234 per
cent interest each.
Then what is the other recovery
theorv2