The Waterbury Democrat., 1936-11-18

1lSL VI JkllIlkS~tO~UC~QO
Both the Treasury, and Federal
Reserve Board have urged such
action on Roosevelt. The acceler-
ating tempo Of economic recovery,
the increasing availability Of pri-
vate credit, plus the administers
tons desire to balance the
budget. make curtailment Of RFC
operations desirable.
The move will have the warm
approval OF banking interests.
Now that the flood-tide Of re-
covery Is In full swing they do not
relish RFC competition in the
lending field. Most Of them are
either tout Of hook" to the RFC,
or well on the way out, and they
ore extremely eager to lay the
ghost Of their one"time saviour.
Years to Clean Up
In regard to budget balancing,
in shutting off the RFC loans will
make little difference. RFC
handoutse In recent months have
dwindled to an insignificant
trickle. In fact, repayments have
outrun new loans by many mill
lions for q long time.
These collections, incidentally,
win neccessitate the continue
ance OF the RFC In some form
for years TO come. Even II II
is abandoned rs o banking
agency o big Job will still re-
main 10 collect the billions
loaned out by the government
during the depression.
Outstanding loans aggregate
more than two billions, excluu-
sive Of internal loans TO other
government agencies. Some Of
the loans run over long terms.
NOTE-The plan to strip the
RFC Of Its lending powers will not
take the government entirely out
OF the business Of supplying capi-
tai to private enterprise. The
Federal Reserves Board (under
Section 1879 can make loans, al
though to date II has done so
sparingly. It's outstanding loans
total only $3s,0oo,0o0.
Exit Jesse?
The deflation OF the RFC pre-
sages the exit OF It's big gun,
Chairman Jesse Jones.
The towering, soft-spoken
Texan has been the boss of the
agency during the larger part OF
Its existence. Nominally he Is
only the head one Of board Of
rulers, BUT ACTUALLY JESSE
RUNS THE SHOW.
Foreseeing the eventual dis
Numbering Of the RIG, Jones
several years ago tried 10 get the
Treasury portfolio. But he
failed TO make the grade, despite
an adroit wire-pulling campaign.
The President turned to his
old flend and Hyde Park neigh
Dor, Henry MOrgenthau, who
knew little about banking but
whose loyalty was unquestl0ned.
About Jesse's loyalty there has
long been some doubt In inner
New Deal circles.
Last spring O report reached
the White House that Jesse was
flirting with certain democratic
boilers. Jesse holly denied the
charge, and on the first occas-
sion that presented itself, made
q speech strongly unfolding the
administration,
O0zed Out
But II was noticeable that Jesse
was called less frequently to the
White House, and he took very
little part In the election cam
paign.
Within tho last few weeks he
revived circle Ire by q speech ads
vocating repeal Of the corporation
surplus tax. The President has
absolutely no intention OF drop
ping this tax--as he made abund-
antly clear last week. ..
Not only Ia the expected rev.
enue necessary to balance the
budget, as he promised and de-
sires, but thhe issue was fought
out squareiy In the campaign and
he considers his overwhelming
victory full endorsement Of his
stand.
Jesse's blast against the tax,
therefore, has note nhanced his
standing around the White
House. The Treasury, which
sponsored tho tax, II furi0usj
considers his speech deliber-
ate slap In the face. Other In
slders, who have long been af-
ter Jcsses' scalp, are also up In
arms.
SO II appears that despite the
Texans agility HE IS ON THE
SKIDS, HEADED FOR ENROLL
MENT IN THAT LARGE BAND
OF Ex-NEW DEALERS.
Stuffed Exhibit
Massachusetts charming Mrs.
Edith Nourse Rogers, reelected
for O seventh consecutive term In
the House despite the Roosevelt
landslide, takes the sad state Of
the republican party philosophi-
cally.
Congratulated on her victory by
the correspondent Of O strongly
OFF THE RECORD