Evening star., 1936-05-10
WRITER SEES ROOSEVELT
AS TREASURY DICTATOR
Number of designations in Department
Laid to Disagreements With
President by Sullivan.

feel that so long as Mr.. Roosevelt is
President, and because he is President,
there is some risk at least of fiscal
calamity-if this feeling exists-there
is reason for it. Part Of the reason lies
in Mr.. Roosevelt's frequent changes Of
policy, and occasional complete re.
versals of direction, such as his change
from an early policy Of economy to a
later one of free spending.
The frequency of Mr. Reosevelt's
shifts can be suggested by a brief
mention of the different fiscal advisers
he has had round him, and the causes
of their leaving. The number of them,
and the brevity of their tenures, is it.
self enough to account for some dis.
quiet.
Before Mr.. Roosevelt was inaugu.
rated his first choice for Secretary Of
Treasury was Senator Carter Glass Of
Virginia. Had Senator Glass accepted
the last three years of fiscal history
would have been very different, and
today no one would have any doubt
about the direction, consistency and
soundness of the country's fiscal policy.
But Senator Glass did not accept.
Some Washington sur1nise, whether
accurate or not, says that Mr.. Glass
shrewdly reflected upon two questions:
First, whether Mr.. Roosevelt would
live up to the Democratic platform
pledge about currency. and. second.
whether Mr. Glass, if Secretary Of the
Treasury, would have power to ap.
point his own subordinates. Surmise
says that Mr.. Glass concluded that the
answers to both those questions would
be NO" and therefore declined to be
Secretary Of the Treasury. In any
event, it seems apparent now that Mr..
Roosevelt intended to be his own Sec
retary of the Treasury.
Glass Refuses Post.
After Senator Glass refused to be
Secretary of the Treasury. Mr. Roose-
velt gave the appointment to William
woodin-much to the surprise of Mr..
Woodin, who used to tell friends, and
even casual acquaintances. with en-
gaging candor, that he did not know
much about Treasury policy, that he
had not expected to be Secretary Of
the Treasury, but had only hoped Mr..
Roosevelt would give him a quiet Dip
lomatic post abroad. Mr.. Woodin
had the brains and experience to un-
derstand the Treasury, given time, but
he fell i'll.
During those early months the real
head of the Treasury was Mr.. Dean
Acheson, chosen by Mr.. Roosevelt
partly because of his liberal associa-
tions-Mr. Acheson had been, some
years before, secretary to Justice
Brandeis Of the Supreme Court. 1t
turned out that Mr.. Acheson, under
Justice Brandeis' tutelage and else.
where, had learned the law too well.
He felt-so gossip said at the time
that some of the fiscal steps Mr..
Roosevelt was taking were Of doubt
full legality. For whatever reason, Mr..
Roosevelt one day told press con-
ference that Mr.. Acheson was resign.
ing, and that the head of the Treas
ury would be Mr.. Henry Morgenthau,
jr., the present Secretary.
Newspaper men as a rule respect
Mr.. Morgenthau; they think he is q
capable administrator and that he
runs the big Treasury organization
competently. Fiscal policy. however,
is a different thing from Treasury adj
ministration. There Is fair doubt
whether Secretary Morgenthau origi-
mates fiscal policy at all-much Of
Washington thinks that fiscal policy
originates with President Roosevelt:
and that Secretary Morgenthau car
ries out policies rather than origi.
mates them.
yohnson's Criticism.
II many Of US do not have clear.
cut judgement about fiscal policies
under Secretary Morgenthau, there
Is one man who has very definite
Judgment, and a highly adverse one.
Gen. Hugh johnson for half the
present administration, while the
Blue Eagle scared high, was No. 2
man In the Government. He was next
to the President and q very close
next. Newspapers some times called
him assistant President"-and that
informal designation was not inap-
propriate. After about o year and
q half Gen. johnson ceased to be
the Presidents No. 2 man, ceased to
be o member Of the administration.
became q private citizen. As q private
citizen he became newspaper COLI
umnist. q commentator on public af-
fairs. In this latter role Gen. john
son. on October 20 last, animadverted
upon the fiscal policies Of the adj
ministration and upon Secretary
Morgenthau. He said that "the finari.