Evening star., 1936-12-06
President Studying
Post. ELECTION Plans
BY OVEN L. SCOTT.

With Mr.. Roosevelt on his way back
to Washington and a second term. the
big question becomes: Where now will
the President direct his abundant en-
ergies and his fair for dramatic action?
He has allowed the country to cool Of
since election while turning his attention
to Pan-American problems. But now
what? Congress is coming: there are
election promises to fulfill; the Supreme
Court still is on the job, and Europe ap-
pears at the brink of blow-up.
Does all of that mean q new wave OF
reform at home? Or is there q chance
that President Roosevelt will shift his
major attention to world affairs, while
depending upon recovery to solve most
domestic problems2
+
Signs of an answer are becoming ap-
parent. They suggest combination OF
reform at home and insulation against
trouble from abroad. The plan seems
to be-:
First, to throw what moral influence
this country can exert TO the side OF
democracies in Europe and in this hemi-
sphere during the period when the die
tators are in demanding mood. At the
same time to try to build definite policy
of neutrality for use in case the present
arguments result in European war.
Second, to maneuver early Supreme
Court tests of remaining New Deal laws
to determine whether some sort Of con-
stitutional change will be required to full
fill campaign promises and to make 1t
possible to build an effective plan OF
neutrality.
The situation confronting Mr. Roose-
velt is found to resemble in many ways
that which faced President Wilson at the
end of his first term.
Back in 1916 the country had gone
through period Of reform and was pre-
pared to consolidate its advance when
European affairs crashed into the picture
to turn White House attention from
domestic problems to World War prob
lens. Today one more period Of reform
has occurred. with the President in
terested in consolidating his position and
pushing ahead with further reforms at
home. Again foreign developments
crowd in to threaten his plans.
President Roosevelt recently has given
evidence of his concern on that score.
His South American trip served as
IIlSdIlS VI 1CtIl1ls tllC OlSIdIOlo hAAoW SAAoe
the influence of this country would not
be on their side. His approval Of the
currency agreement with France and
| England was evidence of the community
| Of economic interests among the three
powers. His reference to the dangers OF
| "hot money" temporarily lodged in this
country by foreigners. served at the same
| time to warn that if, in spite OF diplo-
matte maneuvers, trouble did develop.
then the United States would try to pull
| in on itself.
Actually, the President sees a very
| favorable business situation at home
| threatened by the prospect OF trouble
| abroad He is endeavoring, II possible,
to ward off that trouble.
But how would trouble in Europe react
| adversely in the United States? Wouldn't
| it really help business through the en-
larged demand for goods?
The point is that the New Deal thinks
| business already has had enough help
| through Government spending and that
| now the problem is to hold in check any
| runaway expansion. Plans are laid to
| end Government borrowing, to tighten
| controls over speculation and to regulate
| credit money supplies in an effort to
| demonstrate that booms as well as de-
| pressions can be leveled of.
| Now if, in the midst of this demonstra-
| ton, European nations should plunge
| into war, the whole experiment could
quickly be destroyed Then the hot
| money" owned by foreigners might quick
| ly be turned into cotton and steel and
| chemicals and other commodities and
| manufactured products for war use. The
| result could readily be an uncomfortable
boom. But the amount Of this foreign
money is limited. Once it was used up
| the United States would face the neces-
| sity of lending more money to the
| foreigners so that they could continue to
buy, or of plunging into new depression.
| Mr.. Roosevelt is determined, if possible,
to keep such situation from developing
He has expressed desire to find means
of controlling the large amount OF foreign
money now over here. His plans call for
a stronger neutrality law, aimed at re-
moving some of the points of pressure
that lead to war entanglements.
Yet right at that point the Supreme
Court and the Constitution enter to pose
the really big immediate problem
If this country is to insulate itself
from the effects of major foreign dis
turbances, then, most officials are agreed,
there will need to be strong Federal
| Government controls in the field OF in
dustry, agriculture and finance. Mr.
Roosevelt feels that a demand for these
controls, II needed. was voiced by a
majority Of voters in the November elec-
ton.
Right now studies are being made OF
plan for Federal Government licensing
and incorporation Of industry In man
ner much more drastic than applied py
the N. r. A.
Further studies are being made OF plans
to tighten up the soil conservation act
into a Federal program Of farm control
fully as effective as the voluntary pro-
gram Of the original A. A. A.
But there is high degree OF uncer-
tainty concerning the prospect OF Su-
preme Court approval for renewed con-
trolls in q field that majority OF the
court holds to be outside the scope OF
Federal power. The chances admittedly
are that at least five out OF nine MEM
bers of the present court would rule
against the right of the National Gov
ernment to exercise control over prob
lens growing out of either industrial OF
agricultural production.
To make sure Of the court attitude
since the election, Government plans
call for q speedy test of cases involving