The Waterbury Democrat., 1936-04-21

| Spur.
 Washington, April 2l.-Are the big industrialists and financiers- almost unanimously hostile to the Roosevelt administratoin-beginning to cave in?
 There are signs of 1t, although in- sufficient to inspire any conclu- sive generalities. One might predict, however, with a reasonabel amount of conviction that something resem- bling an olive branch, not to say white flag, may soon be poked up from the rammpartS of Manhattan.
 Many of ROoseveits big busi- ness enemies are said now to be sold on the probability of his re- election. Confidence among New Dealers runs so high that they're talking about "what we can do after election"
 Some republican politicians con- cede privately that Roosevelt strength has increased lately and stress the possibility that breaks" will turn the tide. The boys with the money bags are willing to spend plenty to beat Roosevelt if they can be convinced there's 8 fair chance. If they de- eide it's hopeless, they won't spend nearly as much and some of them will be willing even to contribute to the Democratic war chest, to be on the winning side.
 Trust Strategy Changing?
 Take, for instance, the public utility companies. Recently this writer observed that huge sums spent in employing John w. Davis, Newton D. Baker, the late James M. Beck, Sullivan & Cromwell, and many other lawyers to fight New Deal power policies in the courts weren't doing much good, as witt ness defeats on IVA, PWA power plants, and the holding company act, against which $20,000,000 was spent in lobbying even before the battle was transferred to the | courts.
 Word now comes that the Dow CT trust" people have been nOtic- ing exactly the same thing. Hence, strategy is changing and there's a move on in favor of trying to trade" with an administration which the industry figures 1t will have on it's neck for more than four years longer.
 If a close inspection of the Re- publican candidate and his chances proves discouraging, the Democrats probably will have chance to pick up some campaign money from this source.
 Assuming, of course, that there's some assurance of more reason able" administration attitude, es- pecially as to the death sentence" in the holding company act.
 
 A Shock in This Speech
 For a straw to show the winds direction, you might take the speech of Russell c. Leffingwell in New York the other night, which then attracted little attention. Lef- fingwell is partner in J. P. Nor gan & Co.,, and close friend of Senator Carter Glass of Virginia, once vitriolic New Deal foe.
 'If there be anyone inclined to OverSimplify the problem of find ing a happy solution by simply saying balance the budget" said Leffingwell, "let him bear in mind this paradox-a government can not balance its budget by edict; 1t cannot extract blood from stone nor gain revenues by deflating the national economy"
 Leffingwell said that going off gold was necessary and grimly inevitable; that government aid in a vast scale continues to be necessary" as a result of continued great unemployment; that govern ment can balance its budget only by enriching its people, not by im- poverishing them; and that gov- ernment must intervene to relieve the sufferings of the people,"
 
 Sounds Like New Dealer
 Leffingwell reminded his hearers of "the depth of economic despair from which in three years we have emerged" and said the administra- tion policy had put an end to de- flation, brought about some meas ure of recovery, achieved monetary stabilization, and provided necessary relief"
 Citing national debt figures, LeffingwelI declared: ''The credit of the United States and the re- sources of the American people are so great that the financial risk involved seems even now, after five years of mounting debt, quite remote"
 Sound like a New Dealer? Well, most of those who have read the speech are gasping for breath.
 
 G. O. P. Needs Spur
 Don't take this dispatch as any, thing like the last word. The great Republican need at the moment is to create a victory psychology in anti-New Deal ranks and get those forces lined up for real battle.
 That may or may not be achieved and the breaks" against Roosevelt may or may not come.