The Waterbury Democrat., 1937-12-28
!. BEHIND I THE SCENES WASHING ON g RoUVagv DvTchER-d Democrat Washington
 Correspondent
Ips News, This Reason That WPA's Chief Economist Gives for the LateSt Recession .. and His Words Garry Plenty of Weight.

Washington, Dec. 28-"Lack of confidence" is so often said to be c fundamental factor in the business slump that it's Q news Item of the .bites.dog type when anyone says that "too much confidence" rather than not enough, was one of tho recessior's major causes.
 If you believe that overexpanded inventories had much to do with the drop in production, you're likely to be impressed by this argument now that pertinent figures on inventories are available. These figures indicate that the largest corporations had larger inventories last September than they had In 1929.
 Blames Too Much Buying
 "The plain truth of the matter
 Is that business in general had too
 much confidence, and Speculsted
 in inventory buying" says pr.
 Leon Henderson, chief economist
 of WPA. "When ' corporation Is
 uncertain about the future, N d0es
 not buy materials, supplies and
 new machinery. Business went
 bilndly ahead even when many storm warnings were signalling
 that the great mass of consumers
 lacked purchasing power to take
 thelE goods of the market"
 Rendezvous words have been car. rying plenty of weight in Washing ton since ile predicted the business recession, with startling accuracy, many months in advance. He gets mad when anyone calls it "the Hen- derson depression" as some facetious commertators do.
 According to HenderBon'S tabula. tiong, 50 large corporations with to- tal assets of 1i,330, ,3OO,0 900, had in. yentories valued ct 32,466,000 at the end of 1929. But at the end Of last September, even though the price level was considerably lower, these inventories amounted to 1286, ,606,0 900.
 Those who are optimistic about business prospects are sure that ill., dugtrial activity will pick up when inventories get worked oh."
 The "Why" Kennedy
 Tn past years no president ever considered sending an Irish Catholic ambassador to London because relations between Eng. land and Ireland are always 50 delicate, But the appointment Of Joseph P. Kennedy to the Court Of st. James may turn out to be q good idea-becaige relations be- tween England and the Irish Free State are still delicate.
 For one thing, the British
 wouldn't think Of suggesting that they would just aS soon not have an SPishman. They need . united Empire front jD the fsce of the European situation, asS0 tbey
 esnf sffOYd tO sfsFont ST Irish
 government which still keeps sticking pins jn the British gOv.
 eFnment. (The Istest incident Ss the dispatch Of aB Irish Free State minister tO the JtsIisB "Ems peri0r Of Ethiopia" in R0nse.)
 Furthermore, the U. 6. govern- ment is anxious that Britain be able to face Germany and Italy without worrying about Ireland, and it E believed KenpedyS ap. pointmept, and perhaps his subse. quent activities, may help improve AngjO-Irish relations,
 Oniy Four or Five Days
 Friends Of anU-IyDcbipg iegis. IatiOn are almost g hundred per cent convinced that they can get the Wagner Van Nuys bill through tine Senate soon after Congress rec0Dycpes jn regular sessteD. Tine measure is on the preferred list and will come up at once, 4 somewhat similar bjIi has passed the House.
 s0Be GjI)busteTjBg jS snticipa.
 ted, but lobbyists for tbe meas
 are believe that southern snem- bers snost bitterly 0pp0sed gre %
 certain Of eventual defeat that
 they went talk more than four Or five days st the meSt
 Senator James F. ByrpeS Of South Carolina, an opposition leader, privately has conceded that the btII will pass. Senator Tom C0nnajJy Of Texas, previously one Of the longest, lOudeSt fiItbiisterers against It, has said:
 We realize that we cannot postpone action forever. We reaI- lze that sooner or later we are to be Iyncted under the name Of Ianti-lyncbj1g' :"