Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-12


much cheered by Mr.. Roosevelt's atti-
tude. They are deeply gratified, of
course. by Secretary Morgenthaus
speech, but the whole situation has
taken on better atmosphere in the
last few days.
Fleeing together what has hap
pened, the situation looks about like
this:
/. The administration and the utili-
ties are engaged in a series of peace
making maneuvers designed to set in
motion spending program of $780,
100000 a year. The effect of this on
electrical industries, and upon raw
material producers who supply the
ingredients of utility construction is
expected to be quite considerable,
though unfappily it will be several
months before loans can be floated
and blueprints approved.
z. The administration is soft-pedal-
ing the seven T. " A." idea and
fatty declaring against any more P.
w. A. loans. This is an indirect, but
nevertheless significant answer to the
cry of the utilities that the Govern
ment is competing with them and
lending public funds to stir up compe-
tition through municipal ownership.
Monster Building Drive.
3. The administration is ready to
get behind an enormous building drive
such as this country has never before
witnessed. 1t means that the Federal
Housing Corporation machinery will
be used to extend the plan whereby
the banks and the Government have
co-operated in floating mortgage loans.
Government officials think they can
bring down the cost of insuring the
loans and this is equivalent to reduce
ton in the cost of floating the loans
because the citizen in getting an
F. H. A. loan finds interest and
finance charges Jumped together.
4. The administration is giving
thought to the problem of reducing
construction costs. This can be done
perhaps by putting workers in the
building trades on an annual wage
system. Something of this sort has
been discussed by President Roosevelt
and William Green, president of the
American Federation of Labor. The
conversations are significant of the
Presidents recognition that labor
costs cannot keep on going up if con-
structions is to be encouraged.
S. The administration has given ex-
plicit assurances with reference to a
balanced budgetary program. Business
wants balanced budget as soon as
practicable, but up to now there has
been no earnest effort in that direction
6. The administration has sent word
to congressional leaders that construc-
tive tax revision must be the order of
the day. BY this is meant no reduction
In total tax revenues, but distribution
of rates that does not interfere with
business incentive or expansion of job
creation.
Moving on All Fronts.
Taken all in all, it may be said
that the administration is moving on
all fronts. So determined is the
President represented as being in his
tdlho Will CdlleIS tlldJ one WOIlQerS
whether at the time Mr.. Roosevelt
delivered his fireside chat few weeks
ego he was familiar with the extent
to which business recession had set in.
All the plans being discussed now
will take some time to put into effect,
but the vital and important fact is
the present psychology of encourage
ment to business so that unnecessary
retrenchment and panicky slashing of
pay rolls and expenses will not take |
place. Some evidence that even where |
volume and profits were continuing,
business men without rhyme or reason
began to cut budgets has come in
here. Justification for such action was
found. of course, in the fears of ad-
ministration policy. Nowadays with
the one-man control of governmental
affairs. it is natural that business shall |
watch for presidential action. The
markets have gone Up when Mr. Roose-