The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-06-17
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happens that the real argument is
on the side of Mr.. Roosevelt. Either
he needs the whole amount for re-
lief or he does not and there is little
sense in the house taking a run
around the rosebush to cover feel
ing of revenge. Thus, the house is
shown in rather bad light. If it has
spunk enough to spank Mr.. Hopkins
and if it does not believe that the
President needs the full amount he
has requested, then why does not
the house approve of only billion
and stick to that position?
There is another phase of this
house revolt on relief funds that
ought to be examined. I mentioned
earlier that the members of the
house and senate no longer expect
ed political plums from the White
House. Now they are trying to get
close to the political pie counter
in another manner. If they can get
part of the relief funds allocated
for permanent public works, they
have their shouts in the political
trough of the old pork barrel.
There is a natural reaction for
politicians when money is to be
passed out and the house has been
displaying that reaction to the full
est on the relief funds. The PROPOSE
ton, simmered down, IS, however,
that the time has long passed when
pork barrel methods can be tolerat-
ed in congress. It is not a sound
principle of representative govern
ment and it is not economical.
On the other hand, it seems to me
that Mr.. Roosevelt cannot escape
responsibility for revival of the pork
barrel custom. Throughout his first
term, he allowed congress plenty of
pork barrel packages and now that
he is attempting to stick through
his own ideas without providing the
usual sop for congress, the poiti-
clans resent it.
While the congress has been fuss
ing and tuning over legislation, in
downtown Wash
treasury ington, the Treas
in Trouble ury is finding its
job more and more
difficult. Last week, Secretary Nor
genthau found himself in a position
where he had to go into the money
market for an additional eight-hun-
dred-million dollars. He offered new
government bonds in that amount
and from the proceeds of their sale,
he will have in the Treasury suffi-
cient funds to keep the government
going. incidentally, this new loan
will put the national debt almost to
thirty-six billion, the highest point
in all history.
The Treasury's latest borrowing
Of new money caused some sur
prise because it had been thought
that the June Is income tax pay
ments would put the Treasury's bal
ance sufficiently high to carry the
government for another month or
two. Notwithstanding Mr.. Roos-
evelt's declarations that govern
ment expenses must be cut, they
are continuing to expand and, con-
sequently, it has been necessary to
borrow more money in order to
keep the machinery of government
operating.
1t is impossible to discuss the la
test Treasury loan without linking
to it the question of the admin
istration's gold policy and. it is i'm
possible to mention the gold policy
without relating that the United
States now has more than twelve
billions in gold. The United States
thus has approximately one-half of
all the gold in the world. This would
seem to make our nation the richest
in the world, but having all of this
gold stock is a very expensive prop
osition under the administration
gold policy. For one thing, the care
and handling of it is an item of cost
that is tremendous.
No one seems to know how the
administration will untangle itself
from the gold policy. If the United
States continues to maintain the
present price of gold, just so long
will other nations ship gold to the
shores of America. We have seen
gold entering the United States at
the rate of sixteen million dollars
day for some days. Of course, that
is an abnormal rate but the imports
have been so high that presently,
if the present pace is maintained
we will have all of the gold and its
value will be questionable as fac
tor in trade.
From foreign sources come
rumors that many of the banking
interests abroad are perfectly will
ing to unload the bulk of their gold
on the United States. In so doing,
they put themselves in a position
to bargain effectively with the Unit
ed States whenever the time comes
for world nations to discuss money
sterilization. The United States at
the same time is pressed in posi-
ton where it will either have to
make concessions to foreign nations
in trade arrangements or it will
have to draw itself into its own
shell and forget that it ever had
any foreign trade. I do not know
what the answer will be and / do not
think it is possible for anyone at
this time to correctly forecast what
course can be adopted to extricate
the United States from its over
dose of gold
W.