The Waterbury Democrat., 1937-05-10

y
 Everybody in Washington is for economy: the president, con- gress, treasury, federal reserve board, republicans, everybody. But no one is doing a thing about 1t except talk. Appropriation bills continue to click through with regularity, with but inconsequen- tial savings or none at all.
 To date the only economizing worthy of the name that has been achieved is the loping of of a $37, ,000,O0 construction item from the $526, ,0OO, 900 Navy bill. On the $415, 100000 Army measure the only pruning that congress seemed to find possible was the excision of $700,00O in pay in- creases. Next to relief, tho expen- ditures of these two departments are the greatest in the govern ment.
 The failure to do any appreci- able budge trimming so far does not mean that an economy pro gram will not be enacted this session. Such action is both possi- ble and likely. But how and where, no one in authority is ln a position to say. Economy Chaos
 This chaotic situation is due to a tumble within the administra- ton and in congress. The presi- dent, torn by conflicting counsel among his advisers, has not made up his mind what to do., And congress, lacking White House leadership, is in an even worse stew.
 On the senate side there is considerable sentiment and agita- ton for a fiat 10 per cent reduc- tion of all appropriations. On the house side most of the leaders lean to proposition that would give the president power to im- pound up to IS per cent of appro- priations after they have been voted.
 This neat scheme simply means: Eat your cake and have it too." The boys would be on record both for voting appropria- tions and for economy-with the buck passed to the White House to make the actual savings.
 Inner Circle Turmoil
 The turmoil in the inner circle is dominated by two schools of thought on the economy question.
 ONE, led by Relief Adminis- trator Hopkins, Secretary IcksS, and Secretary Wallace, is strongly opposed to any drastic curtail- ment fof. government expenditures. They contend that slashing the budget is deflationary and in direct contradiction to the funda- mental theory. of New Deal eco- llornicS- ito rediStribute wealth by spending, raising I the m oney through taxation on the profits and dividends iaccruing from the resulting recovery. '
 Not reduction of expenditures but increased taxes is the advice of this group. ~;
 THE SECOND SCHOOL, co1n-a prising Secretary Morgenthau, Reserve Board Chairman Eccles, and REC boss Jesse Jones, insists that the time has arrived to clamp down on free spending and to balance the budget. It Is this group that, indirectly, is flaming the flames of economy clamor on Capitol Hill.
 On Both Shoulders
 Personally, the president in- clines to the Hopkins-Ickes-Wal- lace viewpoint.
 At the same time, however,
 he strings along with the sec
 0nd group to the extent of
 wishing to balance the budget.
 He had hoped to accomplish
 this double aim through the
 1886 tax bill, which dug into
 undivided profits. That is, he
 expected to be able to keep on
 spending and yet to balance the
 budget by an increased tax in-
 come.
 The failure of anticipated rev. enue to come up to expectations blasted this water r-on-both shoul- ders policy, and forced the administration to choose between reducing expenditures in order to balance the budget, or maintain- ing the spending rate and having another try at raising still more taxes.
 Apprehension that in the end Roosevelt will turn to this second plan is giving the boys on Capitol Hill the jitters. Facing an elec- tion campaign next year, the thought of new tax bill sends cold chills down their spines. So they are beating up the drums for economy, hoping to ballyhoo the president into taking the lead in some kind of cost-slaShing program.
 Too Vague
 The House, as has been its practice almost daily of late, was debating economy with vim and vigor. Member after member took the floor and thumpingly de- OFF THE RECORD