The Waterbury Democrat., 1937-12-17

CIl6 way IlS CIldt1lP1OI1S UL debates over White House | They claim the Presidents eldest son and secretary is urging prompt and drastic relaxtion of the capi- tai gains and llndistributed profits taxes, hefty pruning of relief ex- penditures and abandonment of the hostile attitude toward utili- ties.
 They also credit Jimmy with putting over the appointment of John w. HaneS, Wall Street broker, to the SEC.
 According to his freinds, Jimmy is not merely pleading the cause of business but is militantly op- posing the counsel of other advis- CTS of the President. They say he has clashed with Secretary Morgenthau over the tax issue and with other insiders over re- lief and utilities.
 Backing him to the limit is his close friend and fellow -BOs- tonian, Joe Kennedy, chairman of the Maritime Commission and the next U. S. ambassador to London.
 Intensely devoted to the Presi- dent, the brilliant, two-fisted Irishman carries great weight in Roosevelt's councils. Kennedy is no Old Guarder, but he frankly and openly favors a more moder- ate policy toward business under present recession conditions. San Francisco Feud
 Jimmy was able to put over his good friend Hanes thanks to a bit- ter San Francisco feud.
 First choice for the SEC job, af- ter 1t was decided in the inner council to bracket a broker with the militant New Dealer Jerome Frank, was Frank Shaughnessy, head of the San Francisco Stock Exchange.
 Politically he was a bull's-eye choice, being both 8 Catholic and westcrner. Neither is rep- resented on the commission.
 Appointed simultaneously with Frank, a Jew, the combination would have done much to offset the Black-Klan incident.
 But, suddenly. a fellow San Franciscan intervened and blocked Shaughnessy's selection.
 He was A. P. Giannini, potent chairman of the Transamerica Corporation, and the only lead- ing banker who supported the President in 1886. Giannini and Shaughnessy have been bitter business enemies for several years. Last spring Shaughnessy barred Giannini stock from the San Francisco exchange. A cornpro. mise was worked out, but the vendetta between the two. men continued. So when Gianini got wind that Shaughnessy was No. man on the list for an SEC appointment he pulled strong political wires and his rival was shelved.
 Jimmy then came forward to boost John Hanes.
 British Ambassador
 The day the Japanese bombing of U. S. and English gunboats, Sir Donald Lindsay, British am- bassador. called at the State De- partment for @ conference with Secretary Hull. While waiting to be admitted, Lindsay was briskly questioned by excited newsmen.
 But to all queries he replied with bland evasiveness. until finally one of the reporters re- marked:
 MT. Ambassador, can you think of any other question we could ask you?"
 "No." replied Lindsay smiling broadly, T don't think can. And can you think of any more evasive answers could have given you"
 War Debts
 Linked with the war debt payments due last Wednesday is important little joker proposed for inclusion in the British- American trade treaty, now under negotia- ton.
 The plan is to include in the trade treaty a debt clause by which the British definitely recog- nize their war obligations and undertake to pay them off.
 This would lift automatica the prohibitions of the Johnson Act and permit the British to borrow money in the United States.
 However, debt recognition has a very important string attached to 1t. The debt would not be paid in gold but in goods. At first blush this probably would not set well with the American public. But the British are putting up a very good argument.
 They contend:
 1. That they have little gold,
 that the U. 8. is glutted with
 1t, that more gold would only