The Waterbury Democrat., 1937-11-17

S0eO ing personal views and seer
 1. He is greatly disturbed over business conditions and is fearful that they will become much worse before they get better. Roosevelt has told intimates that the Ad- ministration faces the most diff ficult period of its existence.
 3. Despite his economy policy and sincere desire to balance the budget, he agrees with the conten- ton of his liberal advisers that the cessation of government spend- ing was @ major cause for the sudden business recession.
 3. He is pretty well convinced that @ new pump priming" pro: gram will be necessary, but he will not openly take the initiative in advocating 1t.
 Balanced Budget Out
 1. It is his fixed determination to force Congress, and the busi- ness clements that have been clamoring for a balanced budget and drastic curtailment of govern naent expenditures, to take the lead in asking for more money.
 5. Roosevelt believes that be- fore the winter is over such a movement will develop.
 6. If and when 1t does, he Is prepared to recommend that 1t be channeled chiefly through arnla- ments, new railroad equipment, and building construction.
 2. Meanwhile he is benidng every effort to launch a large scale, privately financed housing boom; also to induce the utilities to undertake long delayed expar1-- sion and moderni1ation. To start the ball rolling he will make some concessions on the capital gains and undistributed profits taxes.
 Inner Council Conflict
 Sentiment in the inner White House council Is overwhelmingly for a resumption of spending.
 Thi~ includes Chairman Marri- ner Eccles of the Federal Reserve Board: Secretaries Wallace and Ickes; WPA Administrator Hop kins; Dr. Isador Lubin, head of the Bureau of Labor Statistics; Dr. Leon Henderson, WPA econ- omist; and Lauchlin Currie, Re- serve Board economist. Even Chairman Joe Kennedy of the Maritime Commission, one of the most earnest budget balancers, recently has changed his tune and now believes new spending may be necessary.
 Only adviser still standing grim. ly by his guns Is Secretary Mor- genthau. To him, slashing ex- penditures and balancing the budget are the alpha and omega of every issue and problem. He measures every policy by this yardstick. In the inner council deliberations his unvarying cry IS:
 "When are we going to make
 good our promise to balance the
 budget?" ,t
 This objective has become . fixation with the Treasury head. He considers his personal honor, his standing in history to be at stake. Unless the budget Is bal- anced, Morgenthau is convinced that he will lose his chance to go down in the record as @ great secretary of the treasury.
 Own Boss
 As an old friend and Duchess County neighbor, Roosevelt Is per. sonally fond of Morgenthau. But Young Hefliy's counsel does not carry great weight.
 Roosevelt has disregarded him in the past and will do SO in the future. The Treasury chief will have to take 1t and like 1t.
 IF HE DOESN'T, HIS RESIG- NATION WILL BE SNAPPED UP IN A FLASH.
 The truth is that Young Henry ranks with Attorney General Gum mings and Miss Perkins as the Cabineteers whose exit would please Roosevelt privately. In re- cent weeks he has shown sharp impatience with them. He will never ask them to resign, but if they ever hint they want to go, they certainly will not be begged to stay.
 Flowers and Politics
 The Agriculture Departments chrysanthemum show this year is unique for Q reason other than its rare blooms. Some one with a sense of hunor arranged the flowers in the following groups:
 Mrs. Franklin Roosevelt is flanked on one side by "Mrs. Cal- win Coolidge" and on the other by "President Hoover.
 "Yin Hcng Mi Gwan" (Chinese) AS ,aAvf "a '0Hamv1aM THAAAaW f.IaNnY-