Evening star., 1937-04-04
Roosevelt Seeks Answers
to Important Questions
BY OVEN L. SCOTT,

Inc erect on MS principal alQeS IS TO
cause confusion worse confounded, ac-
companied by bad case of the jitters.
Ever since Mr.. Roosevelt started to
experiment, visiting celebrities regularly
popped the question: Just where is the
President going and how does he in
tend to get there? Each administrator
of an experiment has had a different
answer concerning methods, but all
agreed that the goal was the more
abundant life.
That goal seemed within easy reach
SO long as the money held out. A simple
operating formula called for any squeak
ing wheel of the Nations economy to
get the grease Of a very pleasant subsidy.
But suddenly some of the Presidents
key advisers are raising doubts about
the effectiveness of this spending method
as permanent cure for the countrys
principal troubles. They themselves are
beginning to ask: What happens when
the money runs out? Is there anything
to show that all of the spending and
all OF the experimenting Of the last few
years promise escape from repetition
OF the troubles of the past?
At the moment Mr. Roosevelt is hold
ing OF questioners with the observation:
We can tell better what the future
holds once the Supreme Court lets us
know where we can 60.
Mariner EccleS, chairman of the Fed
eral Reserve Board and author of much
basic New Deal theory, wants the
President to tell him two things. He
wants to know, first when Mr.. Roose-
velt is going to get the Federal budget
under control and. second, what steps
are going to be taken to keep foreigners
from dumping great quantities of gold
into this country to add to the worries
OF the money controllers.
The President apparently wishes that
he could give an answer to both ques-
tions. Neither is dependent in any
direct way upon what the Supreme Court
does to the New Deal or what the New
Deal does to the Supreme Court. Yet
an answer is not forthcoming.
The trouble in the first instance is
that, for some reason or other, the
greater the degree of prosperity, the
larger become Federal Government ex-
penditures More dollars flowed out of
the Treasury in the first nine months
Of this fiscal year than flowed out in
any similar period since the depression
began. Not only that, but fewer dollars
than anticipated are flowing into the
Treasury from taxes on incomes. That
means continued deficits and continued
Government borrowing unless taxes are
raised or spending is curtailed. Mr..
Roosevelt recently said no more taxes
are to be sought, and Congress keeps
on adding to expenditures.
Also, Mr.. Roosevelt has tried to give
him an answer on his second question
The President agrees with the Reserve
Board chairman that "hot money" from
abroad-about $1,000 100000 worth-is
an acute problem. He, too, wonders
what is to be the ultimate effect of
gold reserve already above Sl1 500 900 900
and still growing. But Cordell Hull,
Secretary of State, objects to doing any
thing that might upset his international
trade plans, and anyway controls in this
field seem next to impossible.
Just as Mr. Eccles has his questions
so has Henry Morgenthau, jr, Secretary
| Of the Treasury.
Mr.. Morgenthau thinks that the con-
| tinued harping of Mr.. Eccles on the
| subject of a coming boom may keep
| that boom from coming. And If there
| is to be no boom he wants to know where
| the profits are going to come from to
| provide the Treasury with the vast
quantity Of tax revenue needed to meet
| the Governments operating expenses.
| Also what about all of these new plans
for spending money-a few million here,
1
| another place?
| Promises had been made to the Treas
ury Secretary that spending was to be
taken in hand. But State governments
objected to relief rolls cuts, the flood
added to relief COSTS Senators decided
that farmers should have crop insurance
slum clearance appeared attractive and
higher prices, spreading through indus
try keep Government dollars from going
so far.
The result is that Mr.. Morgenthau
stays out on limb, waiting for his
answers about the budget and about
taxes.
Then Harry Hopkins is nearly always
found at the White House door with a
big variety of questions about the un-
employed.
What about the plan to cut 100000
from the w. P. A. job projects? Where's
the money coming from to pay for relief
costs in the flood districts? Who should
take care of the million or so persons
out of jobs in industry but not able OF
not wanting to qualify for local relief
that would open the way to w. P. A
jobs? Is there to be permanent policy
on relief?
About the only answers so far ad.
vanced is that the budget for next veal
will include 81 SOC, 100000 for w. P. A
That total is expected to carry at least
until next January when Congress agair
will be on hand. But SO far there Is nc
answer for the multitude of questions
that grows from the unemployment
problem.
At another point, Reserve Boarc
Chairman Eccles cautiously raises 9
question about John L. Lewis and the
stirring in the ranks of labor. He woulc
like to know how wages can be raisec
and hours of work shortened unless
those moves are based on labor's in.
creased productivity. There is an i'm.
plication that some of the leading New
Dealers are wondering whether a new
N. R. A. drive to spread work by Short
ening hours may not force industrial
prices still higher and lead to the sort
of collapse that came after the 1913;
price rise.
Mr. Roosevelt is not offering answer.