Evening star., 1938-03-13
Roosevelt Is Now on
the Defensive
BY OVEN L. SCOTT.

Events here show that President
Roosevelt Is being backed more and more
definitely into the same corner that was
occupied for so long by his predecessor,
Herbert Hoover. The President once
again is almost completely on the de-
fensive.
Congress is out Of hand, just as it was
during the Hoover administration. Any
White House suggestion seems to gener-
ate an automatically hostile reaction in
the breasts Of Senators and Representa-
tives. The same old brand of deflation is
getting in its work throughout business,
with the same kind of painful reaction
that was felt in the early 1930s.
Government finances are as much of
shambles as ever, and likely to become
more so. The railroads are in the same
sort Of trouble as before, only In q much
more acute stage.
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There is the same old White House be-
lief that President can talk the coun-
try out of any kind Of trouble. In place
OF the Hoover prescription for talking
prosperity around the corner, there Is
the Roosevelt prescription for talking
prices back into line so that recovery can
develop naturally.
Just as President Hoover thought that
the way to solve the farm problem was
to hold out the prospect of bigger and
better loans to farmers who might want
to 60 more deeply into debt, President
Roosevelt is holding out the prospect of
bigger and better loans to business men
and prospective home owners who might
ny1f onf Inot to
not they are sure of the income with
which to meet payments on these debts
Both involve the idea that the remedy
Tor TOO much debt Is more debt.
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Where Mr.. Hoover figured that he
mig get recovery by giving European
nations moratorium on war debts, Mr..
Roosevelt feels that he might get recov-
cry by giving much the same nations q
few reciprocal trade concessions and by
keeping the door to China open.
Former President Hoover started the
reconstruction Finance Corp, with its
loans to business men and banks and
railroads. President Rooseveltly started
recently to liquidate that corporation and
more recently decided to bring it back to
full and renewed life.
And SO it goes. across many fields of
Government activity.
But there are differences between the
present administration and that which
preceded It, Government, since March,
1883, has assumed responsibility for relief
OF the unemployed, 1t has created a sys-
tenn OF bank deposit insurance, it has
worked out plan for control of agricul-
ture, 1t did establish a social security sys-
tenn and 1t has created planning agencies
ike T. V. A., even if some of them now
are something OF pain in the presi-
dental neck.
Also, at the moment, Congress is be-
ginning to wonder if Mr.. Roosevelt NAV
not refuse to stay put, now that he has
oeen maneuvered into a corner There
even is more than suspicion that the
PRESIDENTS retreat may involve definite
design.
President Roosevelt obviously is toss
ing tne ball OF leadership to business
and to Congress.
Leaders in business have been told bv
the PRESIDENT personally that he seeks
oasis OF cooperation between business
ana government. He has given assur-
ance that the White House at this time
lhtenos no new pump printing ventures
ana no new experiments OF a sweeping
nature. In spite of all the talk to the
contrary, there Is no plan for an anti
nonopoly crusade and no early prospect
~. femooeLng the antitrust laws in an
enort to put more teeth into them.
Mr. Roosevelt is pressing for some kind
VI agreement with the public utility in
uustry ooth IN the field of holding COM
pany legulatlon and in the field of Gov
ien. aIln electrlc power development. The
.nst oepenos upon the Supreme Court
oeclslon on the Governments HOLDING
Company Act, and the second unon the
outcome OF negotiations to start this
coming week.
furthermore, Congress is told that the
snesu.ive ;.,st;o mas no further important leg
1Sia.iVe Joos TO be done at this session.
me senate ana House are free to write
any hlno OF TAX law they want to write
.ue' 50 IL ylelos as much revenue as the
YAK laws 10 which violent objection has
oeen mace py business. The President
wants law to place bottom under
wages ana top on hours of work in in
oustry, but he is not going to fight for it
ae tnls time. The same holds true of
plans 1or remodeling the Federal Gov
ernment In order to get more efficiency.
Inere Is an acute railroad problem.
Mr. Roosevelt intends to find out what
congress would like to do about that
problem. Maybe he will let Senator Bur.
ION Wheeler-who is 50 critical of every.
thlng the White House does-try to work
out that one
The idea definitely is to give business
men and Congressman their chance to
solve the riddle of the present depression
Both contend that all that is needed
70 produce lasting recovery is to change
tne TAX laws and to provide assurance
tnat washington is not going to create
new hobgoblins to frighten employers.
This assurance is being given. Tax laws
are being altered to suit the taste Of
nearly all of those who have COMPLAINED
most bitterly.
furthermore, the administration has
provided business with the sort of nous
ing law that 1t wanted. The R. G is
oack IN the business of making loans to
employers who are good risks. Increases
rehe1 is shifting to Government the bur.
oen OF caring for many of those not cared
!or oy private industry. Battleship build
Ing Is to be extensive enough to provide
many orders for the depressed heavv IN.
ouStrles. Agriculture is kept from being
orag on industry by new Government
controls. ''eAA'
In other words, the way is omen for
Uongressmen and business men to show