The Waterbury Democrat., 1938-01-28

oOoAAlCOO <1Ot4OOA NOhAANA4, but their meeting with M
 the Federal Reserve BOarC
 This pow-wow took place at night, and did not get into the newspapers. But it was a better story than the White House show.
 The little Uthan, a big-shot banker and business man in his own right, ripped into some of the pet theories of the Business Coun- cil with bare knuckles. He told Roper's Fifty that their demand for government economy was hay wire economics, also that drastic revision of the capital gains and undistributed profits taxes would have very unwholesome effect on business conditions.
 'The only way out of this re- cession," he declared, lis the. restoration of purchasing power. And the only way that can be done is for the government to spend. Demands for further re- duction of government expendi- lures as absurd. Cutting off gov crnment spending was one of the chief reasons for the slump.
 You men also ought to know that you can't balance the budget when the nations income is lunging for the cellar. Such deflationary policy would throw us into depression that would make the Hoover crash look lie picnic. Instead of pruning outlays, the govern ment should spend. A billion dollars expended now not only would end the recession, but in my opinion would be worth ten billion a year from now"
 Eccles was no less caustic about business attacks on the capital gains and undistributed profits taxes.
 There has been more misinfor- nation about these two taxes" he said, than can be imagined. The real fact is that the taxes did not hurt business and are not retarding recovery. Further, if they are repealed there would be serious stock market and business repercussions. Such action would play directly into the hands of spectators and undo much that has been accomplished in prevent ing runaway markets"
 White House Inquiry
 At the height of the lynching filibuster, Jimmy Roosevelt tele- phoned Senator Byrnes of South Carolina, one of the bills bitterest opponents, and inquired:
 Father would like to now what likelihood there is of the filibuster ending"
 Tell him." replied the sena- tor from South Carolina, mot until the year 2038, unless the bill is withdrawn before then" New Jersey Senators
 Senator Smathers of New Jersey was dolled up like a plush horse for the Swearing-in ceremony of his new colleague, John Milton, al- ter ego of Jersey City Mayor Frank -the-law) Hague. Smathers was attired in striped trousers, frock coat and wing CO., lar, with a large pink carnation ill his lapel. But beneath his finery he was 8 very unhappy man.
 The last thing Smathers want ed to do was to escort Milton down the senate aisle to take the oath. What Smathers pri- vately thinks of Milton and Boss Hague would burn up the pages of this newspaper.
 Nominally they are all Demo- crats. but during the 1886 cam paign, the Hague machine se- cretly threw its weight to Smath- CTS Republican opponent. Only the tremendous Roosevelt land slide carried Smathers through to the Senate seat he occupies to- day.
 Privately, Smathers also con- siders the Hague dictated ap- pointment of Milton a solar plexus blow to New Jersey Democrats in this years close elections. With labor violently anti-Hague and the Hague-Mil- ton machine facing an Odori- ferrous investigation by the State Legislature, the Democrats will be on the defensive all down the line.
 That is why Smathers views with equanimity the Senate in- vestigation of Milton's qualifica- tions to hold his seat. If by any chance it should result in Milton being thrown out on his ear, Smathers will lost no sleep.
 Southern Gesture Senator Wheeler of Montana is passing up no bets to push his