Evening star., 1938-06-17
Congress Retreats.

ton last winter intent upon steps to halt
the business recession" quilted last
night with the recession now a full
fedged depression.
1t has armed President Roosevelt with
a $500 100000 fund to bring about relief
and recovery-the so-called spending
lending bill" This is the pump-priming"
bill. 1t has come, however, to be regarded
as political measure, designed to affect
the congressional elections next No.
vember.
The business world, and many, many
Americans outside that world, have grave
doubts that the administration can spend
the Nation either out of the depression
or out of debt. They have seen it tried
before by President Roosevelt without
permanent results, other than the erec-
ton of great political bureaucracy,
intent upon perpetuating itself in power
and feeding upon the very vitals of the
Nation.
When Congress returned to Washing
ton many members of the House and
Senate felt strongly that something must
be done to relieve the situation. Their
thoughts turned toward revision of the
Roosevelt tax laws, which had proved
unwise and detriment to business. They
turned also to an assurance to business.
to all the employers and the employees
in the country, that the Government did
not intend to seek further control of
their affairs, and that business would be
permitted to 60 forward. They were in
tent upon removing the uncertainty and
fear of industry which had been due to
the uncertainty and fear of what the
administration might do.
These were the thoughts of members
OF Congress. They were not the thoughts
OF President Roosevelt and his inner
circle of New Deal advisers. The Presi-
dent insisted upon the enactment of his
crop-control and wage-hour proposals.
These measures were looked upon askance
by many, who believed that they we're
Just another way of putting the heavy
hand of Government on the industries of
the country, both agricultural and manu-
1acturmg The President resisted amend
merts to the tax law which would repeal
the undistributed profits tax and mate
rally change, if not repeal, the capital
gains tax.
In addition, the administration I'M
leashed several spokesman, including
Robert H. Jackson, now Solicitor General
OF the United States and Secretary
Harold L. Ickes. They attacked Ameri-
can business, although they sought to
discriminate between wicked big business
and small business The attack regis
tered, however, as against business big
and little. Some Of the charges went so
far as to assert that business itself had
brought on the new depression, in an
effort to discredit the administration and
Its New Deal The reaction to these
speeches was not all that the admins
tration desired and a softer pedal was
applied.
1t was clear early in the year that
Congress was not as docile as it had
been in previous sessions. Evidence of
this fact was given on two major meas
ures, the Presidents reorganization bill,
Which reused the "anti-dictator" Juror
throughout the country and the tax re-
vision bill. The former was shelved by
the House after it had passed the Senate
by close vote. The latter was finally
written in such form that the Presi-
dent declined to sign it and allowed it to
become law without his signature.
The President, however, played his ace
card few weeks ago. He called upon
Congress to appropriate billions of dol
lars for relief and recovery, the old
pump printing game. Congress, which
does not believe that recovery can be
obtained by such means and which is
fearful Of this ever increasing debt, ney-
ertheless was unable to oppose the
$4, 4,500,000,000 program advocated bv the
President. This included the 81 500, ,OO0,-
600 R. F. c. loan authorization. 1t could
not oppose because it could not resist an
appeal for funds to feed the needy. Nor
could it resist the idea that a huge
spending program would make re-elec-
tion easier next fall With the introduc-
tion of this bill the Presidents ascendency
on Capitol Hill revived.
There followed also a revival of the
wage-hour bill, which has been consid-
esed likely deterrent to business ex-
passion and recovery, although the
President takes the opposite view. Here
again was reversal of form on the part
of the House membership, which fell
over itself to do the Presidents bidding
on the bill it had shelved last December.
The crop-control bill, with its theory
OF scarcity and curtailed production, was
enacted into law early in the session.
1t, too. will add about half billion dol
lars to governmental expenditures.
Probably the session now closing will