The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1938-06-07


pack up their
Paul Mallon views and go
home,
They are indicating more or
less openly to those whom they
trust that they will find the
first good excuse to slip out
quietly.
The Presidents tax bill state
ment seems to have irked them
most. The Oliphant Cohen
Corcoran school is supposed to
have advised him on that one.
Coming on top of the anti
monopoly message, dictated by
the Thurman Arnold-Bob Jack
son school it seemed to consti-
tute a new philosophy for a
new, new, New Deal, which left
practically all the other ad-
ViSers out in the cold.
Good Politics, But
THIS new, new, New Deal, as
i the dissatisfied ones view it,
will be founded on spending
lending plus continued agita-
ton against business. They be-
lieve this will, or already has,
restored Mr.. RS political leader
ship, but it has not and cannot
restore his economic leadership.
They think it will be success
full politically. but not economi-
cally; it will win elections, but
not restore business.
Their discarded recommends
ton was to stop sticking pins
into business and by various
means to encourage the hope
for profits in business (rail-
help, housing, utilities peace.
etc.. Their battle cry is you can
not run a profits system with
out profits, and that all the
antimonopoly, auto-sales and
other reforms will not even &C.
complish the purposes for which
they are designed, unless profits
prospects are first revived.
It is not possible to name
names, yet, but a facetious wag
broadly summed up the inside
situation recently by saying:
IF things keep on as they are
going, it will probably be safe to
say Mr.. r. will be left with Cor
coran, Arnold, Roper and
Jimmy" .
u. S. As World Savior
A BIG free and full economic
IA discussion which got down
to the tip of brass tacks was
staged by the Federal Reserve
Board crowd a few days ago.
The occasion was a speech by
Prof. Culinary Myrdal, a Swed-
ish state senator, boardman of
the Swedish central bank. 1t
was an executive session Of FRB,
but some outside officials were
invited, including some members
Of the House and Senate Bank
ing Committees.
Myrdal's base plea was that it
Is up to the U. S. to save the
world from another economic
catastrophe, not by foreign loans
or any international political
maneuvering, but simply by set
ting its own economic house in
order at once.
He startled his hearers by say
ing the economic strength Of
other countries will become ex-
hausted very soon. He thought
the people here were miSled as
to existing conditions, solely be-
cause our banking structure is
liquid and strong this time.
your banks are so full Of
money that you might be
tempted to use your strength to
prolong the situation at our ex.
pense," he said. TN that case,
the U. S. will be Saddled with
international collapse from
which no one will soon recover"
In the questioning at the end,
Myrdal made several points
which seemed significant as an
outsiders objective viewpoint:
That industry and government
have so little confidence in each
other, that the U. S. has too
many banks, and that lit is
clear to me one of your greatest
aspirations should be to combat
the fear psychology that is
rampant"
Initiation Talk
MUCH sub rosa initiation talk
WI is going around, but Treas
ury Secretary Morgenthau's
statements have generally ex-
posed the lack of foundation for
it. Some fears have been ex-
pressed that Administration
sponsorship lies hidden behind
the new Logan bill and the new
activity Of Senator Thomas, Of
Oklahoma, is agitating the
money question. (Mr. Roosevelt
Is supposed to make speech
for Thomas in Oklahoma this
summer
However, downtown top
sources handling the money
question all deny 1t has even
been remotely reopened back
stage.