The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1939-06-08
ECONOMIC HIGHLIGHTS


The Presidents address to the Re
tailers' Federation was amlable ana
in tone. But, ac-
cording to the washington observ-
ers. it was far from being non-ag-
pressive in intent It definitely COM
mited the administration to a con-
tinuance of the spending policy
and, the words Of the washington
team of Alsop and Kitner, it 'read
out Of the Democratic party all
those who do not stand with him
on that issue"
As everyone who reads the news
papers knows, quiet but extremely
important war" has been going on
within the White House circle. On
the one side have been those who
favor q reduction in spending, and a
revision of our tax laws in the light
Of business requests. Leaders of
this group have been Secretary OF
the Treasury Morgenthau, Assist
ant Secretary Hanes and RFC
Chairman Jones.
l. Pitted against these men have
been those Administration aides who
are usually considered of left-wing
persuasion. Best known are Cohen
and Corcoran. Neither of this team
occupy Federal jobs of any great
Importance but they have long
welded a tremendous influence in
the White House. They have a siz-
able group of followers, scattered
among all the departments of the
government, especially those which
were brought into being by this adj
ministration. ....
The internal struggles lasted some
time. "Now," to quote Alsop and
Kintner once more, "the struggles
In the palace seem to be at an end.
The spenders are triumphant. AS
reported by several trustworthy Cap
itol newsmen, the advocates of a
slow-up In spending were hardly
consulted during the preparation of
the Presidents speech to the retail
ers.
The significance OF all this is ap-
parent and 1t affects not only the
affairs Of today, but the affairs of
tomorrow. It appears that Mr..
Roosevelt, In seeking the elusive key
to recovery, has definitely decided
that continued government spending
on big, and perhaps even increas-
ing scale is necessary-that spend
ing must be accepted as a more or
less normal function Of the gov
eminent, as well as an emergency"
function. And, in all probability, it
means that the political battle OF
1910 will have spending as its CEN
trail domestic issue-and issue OF
overshadowing all others, save, per-
haps, that of war.
The Republicans, Of course, are
committed to certain amount Of
economy, and they will naturally
use the issue to the full in seeking
TO unseat the Administration. And
the Democrats are far from being
unanimously committed to spending,
In spite of the Presidents apparent
decision. The conservative wing Of
Southern Democrats is strong for
retrenchment, and it has enlisted
powerful supporters from the mid
western wing. And opposition to the
White White in Congress Is obvious
ly increasing. .~~u.
What this adds up to is that Mr..
Roosevelt Is putting himself in q
position where he can lead new
party Though it might keep the
Democratic party name) whose
principal appeal would be to the
spenders and experimenters. Wheth-
er he wants or intends to do this
Is Of course another question, and
one which cannot yet be answered
Some think he is really preparing
to read the dissenters in Demo
cratic ranks out of the party. This
too, cannot yet be said to be &
known fact, and also it is certain
ne would run into many problem!
in trying to do it.
At any rate, the political line
that will divide the opponents mex
year become clearer and better de-
fined. Clearer, too, becomes tn