Evening star., 1939-03-26
Fate Of Hopkins
Plan Depends
On Roosevelt
Business Leaders See
Need for Action by
Next Friday
BY HENRY PAYNTER,
Associated Press Financial Writer

~NAV AOAtAA, AvAaANA gu. NSAAS
financial and industrial leaders said
today early success of the business
recovery program of Secretary of
Commerce Hopkins would require
one of two things by next Friday.
l. A dramatic gesture" by Presi-
dent Roosevelt which would convince
the financial community that he
will actively support the plan.
2. Some reinsurance by Hopkins
himself regarding the seeming lag
in development of his plan when he
meets with big business" executives
of his business advisory council next
Friday.
Some men who have championed
the Hopkins program in recalcitrant
sections Of Wall Street pointed out
that it had been jointly worked out
by business and administration lead
ers who had agreed, prior to its an
nouncement by Hopkins more than
month ago, that certain things
would have to be done, and done
promptly, to restore investor con-
f1dence.
Optimism Dwindles.
Not only have few of the agreed
steps since been taken by the ad-
ministration, they said, but some
elements of the program have been
adversely handled" with the result
that optimism in the financial COM
munity over the Hopkins program
is fast dwindling. even among a
number of its original big business"
supporters of the council itself.
Some, including members of the
council, said that they now fear
that if neither of the two steps in
dicated is taken by Friday, various
council members mSy withdraw ac-
tive support.
The program, they pointed out,
was shaped largely through cooper
alton of business. implemented by
the council. and administration
leaders. approached by Hopkins.
Some felt that Hopkins i'll health
might have had a direct bearing on
the plans alleged lag, and that, in
consequence, he might be able to
reassure his council Friday.
Hopkins began talks with business
and financial leaders to lay the
groundwork for his program before
Christmas, and he announced most
of its main points in a Des Moines,
Iowa, speech last February "a.
Since then Hopkins has said lit
tie. His big business" advisers are
said to have repeatedly counseled
that actions speak louder than
words"
Roosevelt Aid Vital.
When his plan was first an
nounced, and even before, business
and financial leaders, including those
assisting him, pointed out plainly
that the plans success would depend
upon the open and continued sup
port of the President.
Since that time, they said, two
major steps encompassed by the plan
have been taken by the President.
First of these was the Presidents
effort to bring the American Fed
GRAFTON of Labor and the Congress
OF Industrial Organizations together.
However, it was pointed out that
these negotiations have delayed con-
sideration of possible revision by
Congress of National Labor Rela-
tions Board procedure, and some of
the Hopkins advisory group say they
Understood EopLipc ,,,o,,1.l -,
efforts In this direction, although
he was opposed to major modifica-
ton of the Wagner Act itself.
The timing yesterday of the
Presidents approval of Secretary of
the Treasury Morgenthaus plan to
defer scheduled increases in social
security pay roll taxes who also an
proved generally by the financial
community. Some, however, said
this was a step which would ineyi-
tably have had to be taken.
On the negative side, there were
numerous disappointments, but two
overshadow the rest, as these busi-
neSsmen saw it.
Treasury Support Won.
Through his personal efforts, Hon.
kins won the active support of Un-
dersecretary of the Treasury Hanes
and then Morgenthau, to a tax re-
vision program along lines proposed
by experts designated by the adyis-
ory council with the limitation that
total revenues would not be de-
creased, and the burden upon the
lowest income group would not be
increased. The aim was to encour-
age greater investment quickly in
the equity Common stock field.
This program, participants under
stood, was to have been publicly an
nounced last Wednesday. Instead,
on the preceding afternoon the
President seemingly disapproved
some of its elements, not, however,
definitely rejecting it.
The other major point was that
some easing of the Securities and
(See HOPKINS, Page ESD