The Waterbury Democrat., 1939-03-01


 This, however, was not the fact. The strategy was discussed before Roosevelt departed southward and the highlights of the Hopkins statement was radioed to him aboard ship.
 AS indicated in this column at the time Hopkins took the oath of office, the new secretary of commrece decided from the start that there was a definite case for business which either had not been presented or else had not been understood in Washington. He determined to give business break.
 Before making his tax state- ment, Morgenthau had made careful study of the accomplish ments of the French government, since the more moderate Daladier administration threw overheard the leftist policies of the United Front and held out the olive branch to business. In the ap- proximate nine months since then, gold has flowed back to France, confidence has been re- stored, and French imports and exports are up among the top brackets of all Europen countries.
 Enough gold had flowed back to France, Morgenthau found, to purchase 6,000 new airplanes.
 Morgenthau also had made a careful study of U. s. taxes and had concluded that the present tax base was broad enough to pull the government out of the red, provided business was good. The idea has been harped on for a long time by his able young undersecretary, John Hanes, with whom Morgenthau works in per- feet harmony.
 So Morgenthau decided that as far as taxes were concerned he would hold out a little green grass to business and see if he could not tempt it to nibble. At the same time he will not sacrifice any of the fundamental reforms of the Roosevelt administration.
 This general idea of a mor- atorium on the old pastime of plaguing business, but with the preservation of all reforms passed to date, is pretty general throughout the Cabinet, and you will hear more of it in the future. In fact some Cabineteers are out for a mora torium on political squabbling- which will be a lot harder to put across.
 NOTE - One thing on which both New Dealers and Big Busi- ness agree is that tax-exempt se- curities be abolished if business is to improve. AS long as bil- lions of dollars are tied up in this non-venturesorne type of in- vestment, no new money is going to reach the capital markets in appreciable amounts. However, one of the most effective Hobbies in years, headed by the Council of Mayors, is out to defeat any legislation effecting tax-exempt securities.
 WHERE WAS GUAM?
 How much the House of Repre- sentatives knows about the island of Guam may be indicated by the remark of member of the Naval Affairs Committee, when that group visited the Quantico Marine Corps Base shortly before the vote was taken.
 The junket from Washington to Quantico, Va, was to see 8 large relief map of the Pacific Islands, including Guam. Con- gressmen were flown from Wash- ington in a navy plane.
 As they were studying the re- lief map, one member approached the marine officer, who was their appointed guide, and said, some- what plaintively:
 Excuse me, but I'm from Florida, and I'd just like to spot something familiar on this map." His gaze ranged aim- lessly over the great stretch of Pacific waters, Japan, Guam and Hawaii.
 "Can you tell me, Colonel, where Is Key West?"
 UNDER THE DOME
 Army officers are rowing over whether to adopt new repeating rifle invented by Melvin H. Johnson or keep the Garand re- beating rifle already in use {.