The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1939-07-20
ECONOMIC HIGHLIGHTS

Bitterness runs high in the cur
rent CongreSs-between New OsaI
and anti-New Deal Democrats. De-
tween nationalist and interna on
alists, between conservatives" and
Cause of much OF this
bitterness are two matters Of i'm
mense Importance to the American
people-our policy and our neutral
ity policy. One to degree Will de-
termine the future economic course
of this country. The other will have
an immediate bearing on whether
we shall become participants If an
other world war occurs, or whether
we shall manage to escape being di-
rectlv involved in its toll of life and
property.
The money fight was over the
proposal that the Executives emery
ency powers in valuing gold should
be continued-and over the policy
of Treasury silver purchases. For
several years, the United States has
been buying foreign silver in ire
mendous quantities.
It has likewise purchased U. s.
mined silver at price substantially
higher than the world price-64.64
cents per ounce, as against a world
price of about 40 cents. And, by acts
of congress, the President has been
empowered to reduce the gold con-
tent of the dollar to as little as so
per cent of its former value.
This last phase Of the question
was by far the most important issue
at stake. Administration supporters
wanted it continued-the measure
legalizing it expired at midnight,
June 80. Hard money" men wanted
It abolished. In the Senate, the
"hard-money" advocates, led by
Senator Glass, threatened to talk
the bill to death through filibust-
er. This development, in the words
Of Time, caused the President to "hit
the ceiling" He Immediately stated
that an effort was being made to re-
turn the control of money to wall
Street spectators"
Answer to this came promptly
from Senator Vandenburg, who said,
81 wonder if our distinguished Exec
utive realized precisely what he was
saying that when congress con-
trOls money, Wall Street controls
It," The 'shard-money" men were
adamant-with the result that when
midnight came on June 80, the Pres
ident,s power over the gold content
was not renewed.
Then the administration forces
went to work, and made deal with
the silver minded Senators whereby
they offered to raise the price paid
for domestic mined silver to about
II cents per ounce. And this swung
the day. In vote taken few
days later, an act to renew the Exc
cutive,s gold power was approved by
q narrow margin. There is now con-
siderable question as to its legality.
So the President won provisional
victory. But the fact that so much
opposition within his own party de-
veloped against a power which was
granted him overwhelmingly by
previous congresses was blow to
the White House-and it further
illumines the rift between congress
and the President. Not since the
advent of the New Deal has the adj
ministration's majority in the Sen
ate been so slim as now.
Not so clearly defined are TIKI
ranks of those who are battling tn
neutrality issue. The President
backed by Secretary Hull, want
wide discretionary powers. He doe
not want to be forced to automatic
ally forbid the shipment of arms t.
fighting nations. Instead, he pre-
fers law which would permit an
nation to buy whatever it wants i
this country, including arms an
munitions, on q caSh-and-cary ba
sis, whereby it would have to attai
immediate title to whatever
bought and move its purchases in il
own ships. Some men who are wit
the President in most matters, or
pose this, feel it might lead us int
war. Other men who are oppose
to the President in his domestic po
icies, favor It.
Irrespective of who IS right, Il
strong congressional isolationi
hlnc led nv influential Senate
Borah and johnson, convinced the
colleagues that the Presidents di
MCKEE SAYS