The Republican. [volume] (Oakland, Md.) 1877-current, 1941-01-09
Toward Sound Money

Washington, Jan. a.
The question has suddenly been
raised in Washington of the willing
ness of Mr.. Roosevelt to relinquish
certain of the emergency powers with
which, through his control of Con-
gress, he endowed himself in his first
term. Specifically, two of these are:
First, the power of the President to
further devalue the dollar; second,
the power of the President to issue
$3,000,0000 in greenbacks.
The proposal to withdraw Presiden-
tial authority to do these two things
comes from Mr.. Mariner Eccles, the
able head of the Federal Reserve
Board, and is made with the idea that
it will aid in averting runaway prices
and in controlling initiation. Danger of
both these things is inherent in the
defense expenditures, and is so recog-
nized both inside and outside the Ad-
ministration.
X
In the past Mr.. Roosevelt has re-
sisted-and successfully-every effort
upon the part of Congress to curtail
or take from him any of the extra
ordinary powers which he has held
since 1888 and 1884. His tendency has
been to look upon any suggestion that
these powers be allowed to lapse or be
withdrawn as a personal attack upon
him, inspired by his political oppon-
ents. 1t is true that the initiative to
withdraw these powers has come from
the anti-Administration element, but
it is not true they have been inspired
by personal hostility. Nevertheless,
that has been the view the President
has chosen to take, and the full Ad
ministration weight has been used to
nullify the effort.
There are a number of reasons for
feeling that the Presidents attitude
may be different this time. One is
that the suggestions come not from a
political foe but from a personal and
political friend, a member of his Off
cial family whose loyalty is unwaver-
ing and unquestioned, Mr. Eccles is
one of the earliest of the New Deal
ers, and there has been no more ear
nest advocate of it's basic policy of
spending our way out of the depres-
sion.
This fact gives Mr.. Eccles' present
recommendations which are in the
direction of retrenchment and -ortho-
doX financial methods, more weight
than they otherwise would have.
Moreover, his friends point out that
these are entirely consistent with his
general financial philosophy, which is
that deficits are desirable in bad
times but should be avoided in good
ones. Another reason for thinking
that Mr.. Roosevelt may not oppose
the Eccles recommendations if and
when they are raised in Congress, is
that Mr. Eccles made them public
without first consulting the President,
or would have made them public at all
were the Presidential opposition en-
phatic.
A third reason is that it is known
that before giving out his program
Mr.. Eccles did confer at length with
Secretary of the Treasury Morgen-
THAI, who has expressed no dissent
and indicated no intention to oppose.
1t is well known that always Mr.. Nor
genthaus first law is Mr.. Roosevelts
wish. 1t is incredible that on such a
matter he would not ascertain that
wish and act in accordance. The fact
that there has come from the Treas
ury neither direct nor indirect disap-
proval of the Eccles suggestions is
convincing evidence that no disap-
proval has been manifested by the
White House. There is the further
fact that Mr.. Laughlin Currie, one of
Mr.. Roosevelt's administrative as
sistants," is an economist high in
White House favor. He is also a
friend of Mr.. Eccles, understood to
favor his ideas, sat in with him when
his recommendations were formulated
and was present at the Morgenthau
conference.
Still another reason is that Mr..
Roosevelt is personally concerned
about the danger of initiation and the
danger of runaway prices. He would
want to do what he could to obviate
both. If in the judgment of Mr.. Ec-
cles, in whom he has confidence, the
REIMBURSEMENT of these powers would
diminish these dangers, it is thought
the Presidents disposition might be
to accept that view-provided there
were no appearance of his being
forced into that position.
##&
If any such color is given the effort,
those who know Mr.. Roosevelt best
are sure that he will react strongly
in the other direction. Certainly his
record sustains that notion. Therefore,
it seems desirable that, whether in