Evening star., 1945-01-26
Too Much Power

be entrusted with the enormous
power over our political, social and
economic life that now accompanies
control of the Federal lending
agencies. Involved also is the mat
ter OF the qualifications of Henry A.
Wallace as successor to Jesse Jones
in the exercise of these powers, as
well as the wisdom of combining the
direction of the Department of Com
merce and the control of the lend
ing agencies into one job. But these
latter questions are subsidiary to the
main issue.
Mr.. Jones told the committee that,
so far as its authority is concerned,
the Reconstruction Finance Corpo-
ration, chief of the lending agencies,
can lend anything, at any time, at
any rate of interest, to anybody"
He might well have added that the
agency can make it's loans on any
terms and for any purpose. These
powers" Senator George advised the
committee, "are too vast and too
sweeping; the economic control over
this country, and the political con-
trolls simply cannot be eSti-
mated" That Congress was not
blind to the danger inherent in this
broad grant of power to MIR. Jones
when, in 1910, he was permitted to
retain the loan agencies while serv-
ing as Secretary of Commerce was
brought out by Senator Burton. His
quotations from the debate at that
time make it clear that the action
was based on exceptional confidence
in Mr.. Jones as an individual. But
even so, Senator Taft, while not
opposed to Mr.. Jones, said at the
time: Il think it is an extraordinary
precedent, which is justified only, by
the character of the man and which
1 hope may not be repeated"
Mr.. Wallace has little sympathy
with these points of view. He made
it plain, in his appearance before
the committee, that he would like
to have the powers that go with both
the Commerce Department post and
the loan agencies. He put it on this
basis: "The real motive underlying
these suggestions for stripping the
Commerce Department of it's vast
financial powers has nothing to do
with my competence to administer
these powers. The real issue is
whether or not the powers of the
RFC and its giant subsidiaries are
to be used only to help big business
or whether these powers are to be
used also to help little business. - ="
That is statement worth remem-
bering, for, in effect, Mr. Wallace is
saying that those who favor the sep
aration of the Commerce Depart
ment and the loan agencies are
inspired by no worthier purpose than
to aid big business while neglecting
small business. The entertainment
of such belief is evidence of a
deep diStrust in Mr. Wallaces mind
of those who do not see eye-to-eye
with him, and this alone raises Sc
riouS doubt as to the wisdom of
entrusting him with the enormous
power he desires.
There is not space here for de-
tailed discussion of Mr.. Wallace's
Interpretation of the economic bill
of rights" Briefly, he proposes a
postwar economy in which there will
be jobs for all at higher wages and
shorter hours. There will also be
greater profits for business, lower
taxes and an orderly retirement of
the national debt. 1t is dazzling
spectacle-a sort of utopian's utopia
which, in his opinion, can be ours If
we will but reach out and grasp it.
Since this is the basis upon which
Mr.. Wallace rests his appeal for the
powers heretofore entrusted to Mr..
Jones, Congress necessarily will have
to come to decision on the sound
ness of his proposals and his indi-
vidual capacity to work out the Ma
tions' economic salvation. There are
gratifying indications, however, that
Congress is concerned primarily with
the larger question of whether, in
the long run, it is wise to entrust
any man with all this power.