Detroit evening times. (Detroit, Mich) 1921-1958, 1945-02-06
POLITICAL
PARADE
By George
Rothwen Brown

Nlldt 4NOOoNNNAN ~
name a man 70 take over the
management of the great lend
ing agencies of the govern
ment heretofore controlled by
the mighty Jones of Houston,
until after final action on the
confirmation of Henry Wallace
as a denatured secretary of
commerce, political gossip al
ready is busy with the filling
of Jesse's seven-league boots.
Inside talk at the Capitol for
the moment is that the gentle
man to be the new pooh-bah of
astronomical spending is Edwin
w. Pauley of California, the
present treasurer of the Demo-
cratic National Committee.
The big shots of the Demo-
cratic high command moved in
on their party kinsmen at the
Senate in the final stages of
the knock-down and drag-out
battle against the former vice
president.
Bob Hannegan, the national
chairman, must have contacted
20 Democratic senators. But
while he was most active in
efforts to prevent a party split
from being exposed to the pub
lie view. there is no hint in the
gossip that the tip on Pauley
was part of the political ma
neuVering.
THIS much may be taken as
l. certain-that there would be
stiff opposition on the Demo-
cratic side of the Senate 10 any
attempt by the President TO re-
place Jesse II. Jones with A
left-wing protege OF Sidney
Hillman's Political Action Com
mittee.
Some southern senators went
along with the administration
Notwithstanding the anti-Hlll-
man sentiment in their states.
Others, like HILL of Alabama,
who supported Wallace, is not
only the Democratic whip but
he had strong Go support in
his campaign last year for re-
nomination, which undoubtedly
otherwise he would have lost.
THIE confirmation of II enry
l. Wallace as secretary of COM
merce and undiSputed dictator
over some $4,000, 100000 of
American assets, would have
been the most devastating blow
ever struck in this country at
free enterprise.
The New Deal design, now
clearly revealed. is of no sudden
decision. The determination OF
the most radical groups in
America" to obtain control of
the vast resources of the Recon
struction Finance Corp. and
affiliated agencies of astronomi-
cal lending and spending. was
clearly revealed more than four
years ago.
For so long a period, while
Wallace was vice president, did
the left wing bide its time!
In the late summer of 1910,
motive was suddenly sprung 10
get Jesse Jones out of RF'C by
making him secretary of COM
merce.
THE significance of the move
Il was not lost upon the con-
servative Democrats in Con-
gress. Jones went into a huddle
with his friends at the Capitol.
Earlier than this the admin
istration had attempted TO put
RFC under the commerce de-
partment. Congress prevented
that move.
Also. when Jones was made
Federal Loan Administrator
job with a grander title but
less power-it was assumed that
this would deprive the Texas
banker and friend of Vice Presi-
dent Garner of his hold on
RFC, to which Jones had been
appointed by President Hoover,
and thus had been inherited"
by President Roosevelt in 1888.
Jones ignored this, and sup
ported by his enormous prestige
in Congress, he calmly pro-
ceeded to keep RFC under his
own thumb. New Dealers ragged
but were impotent.
AT THE time the move to
"A put him in the cabinet was
made bill was pending in Con-
gresS increasing the capital
stock of the export-import bank
by S500,000,000, and authoriz-
ing RFC to issue additional OBJ
legations of S1,000,000,000.
Rumors spread at the Capitol
that Milo Perkins, then Henry
Wallace's "right-hand man, was
slated to succeed Jones in RFC
and federal loans, when Jesse
had been kicked upstairs into
the secretaryship of commerce.
Backed by a determined con-
servative group in Congress,
Jesse Jones refused the cabinet
promotion" unless he could re-
tain the control over the vast
financial agencies which Con-
gress had set up solely because
of its faith in the integrity of
this man.
To enable Jones 10 retain his
old Jobs and take a cabinet post,
too, the law had to be changed.
1t was. The banking and cur
rency committees reported spe-
cial legislation, and the bill was
rushed through in early Septem-
her. 1910. On Sept. Is President