Evening star., 1947-09-26
Morgenthau Reveals
He Threatened 10 Quit
Over 'Pump-Priming'
. By the Assoeiofsd Press


today that he threatened to resign
as Secretary of the Treasury when
President Roosevelt decided TO re-
new Government spending for
"pump-priming" purposes after the
stock market crash of 1887.
In the second of a series OF
articles in Golfers magazine. Mr.
Morgenthau wrote that as soon as
the spending program was made
known to him he knew his "hopes
for a balanced budget were dead
and felt that we we're committed
as Nation to an unsound policy"
However, the former cabinet
officer said Mr.. Roosevelt talked
him out OF quitting, telling him
you have done a magnificent job
and accusing him of pique because
the Treasury was not consulted.
Became Excited.
The President then became
excited and said If I resigned now
it would mean the destruction of
the Democratic Party. the creation
of a third party and the loss of the
administration program in Congress
and that I would 60 down in history
as having quit under fire." Mr..
Morgenthau said.
He wrote that he spent the next
few hours in gloomy daze of in
decision but finally decided he and
the President had differed over an
issue concerning which, it is fair
to say, there were, at the very least
two sides"
ut was MOREOVER he added, "a
technical issue rather than a moral
issue; question Of means, not OF
epds"
Mr.. Morgenthau also wrote of a
January. 1898, luncheon conference
he had with the President after
which he noted in his diary it
seemed Mr.. Roosevelt was going to
plan to get back the way (President)
Cleveland did"
Here the former Treasury Secre-
tary said parenthetically. There
was an interval Of Republican ad.
ministration between Cleveland's
first and second terms"
He quoted the President as saying
at the luncheon:
THE next two years really don't
count. They are over the dam.
think you and I can get by (ano
he smiled) with another three billion
deficit in 40 and Al. (The fiscal year
of 194l would end his second term
Then it will be up to- whoever sue
ceeds us, which will most likely be
either conservative Democrat OF
a Republican. The thing for us tt
oe thinking about is what will hap.
pen after we are out.
Must Have Plan.
"After we are out, the next ad'
ministration will most likely besir
to economic and slash expenditure!
and the chances are we will havl
chaos as result. We must have {
plan. Our successors will not have
plan. After they have failed The,
will most likely send for us to com,
back and solve the problem. I don
mean necessarily send for us to re-
turn to Washington, but at ieas
call on us for a program"
Mr.. Morgenthau said he was no
certain what the President meant
At the time, he said, he assumed
Mr.. Roosevelt "had no idea Of seek
ing a third term in 1940."
A balanced budget seemed With,
sight, Mr.. Morgenthau wrote, unit
the stock market collapse on "blacl
Tuesday," October IT, 1887. AS un
employment increased, Mr.. Morgen
thau said the group which he de
scribed as "the spenders" arguee
strongly for a new pump -primin,
program. In this group, he said
were Harry Hopkins, James Roose.
welt, Leon Henderson, Ben Cohen
Lauchlin Currie, Harold Ickes anc
Aubrey Williams.
The former Treasury Secretary
said he was supported by John Gar.
ner, Cordell Hull, James Farley anc
Henry Wallace in asking for reas.
surance to business.