Evening star., 1947-09-19
Morgenthau Brands
Wallace Top Spender
Of New Deal Period
By she Asseeioted Press

Henry Morgenthau. jr.. former
Secretary Of the Treasury, today
described Henry A. Wallace as the
New Deals most gigantic spender
OF Federal funds and said his theory
OF spending to curtail farm produc-
ton was nonsense"
He said he once protested that Mr.
Wallace was getting away with
murder"
Mr.. Morgenthau wrote this In the
first Of six articles in Golfers, de-
scribing his II years in the Treasury
particularly his unsuccessful efforts
to balance the budget.
The former Secretary said Mr.
Wallace's Agriculture Department
and related activities were the cost
lest arm Of Government, even
counting the late Harry L. Hopkins
relief organization and Harold l..
Ickes' public works outlays.
"Wallace's whole theory Of spend
ing in order to reduce agricultural
production always seemed nonsense
to me-" he asserted.
Denies He Has Documents.
Along with the article was pub
lished a statement by Mr.. Morgen-
tf.au denying that his 900 volumes
Of diaries contain any oficial Gov
ernment documents. He said he has
only copies OF documents and per-
sonal notes and memoranda.
Mr.. Morgenthau resigned from
the Treasury in July, 'l945. Early
this year there was hubbub over
disclosure that he had such vol
luminous diary, some contending he
had illegally removed documents
from his department. Mr.. Nor
genthau denied this ct the time
and finally consented to let Secre-
tary of the Treasury Snyder 60
through his files and take any
papers needed for the Government
| permanent record.
Mr.. Morgenthau In today's article
said of all the Federal "spenders"
Mr.. Hopkins was "the best from my
point of view" because he got money
into circulation quickly, which was
the economic objective of the pump
printing policy, and he gave desti-
tute people work, which was the
social objective.
Ickes q Cautious Spender.
Mr.. Ickes, he added, was $50
anxious to keep graft and politics
out Of the public works program
that he practically spent money
through a medicine dropper. Mr..
Ickes' slowness in making decisions
was sometimes a real handicap"
Writing about q Treasury staff
meeting on April Is. 1887, when he
said the administration was trying
hard to strike budget balance for
1898, he reported that Mr.. Wallace
expected to spend $1,176, 900, 900 in
1888 and $1.0S7, ,OO0. 900 in 1899 after
having given away" $3.50, ,000, 900 on
farm programs from 1884 through
1887.
In August, 1884, when Lewis Doug
las, now Ambassador to London, re-
signed as budget director because he
wanted less spending and an imme-
diate balancing of income and outgo,
President Roosevelt asked Mr.. Nor
genthau to find q new budget direc-
tor by midnight.
Roosevelt Suggests Corcoran.
Mr.. Morgenthau said he asked the
President whom he was considering
for the place, adding:
lie took my breath away by say
ing. What do you think Of Tom Cor
coran as director of the budget2'
This seemed to me absolutely out
OF the question. Tom Corcoran was
q first class lawyer, q hrst-class po-
litical operator, hrst-class accor-
dion player"
Mr.. Morgenthau said he hastily
suggested Mr.. Bell and that fortu-
nately Mr.. Roosevelt liked the idea.
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