Evening star., 1961-01-11
YOUR
MONEYS WORTH
Rooso in Treasury q Biz Plus

| And since Mr.. Roosa not only |
will be directly in charge of
managing the national debt in
a period of recession and budg- |
ct deficit but also will have. a
profound influence on policies
we must adopt to protect the
value and reputation of the
United States dollar, you'll be
hearing plenty about hi msoon.
Campaign Recalled
To grasp the implications Of
this tale, think back to the elec-
ton campaign and consider. {.
Fear: During the campaign,
you will recall, the accusation
frequently was made that a
Kennedy administration would
adopt policies that would un- |
dermine the independence OF
the Federal Reserve System
and cause a wide-open break
between the Treasury and the
Federal Reserve. This, we were
warned, would weaken our
guard against initiation and
stampede our already dubious
foreign creditors into a flight
from the dollar.
Fact: Mr.. Roosa comes to
the Treasury from the posi-
ton of research vice presi-
dent of the New York Federal
Reserve Bank. He is an inter-
nationally acknowledged ex-I
pert on central banking and in
scholarly papers he has writ
ten he has declared it Is i'm
perative that we maintain the
separate identity" Of a.
strong" central bank. His
quotes.) He favors closer CO.
ordination between Treasury
policies and Federal Reserve
policies-but not at any sacri-
flee of the Federal Reserves
autonomy"
In this key Treasury post
Mr.. Kennedy has placed man
from the Federal Reserve Sys-
TEN itself who wouldn't for an
instant try to undermine the
systems independence. Quite
an aid to confidence indeed!
Fear of Initiation
Fear: The Democrats will be
indifferent to the initiation
dangers of big budget deficits,
and since Mr.. Kennedy is en-
tering the White House with
an inheritance of recession and
deficit, this fear in initiation
breeding red ink in the budget
is spreading.
Fact: Mr.. Roosa's view is
that one of the great failures
of the Eisenhower administra-
ton has been its inability to
achieve sizable budget sur
pluses in prosperity cycles and
that a Conspicuous" way to
fight initiation. is through these
surpluses obtained from taxes
in an active economy. A big
budget surplus is what he
would have the Treasury con-
tribute to the Federal Reserves
initiation weapons in prosper
Gus times. It's about as ortho-
dox a view as could be found.
Fear: Our foreign creditors
will not trust the efforts of
Democratic administration S
financial officials to balance
our international account, halt
. the gold outflow and protect
the dollars value.
Fact: The new Treasury Sec
; retary, Douglas Dillon, was
with the present Treasury
: chief, Robert Anderson, on the
! United States mission to Eu-
! ! rope last fall to demand that
our allies help take the pres
! sure off our dollar. Mr.. Roosa
was among the first in the Ma
\ ton to warn about the new
diciplines the changed world
| position imposes on us. The
\ hard-headed views of both men
are known to all the free
| worlds leading bankers.
In these crucial Treasury
posts, in short, will be schol-
ars with solid experience and
a practical approach who lit
orally and figuratively come
from Wall Streets heart. Wall
| Street knows them, trusts
\ them-and the resulting glow
of confidence is a significant
4 plus"
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