VITAL CONGRESS.

Auckland Star, Volume LXVIII, Issue 271, 15 November 1937, Page 7

VITAL CONGRESS.

PRESIDENT'S FUTURE

Atmosphere Recalls Depth of

Depression Year.

CONFLICTING FORCES.

United Press Association.—Copyright. WASHINGTON, November 14. The special session of Congress convened for Monday will meet not only in an atmosphere reminiscent of March, 1933, the depth of the depression, but with the added aspect of the fate of President Roosevelt very much at stake.

If the President desires re-election in 1040—and it now becomes increasingly evident that he is likely to seek a third term —then what Congress does will have the greatest effect upon the position.

Mr. Roosevelt spent the week-end writing a long message to Congress, setting out the proposals which, in his opinion, are necessary to rectify condiditions, but so many conflicting forces seem to be at work that it may be questioned whether even a docile Congress, adopting without question his entire programme, would produce a solution.

Measures which Mr. Roosevelt will apparently ask Congress to sanction include farm relief, arising from the large crops, a wages and hours bill, a national land conservation scheme, the reform of Government bureaux, the strengthening of the anti-trust laws, a huge housing campaign in order to stimulate business, and shipping subsidies. Business Rejuvenation. Mr. Roosevelt on Friday confirmed the fact that one of the most important points in his "business rejuvenation" programme would be legislation to encourage a large building boom. A unique feature will be the increase of permissible Government loans to private persons from 20,000 to 200,000 dollars a structure. A reduction of interest rates will be allowed on large-scale mass building.

The President seems to be still convinced of the necessity for long-range planning, but he may face a runaway Congress.

From a wide variety of sources demands are being made that something must be done immediately to reassure business, re-establish confidence and. reduce taxes, notably on undistributed profits and capital stocks.

The assurances by the Secretary of the Treasury, Mr. Henry Morgenthau, that the Government would reduce certain expenditure and aim at a balanced Budget, are taken in some quarters as an indication that Mr. Roosevelt is now seeing the wisdom of changing tactics.

Mr. Walter Lippman, the noted publicist, said: "There ia good reason to believe that the President is no longer acting on the assumption that his electoral majority gave him a mandate to execute his personal programme.

"We may look forward now to something much better than a vindictive, destructive and indecisive quarrel between the conservatives and reformers."