FIRST REACTIONS

Evening Post, Volume CXXIV, Issue 120, 17 November 1937, Page 13

FIRST REACTIONS

ROOSEVELT'S MESSAGE

BITTER FIGHT IN CONGRESS

"REVOLT OF MIDDLE

CLASSES"

(United Press Association—By Electrlo Telegraph—Copyright.)

NEW YORK, November 16. Although President Roosevelt's message to Congress is widely characterised as the mildest and most conciliatory for five years, nevertheless it seemed, in the words of one observer, that "the President in calling a special session has fallen into the same error as Louis XVI, who in an effort to cure his financial troubles found himself with a revolution on his hands."

Congress listened to President Roosevelt's message and immediately opened a bitter political fight which was temporarily cut off when the sitting was adjourned until tomorrow.

One Senator dubbed the Congressional reaction as "a revolt of the middle ' classes. Congress, possessed by a new independence, places aid to business ahead of Mr. Roosevelt's programme, and, seemingly, wholly imbued with the needs of the middle class as typified by the small business man, is prepared to sacrifice all else on his behalf."

Wall Street's reaction to the message, which was published after the morning gains in prices, was a loss of five points in leading issues. Wall Street had hoped against hope that President Roosevelt would abandon the continuation of the New Deal programme and promise more drastic tax cuts. The announcement of a drop in steel production to the lowest level for two years almost simultaneously with the. message also did not help the mood of the market.

The financial editor of the "New York Times" says: "Altogether, it is not encouraging to big business, which needs encouragement."

Press comment throughout the country generally reflects the political affiliation of the particular newspaper, although here and there a significant attack is launched against the President by journals that supported him for re-election. Notable among these is the "New York Times," which says President Roosevelt attempted to take the credit for recovery, yet now blames the recession on tarces outside Government control; but he cannot have it both ways.