ROOSEVELT’S MESSAGE

Nelson Evening Mail, Volume LXXI, 17 November 1937, Page 7

ROOSEVELT’S MESSAGE

! MILD AN DCONCILIATORY WALL STREET’S REACTION | I LOSS IN LEADING ISSUES i : [United Preps Association—By Electric Telegraph—Copy rigbtl (Received 17th November, 9.0 a.m.) NEW YORK, 16th November. 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 had fallen into tiie same error as Louis XVI, who in an effort to cure his financial troubles found himself with a revolution on his hands.” One Senator dubbed the Congressional reaction as “a revolt of tiie middle classes. Congress, possessed by a new independence, places business aid ahead of Roosevelt’s programme, and, seemingly, wholly imbued wit hthe 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 tiie message, which was published after the morning gains in prices was one of five points loss in leading issues. Wail 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 for two years almost simultaneously with the message also did not help the market’s mood. The financial editor of Hie “New York T! 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 reelection. Notable among these is the “New York Times” which says President Roosevelt attempted to take the j credit for recovery, yet he now blames the recession on forces outside Government control; but he cannot have it both ways.