"BRAIN TRUST” FALLS OUT

Poverty Bay Herald, Volume LX, Issue 18179, 29 August 1933, Page 5

"BRAIN TRUST” FALLS OUT

PROF. HOLEY’S RESIGNA- , TION FIRST IN FAMILY NEW YORK, August 27. The President, Mr. Franklin D. Roosevelt, has accepted the resignation of Professor Raymond Moley, intimate adviser to Mr. Roosevelt and assistant Secretary of State. The lirst break in the official family of the United States President was presaged by an under the surface split in the State Department between Professor Moley and the Secretary, Mr. Cordell Hull, Professor Moley explained that his resignation was prompted by a desire to return to the work of writing and teaching politics; nevertheless, wellinformed sources assert that irreconcilable differences over policy with Mr. Hull caused the resignation. Professor' Moley is recognised as an adherent of the nationalist doctrine of economic re-' covery, whereas Mr. Hull believes that recovery is possible only through international action. I Ai message from Washington dated July 2 stated :—. ! President Roosevelt is returning to Washington from his summer home to find his “official” family involved in a bitter controversy over the £400,000,000 public works programme. ) The clash of policy is between the Budget Director, Mr. Lewis Douglas, j who is a member of President Roose-. velt’s “Brain Trust” and another faction of the trust, headed by Professor Rexford Tugwell, ' Assistant Secretary of Agriculture. Mr. Douglas wants to use only a little of the immense fund, on the theory that the tide of the depression has turned and that prices are moving in a favorable direction. i I Professor Tugwell and his allies are insistent on the need for putting up funds as rapidly as they can bo absorbed, on the ground that the upswing in prices is due as much as anything to the general expectation of extensive Government spending. The “Brain Trust” has become • sharply divided on other matters connected with the Administration’s fight ! against the depression. One of the ; great questions that are being debated ' is the Budget policy of the country. Mr. Douglas wants the Budget to be balanced. Professor Tugwell wants 1 more employment, even if it means an J unbalanced Budget. -