THE AMERICAN ATTITUDE TO WASHINGTON’S POLICIES.

Star (Christchurch), Volume LXVI, Issue 20205, 16 January 1934, Page 6

THE AMERICAN ATTITUDE TO WASHINGTON’S POLICIES.

Mr Roosevelt Running into Trouble Through Uncertainty of the Dollar ,

(By

JOHN. N. WHEELER.

CHICAGO, November 30. Uncertainty and bewilderment, fed by all sorts of rumours, some fantastic, seem to reflect the attitude of business men toward the monetary policy of the New Deal. They are puzzled by the whole process, and a good, clear-cut statement from someone in authority would do a great deal to clear the atmosphere. Business is now trying to go ahead by dead reckoning in a fog. There are encouraging signs if it were not for the uncertainty about the dollar. Business is better, and it is generally agreed that the fundamental factors in the economic situation are working toward recovery. Some think they have been retarded by Government remedies.

TJUT THE CONFUSED state of mind about the gold policy, or inflation, or whatever it may be called, and the lack of confidence in the present Roosevelt team, seem to be holding things back. It is the same story everywhere I’ve been so far; business was better but now it is slowing up. Early in his administration, the President once compared himself to a quarterback, saying he would call the plays as he saw the openings. However, there seems now to be a very general impression that he has put in a scrub team, and that he has all his best ball carriers on the sidelines; to change the metaphor, bushleaguers trying to do a big league job.

The country distrusts the substitutes—the Morgenthaus, Warrens, Rogers and the rest, as compared with the Baruchs. A 1 Smiths, Spragues, Achesons and Douglases. It is not difficult to get opinions. When I first knew Hurry-up Yost, famous football coach, he talked on only one subject, and it was easier to swim the English Channel in handcuffs than to interrupt him. The subject was football, hater, when the war started, Yost branched out and included that. I once heard him win the Battle of the Argonne in the Congress Hotel, Chicago. On the backs of two old envelopes he showed how it was done, and he didn't fool with army corps and divisions but got right down to companies and squads. All Economists. Now everyone I meet is a one-subject man—an economist. It hasn't been the N.R.A. they wanted to talk about—that is more or less side-tracked—but the gold policy, what it means, and why the President keeps sticking in substitutes in the middle of a tough game. In Baltimore they told me a story about Morgenthau. When one of the most prominent men in the Democratic Party was asked what he thought of Morgenthau after he was appointed to Secretary Woodin’s place, for that is what it amounts to, he said Morgenthau was a man with an echo in his head, meaning he always answered correctly. When Mr Woodin was retiring “ to rest and recuperate,” the Democrat’s reply to the correspondent who asked him what he thought of inflation was vigorous and unprintable. The country has its ear to the ground about these men. People remind you that Professor Warren, of the Agricultural College at Cornell, now high tycoon of the Government financial policy, once was reported to have a theory that by lighting hen houses at night, and fooling the hens they would lay twice as many eggs. That was before the days of N.R.A. or the hens might have had a code. It was later denied, however, that the professor had played any such trick on the hens. Mr Morgenthau has clamped a censorship on the Treasury Department, and no one can give out information except Herbert E. Gaston. Mr Gaston has a career which qualifies him for the Treasury. When first I heard of him he was associated with Townley of the now defunct Non-Partisan League, a highly socialistic rganisation in North Dakota. Later he was managing editor of the Minneapolis “ Star,” which was started with the funds of the Non-Partisan League. With Townley’s downfall the paper went into bankruptcy and was sold by the receiver. Distrust in the West. As one moves along west the rumours become uglier, and for that reason do not

bear repeating. Nearly all reflect distrust. In Washington one important official expressed himself as hopeless about the great experimentation in the American currency and pointed out its dangers. He has not resigned but is on the* fringe of it, hanging on and hoping. He is in complete disagreement with the President. Apparently what business wants to start it going again is some assurance on the value of the dollar and some explanation of the administration policy. In the eastern part of the country there is no revolutionary talk, and there is a general impression that business is better. The dollar buys almost as much now, but its staying powers are doubted. Up to a month ago people seemed happier and relieved. All are following the economic developments more closely than ever.

Business men not in foreign trade feel that the dollar will go almost as far now, but they are fearful of the future. Beyond a doubt Roosevelt is losing his popularity, and for some reason, more with women than with men. He is not the idol he was. The N.R.A. is not understood and is usually regarded as a failure. For example, a Baltimore taxi-driver complained bitterly to me because he worked as long hours as ever, and because the drivers have no code. However, he seemed pleased to be scraping out a living. Running into Resistance. There is no doubt the President is running into a great deal more resistance. There seems to be a swung back from the more radical parts of his programme. The recent Spanish election would indicate that the same attitude exists elsewhere in the world. People seek encouraging signs, and in this country they hope repeal and Russian recognition will help. A friend of mine in Providence had contracted to construct a substantial new business building, and. being of cautious New England stock, had set aside Liberty and other Government bonds to pay for it before going ahead. Now he worries because every time these bonds go down a point as a result of the gold policy, it costs him 10,000 dollars. It is obvious that many persons dependent on Government bonds are greatly disturbed by their weakness. Going to Washington, J. P. Morgan sat next to me in the diner, on his way to see the President. At the White House he was gently sidetracked into Emily Post conversation by the device of having Mrs Roosevelt to tea, a stop sign to serious discussion. I understand he arranged the appointment through Myron Taylor, of the United States Steel, and hoped to discuss with Mr Roosevelt the weakness of Government bonds. No opportunity presented itself for me to talk with him in the diner, although I might have had better luck if I had been a midget. The N.R.A. seemed to have meant more to Altoona than any other town I visited. According to the newspaper publishers there it had resulted in getting the coal operators together on a basis which should ultimately prove profitable, although it has not been reflected in improved business yet. Altoona depends on coal mines and railroad shops, and there is a slight improvement in each. To get back to the football metaphor, the President still has a big cheering section in this country if he would let them know what plays he is trying to use and put in his first team. He can get plenty of “ echoes ” in the Catskill Mountains. (Copyright.—N.A.N.A.)