Show NA NATIONAL AFFAIRS Reviewed by CARTER FIELD Insiders arc are cont convinced the tire President is working on ona a phase of political strategy f for or the tits next nett election New Deal starts start all over again Prank Frank I Murphy looming as aJ white hite hope othe of o the New Deal resident President expected to win hi his battle to continue his MJ spending policy WASHINGTON are convinced con con- vinced that President Roosevelt fa far r from having a change of heart o othe on the principle of taxing undistributed corporation profits at a higher rate rat e than those paid out In dividends t Is Isnow Isnow es s now working on a broad phase o of t political strategy aimed at the pres pies presidential election next year The proof they say ISY will wUl be revealed re reo by comparing two speeches s very carefully The first Brat is that delivered a ered at the Ameri Amen American can Retell Retail federation federa tion banquet by n President Roosevelt The second is the outline for tax revision revl Ion don aimed at revly reviving w wIng ing business laid before be fore tore the house ways way and means committee commit tee by Secretary of the Treasury Henry Secretary Jr It will be noted that Mr Morgen Morgan thau suggested repeal of the last vestige of the special tax on undistributed corporation earnings It t Is g known that the President Is privately private ly strongly against this thus revision It II Itis Itis is further known that I Jr would not nol think of saying anything g f. u t 1 publicly against his chiefs cheers will J H The answer to this apparent contradiction con con- It- It Is that the President has hat decided to give business the opportunity opportunity fI it has demanded to demanded to to revise I the tax law or rather permit Il Its s V revision just as business spokesmen spokes men have been urging Then if business does not revive t spectacularly if H It does docs not absorb a millions ef of unemployed now on government government gov rolls of sort one or another er cr the President can say to th the t v country We gave them everything I they said IBid they needed needed even even things thing we knew they ought not to have In Int I n t rt r. r order to test this thing thoroughly Now we know that business CANNOT CAN i 1 f NOT or WILL NOT function In suc such sucha h r a way as 81 to take care of ot this thus situa I l tion The government perforce must take care of these people W We Wt cannot let them starve or freeze o M And we will not support them b by bythe y Ii the demoralizing dole 5 I If New Nato f Veal hen Starts A All II Over r. r 3 Again With rilla Critics Stumped So Su the New Deal starts all over ove r again with its critics deprived o of 1 4 p the answer they have been makin making g for at least four years years that that bust busi business news ness would revive if the government t would Just let it alone knocked alone knocked ins into o t a ac cocked k hat L It If business should revive the Ne New w j Dealers figure that reform would woul d t h merely be delayed until after th the e i election Actually they would lik like e to see lee this not because they do no not I I believe their reforms are good bu but t t because the present business situation situa tion has them considerably worried worrie d They are Just a little disturbed b by bythe dy y s d. d the growing conclusion In the co cotry country coun try as evidenced first In the purges purees then in the tile 1938 election and more mor e recently by polls that the New De Der Deal al c r i has has' not been so hot in that it ha has g I added billions to the national debt deb t I while the number of unemployed d J apparently is as great as It was at atthe the depth of the depression Good times next year would maka make mak e a Democratic victory both as t to o the presidency and as 81 to congress much more likely In fact tact plenty of k shrewd observers think the Democrats Democrats Demo Demo- o will have to fumble the ba ball ll rather badly to lose the next ale election elec c lion tion if it business Is good and obviously 1 r growing better Parties rany rarely rarely rare ran e y ly lose elections In good times It ItIs V. V Is economic distress almost I 1 ably which beats teats the party In pow po power w er If one except the rare ca campaign cam nt F palen in which some lome issue moves th thc the e J c people more deeply than their pod pock k f Sometimes there is ver very y little rhyme or reason In this b but ut it Is generally true C C Moreover the Republicans are n nin not f in good shape despite their astute to i leadership on Capitol Hill They a are e fit t n hopelessly divided on Issues Even Eve Evenin rn in congress this Is apparent Now Frank Murphy Murphy Looms h MC Peal Deal White Hope lope I I 3 Attorney General Frank Mur Mure Murphy by bythe iy e t is I. looming more and Ina more al all the ie iele white te hope of the New Deal for forthe t U the le leir presidential nomination next next year e ear ir ar 4 if It Franklin D. D Roosevelt does t to no not of 3 choose to run Murphy Is it th the e third candidate to be trotted out by bythe bythe y the hundred The fir first firs St s wa was Robert II If Jackson now soli cl i tor tun general President Roosevelt Roosevel alt il was very anxious to have Jackson Jacks on n run runor fur r governor of New York la las last s St r year r Had Jackson run and been ale elect c t g f ed d hi he would Io now be governor o of New York and m in a position not on only I 1 y of being able note to do things and ke kein kee keep P ep in the limelight but of having eLined car eLi Pr r ned fled the Empire state slate in a ye year yea sr s i which was not too good for the Democrats Democrat Of course coune Jackson might not have been elected had Roosevelt pre pre- on the leaders to nominate him but the interesting thing atthe at athe atthe the he moment is that the New York leaders turned thumbs down on him and nd have never regretted their de de- Ision cislon After Alter Jacksons Jackson's elimination for for elimination for it could scarcely be considered anything any any- thing less Harry less Harry L. L Hopkins Hopkin beame be be- came ame the Ule white hope of the New Deal This movement involved also alsoe e a bit of business appeasement At Atthe Atthe Atthe the moment the New Dealers were rather ather thoroughly convinced that they hey must have a business revival U If t they were to be kept in power after fter next year Then Ill Health Put Harry Out of oJ Picture Two things happened to that Noone No Nome Noone one me is sure precisely which of the two wo was the chicken and which was the he egg but one was that Hopkins was out of at the picture on account of his its health and that while he was out of the picture the spenders and business bailers climbed into the saddle addle again and again and are still there as this Is II written Maybe if Hopkins had been well enough to fight light for the program with regard to business he certainly stood aloud for or when he was seeking conforms conforms- lion Ion as os secretary of commerce things would have been different Or r maybe If the New Dealers hadnot had hadnot hadnot not become convinced that Harrys Harry's constitution would not permit the strain of running for the presidency things would have stayed put It Ills Is difficult to tell lell Perhaps even Roosevelt Roosevelt Roose velt does not know the answer to that hat De Be that as it may most New dealers will tell you confidentially that hat they do not think Hopkins Hopkins' health permits his consideration for tor forthe the he candidacy next year Meanwhile Murphy Is busily engaged en en- aged not only in building himself up before the country but in doing doingt It t in such a wa way as to overshadow the he similar exploits of Thomas E. E Dewey resident President Will frill Win Battle e To o Continue Spending Policy President Roosevelt will win the battle he forecast in his address boore bo- bo fore ore the American Retail federa I ion Uon The spending policy polley will con can flues despite grumbling from con con- I leaders not only among the Republicans but in to the Presidents President's dents dent's own party There will be no nor r reduction In the total taxes paid by business justness In fact there Is la likely to tobe toe be e at least a R small increase as ea assuming suming that there Is any tax revision revl soon sion at all Some of the nuisance I taxes axes on business may be repealed or revised but if they are then the he fiat flat corporation Income taxes toes will be boosted so that the net ef ef- sect will be to io to make successful companies com corn panics pay more though to ease the burden lurden slightly on unsuccessful com corn pontes There will be no marked curtailment curtailment curtail curtail- ment of government competition with business Unemployed will con con- to be aided by work relief relict Instead In stead of by a dole and social security ty ly benefits will be greatly extended Dut But In winning the battle Roosevelt Roose velt volt runs tuna a serious risk of losing the war The chief reason why there will be no balancing of at the budget In n fact increased spending is not in sympathy on Capitol Hill with the Presidents President's economic theories but the rho old age-old desire for pork and the necessity for logrolling to get it It- It hence bigger and bigger tlona Roosevelt lies Has Pork on Ins His Side for the Moment This sentiment against spending and ana the New Deal economic policies poll poli ciao cies Is la not strong strung enough yet apparently apparently ap ap- patently to Insure revision of gOY spending pending Dut But It would be tomorrow if the pork element could be eliminated l. l Thus Roosevelt has pork on his side aide for the moment but the bigger the pork spending the themore themore themore more eager will the congressmen be beto beto to swat the next Roo Roosevelt evelt spending proposal which is not sufficiently greased The defeat by the senate of the Florida ship canal Is a perfect per fact example of this The Florida senators did their utmost to include the Florida canal in a logrolling combination and as 88 a matter of fact had more success than appeared appeared ap ap- Peered on the final roll call Dut But Sen Arthur did such a good publicity job in branding this project protect that even Pat Harrison whose state of Mississippi is to interested inter ested sated in the canal had to go to Sen Claude Pepper and beg to be excused ex Harrison had been making quite a play against spending To have voted for this particular expenditure ex would have put him Inan in inan inan an inconsistent position to put pul It t mildly All AU of which spells more strength for the conservatives at the convention con next year which will nominate the Democratic candidate can can- for President It explains the enor anus enormous moos apparent pop popularity for John Nance Garner de de- Garners Garner's clots clois- spite vocal chords hords It explains the utter uller y collapse of incipient booms for every New Dealer Denier who has John N N- N bern been put pill forward as Garner Roosevelt's Roosevelt possible successor It explains the desperate efforts of the President to win Sen James F. F Byrnes who has been sorbs rather n vocal about the governments government's spendIng spend ing Ine policy Dell Bell S Service l l |