| Show TN SID IDE E ELt I Lt 1 STUFF Politics and Finance t Newspaper Syndicate W WASHINGTON By Paul Mallon MalIon i There is an important reason why Eugene Meyer eased cased out of the Re Reconstruction Reconstruction Re Re- construction Finance corporation His plea of too much work was only I truth half that covered up his realf real f feelings lingS The fact is his recommendations on policy have been flatly disregarded first by General Dawes and now by Secretary Mills MiUs He wanted to tighten up on loans They thought it wise to follow fonow an easier course v w The president sided with them against against him bim a a aThose Those on the Inside like Meyer realize a day of reckoning Is 13 coming on n the R. R F. F C. C It Is going to be the most moat unpopular agency of government government govern govern- ment meal when It comes time to give an accounting or to try to collect on it Its bl a t aa The temporary necessity of rescuIng rescuing resets resets- ing trig the railroads' railroads and some banks forced it into making some advances that will vilI not look nice when analyzed in colder days Everybody in the inner circle reales real- real his hes es it is going to be a long time before some me of these railroad loans are re re- re- re paid Some firmly believe government government govern ment ownership will result They think the government may be forced to tak take the roads to get its money back a a 9 a aThe The forthcoming senatorial investigation investigation investigation gation probably will not tear the facts loose Senator Couzens will be energetic In pursuing the matter but Vice President Pres Pres- ident Curtis stacked the investigating committee against him Couzens will find himself in a 4 to 1 minority if ithe he I tries to force things thing The R. R F. F C C. will give the committee commit commit- t tee material it chooses in fi Mice nce That will b be bas bas' as' as as for formation mation as possible Prospects are the investigation will wilt only serve the purpose of keeping the corporation careful 1 a a aI J I Speaker Garner is 15 not in good health He is beginning to admit it I himself now The Texan expects to do some hunting and fishing for the movie cameras back home soon and then will seek eek a rest He expects to storm the southwest during the campaign concentrating concentrating concentrating con con- his fire in California They may keep him out of the east cast Republicans hold bold that he has done more than all others others' put together to help them since the nominations They concede he is excellent in the rough and tumble of the house but when he tackles national affairs the they l lay tay y he bc wont won't stretch a a The administration withheld its fire on en the Glass inflation bill The treasury took a few private at it Its inside view w was vas s that the bill would not inflate innate because banks were not required to i issue ue the authorized and there was no ria demand from sound sources for any ly more money Also it contended Continued on Page Pace Two INSIDE D E I STUFF Politics Finance Continued from P pu ei one One the bill would require refinancing of treasury issues bearing beRring low interest rate in order to compete with that type of ot bonds on which currency could be issued The treasury sources promised Mr Hoover would veto it even as an amendment to o one of ot his pet bills bUbo S S Dry Democrats had some under underhanded underhanded handed help from Republican drys drs In staving off oft action on prohibition legislation legislation legislation leg leg- until December Beer was put on ice until unlit then by the thc senate because the drys drs who promised to give up were not read ready to do it nt yet The Connecticut Yankee J J. J Henry is slated for leadership of the thc Republican campaign bureau in New York His liaison officer with the New York will be George Akerson the movie man mars who learned politics as Mr Hoovers Hoover's secretary Presidential Publicity Secretary Joslin Jostin Jos- Jos tin lin has become a mere foreman of the mimeograph room Mr m making his own publicity decisions nowadays Somebody will have to take back those things said about congress congress congress con con- gress earlier in the thc session No radical has been passed The noise was mostly about methods rather than results The bark of congress W was lS much worse vorse than its bite There will be bo no senatorial investigation investigation- of ot campaign expenditures expendi- expendi Lures tures ures this year The Thc committee appointed appointed appointed ap ap- ap- ap pointed is not energetic It has no charges to investigate yet et Anyone who can get up a slush fund in these times is entitled to it without senatorial sena sena- tonal molestation NEW YORK By James McMullIn New York hears that tho the resignation of ot Eugene Mey Meyer r as chairman of the Reconstruction Finance corporation was arranged by mutual agreement between Mr Meyer and the dent himself himsel h has not viewed his job ob with the thc R. R F. F C. C as permanent He ie Is said to have had an m understanding understand understand- ing hg with the president president- president from from the beginning beginning be be- ginning that he lie could withdraw as soon as lIS the machinery was functioning smoothly The checkup on R. R F. F C. C activities ordered by the senate is seen here as applying more to the future than to the thc past Local banking authorities doubt that legitimate banking criticism criticism cism clara could be made mado on any past R. R R B F. F C. C loans with the possible exception of the loan to Davies Dawes' Central Republic bank jank The Hoover proposal to Increase the membership of the thc board to eight evenly divided between Republicans and Democrats is 15 interpreted as aSI a apolitical apolitical apolitical political gesture to forestall campaign criticism with regard to the thc Reconstruction Reconstruction Recon Recon- corporations corporation's future nets acts I i I Jj I I i t 1 I J 1 I I I a a Continued contraction of ot credit as Indicated in latest reporting member bank sank statements is explained by au- au as due to the thc Chicago situation situa tion and midyear adjustments Leading Lead- Lead lag ing ng bankers agree the deflation process pro pro- cess gone has gone too far lr but don't dont quite know how bow to go about checking it There are indications that the federal federal federal fed fed- eral reserve policy of purchasing government government gov gov- obligations to maintain member member mem mem- ber bank reserves will be e resumed after congress adjourns There willbe will be je no return to the scale of a week but a more forceful policy will be in evidence than has been shown for some weeks Bankers in general are taking the adjournment of congress as a n much more serious factor than any other section of ot the financial com community unity Itis It Itis Its is s not so much that they fear radical legislation as that they are unwilling to adopt any policies s which might set et them up as targets for congressional abuse This in spite of the thc fact that they have been abused plenty for or doIng doing do do- do- do ing lag nothing The plan sponsored by Senator Glass to permit the federal reserve banks janks themselves to make direct loans to lo jo corporations and individuals turned down by commercial banks is viewed with hearty disfavor The member banks consider that they are arc the true owners of the federal reserve banks I and can can see see no valid reason why the compete with them I Even Sven If it the measure is adopted it will L i have little practical effect The federal federal fed fed- eral cral reserve banks ore are unlikely to bemore be bemore more openhanded with credit than han l their members rs Some observers here think that thai Senator Glass had his tongue in his cheek when he made the proposal It II Itis Itis is violently contrary to his on I protecting the federal reserve reserve banks against possible possible credit credit risks a a a The year five five rider tacked on the home loan bank bill bUt by Senator Glass permitting the issue of ot a billion dollars dollars dollars dol dol- lars in national bank notes against government securities held by thc the banks is not taken seriously It IUs Itis is a cinch that none Done of ot the large banks would avail themselves of ot the the privilege privilege lege now even 1 if they had it It might help some of the small country member member mem mem- ber banks out of ot debt but that would be the extent of ot its influence Federal reserve authorities see a possible danger in it if it normal conditions conditions conditions condi condi- return inside of five years It might then jhen lead to a wave of unhealthy un un- healthy Inflation An authoritative critic of commercial banks batiks says sayoS that they always contract credit when It Itis Itis is needed and expand it when it isn't |
