| Show iJ LL STUFF 1 Politics f io and Fi Finance ceO ce F na a n Co br bJ Paul M Matlon Hon t t c WASHINGTON By Br Paul Mallon Manon An n Impartial business executive re- re r y went Trent on on political scouting g. g r of at the country lie He want wanted d t to find fl find 4 oat ut for his own o business how Mr f tE and the NR Nit A A. were retting getting over with the people lie He covered half the representative states outside the Democratic south Hit report sounds as if It were writ writ- ten kD te by lIy s a Democratic publicity man I It siyi UT Roosevelt Is as popular with Ui thu supporters u as Gandhi with his He Re pictures the president as commanding I tIia thi hi same ume sincere loyalty as a religious I prophet w J DETAILS Et rAILS ILS X This scout stout pictured the voters voters the th b as body dy politic as as being on a train no not knowing exactly where they are goIn going go go- In ing but cheering like thunder for th the I engineer The demand for tor inflation he thought was growing weaker Thais That Tha Thatis is because retail business is definitely be better ietter than had been hoped for ks t Farmers have not been helped to the degree-believed degree in the east easl Higher prices were not as beneficial as mos most observers think because the crops are malL He thought the farmers were postponing their debts and using their little cash to buy lower class cars or putting a few doll dollars rs in the sock for I winter I P Popular pular loyalty to to the N R A was I also stressed by the investigator He Hei i f found und it more marked in the small smal towns ns which comprise the great bulk of f the country Also among working people who comprise the masses These classes arc are arc ostracizing anyone Who Vho ho declines to subscribe to the blue eagle tagle j 4 PESSIMISM SM lA Another confidential Investigation eithe same subject was undertaken b byA if A Urge large Investment securities house with headquarters rs ln In Wall VaIl street It Itu u equally fi L A qu questionnaire was wu ys sent out to all I nil all l branches ranches even salesi sales sales- t i Continued 0 on Face pua Two INSIDE STUFF Continued I from Paje One Ont men on the ro road d. d Every large city In the country was reached through this method The answers were unanimously pes Pel The N R It A program was saido said to o be moving with elephantine slow I few results In actual ness Very purchasing pur pur- chasing power could be seen Mr 1 Roosevelt was vas described as still III popular but not as popular as he be was waa In n March S. S A third investigation of the thc same subject was undertaken in Washing Washing- ton on The leading financial journal o ol of New Jew York sent its columnist here The idea dea was to get a fresh o of the recovery machinery from a favorable standpoint If it possible This columnist spent five f days Interviewing Interviewing Inter Inter- viewing people outside the prejudiced administration circles He was unable to find one enthusiastically optimistic about the N R A. A 1 SUMMARY S The real answer does docs not He lie in any anyone anyone anyone one of the three investigations but In Ina I Ia Ina a composite of all If you fit the pieces together you will get a more accurate picture than they spent thousands of dollars olLars for The first report deals with psycho psycho- on ogy ty not statistics It may be a little overenthusiastic but not materially so The second Is tainted with the fact that hat the investigators are thinking in terms erms of selling stocks tocks and bonds Their pessimism in that respect I Is h probably justified but they have hae m muffed the factor of popular ogy gy The third shows Washington opinion does not always atnaS accurately reflect the view of the he country Just as no man manIs manis mans Is s a hero to his valet ald no lon lion Is heroic to those who ho see it lose close up I STEPS A small eastern town has a new postoffice without steps but dont don't mention the fact to the government contracting authorities unless you youa have lave a catchers catcher's mask on It came about bout this way The government let let the contract for constructing the building and forgot about bout about the steps until the Uie building was completed The project manager rushed through through-a a separate contract for steps ona cost plus basis The board of f awards turned down the ion tion on the ground that it would not sanction any cost plus work C Citizens must use stilts or grow longer legs S NOTES Another factor in those investigations Ions is that the favorable one touched the le whole countryside while the pes pes- one centered in cities Also the lie pessimistic one hit mainly the financial strata in cities clUes f f- e 0 Those in charge of the open market purchases have now gr great at con confidence in n their ability to spread commercial credit that way They are trying to think link up other ways of making the banks anks lend money No one yet has been seen able to think of a good way tomake to tomake tomake make sane bankers lend money on doubtful prospects The coming American Bankers' Bankers association association- con con- would be a good place to take that hat matter up a Some government officials believe belleve Ford Tord will come through with the theN theN theN N R A because he relies so much on purchasing power NEW YORK By James McMullin Copyright McClure Newspaper Syndicate You cant can't teach te ch a locomotive to behave be bi have like a a. motor truck That's really the root of this credit dispute between the government and nd the banks Bank officers who pass on n loans fit the locomotive end of the he anal analogy y They are arc oka okay as long longas as they stick to the rigid rails ralls of traditional policy Once off the rails raUs there heyre ditched and lost Now the government wants them to emulate the flexible truck and adapt their heir credit requirements to N R A needs needs to to leave the rails rails' on which they hey feel safe and explore uncharted oads They go haywire at the thought So it looks as If the government would have to build up an emergency lendIng ending organization of its own partly party part part- I ly y because industry just has to have fresh resh working working- capital to meet code costs and partly to show the banks how its it's done Perhaps a I. I direct t demonstration willIn will willIn In n tune time convince the banks that they can follow suit without having h the skIts skies fall on them Even a timid bather bath bath- er can sometimes be encouraged to dive by watching others do it I I till R. R t. t F. F C. C All AU of which is going to bring our I old friend the R. R F. F C. C to center stage 1 once more The first step step foreshadowed foreshadowed S by General Johnsons Johnson's recent remarks remarks- will be pressure to get the banks to accept R. R F. F C C. money under the guise of f purchasing their preferred stock That hat is supposed to t-o provide them with fresh resh funds which they will not be so afraid fraid to lend The only trouble with this idea is that hat it wont won't work The important banks anks will wilt simply remain ested The government will discover that pretty soon Then New York expects the he first step in direct industrial f fi financing fie I- I to be taken with the food processors Their problem is immediate and the credit risk is not serious Assuming that hat the public continues to buy food with the tax tacked on on they should be je able to get out of hock In from three to six months With loans to processors as the entering en en- cring wedge the more intricate lem em of financing manufacturing companies com corn panics on the red Ink border line will be next in order That wont won't be exactly simple but something will have lave to be done Nothing could give the he blue eagle a blacker eye than to have corporations go under whose only fault was trying to live up to their heir code Government help seems ems to tobe tobe tobe be the only way to save them I I I FEDERAL RESERVE It is going Joing to take a lot more government gov gay securities to float any such program as this No one here ventures a guess as to how much will be needed needed need need- ed but it will be plenty And that's where the federal reserve comes to bat Local authorities predict that the current purchases of governments by th the federal reserve banks are piker stuff compared to what they will be buying three or four months from now That's one reason why present presen purchases are being held down to an amount that can have little more than psychological effect cUed The federal re re- re serve needs to keep funds available for Cor what's coming The established routine for handling han hanS dung these matters will be carefully observed The federal reserve banks will continue to do their buying in inthe inthe the open not market not market not direct from the treasury It comes to the same thing In n the end but it looks much better betterto to o have commercial banks banks' subscribe to 0 treasury offerings They will as long ong as the federal reserve gives them theman an outlet to sell their their holdings holdings i if nee flee essar essary S I I SOUND One large New York bank has its own strict definition of what makes a loan sound No loan which runs for more than nun three months is classed in this category cate cate- tory gory no matter what the security of An application for a half million mil mu- lion dollar credit backed back cd by collateral worth more than thana a million at the current current cur cur- rent market was turned down for this reason And yet they say that nobody wants to borrow I I I FUSION Fusion Fuston tactics in tn the New York City ma mayoralty campaign will be to tolie tolie tolie lie low and say as s little as possible until the end of September They figure figure fig fig- ure by that Tammany will have pulled enough boners to make their job a cinch Fusion fire tire will concentrate concen Irate chiefly on Boss Curry Mayor OBrien O'Brien will only rate the most casual reference SIDELIGHTS New York got a big kick out o of the te socking of Senator Long The Thereal real story is that Huey Hucy forgot he didn't have his bodyguard bodyguard- with him and started shouldering people around One of the didn't like his manners and took direct action Some of the boys think the unknown hero deserves deserves' on of those ticker tape parades up Broadway has sudden suddenly discovered it is terribly fond of President Roosevelt In fact they were really for him bun all the time Yeah They crave administration support in the forthcoming local get it like the G Germans got Jot Paris in m 1914 |
