| Show N SID E I 1 1 STUFF j Politics and I Finance i Copyright I 1933 by Paul Pul J WASHINGTON f By fly Paul Mallon Nallon 1 r Mr r. r Roosevelt's best friends ar arc 5 bown to have told him that he mus must f f a currency st statement imme i whether he wants to or no noThey not LI They have advised him the late uncertainty un certainty has been bad on every kind kin 0 of business This is the contract period o of th the year Bankers merchants and buyers buy buy- ers en are supposed sed to make their winI winter win win- lter tex ter commitments They cannot do i Jt It I until they know what the administrations administration's u tt tion's ns currency policy will be for the thet t next ext few months Anything the president chooses to tol l Jo cannot be hall hail as b bad d a as doing THE WALL These insiders know Mr Roosevelt Went went off oU to Hyde Park to think it itt t over They that he has has' been unable to convince himself thoroughly thorough thorough- ly that the time for a basic change has come They like his rule of doing nothIng nothing noth noth- ing while the least doubt exists in his t mind But they believe the situation has now pinned him him up against the wall Psychological measures cannot help A decision must be made or at least leas promised Uncertainty has ceased tobe to tobe tobe be a stimulating help and has become beI become be be- hindrance I come a confusing RADIO For that reason those who have talked bIked with Hyde Park recently are arc convinced the president will shortly make the third national radio appear appear- Ince ance of his administration 4 1 I The big bis thinkers are are convinced that tha Twill do more to help business than everything else now being done I It Iti 1 i would enable the banker to lend the I business bins man to plan his stock and J the customer to plan his buying I HAPPY DAPPY ENDING The bankers and administration of of- who have been growling a at each other for weeks arc are about to shake hands and make up At least leas that Is the promise made inside You will be able to see shortly how far lar it Is carried out Chairman Jesse Jones of the R. R F. F C CIs C. C Is supposed to have won his point on the capital stock issue plan The New NewYork York bankers have grudgingly come around to promise cooperation in it They do not need more capital But some iome banks baw out in the country can use we It in prep preparing ring for th the deposit rantee examination The rhe he N New Nw v Yorkers are expected to l lead a d th the way ay for tor banks generally by taking a moderate amount of R. R F. F C. C cash cashi i h themselves melves That will That will provide a happy ending for a vet very difficult situation BANK hANK GUARANTEE If the off of stage peace pact is car car- ned fled out it means the deposit g guar guir guarantee antee will go into effect January 1 rain or shine T The e pressure In congress seems to tobe tobe tobe be too great to follow any other course The banks seem to be resigned to It Und and the government is cooperating by a liberal interpretation of the law Solvency rather Crather than liquidity or capital assets is to be the first test In ini i i examinations Meanwhile progress is being quietly quiet quiet- ly made in the tile preparation of the new administration bank bill Treasury S Secretary WoodIn recently had bad a pro proposed pro pro-I o- o posed draft of It Senator Carter Glass is back on the scene helping out inthe in inthe inthe the formation of it BAD DAD TASTE The recent Thomas Smith cotton Inflation show left a very bad taste In the mouths of the highest administration administration adminis adminis- tr officers They arc not saying anything about it publicly now because because be be- cause their Democratic friends led it But they will not soon forget it Jt J Everyone knows government poll poll- 1 des cles arc ue fixed In private conferences Public displays like the cotton con con- I only ballyhoo rallies They i merely agitate Far more Influence can be exerted inside without so much publicity In this instance all it dIdI did I was Wu U to put the president on the spot It created the Impression that a group 1 la In his party parly was trying to force him be embarrassing ing to him in any move inove he chooses to make A far dif dil different ferent and very much more effective course COUSt was followed by Senator Pat Harrison HarrLson Incidentally he went off oU to play golf for a week while the cotton cot ton conferees were gumming up their chow OPEN MARKET lARKET The reason the federal reserve crowd eased down on their open market mar mar- ket operations the last half halt of last lut week was wu that excess reserves were then at a new peak Tho The Black crew started out on a scale which would have meant possibly open market operations for the week At Continued on Pare Fare Two o I INSIDE STY STUFF FI Continued from Page Pue One Onel the end it had accumulated a net of only about Nevertheless a we week k is the goal goat It will willbe willbe be reached whenever the excess r re reserves re serves situation warrants NOTES Contractors are arc kicking backstage about the extraordinary caution of Interior Secretary Ickes in trying to keep the public works program free from graft gratt They say he Is 13 counting every nail naif That situation may not last much longer ot The war department Is sending officers officers cers to the Rocky mountains mountaIns' and arid far middle west states on army transports by way of the Panama canal and Frisco They figure it is cheaper that way but apparently they do not count the salaries of the officers wasted on the long joyride S Most forlorn figure in Washington is Carlos Carlo Marques Sterling Cuban ambassador under De Dc Cespedes and now foreign minister He does not know whether to go home or stay here because his job may blow up any day before he can get to Havana He calls dally daily at the state slate department depart ment meat and Is received as a as Mr Sterling since he has no official status Boris the unofficial soviet representative also is fos a frequent unofficial unofficial un un- un official visitor at the department He hobnobs with Robert Kelley Keller chief chic of ot the unofficial Russian an division i NEW YORK By y James McMullin lulUn Copyright M McClure Clure Newspaper Syndicate New York gets the lowdown that conservators appointed to administer closed banks have been one ane of the chief obstacles to reopening them more rapidly Most conservators had been officers oUI- oUI cers of the banks the they were appointed to run as treasury agents Many have shown more interest in the welfare of stockholders th than n in the fate of f tors They h have ve tried to duck stock assessments in every way possible The treasury got fed up with obstructionist tactics and made it known k that th the use of dynamite was unpleasantly possible REOPENING You c can n expect to see bank reopen reopen- ings taking place rapidly from now on R R. R F F. F C. C powers are being stretched to the limit of the Jaw Each case ease willbe will willbe be treated on its merits but individual revivals will burst like crocuses allover all allover allover over the landscape Fancy financing to make all aU deposits deposits de de- de posits per cent good right off the bat has been laid on the shelf shel What may happen is a variant of the plan which would permit payment in full fun to small depositors perhaps depositors perhaps up to 2500 The big ones will have to wait walt waita walta a while CHILLY Local bankers get whispers of a new plank in Washington's banking plat form onn It says that all banks now open are to be kept open even if It the government has to take over enormous quantities of chilly collateral This goes for state banks as well as national and appears to be the answer to the problem of bank closings because of ot deposit insurance The argument runs that It I is better for the treasury to take the risk Itse itself than to jeopardize recovery with a a disastrous setback from loss of confidence The policy polley of guaranteeing deposits will probably be announced in about 30 days and will willbe willbe willbe be broad in character New NewYork York conservatives are 3 as happy happy hap hap- py about it as a darky in a cemetery on a moonless night but they are ore keep ing lag their feelings to themselves REGULATION Railroad Coordinator Eastman's attitude attitude at at- t toward fixing the salaries of railroad executives stirs apprehensive shivers In New Now Y York rk spines it i bJ b J seen here as the first step on a den deft nite road toward tighter t federal deral con co control con con- of railroads ads and Industry eventually even ey I private private incomes SCHOOLING The P W A sent one of Its chiefs to i New York last laL week to find to-find find out how fc t come applications for or grants were sa so S sluggish Up frt to few o-few f 4 f p days a ago ti too tho P PV w W V A had not received one OM solitary application for construction money l' l from New York state or any city iz in j the state The Tri Borough Tri Tri-Boroughbridge bridge and arid ti the new Hudson river tunnel dont don't Ij count because arranged un ux der R B F C auspices If the states st. and cities dont don't snap out of it Mr Mc Ickes and his assistants will start i projects project over their heads l' l ij One trouble has ha been that mayors have been as far at sea seaon on the procedure ure of filling out applications as as' as a I schoolboy facing an examination The P W WA A thinks it might be a go good d idea to start a school for tor mayors Most of the applications so so far re- re reo calved from other states slates have b been n for waterworks and sewers Those two i Items plus bridges es account for well veIl i over half halt the total to date SUNSHINE New York enemies of the securities act see sec a rift in the clouds Local Looi friends of the the president say he is listen J Ing to advisers who recommend revision re- re vision of the act as a spur to reC recovery verr The Informed are certain cerbin will it be tie modified considerably CURRENCY 1 The government may try out aplan to buy in about wo worth of ot U. U US U.'S S. S bonds per week eek federal i reserve banknotes not tre in iii payment The federal r reserve serve board t is not likely to object if there aze reasonable restrictions as to total amount f This would put more currency In la 1 circulation and should therefore soothe the But it would it-would be cur currency rency of a type which already circulates circa lates Intes freely and should therefore notto not nots be alarming to the antis Also Als I pave th the way to more lavish bond bond- Issues by temporarily reducing the public debt |
