Show THE TIlE DAILY NEW YORK I Financial Whirligig Written for The Telegram by JAMES McMULLIN NEW V YORK YORK Apart Apart from the public works projects mentioned in the presidents president's message Insiders learn that r reemployment fire lire willIx willbe will willbe be Ix concentrated on four major fronts Housing shipbuilding railroad railroad railroad rail rail- road equipment and development of a power grid distribution tem tern In each of ot these there will be a measure of coordination between private and public enterprise Theres There's a fair chance that Moffett's Moffetts housing administration will stand standon standon on on its own financial feet once it gets gels fully organized But the railroads railroads rail rail- roads can only buy equipment i if federal funds are arc provided for the purpose Shipbuilding largely for forthe forthe forthe the navys navy's benefit and power grids will have to be heavily primed with government initiative Initiative and and money to to get going A large part of ot the four billion dollars which F. F D. D R R. wants a afree afree afree free free hand to spend is due to be routed through these channels The free hand Ls is needed to escape congressional con con- gressional debate on controversial details which detaiLs which might easily hold the program up for months Note that all aU these phases of ot the big push are directly beneficial to heavy industry Makers of steel stee cement locomotives etc will once again discover what it means to tobe tobe tobe be really busy Washington willbe will willbe be watching to be sure that employment employment em em- keeps pace with activity S 0 S Nothing that F. F D. D R. R has said to congress caused such a a. buzz InWall in inWall inWall Wall Street as what he didn't say about money His Ills failure to mention mention mention men men- tion the subject at all was diversely diverse diverse- ly interpreted as ns a sign that the dollar will vill be left alone and as an invitation to the to do their stuff The best Informed Wormed sources take the omission as a strong intimation that definite but progress ress is being made toward international international monetary stabilization On that premise silence is rated wise You dont don't let an obstreperous child play with a delicate watch It willbe willbe will willbe be time enough to give congress a hand in the proceedings when the diplomatic job is finished S C c S The substitution of 01 Jean Tannery for Clement Moret as governor ot oL the Bank of France rance means two things One Ls Is that the bank is being forced to sacrifice its independence independence inde inde- to play phy its part in the governments government's plan plan Just just as our federal reserve system now takes orders from the treasury Moret wouldn't play this game so he had to go Comment runs that he was ilos too fond of ot sitting on his piles plies of gold The second is that France will try credit expansion in a big way in inthe inthe inthe the hope of escaping the necessity it for lor devaluation By rediscounting government bonds which bonds which it has never done before the before the Bank of at France will make it much easier forthe forthe for forthe the government t to raise money Exp Experts doubt that the maneuver will su succeed ced They claim the pressure pressure pres pres- sure of at the thc cheaper dollar and pound cant can't possibly be offset olset by halfway measures C S S eo Premier Flandin is officially committed com corn to maintain the gold standard stan stan- dard but dard-but but he hc has made a subtle move moye to weaken the peasant resistance resistance re re- re- re to devaluation French farmers were protected against the effects of ot a n high franc by a direct subsidy on wheat exports exports ex ex- ports and a guaranteed price on wheat consumed nt at home Now the guarantee has been dropped by about 40 per cent and the farmers dont don't like it But ob observe observe ob- ob serve that 40 per cent devaluation de to to a virtual new Dew parity with the dollar would dollar would put prices back where they were before In Jn terms of francs The French pea peasant ant isa isa is isa a s stubborn soul ul but his pocketbook nerve is sensitive Observers remark remark re re- mark that strategy Is worthy of S S S The Italian Franco accord should promote rec recovery here very here as well as abroad Restored confidence will free capital for lor bolder investment The armament question is more clearly dearly defined and both countries should be able to decrease their military budgets This will release funds also Astute New Yorkers ex expect ct some of ot the radneY to seek seck American trade and investment channels S. S The elaborate ne new road system y tem proposed for New York City fits lit nicely Into F F. D. D R. R RA Rs works work plan- plan but it predicates further growth atthe of at the city and the informed doubt the soundness o of that premise Wise opinion holds that the city has passed its peak and is 15 more marc likely to shrink than expand from now on Manufacturing plants are gradually moving away aY to escape high rentals taxes and labor Jabor costs In 1930 leading bankers were pr predicting pre pre- dieting New Yorks York's uninterrupted growth at least until 1955 but 1955 but the present status of real estate and mort mortgages a cs indicates a slight error in the forecast The new deal trend toward decentralizing de dc- dc centralizing population will affect all urban centers to some extent New York must cope with the added factor of or having lost it its attractions attractions at at- tractions for industry Copyright McClure Newspaper Syndicate |