Show THE DAILY NEW YORK TORE Financial Whirligig Written for The Telegram by JAMES McMULLIN NEW V YORK YORK New New York Is holding its breath for the outcome of the current war tug-of-war between F D R and congress Not even the gold decision suspense stirred such animated private debate In financial circles as the senate re revolt revolt revolt re- re volt on prevailing wages The Informed contend that one of the dominant factors behind the scenes is the senates senate's desire to reassert Its importance The senate is never happy when the White House is is getting all aU the headlines The boys tasted blood when they licked the world court and no now they wont won't be satisfied until they've pressed to the limit and found out whether the voters like their independence or still want them to take orders Once the senate breaks the chains that have bound it to the White House chariot they will never be re- re forged 0 Keen observers here find some evidence to support the view that the presidents president's popularity Is slip slip- ping Its It's noted that publicity channels are definitely getting out from rom under the spell The best posted sources ascribe this to Mr Roosevelt's too sustained effort to stay In the middle of the road He has alienated his left wing supporters supporters supporters sup sup- porters without gaining any appreciable appreciable ap ap- help from rom the right 0 00 The ballyhooed cooperation between government and business has turned out to be mostly lip Up service Not even professed backers back back- ers of the administration in industrIal industrial industrial indus indus- trial and financial circles have done anything tangible to stimulate stimulate late employment or circulation of or credit Meanwhile the more radically radically radically radi radi- cally Inclined have become Increasingly Increasingly in increasingly In- In convinced that the new deal has betrayed their hopes 90 o 0 Insiders agree unanimously that F D R Is facing his most serious test to date Unless he can quickly quick quick- ly regain command of congress they figure his legislative program pro ram ramis is sunk and lawmaking hereafter will be a free for scramble among political blocs with unpredictable unpredictable unpredictable results There are arc three New York schools of thought about the probable probable probable able results of the Impasse Many conservatives are arc extremely extremely ex ex- nervous They have no no overwhelming love for the presidents president's presidents president's presidents president's dents dent's policies but they feel that at least he had some Idea of where he was was was' going going and and congress hasn't They fear an epidemic of fantastic proposals some of which might pass that pass that will keep the country in an uproar for or months and checkmate economic progress They are particularly jittery about the proposed alliance In the house among bo- bo hour 30 and patronage malcontents No one can tell teU what witches' witches brew they may concoct con con- and and sell Then there are the pro-new pro dealers dealers few few in numbers hereabouts hereabouts hereabouts here here- but firm In faith They are confident F D DRS DR'S RS R'S publicity sense will enable him to recapture popular m and sweep the senate off its feet They figure hes he's bound to have an ace or two somewhere up his sleeve The third group group consIsting consisting mostly of timers big-timers accustomed to unemotional anal analysis size analysis size sis size up the situation this way vay The opposition consists of left- left wing Democrats conservative Republicans and minority groups advocating various panaceas They can get together to block the White House House but but by no stretch of the imagination can they combine combine com corn bine affirmatively and em em- not to the point of oC overriding overriding overriding over over- riding a a. veto Therefore all legislative action will be stalemated fo for a while Eventually E F. F D. D R. R will win because because because be be- cause the country will clamor for constructive action and it will become become be be- come apparent that the only way to get it is through his leadership But presumably he hc will have learned that he Isn't the he whole show and will wUl temper his program accordingly These observers figure this will willbe willbe be bc to the good all al around despite around despite intervening weeks or months of ot un un- un- un certainty t 0 Perhaps youve you've been wondering why the president departed depart d from his usual custom of at following up a messa message e to congress with a draft of the bill to be enacted when he recommended extension of N R ri A. A New Yorkers with close Washington Wash Wash- ington contacts say there were two rc reasons sons For one the house was in ina a mood to balk violently at any anymore anymore anymore more ready made legislation The Theother Theother Theother other was that F. F D D. R.'s Rs own advisers ad ad- couldn't agree on the form the bill should take It Its It's now up to congress to resolve one of the new deals deal's most strenuous inner ments m a 0 I Financial sources which have bave followed closely the implied fInancial financial finan fInan- cial commitments in proposals pending before congress are rather appalled Everyone knows about for relief but that's only a starter Here are a few other trifles trines The Bankhead billion dollar billion dollar corporation corporation corporation cor cor- to finance tenant purchases purchases purchases pur pur- chases of farms home owners loan debentures to tobe tobe tobe be guaranteed by the government I a tax on Industrial payrolls payrolls pay pay- rolls rolIs for unemployment insurance which would multiply with the passing years and the Kopplemann Kopplemann Kopplemann Kopple- Kopple mann plan for intermediate banks which would have the right to Is Issue issue Js- Js sue a billion in debentures debentures also also alsoto to be fully guaranteed by Uncle Sam I Total these up and they come to almost a a goodly II sum any way you look at it Its It's true that a large share of these projected liabilities are only contingent con con- but but try to comfort conservatives conservatives conservatives con con- with that 4 a Western Pacific's recently announced announced announced an an- financial woes were no shock to Wall street Insiders have seen them coming for a long time The most Important point about this development is that a major railroad is taking the reorganization tion plunge plunge and and its background is such uch that no one will get unduly excited This establishes a useful and comparatively painless precedent prece dent which will make other needed seem less discouraging 0 a aThe e a eThe The New York firm of ot Eastman Dillon was one of the most successful successful successful success success- ful from 30 1928 when 30 when the late lale John Pope was calling market turns with uncanny accuracy Now its membership is being changed to give more weight to bond dealing and underwriting and less to the business It looks as if someone thought there was a bright future in bond marketing But skeptics are unimpressed pressed pressed conceding conceding ding that it may be preferable to straight brokerage brokerage- but that's thal's like saying drowning is preferable to hanging a 60 9 a 9 a Keep your eye on Rolland Holland Marvia Marvin Marvin Mar Mar- vin via as Republican candidate for governor In 1036 He is not of the theold theold old guard a a 0 a 10 Wall WaIl street wonders where the slump in ir Con Can Gas will stop The stock is selling at about half its 1932 depression low Copyright McClure Newspaper Syndicate |