| Show MONEY MARKETS MARI ETS By James McMullin the Ihs r Telegrams Telegram's Exclusive Observer Along Wall Willi Street NEW YORK Exceptionally YORK Exceptionally in informed informed in- in formed New York sources are convinced convinced convinced con con- vinced that President Roosevelt would privately lik like to ease the tension between the administration tion and the power companies Some of hiS hW more conservative advisers have kept hammering at atthe atthe atthe the idea that private utility spending spend spend- ing urgently ing-urgently urgently needed to turn the depression tide will certainly not be forthcoming until the threat of government competition is abated They have stressed the point that It will take months for forthe forthe forthe the spend-lend spend program to produce produce produce pro pro- pro pro- duce a lift and that meanwhile everything possible should be done to encourage business activity in order to forestall a reaction against the new deal in the November November November No No- vember elections Mr Roosevelt is understood to tobe tobe tobe be impressed by these arguments and to be seeking a formula for foran foran foran an understanding that will satisfy the power leaders without making it appear that he surrendered to them From one angle the senate appropriations appropriations ap ap- ap- ap committee proposal to bar P W A advances for in In producing come projects to compete compete com corn pete with existing private utilities would solve this problem neatly From another it puts the president president president dent on a ticklish spot F. F D. D R. R cannot afford to antagonize antagonize antagonize an an- the public ownership element element element ele ele- ele- ele ment in congress which vehemently vehemently vehemently objects to any restrictions on the construction of municipal power plants Nor can he accept the amendment publicly even though there is reason to believe he might welcome it privately That would look like a major re re- re treat So administration leaders in the senate are fighting to kill it No one can be sure what the president will do But New Yorkers Yorkers Yorkers York York- ers who know him well weIl anticipate What they call a typical Roose- Roose compromise such as this Pass the bill without the amend amend- ment Leave the P W A free to tomake tomake tomake make loans and grants to cities That would appease the wing left ers Then announce that very littIe little little lit lit- tle tIe money will be used for that purpose thus t h u us s reassuring the power industry The new low rate for treasury bills has revived the old idea in some governmental and financial quarters that extremely low money rates are bullish Top-flight Top banking sources dis dis- dis- dis agree They figure that the abnormally abnormally abnormally ab ab- ab- ab normally small wage being paid for money under current conditions conditions conditions condi condi- is bearish if anything It is isa isa isa a powerful influence in keeping a huge volume of cash belonging to individuals in the banks because there is little incentive for these funds to flow into investment channels The banks in turn have difficulty finding profitable employment for idle funds Insiders doubt that this money will go to work in trade or investment investment investment invest invest- ment until spurred either by fear or by some potent promise of long pull profits that is not in sight at present Advices from scouts for large New York business organizations confirm the following report re recently recently recently re- re received from a western editor I think the west is beginning to have the same type of jitters which has afflicted eastern businessmen businessmen businessmen busi busi- for the past three or four months Average Main street businessmen are scared of government government government govern govern- ment and are pulling in their horns so to speak They would like to see a new Moses appear on the scene but there seems little likelihood of that Insiders learn that startling evidence evidence evidence evi evi- evi- evi dence will be brought to light in inthe inthe inthe the C I 0 O suit against Mayor Frank Hague of Jersey City Laor Labor Laor La La- bor or leaders are seeking an Injunction injunction injunction tion to prevent the mayor from interfering with their organizing activities The hard-boiled hard Jersey boss has proclaimed that labor in his domain domain domain do do- main is perfectly contented and wants no outside agitators coming coming cornIng com corn ing in to stir up trouble To support support support sup sup- port its contention that Jersey City workers need unionization counsel for the C CIO I 0 has made madea a quiet survey of factory payrolls there Actual time-cards time will be Introduced introduced introduced intro intro- as evidence They will show wages as low as 6 and 8 weekly All that the C I 0 O is asking asking asking ask ask- ing for at present is a park and ahall ahall a ahall hall or two where it can hold meetings without having its organizers organizers organizers or or- deported To justify this demand its lawyers will play the town up as the sweatshop center center center cen cen- ter of America There is a popular impression that government agencies and bureaus bureaus bureaus bu bu- bu- bu are staffed chiefly by bright young collegians New Yorkers are amused by an incident which indicates that one sector of the administration at least is a little shy on academic atmosphere Recently a public relations man employed by one of the best- best known and most important executive executive exec tive departments phoned an officer officer officer of the Washington chapter of Phi Beta Kappa the society whose membership is restricted to those who attained unusual scholastic distinction in college Said he Say what is this outfit outfit outfit out out- fit of yours anyhow My boss and he nam named d a prominent official official of of- just below the rank of ot cabinet cabinet cab cab- inet met officer has been invited to talk to a Phi Beta Kappa gathering gathering gath gath- ering and we were wondering what kind of a speech speech to fix up for him The nature of the society was patiently explained and the Inquirer Inquirer in inquirer In- In was advised to stress the cultural aspects of whatever topic his chief chose to discuss Comment Comment Com Corn ment runs that the will certainly be shocked when it hears of such ignorance practically practically practically next door to the White house t ih l J s. s |
