Show NEWS BEHIND THE NEWS I Written f for The Telegram egr By Ray Tucker r WASHINGTON WASHINGTON-P WASHINGTON WASHINGTON-Pr P res resident cal ide dent n t Roosevelt's own economists have become extremely uneasy even jittery over the spending spree that may be precipitated by his rearmament program They fear it may produce an orgy of temporary temporary temporary tempo tempo- prosperity which will be succeeded succeeded suc sue by a national hangover more depressing than The recovery experienced from last May through the present month of December has been little short of remarkable The No No- vember-December vember figures have not been announced yet but they will show that from a low of 77 71 in May the federal reserve index has soared to for last month and will touch about for De De- De- De cember For the year the average Will be 86 That compares with a 1929 average of and government government govern govern- ment meat expenditures are only start start- ing P W A and housing authority money will not begin to have any appreciable effect on this picture until April or May If a terrific rearmament fund is poured out outon outon outon on top of these expenditures the index may easily shoot to or Such a rise would be too rapid to be healthy according to the farseeing experts and even though it might last for several years it would insure a collapse between 1942 and 1944 They prefer prefer prefer pre pre- fer a more orderly process and therefore a slight check on financial financial financial finan finan- cial expansion here In their opinion opinion opinion ion the timing of government outlays is more important than the amount expended Political considerations conflict with these economic prophecies however and it is generally acknowledged acknowledged ac ac- ac- ac that Mr Roosevelt is isa isa isa a more astute politico than he is isan isan isan an economist His eyes for the moment are on 1940 Its It's obvious that a 1942 1939 boom would reinforce a White Whit House demand for the nomination nomination nomination nomina nomina- tion of F. F D. D R. R or his kind of a man No politician or group of politicians could deny him party control if smoke were pouring out of the chimneys and dollars into the pay envelopes if if W IvY P A rolls have been reduced to the vanishIng vanishing vanishing vanish vanish- ing point and the budget approaching approaching approaching ap ap- ap- ap a balance The voters would flock to the polls ir ut merry and nonchalant mood as they did when they elected Calvin Coolidge in 1924 despite the Fall and Daugherty scandals It would bea bea be bea a full dinner pail turnout Nevertheless the White House is worried over the twin problems of compensatory spending and the economic equilibrium F. F D. D R. R betrayed his concern when he denied de denied denied de- de nied that his national defense program program program pro pro- gram would overstrain the budget or necessitate heavier taxes It was to forestall an unbalanced boom that he recently named that fiscal and monetary committee consisting of Eccles Mor- Mor Bell and Delano The engineers now taking us for a recovery re recovery re- re recovery re- re covery ride are not certain just certain just like Herbert Hoover what Hoover what lurks around the corner An almost empty money bag explains explains explains ex ex- ex- ex plains why the the- most advanced thinkers on the antimonopoly committee committee Thurman Thurman Arnold for instance instance are are singing low in the early stages of the inquiry They cant can't afford to act up until the next congress replenishes their till Although the investigators received received re received re- re one of the largest appropriations appropriations appropriations in the history of congressional congressional congressional con con- gressional sleuthing their funds are fast running out They wont won't last through March possibly February February February Feb Feb- at the present rate of outgo whereas the more determined want a year two-year study at the very least They will probably need another v- v to finance their planned survey of the nations nation's economic structure I They know that if they transform the inquiry into a punitive expedition expedition expedition tion the incoming legislators will not underwrite their new financial demands Therefore the pleasant and polite prelude Fabricating a 1940 political escalator es escalator escalator es- es for Harry Hopkins has become the most important and difficult task for his boosters among the young and left wing new dealers Most of the lifts they have toyed with on his behalf go down instead of up Newest scheme is to create for him the post of coordinator of national national national na na- na- na defense an assignment which would vest in him the spending of almost as many millions millions mil mu- lions as he poured out in his W PA P PA PA A job In this instance however he would have a chance to woo the great financial and business and industrial interests which sniffed at his handling of relief funds It offers another advantage in that he would not have to be confirmed confirmed confirmed con con- firmed by the senate senate senate-a a barrier which ho he might not be able to hurdle for the postmaster generalship generalship general general- generalship ship or secretary of commerce When the antimonopoly hearings hearings hearings hear hear- ings opened Chairman OMa honey issued orders against smoking smoking smoking ing in the senate caucus chamber where such figures as J. J P. P Morgan Morgan Morgan Mor Mor- gan George Whitney Jim Reed Harry Daugherty Albert B. B Fall Falland Falland Falland and other notables once lit up the place with pipes cigars and cig- cig Reporters immediately dubbed it the smokeless investigation But the explanation for the strange edict is Representative Hatton Hattori The Texan hates the weed wont weed wont won't permit smoking in his presence if he can help it 1 Copyright 1938 for The Telegram |