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Show MONEY & MARKETS By James McMullin The Tologrem'i Escluerve Observer Aleae Wei Street NEW YORK New York anti-new anti-new dealers have abandoned thair original hopea that the public reaction re-action to revelations of Hugo Black's alleged membership tn the Ku Klux Klan would ruin President Presi-dent Roosevelt's chances of getting get-ting his future legislative program enacted. Realistic analysis Indicates that the Black excitement will have very little practical effect on the congressional attitude toward new deal maaauraa. Plenty of congressmen congress-men will, of course, vent thunderous thunder-ous oratory on the aubject, but the point la that thoaa who do ao would have opposed the president In any case. The wages and hours bill, for Instance, draws its chief aupport from industrial centers. It is precisely pre-cisely in theae centera that Catholic Cath-olic and Jewish and negro political polit-ical strength ia moat heavily concentrated con-centrated and hostility to the klan la hottest. But it would obviously be absurd to expect congreasmen from such diatricta to turn around and buck the wagea and hours bill because of agitation about the klan. Aa for other prospective legislation, legis-lation, the White House plan' to reorganize the executive branch of the government may be blocked because it treada on aensitlve patronage pat-ronage corns, but tha klan issue haa no bearing on it either way. Nor does tha Black business tie in even remotely with the farm bill or tha aevan-T V A bill or tax revision. re-vision. The one exception la supreme court reform. It doea seem probable prob-able that F. D. R.'s lmpetuousnesa in choosing Black without checking check-ing up on hia antecedents will make It even less possible than before for him to put over his pet project to "modernise" the high tribunal. Apart from this lone ray of con-aolatlon, con-aolatlon, anti-Roosevelt chiefa retain re-tain the long-range hope that popular pop-ular resentment at the Black appointment ap-pointment will be expressed next year at tha polls. At that, a number num-ber of them privately comment that they have acant chance of cashing in on it unleaa they can develop mora Intelligent and effective ef-fective leadership than in the past Secretary of tha Treaaury Henry Morgenthau Jr. is in dead earnest about trying to balance tha federal fed-eral budget. New York learns that ha haa kept hia staff burning tha midnight oil in an effort to find ltema In departmental estimates that can be reduced and abolished. Of course, he haa no authority to compel other departments or agencies to cut down expenses, but his plan haa been to aubmit specific auggestiona to tha presidentwho presi-dentwho could do aomething about them. Thla intensive study has been directed at this year's estimates 1937- 38 not next year'a. Appropriation Appropri-ation have already been made to cover them, but the aecretary evidently evi-dently feels tha the time to atart economising ia now that money doean't necsaaarily have to be spent just because it haa been appropriated. ap-propriated. Tha difficulty ia to find Hems that can be challenged successfully. Department and agency heads are well primed to defend every nickel provided for in their budgeu. Nor Is Mr. Morgenthau content to point out where the other fellow fel-low can save money. He also haa hia aubordinates busy on the treasury treas-ury department'a own budget for 1938- 39. Ha aims to have hia department aet a good example for all the others oth-ers by being tha first to present Its estimates for the next fiscal year and by cutting its demanda aharply below tha comparable fig-urea fig-urea for this year. That laat isn't as simple as it aounda. Every bureau and division naturally rebels at curtailment and ia Ingenious at digging up rea-aons rea-aons why It can't be done. Tha public health service, for Instance, citea the favorable response of press and public to Its campaign against syphilis aa juatification for requiring mora money rather than less. New York gets wind of a highly original proposal to aolva the thorny Palestine problem. Tha author of tha plan ia Count Coudenhove-Kalergl, tha founder and president of the Pan-Europe movement Ha ia tha aon of an Austrian father of Dutch deacent and a Japanese mother. Hia plan starts with the premise that It is Impossible for Jewa and Arabs to live peaceably aide by aide In Paleatine, no matter what formula la tried. So he suggests leaving Palestine exclusively to the Arabs and giving the Jewa a brand new atata entirely their own in some African territory which now belongs be-longs to Britain perhaps in Tanganyika. Tan-ganyika. Thia plan haa attracted considerable consid-erable attention in League of Nation Na-tion circles at Geneva and also In high British quarters. Britain would give a good deal to be rid of Its Palestine headache. But well posted aourcea doubt that Zionist leadera can be aold tha idea. Tha Jewish emotional tiea with Palestine Pales-tine are very atrong and the practical prac-tical difficultiea of transplanting a whole population are enormous. Fantaatic aa the proposal aounda. It will bear watching. It ia going to be seriously discussed la months to come. Mayor Ftorello LaGuardia of New York haa had hia political upa and downs, but he haa aet one record this year that will probably never be equaled. He Is the only politician who has ever bean able to win the support of both bankers and communute in the aame campaign. (Copyright, 1937, for The Telegram) |