Show MONEY MARKETS MARI ETS By James McMullin Th Th Telegrams Telegram's Exclusive Observer Along Wall Street NEW YORK YORK Some Some months ago this column referred to Chairman Chairman Chairman Chair Chair- man Arthur Morgan of the Tennessee Tennessee Tennessee Ten Ten- Valley Authority as a patient patient patient pa pa- tient range long-range fighter who could endure severe punishment at the hands of an aggressive opponent opponent op op- while biding his time to toland toland toland land a telling wallop Dr Morgan's Morgans Morgans Morgan's Morgans Morgan's Mor Mor- gans gan's strategy in the matter of Senator George W. W Berrys Berry's claim for compensation because T V A submerged his marble deposits is a perfect Illustration illustration illustration illus illus- of this From the moment Mr Berry filed his claim which claim which was be before before before be- be fore he was appointed to the senate sen sen- ate ate Dr Morgan took the position position position tion that it had no merit whatever whatever whatever what what- ever and that the T V A ought not even to discuss a settlement He put himself clearly on record to this effect In a letter to Mr Berry but he cannily kept that letter Jetter private until its publication publication publication tion would be he most effective He thus completely disassociated ed himself from the conciliatory attitude toward the Berry claim shown by his T V A colleagues i Davied Lilienthal and Harcourt i Morgan Then he sat back and waited two long years I Now he has touched off his bombshell with maximum effect His letter introduced as WI evidence before the special commission which will decide whether Berry is to be awarded damages Is a terrific blow possibly blow possibly a fatal one oneto oneto oneto to to the senators senator's case Its It's an on odds-on bet that the latter wont won't get a nickel from the government for his precious marble More than that Dr Morgan has maneuvered his enemy arch-enemy David Lilienthal onto a permanently permanently permanently perma perma- uncomfortable spot As long as he remains in public life Mr Lilienthal will be open to the charge that he the he-the the great reformer reform reform- er and purifier of the private power industry was industry was willing to entertain the idea of compromising compromis ing a highly dubious claim against the government in order to se secure secure secure se- se cure Senator Berrys Berry's support in his private feud with Dr Mor Mor- gan Whether this charge is justified justified justified jus jus- or not is comparatively ir ir- ir relevant What does docs matter is that those who dislike Mr Lilienthal Lilienthal Lilien Lilien- thal thai and what he stands for are sure to bring it up a aln and again and again and he cannot convincingly convincing convincing- ly disprove it It is undeniably true that Mr Berry on many occasions occasions oc oc- oc- oc and to many people has praised Mr Lilienthal and belittled belittled tied Dr Morgan thus adding circumstantial circumstantial circumstantial cir cir- cir cir- fuel to the flames Keep an eye on the quiet plodding plodding plod plod- ding relentless T V A chairman He is likely to outlast his more spectacular adversary Keen New York observers haven't always been respectful of Oliver M. M W. W Sprague as an econ coon He has been referred to on oct occasion as the vague Mr Sprague But when he stated in ina ina a 8 speech last week that recovery depends on price and wage re reductions reductions reductions re- re to expand demand these sources conceded that he had said saida a mouthful There are strong indications that we have come to an economic crossroads and that the road from here on slopes downhill Our high standard of living has been of built bulit on a practical monopoly efficient production methods Now we have equipped the rest of the world with our knowledge and our machinery So we have lost our advantage and must henceforth compete directly with nations whose standards are crucially crucially crucially cru cru- lower than ours The remorseless operation of economic law tends to drag us toward their level Theres There's no sense in playing ostrich about it Farsighted analysts figure that our future depends in large measure measure meas incas ure lire on statesmanship courageous enough to face this situation squarely and bring about the necessary readjustments One of the biggest problems will be that of getting everyone concerned to accept the inevitable Patchwork repairs wont won't do Our ship of economic thinking has to go to drydock for a major overhaul Theres There's a storm ahead and the water is growing lower We must fit ourselves to navigate the new channel or risk piling up on the rocks The Roosevelt administration evidently hopes to stem the ebb tide with a burst of rearmament spending That looks like Canute stuff stutt It must be borne in mind that we have spent in the past five years to build up recovery recovery and and where are we now We haven't got twenty billions billions billions bil bil- bil- bil lions more to spend spend not not without wrecking the national credit Youcan Youcan You Youcan can spend half your capital in an emergency without serious harm if you keep the other half bait But you cant can't spend it all and avoid catastrophe Another grand and glorious humanitarian humanitarian hu hu- hu- hu scheme has folded up very much sotto voce and with anxious avoidance of headlines Only five months ago the American Board of Guardians for Basque Refugee Children was trying to obtain all the publicity it could get Th Thousands of SpanIsh SpanIsh Spanish Span Span- ish civil war orphans were to be transplanted to our shores Generous Generous Generous Gen Gen- GenI I erous Americans responded to the tune of in cash Not a single Basque refugee child was brought over but more than third one-third of the money collected collected collected col col- col- col was spent for publicity etc according to state department department depart depart- ment merit files new Anti-new dealers crack that if the administration Is really convinced convinced convinced con con- vinced that monopolistic price fixing is the root of our present troubles it had better turn the department of justice loose on 1 f the bituminous coal co coranA Coal buying has virtually c to Wout w wout seal scale since the new price out by the B. B C. C C C. went 1 I feet Of course it will willbe b present w win be resumed when 1 Jo Io in consumers' consumers hands run meanwhile the situation I industry is a perfect eX exan exa II what Candidate Jackson ing about Copyright 1938 for The Tel |