Monday, Sep. 10, 1934

Good-by Without Words

The Squire of Hyde Park sat in his car one afternoon last week reviewing the Dutchess County Horse Show, but he could not stay to present the cup that he offered for the best horse. He, his good mother and his lady had other squirely duties to attend to. They drove back to the house of Moses Smith, a tenant on their estate, to be welcomed by the Roosevelt Home Club. There Squire Roosevelt talked to his neighbors in homely fashion: "When I got back on Sunday one of my neighbors gave me a very great shock--came up and shook hands and looked at me and said, 'My, how fleshy you have got'. ... I did gain two pounds and I came here with the perfectly serious intention of taking off five. But there is a certain quality in Dutchess County milk and my mother's cooking and the air you breathe. I don't believe I am going to make good my objective."

Then President Roosevelt and his family drove home to entertain at tea. He had been none too free for several days in telling press correspondents about official incidents but they were forewarned of the guests who were due for tea and given a broad hint. The guests were Lewis W. Douglas " wife. What could the Director of the Budget, strong defender of Federal economy, be at hand for except to discuss the preparations of next year's budget figures? That ought to be reassuring news for the bankers who next week will be invited to bid liberally for the Government's huge mid-September offering of bonds. Mr. " Mrs. Douglas came and went, the first time they had been guests of the President in many a week. And they said nothing to the Press.

For reasons best known to themselves the newshawks did not follow the hint given them. Next day they were glad. From Washington went the news that Mr. Douglas' visit had not been for the reassuring purpose of talking over budget estimates but for the far from reassuring purpose of presenting his resignation. Correspondents sent in an inquiry to the Squire but Secretary Marvin McIntyre reported that he had no comment to make. On the third day when the news was spread across the front pages of the nation, a backhanded official admission was made:

"The President has appointed Mr. Daniel W. Bell to serve as Acting Director of the Bureau of the Budget in place of Mr. Lewis Douglas, resigned. . . . Mr. Douglas has also presented the resignation of his Assistant Director of the Bureau of the Budget, Mr. F. W. Lowery."

Mr. Douglas, at the home of his in-laws at Hastings-on-Hudson, confirmed the news: "I told the President that I would make no statement and I am determined to do the courteous thing. ... I shall assist Mr. Bell in his new job as much as I can--and as long as he wants. After that I do not know what I shall do." He smiled. "I may go back to Arizona and starve."

When a Government official in good standing quits the Federal service, there is usually an ostentatious exchange of public letters between him and the President. Each tries to outdo the other in expressions of esteem and appreciation. But "Lew" Douglas' farewell to the New Deal was without a word of thanks from the President. Year and a half ago when Franklin Roosevelt selected him for Budget Director, advocates of sound finance applauded. Young though he was--38--this scion of a great copper family in Arizona had a remarkable record for courage, forcefulness and financial soundness during the six years he served in the House. He was one of the first of Franklin Roosevelt's bright young men and as Director of the Budget he promptly justified the hopes of those who applauded his selection. He helped to draft and secure the passage of the Economy Act of 1933. But gradually his influence at the White House waned.

He favored stabilizing the dollar. New Dealers held it against him that he tried to hold in check PWA and other pump-priming expenditures. Early last January conservatives rejoiced at the news that the President had ordered all allocations of PWA, CWA and AAA funds submitted to Mr. Douglas for approval. Vastly upset, the New Deal's spenders marched in platoons to the President's office, and within three days the order was revoked. Douglas stayed on although his visits to the White House became fewer. He took no part in the announcement of the great two-year budget with its $9,000,000,000 deficit. He was known to hope that expenditures could be held at a much lower figure. Those who knew him were well aware that he would have liked to quit long ago but that he stayed on out of personal loyalty and hope that sound finance might yet prevail. For the past two months he has been little at his office. By last week the time had come when it was absolutely necessary to start work on a new budget for presentation to Congress in January. "Lew" Douglas had either to play ball or get off the team. So he paid his good-by call to Hyde Park.

The fact that his assistant, Frederick W. Lowery, would not remain behind him necessitated putting the budget job in entirely new hands. Daniel Bell, the Treasury's 43-year-old Commissioner of Accounts, was picked "temporarily" but unless soon replaced will have to prepare the budget of fiscal 1936. A career man who went to the Treasury as a youngster of 20, he got the job of Commissioner when his predecessor was killed by overwork in 1931. Since the New Deal he, as the head of the Treasury's bookkeepers, has had to keep track of $7,000,000,000 or so, received and spent annually.

P: Most squirelike of all, the President went on Sunday to Hyde Park's church with his mother, the first time he had attended services in weeks. That afternoon he coached a team of White House correspondents in a game of baseball with the Saints & Sinners from Pawling. Harry Hopkins played centerfield for the correspondents and Rexford Tugwell pitched part of the game. He had the satisfaction of striking out Kenneth C. Hogate, publisher of the Wall Street Journal, but Franklin Roosevelt, sitting in his car by the first baseline, had to recall Pitcher Tugwell from the box after he had yielded nine runs in two innings. The correspondents rued the passing of Lewis Douglas who in his younger days used to pitch for Amherst and later for the Democrats in the annual baseball game of the House of Representatives. But after the Brain-trusters were withdrawn, the newshawks rallied, won in the ninth, 26-to-25.

P: In Manhattan one Benjamin Franklin Varn, war veteran, was arrested for writing Mrs. Roosevelt demanding $168,000 in $1, $5, $10, $50 and $100 bills on threat of kidnapping her grandchildren, "Sistie" and "Buzzie" Dall and Ruth Chandler, baby daughter of Elliott Roosevelt. He was hospitalized.

P: In Mundell, Ark. John W. Schnitzler and his son Frank were arrested for operating a still. A neighbor had written about it to Mrs. Roosevelt and, as a longtime Dry, she had put Federal agents on the trail.

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