THE CONGRESS: Coalition Caucus

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Everyone was shown into the intimate Lincoln Study, second floor back, whence Father Abraham, in his crisis, watched the enemy flag fluttering across the Potomac at Arlington Heights. Flanked by the Three M's—Governor Eugene Meyer Jr. of the Federal Reserve Board, who was director of War Finance Corp. and to whom hurried calls to the White House were not new, and Secretary Mellon and Undersecretary Mills—President Hoover sat at a small desk. In front of him were 36 comfortable chairs. In the chairs were seated his "little Congress," actually a coalition caucus, since those members of the Opposition were present who could carry out a joint program in Congress if they wanted to. The President arose and read to them his Super Plan for restoring U. S. business confidence (see p. 13).

President Hoover soon found that he had not only brought the leaders of Congress into the Lincoln Study but considerable Congressional atmosphere. First to hop to his feet with an objection during the recitation of the domestic fiscal program was small Senator Carter Glass of Virginia, Wilson's Secretary of the Treasury and a framer of the Federal Reserve Act. In the matter of broadening the basis of discountable paper through the Federal Reserve to thaw frozen assets which are causing distress, particularly in Western banks, Senator Glass reminded one & all that such a plan was now under consideration by the Senate Committee on Banking & Currency, warned against public expectation of too great a broadening, assured his listeners that he would vigorously protect the Federal Reserve in Congress. Messrs. Mellon and Mills tried to soothe his apprehension.

Later on, some members of the conference thought they heard the President committing the gathering to an extension of the moratorium and cancellation of War debts (see p. 9). "The way that reads," interjected Jack Garner, "seems to me to mean cancellation of debts and I'm opposed to it."

Chairman Borah of the Senate's Foreign Relations Committee thought likewise. So the part of the message which spoke of what the President would discuss with Premier Pierre Laval of France when he comes to Washington next week was changed materially.

The meeting adjourned near midnight. At 12:40 a. m. the triumphant President put his Super Plan, with assurance of Congressional backing, in the hands of the Press, as Senator Watson and Undersecretary Mills had urged. Chuckled Jack Garner: "The Democrats are helping the President write his message to Congress."