THE PRESIDENCY: Out of the Fog

Franklin Roosevelt at a press conference, Marriner Eccles in a speech at Boston, last week gave a bit more shape to the big new Spend-Lend program that began looming through the national economic fog three weeks ago (TIME, May 29). Essential nature of this contemplated program is known to be Federal-billions-into-capital-goods. To keep the program from further unbalancing the Budget, most projects in it are supposed to be self-liquidating. Governor Eccles lifted the veil to the extent of listing "toll roads, tunnels and bridges; rural rehabilitation and farm tenancy loans, especially in the South . . . extension of the rural electrification program; hospital and sanitation facilities . . . expansion of public housing." President Roosevelt referred specifically to the idea of U. S. investment in railroad equipment and said what was being studied was the method of handling it: by loans, or through a new Federal corporation (within RFC) which would keep title to the equipment, lease it to the roads.

Washington heard that one to one-and-one-half billions was the total in the Lend-Spenders' minds for their new pump-priming act. Secretary Morgenthau was reported to have traded his support to the plan in return for the President's acquiescence in income tax revision (see p. 16). Majority Leader Barkley assured his Senate mates that the program, whatever shape it might finally take, would not be dumped sensationally into Congress' lap this session. The way for it might be paved simply by extending the authority of existing agencies, such as RFC.

>The President's caller-of-the-week was Ambassador to France Bill Bullitt, home for a week ostensibly to have a lame shoulder treated, more likely to prime the President against an anticipated September Crisis abroad. Secretary of State Hull last week held conferences on the Tientsin situation but took no action, issued no statements (see p. 21). > Ambassador Francisco Castillo Nájera called to thank the President for U. S. courtesies upon the death of Mexico's air ace, Francisco Sarabia (TIME, June 19). The President seized the opportunity to ask Mexico to speed up its settlement of U. S. oil expropriation claims.

> It was revealed last week that President Roosevelt last month pardoned, because of ill health, Broker William L. Jarvis of Newton and Scituate, Mass., who had served 15 months of a five-year prison term for fraudulent use of mails to sell stock. Broker Jarvis and four colleagues were SEC's first big captures.