WEATHERVANE EXTRAORDINARY

Strong gusts from the bonus and inflationary groups in the House have apparently sent the presidential weathervane spinning to the left. Roosevelt hinted in yesterday's press conference that the price level is not yet sufficiently "high," the obvious implication being that more currency tinkering is being considered. Yet a few days ago Richberg assured a Boston audience "that there will be no inflation while Franklin D. Roosevelt is President." At the time the less gullible took this statement with a grain of salt, realizing that the Treasury wanted to float an extensive new bond issue. They further wondered if he knew what he was talking about when he said "When you talk about inflation, I suppose you mean just that--inflation."

That emphatic assurances from presidential flunkeys mean very little should be clearly recognized by all. When the governmental palm itches, investors, "money-changers," and others are solemnly told that no more conservative government could exist, as was shown not only in the present instance, but also last fall when a new bond issue was put on the market. Moreover, it is wise to remember that if a lieutenant of the President speaks assertively enough to antagonize any group, it is a simple matter to send him to Florida, the bird and ex-official sanctuary.

The bonus and inflationary groups were displeased by Richberg's assurance. To pacify them, the President lots it be understood that he is still playing with inflationary ideas, thus vitiating the effect of Richberg's speech. Now it is the business community's turn to be displeased, and lose confidence, with the consequent decline in price of U. S. bonds.

Now, which way, weathervane? It would be natural to expect that it will turn in whichever way the vocal wind blows strongest. But necessity probably will intervene and rust the vano so that it will point for some time in a "sound money" direction, for the support of 22 million people requires cash, and much of it.