Washington, November 8, 1933.

Worrisome days these--the administration whistles to keep up its courage; the subordinates generally reflect a feeling of uncertainty; whatever figures show a favorable business change are eagerly seized upon, and altogether there never has been a time since last March when the tension appeared any more acute.

The farm revolt in the West is, of course, the underlying cause of uneasiness. There is a bitterness here against the agitators who would take advantage of the troublesome situation to foment strife. But it is apparent that the patience of farm groups is at the breaking point and that the administration is not going to have a chance to continue its experimental economics indefinitely.

For when Congress gets here there will be definite steps taken to relieve distress and to subsidize groups. Already the government is speeding up its machinery of loans in the hope that advances to be made on commodities will send the price level up. It was a forewarning of this western revolt which caused the President to decide suddenly to embark upon the gold buying policy which for months had been advocated by Professor Warren.

The effect has been slight thus far but the advocates of the Warren plan insist that its full significance will not become apparent until about January, and that meanwhile the halt in the decline of commodity prices as revealed by the latest indexes is an encouraging sign. If the downward curve is stopped and even turns upward only a little each week, the results would be what the administration hopes to achieve.

Should the reversal in the trend of farm prices be sufficient to stop the western agitation and hold things in balance while the commodity loan idea furnishes the necessary oxygen to keep the farmers of the west breathing easily, there will be more time naturally for the coordination here of the different parts of the government's program that just now are not meshing.

There is a slowdown at the NRA. It became obvious the moment General Johnson started westward. When the boss is away important decisions are more or less held in abeyance, though, to be sure, the General might feel that his end of the recovery program is way ahead of all the others anyway and he can afford to take a rest and wait for the others to catch up. Certainly the approval of about 100 codes is a monumental task to have finished since July and if the controversial phases such as labor and wage rate adjustments were to be put to one side and an examination made of the many constructive things that have been inserted in the codes relating to business discipline and voluntary cooperation of business groups, then it might truly be said that more substantial progress has been made toward economic reorganization than was possible in decades of anti-trust law philosophy. Controlled competition is certainly better liked by business men than ruthless and unregulated competition. Their adherence to codes shows that conclusively.

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The President is certainly battling with all sorts of powerful elements, new elements in the economic situation that are beyond his control, and his battle will be won only as he is able to retain the confidence of the public. This means the whole public, the moneyed groups as well. For the fight of capital lately has been disturbing and the hesitancy of many holders of government securities to make the exchange under the last conversion plan is another aspect that reveals the importance of getting a better psychology.

The muckraking days are helpful in creating a sentiment so as to secure public approval for drastic reforms, but they also tend to drive capital to hiding places, where no amount of coaxing or bludgeoning does any good. Investors need to be reassured in the immediate future as to the extent of the inflation which the administration may carry on if psychological factors are not to assume an importance which they ought by no means to have nowadays. Several weeks ago there was a better feeling among owners of money than today. Talk of inflation has brought apprehensions. When it is cleared up by a sound money policy, there will be a better national psychology