Right Hand

The new acting head of the U. S. Treasury, Henry Morgenthau Jr., was not trained as a banker. Last week, one of his first official acts was to appoint a brilliant financial technician as his right hand man: Earle Bailie of Manhattan. Although really shouldering the job of Undersecretary, Earle Bailie was named merely a "special assistant." Hence he does not have to be confirmed by the Senate which might not look with favor on 1) a partner in the private banking firm of J. & W. Seligman; 2) the creator and head of Tri-Continental Corp., one of Wall Street's biggest investment trusts (original capital $100,000,000); 3) a man who likes nothing better than to spend two months of the year as lord of a funny old palace on the shore of the Mediterranean at Portofino, Italy.

But certain other of Mr. Bailie's characteristics fit well a liberal Administration and might even mollify the Senate. He is young (43), born in Milwaukee, but not to wealth. He is not only handsome, bright-eyed, good-humored, but since his college days at the University of Minnesota and Harvard Law School has made his way by personal brilliance. He joined the conservative Manhattan law fir in of Cravath & Henderson in 1916 and entered private banking because as a lawyer he helped Seligman & Co. with railroad reorganizations (Pere Marquette, Frisco, International Great Northern, M. K. T.). Yet, no stuffed-shirt, he leans toward the liberal side on economic questions, is familiar with (and discourses ably on) a wide range of modern economic thought. Last week accompanied by Mrs. Bailie (a professional landscape architect, daughter of Lawyer Henderson) their three children and French poodle, Jasper, he arranged to move from his duplex apartment on Park Avenue to a house in Washington. ("Now," said Mr. Bailie, "Jasper will have a back yard to play in.") He also tackled the ticklish job of refinancing $727.000.000 of Government securities that fall due in December--a job made difficult by what Mr. Morgenthau had done to devalue the dollar. Not wanting any unnecessary dollar-doubts to circulate, Mr. Bailie promptly made known that the December financing would be carried out without resort to greenbackery.

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