Traitor

When a pleasant house party is disrupted by a murder every one of its members looks suspiciously at the others, knowing that any one of them may be a murderer. Last week officials of the U. S. Treasury looked at one another with similar discomfort believing that among their number was a traitor and a spy.

Every weekday morning at 9:30 Mr. Morgenthau, his Special Assistant Earle Bailie and Jesse Jones confer directly or by telephone to decide the RFC's gold buying price. Every morning at 9:45 that price written in ink upon a mimeographed sheet is handed to newshawks at the Treasury and wired simultaneously to the New York Federal Reserve Bank. Because of its effect on foreign exchange anyone who knew the price in advance would have the opportunity of making large profits. Last week the Treasury was sure that someone did know the price in advance. On one occasion the price was cabled to Manhattan from London eight minutes before it was announced in Washington. Complaints poured into the Treasury that again & again the RFC gold price was known in London before it was officially announced.

Last week Messrs. Morgenthau, Bailie and Jones varied their daily routine, tried in vain to discover where the leak might be. Whether or not their dismay at the undiscovered leak was responsible, they kept the RFC gold price at $34.01 for nine successive business days, longer than the price has stayed unchanged at any time since it was first announced. On the theory that the price could not be discovered by wire tapping no Secret Service men were called upon. Earle Bailie was given the job of playing amateur detective.

But the leak leaked on. Asked whether any progress had been made in stopping it, Sleuth Bailie cosily replied: "We always make progress.''

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