Newspaper Page Text
Wilson Policy
Faces a Test
In Missouri
Congressional District Vote
May Show Democrats if It
Wiil Be Wise to Follow
President on the Treaty
League Is Big Issue
Desire Real Demonstration
of How Farmers of Nation
Stand on the Measure
Thin is the thirteenth of (t ?crien of
articles by Carter Field on the political
outlook in various ?ta*es.
By (arter Field
EXCELSIOR SPRINGS, Mo.. Feb. *.
This quiet little henlth resort, In the
center of a Congressional district com?
posed almost entirely of farms handed
down fror" father to pon since Civil
War days, is being torn by a. pol?tica!
campaign the like of which it has never
seen before. Interest in this contest
engrosses for the moment the thoughts
of the national eomrnittee? of both
parties, and every night there are
speeches by Senators of national repu?
tation, Governors and lenders from far
off states.
The result in this district will give
ton national leaders of both parties
what will be taken as a fairly accurate
test of whether the D?mocratie party
will do wisely in following President
Wilson's idea of making "wholeheart?
ed" ratification of the peace treaty the
paramount issue ;:i the Pr?sidentiel
campaign. Tho Issue here, uncompli?
cated by other elements to un extent
almost inconceivable m a political fight.
is the peace treaty and tho league of
nations.
The special election was made neces?
sary by the uppointment of Judge Alex?
ander, who has represented this dis?
trict in the House for many years, as
Secretary of Commerce, Tho e cctlon
of a successor to fill out his unexplred
term will occur on February It, and
both sides profess tho greatest con?
fidence.
Democrats Denounce Reed
The situa-;oii is complicated by the
fact thai Senate" .Luve.-. A. Reed, of
Missouri, who live- in Kansas City,
only thirty miles from Kxcelslor
Springs, is very influential lit this dis?
trict, normally. His bitterness affalnst
the league of nations has obviously had
a profound effect. Most ?' the Damn
crats in the district who ?ire making the
present fight cannot find epithets con?
temptuous enough to express their sen?
timents toward Mr. Reed, especially
since the Republican workers recently
brought 50,000 copie." of one of the
Reed speecl-.es Into the dis rie: and be?
gan mailing them under the Reed frank,
Their sureties-t rather indicates thu'
Reed's opposition to tho treaty is giv?
ing the Democrats trouble,
But Reed, despite the fact that only
the one issue Is involved, and that an
issue on which all his sympathies are
with the Republican instead of the
Democratic nominee, la making no ef?
fort to help win i his particular fight
against the treaty. <h: the contrary, he
has contributed twice the amount asked
of him toward the D?mocratie campaign
fund. The Senator professes at leaBt to
hope for the election of u Democrat.
Ho is making no speeches.
Another element In addition to the
arguments of the Senator Is the fact
that the newspaper which dominates
the district is "Th,. Kansas City Star"
ar.d its morning edition, "The Times.'"
F??w papers in the country ore more
strongly opposed to the league than
"The Star." For certain other reasons
"The Star" is unusually lukewarm?for
such a fighting paper In the Congres?
sional b; ttle, but it. has been preaching
ugair.s' the t teat y ever since tho debate
began in Washington, with the result
that the Republicans are counting heav?
ily on the accumulated sentiment which
this campaign has built up.
Factional Strife Stirs Republicans
Offsetting these two advantagea, the
Republicans are disturbed by some
factional resentment against the man?
ner in which the Republican nominee,
John Frost, was nominated, Numerous
references to a "baseball bat conven?
tion" are heard. Those refer to a con
veiition alleged to have been dominated
by the same Republican lenders who
put Frost over. At this other conven?
tion, some years ago, ?is soon as the
organization men were inside it ?a
alleged th?- put guards armed with
baseball bats at the doors and the in?
dependents were not allowed to come
in. Just why this should be regarded
as so rough in u district where editors
have shot politicians and politicians
i.ave shot editors within the last few
-, ears is not explained, hut there is a
good deal of talk and feeling about it.
So the disadvantages und uilvantages
may be fairly said to otfset bach other,
to all practical purposes, with the re?
sult that the outcome of the election
ought to dem?nstrala something, In
this community, through the efforts of
its chief newspaper sourca of nation?
wide information, "The Kansas City
Star," about as good u case us can be
made against the treaty has been
rather thoroughly presented, Tliere
fore it may be rotighiy assumed as ?
cross section of what thu farming dis?
tricts of the entire country would be
after an educational campaign fer und
against the treaty,
Watch Farmer Vote ?in Treaty
That is why th? national committees
of both partios are muking such efforts.
While both tire tremondously anxious
to win, there is even more evident all
Intense desire for a real demonstration
at the ballot boxes of how the farmers
nf the country might vote on the treaty
were it the paramount issue,
The Democratic National Committee
several weeks ago sent Jo? ?, Davis,
of the publicity stud m Washington
headquarters, to Excelsior Springs.
where ho is cooperating with the local
workers. Attorney Contnal Palmar was
to have spoken here this week had he
not been too ill. He hu? promised to
come next week und make speeches for
two days through the district, Repre?
sentative Tom t?oflin, of Alabama, re?
garded as the most stirring of ull tho
rabble-rousing orators of the D?mo?
cratie party and a man who appeals
particularly to the houihorn ?ooitonal
spirit, will also ii? here next w?->U, As?
sistant Secretary of State Dreeken
ridge Long addressed severs! meetings
with ('.?plain J, L. Mllligan, the Demo?
l? A W^
?
GLOVES
Capeskin
Real Kid
Mocha and
Buckskin
For Men and Women
Tba World'? Or?ate*! f,?ath<?r St?re?,
?<M fifth ?tve., New Ve. U t ?SS ?roadway
Boston?146 Tremunt Utr^ot.
London?tl Hngent (?treat.
?
cr&tic nominee. Senator Robert L.
Owen, of Oklahoma, and ex-Senator
James Hamilton Lewis, of Oklahoma,
arc to speak in a few days.
For the anti-treaty side Senator
Hiram Johnson has passed five days In
the district. drawing tremendous
crowds and getting good newspaper
publicity. Senator William E. Borah,
i of Idaho, is expected in a few day?.
Johnson made an apparent hit in hin
speeches by quoting remarks made in
various speeches by Senator Roed, with
whom ho and Borah nave cooperated
?? in their fight on tho treaty. Despite
the gnashing of teeth by the Wilson
Dem?crata when Rood's name is men?
tioned, there were loud cheers from tho
, crowds at every reference Johnson
I made to the Missouri Senator.
I Differ on Victory Interpretation
As might be expected, the two sides
differ radically, even in private conver?
sations, a* to what would be a victory.
! The normal Democratic majority, how
i ever, has run around 3,500. The Demo?
crats refer only to the last majority
i of Judge Alexander, running against
? the same Republican, John Frost, who
! is now making the race. This was
1,795, though the Democrats refer to
i it as "about 1,500."
The Democrats say that anything
above 1,500 will be regarded by them
I as a triumph. They are hoping to win
I by more than '2,000. They wave aside
I questions as to why they do not ex?
pect an old-time majority of 3,500,
saying such majorities were won a
long time ago.
The Republicans point out that in a
Republican year, where they elected a
majority of about fifty in the House
of Representatives, 1918, Judge Alex?
ander carried the district by 1,795.
Any reduction of that figure, they
I claim, would practically be a Repub?
lican victory, while merely maintaining
; it would give the Democrats little
cause for joy. They point out that
with this district giving Judge Alex
I ander 1,795 majority the State of Mis?
souri elected a Republican United
States Senator, Seiden P, Spencer, by
a tidy majority. Their contention is
that unless the Democrats get a ma?
jority of around 3,000 it ought to
worry them. Outwardly the Repub
i Means express hope of electing a Con?
gressman, but in their hearts they
! will be tickled to death if they can
! whittle down the Democratic majority
: to about 1,000.
-?
Mimic Congress Rejects
? 9', c Beer and War Training
Clerical Force of Lawmakers,
Sitting at Capitol, to "Settle"
Irish Problem Next
, WASHINGTON, Feb. 3. Described
! as the jazz branch of the real law
\ making body, "the little Congress," com
, po.jd o;' secretaries and clerks of Rep
resentaives and Senators, has been
formally organized and now is "decid
; ing" national issues without thought,
apparently, as to how it might affect
the election next fall.
At its first meeting "the little Con
, gress" took the heart out of some of
! its leaders by voting down a bill offered
i by a Rhode Island member providing
. tur 9 per cent beer. Compulsory mili
! tary training was defeated by a deci?
sive vote, but the anti-strike provision
of the railroad bill stood up by a nar
; row margin, The question of freedom
for Ireland will settled Saturday
night.
Ned Frown, Republican, of Oregon,
clerk of the House Committee on Public
Lands, was elected speaker. Harry San
dager, Republican, Rhode Island, was
elected as clerk, and J. M. Barker, Dem?
ocrat, of Missouri, overturned the nor?
mal Republican majority and got away
with the job of sergeant-at-arms and
boss of the steering committee.
The understudies of statesmen have
? announced that unless the peace treaty
is out of the way soon they will take a
hand and si tt lo it.
Clemenceau Told Life
is in Danger in Egypt
Dr. Abdul Said Accuses Premier
of Plotting With British
Against Liberty
GENEVA, Feb. 3.- One of the Egyp?
tian Nationalist leaders here, Dr. Ab
. dul Said, has addressed a telegram to
! former Premier Clemenceau of France
: requesting him not to enter Egypt, or
i else to leave the country as soon as
possible. Otherwise, the telegram says,
, his life would be in danger.
Dr. Abdul Said accuses M. Clemen?
ceau of joining the British against
humanity and against Egyptian liberty
I and also condemns his foreign policy
while Premier.
MARSEILLES, Feb. 3.?Former Pre?
mier Clemenceau, who left Paris last
; night on his trip to Egypt, arrived here
at 10:40 o'clock this morning. He was
received by the city officials and other
j prominent residents and was cheered
! by an enthusiastic crowd. M. Clemen
i ce.'ui and his party boarded the steam?
ship Lotus and sailed for Alexandria at
4 o'clock this afternoon.
Cha um i Alliance Planned
France, England and Belginm
Banding Against Germany
PARIS, Feb. 8.- Discussions relative
to the question of a defensive alliance
between France, England and Belgium
have progressed materially during re?
cent conferences at Ypres, according to
i a Brussels dispatch to "The Excelsior.''
It is said the Belgian government
j has drafted and sent to the French
i government a general outline for the
i projected common defense in case of a
I future German attaek. *
?New Irish Moderator
BELFAST, Ireland, Feb. 3.?The Rev.
! H. P. Glenn, of Bray, County Wicklow, a
; native of Indianapolis, has been chosen
; to succeed Chaplain-General Simma as
; Moderator of the Irish Presbyterian
Church. ?
Admits He Was
'Worked'to Run
Against Ford
o _[_
Candidate in 1918 Demo?
cratic Primary in Michi?
gan ?Makes "Humiliat
I ing'" Statement to Jury
Aimed to Beat Millionaire
?Correspondent Testifies to
Attempt to Hire Him for
Campaign at $500 Month
GRAND RAPIDS, Mich., Feb. 3,
First evidence in the election con?
spiracy trial of Senator Newberry and
V22 co-defendants was introduced to?
day, when J. G. Hayden, Washington
correspondent of "The Detroit News,"
and JameB P. Sweinhart, head of that
paper's New York bureau, cave testi?
mony bearing on the Newberry pub?
licity campaign. Previous to the cull
ing of those witnesses .lames W.
Helme, candidate for United States
Senator in the 1918 Democratic pri?
mary in Michigan and one of the de?
fendants, made to the jury a statement
which he said was "humiliating."
Holme's appearance was unheralded.
It followed a statement by .lames O.
Murfin, who opened for the defense.
j that Helme had been "worked" by the
Newberry campaign committee into
making the race against Ford. Murfin
explained to the jury that this was
done to prevent Democratic votes be?
ing cast for Henry Ford in the Re?
publican primary.
"I was 'worked,' as Mr. Murfin told
you," said Helme. "I am making this
statement because 1 seem to occupy a
I position apart from the other defend?
ants, but the recital is a bit humiliat?
ing."
I Helme said Samuel O'Dell, another
! defendant, who was State Treasurer in
| 1918, told him that if he "beat Ford in
? the Democratic primary and Ford won
; tho Republican nomination all the Rr
! publicans would turn to him in the
| general election.''
Sought to Eliminate Millionaire
Holme concluded with an explanation
: that his motive was "to eliminate one
; of the millionaires from the campaign."
j "Spending money in a campaign may
I be legal, but I am an inealist and hold
! it to be a moral wrong." he said.
After some legal skirmishing Hayden
? was placed on the stand as the f.rst
I witness. He testified to conversations
in December, 1917, with Frederick Cody
'. !\'.:? Truman II. Newberry. then a lieu
i tenant commander in the navy. He said
i on direct examination that Cody tried
; to hire him as campaign manager for
Newberry. On cross examination by
; Martin W. Littleton, he agreed the job
I was that of a "political secretary,"
! with headquarters in Detroit and duties
' of examining political sentiment in
j Michigan.
? Hayden swore Cody came to him in
. Washington and offered him the posi
! tion, and later telephoned from New
j York and arranged a Sunday conference
! in that city with- Mr. Newberry. He
I said he understood their offer was $500
a month, but that he refused because
; he believed political jobs were disad?
vantageous to newspaper reporters af
I ter they returned to th'-ir own profes?
sion.
? Hayden said Cody told him tin New?
berry s wer'- "immensely wealthy," but
| that he had advised both Cody ?w?
Newberry not to make a "barrel cam
j paign." He said Newberry agreed with
him and they mentioned the Mitchel
| mayoralty campaign in New York and
j the Herrick campaign in Ohio as ex?
amples of wasted expenditures.
On cross-examination, Littleton
I brought out that Newberry had told
' Hayden he had been urged to run for
j the office by Governor Albert E.
j ?Sleeper, Thomas Clark, the Governor's
business partner; A. E. Peterman, of
Calumet, and Roger Andrews, of Me
- nominee. Hayden could not remember
I that Newberry told of a conference by
these four at Port Huron in the sum?
mer of 1917.
"King Couldn't Take a Cent"
The testimony also touched j. visit
of Cody to Washington, in which the
latter told Hayden that Paul King,
meanwhile selected for campaign man?
ager, would not take a cent and that
King had explained when he accepted
I the position that "he wanted a chance
i at some of the legal business of the
J Newberry concerns." He said Cody
j also told him that Allan A. Templeton
; was receiving nothing for^his part in
, tho campaign.
Sweinhart testified to meeting Cody
in New York in January, 191.8, and be?
ing told that Hayden would be made
? "such a financially attractive offer
; that he could not afford to refuse it."
Sweinhart^ also related that Cody,
conversing in Now York regarding the
Newberry candidacy, had said:
"It will be a great time for tho boys
In Michigan because they will spend a
? barrel of money."
Prior to tho introduction of tcsti
; mony, Allen V. Rocs, nttornry for
1 three of tho tlefpn?lantn, objected to
further proeoodiings ?7iv the ground
| that ?ho indictment was insufficient in
; that it did not allege any knowledge
i by the defendants of any act? which
i would be olfenscs under the Federal
; law. Judge Sessions ruled ngainst the
: point.
Another legal point was brought up
at the morning session when the do?
j fense indicated an intention to link
several provisions o* the state elec?
tion law with the Federal statutes.
Judge Sessions had priiviously ruled
that by the union of 1-edoral and state
laws proper campaign expenditures
in Michigan for United Suites Senator
were limited to $3,760.
Would Not I^t Down Bars
Assistant Attorney General Dailey
said to-night that even if the state
law were applied generally it would
not let down the bars bt'yond the Fed?
eral limitation of $10,000 for Senn
: torial campaign expenses. He also
| pointed out that Federal Inws forbid
? campaign purchases of newspaper ad?
vertising space, and that the reports
I filed by the Tvewberry organi/.atior
acknowledged that more than $ 10.00C
had been used for that purpose.
Following completion early to-dny of
I the statement' for the prosecution by
, Mr. Dail?>y. Mr. Murfin presented th?
. statement for the defense. Ile insister
' that Senator Newberry entered thr
: race at the solicitation of others, anc
! that his object was not to defraud but
i to defeat Henry Ford, "the most
! widely known mun in Michigan."
At, the outset Murfm said the chnrgt
j of criminal conspiracy brought agnins
i Newberry would fail, because the Sen
titor spent "not a single cent of hi:
i money" in the Campaign. Later in th?
I day he corrected this assertion, ex
plaining thnt, besides paying some Nev
York hotel bills out of a spirit of hos
i pitality for which he had been fame?
! in Michigan, Newberry bad given $1,
i 500 to the state Republican committe
a day or two before the general elec
tion.
Murfin reviewed the national situa
tion at the time of the campaign, re
calling that the United States had bee
' st war a year, 'the fate of the civil
'led world was hanging in t.lie balance
with the last Cern?an drive at it
iieight, and the German armies withi
thirty miles of Paris."
Refers to Ford's Policy
"Americanism and patriotism were ;
their very crest," continued Mr. Mui
fin. "Rightly or wrongly?-and this
j neither the time nor the place to dis
? cuss it -there was a general feclin
: that Mr. Ford did not represent th
type of American, who, at that critics
I juncture, should represent his state i
?the United States Senate.
? "Rightly or wrongly, many people r?
membered his campaign against mil
? tary preparedness. Many people r
membered his well-meant, misguidi
??(Torts to bring about whai now ?q
; pears would have been a German pear
Many people were bitter over the la
that he was not activo in the war ai
; that nono of his family had becon
i active in tho wni.
I "On the other hand, Commander Ne-,
1 berry had had an honorable record i
; the Spanish-American War, when in ti
'navy, he was under fire and active
participated in overcoming a superi'
: force. Fie had been Secretary of ti
I Navy in the Cabinet of that milita
'? American, Theo,ion- Roosevelt.
"Within forty-night hours after o
country threatened to enter the Wor
\\ ?.r, he volunteered, and. in the sprii
I of 1917 was commissioned a lieutena
j commander and made aide to the coi
mandanl of the Third Naval i);>t,-ic;
'?v Vorl., His brother and his tv
-?-.. were in military service.
actuated by Patriotism
"This combination of circumstanc
roused many a man in Michigan to tl
firm belief that it was his patriot
i duty to do all in his power to assu
J the selection of Commander Newberi
and we expert to show conclusive
that they were prompted not by p
but by patriotism thnt they were a
: tuated r.ot by avarice but by Ainei
etiii ism.
"Getting into this campaign was n
of th" choosing of Commander Ne
berry, and he entered with the utni?
reluctance and only ?.ft er repeated ur
ing. As early as August, l!?17, when
was understood generally that the se
?or Senator from .Michigan, Willis
Alden Smith, would not be a candids
to succeed himself, a group of repi
sentative citizens had a conference
the Senatorial lituation. In udditi
to the Governor of the state there ?
tended a publisher, a banker, a lawy
a soldier and a business man.
"After canvassing the qualificatio
of other distinguished Republicans,
was their composite judgment ti
they should organize a movement
i lee? Truman H. Newberry. Their <
sires were communicated to the co
mander (who, by the way, never 1
iiis post of duty from the spring
ltH7 until the war was over). ?
I Newberry expressed doubts as to I
I propriety of his being a candidate f
after a brief examination and disci
I ?[?????MlSWIM?!Ml ?i?ieM????
i It took a woman to cut the G?rdian knot of
I diplomatic red tape and get the truth about America's
B part in the war to the people of Germany. We all know
| what happened when Germany learned the truth . . . That?
1 woman?Mrs. Norman de R. Whitehouse?tells her story in
1 "A YEAR AS A GOVERNMENT AGENT"?the gallant
i story of a woman's single-handed fight and splendid accom- I
I plishment. It is important as one of tho most striking side
I lights on recent history.
A YEAR AS A GOVERNMENT AGENT
1 By VIRA B. WHITEHOUSE,
1 Illustrated, $2.75.
L?HARPER & BROTHERS, Est. 1817.-?
A Wired Home
means a satisfied tenant.
Electrical .appliances
have become necessities
tjour tenants awaiting
anmouLsliij the ereciio
of dwellings witJb
ELECTRIC S?EVICK
/y///////*?//////
Our partial payment plaiv in??k^YV?rjm) *^sy. PK?fie 5<uyvesahi 4990
.;;'??' Ne \?/ VyoRk
?'
Doughboys Paid
100 Marks a Day
COBLENZ, Feb. 3.?The rate
of exchange for the pay of Amer?
ican soldiers in the occupied ter?
ritory has been fixed at 100 marks
to the dollar, giving tiie dough?
boys .'5,000 marks monthly. This
is considerably more than the pay
of any German officials in Ck>b
lenz.
When the Americans first went
to the occupied regions they re?
ceived 18 or 20 marks to the dol?
lar. In peace times a mark was
worth about 24 cents.
sion he declined to be drafted into the
campaign and refused to further con?
sider the proposal. In December and
January this movement continuned to
gather forco until finally the com?
mander seriously set out to determine
whether it was his duty and would be
desirable for him to run.
Could Not Leave Duties
"It was not until this had all hap?
pened that he consented to tho use of
his name. He stipulated that lie could
not. leave his duties; that he could not
be active and that he could not contrib?
ute one dollar to this movement.
"The organization that was subse?
quently built up under the supervision
of Mr. Paul H. King was undoubtedly
the most perf<3ct political organization
ever put together. With a few con?
spicuous exceptions every township,
hamlet and city in the state was or?
ganized. Tho commander was running
against the best advertised man in
America. It was indispensably neces?
sary, in the judgment of these, respon?
dents in principal charge of the cam?
paign that his qualifications be given
tho widest publicity."
?
Harding Seeks Repeal
Of All War Legislation
Commercial Ambitions of Na?
tions Sure to Figure in Peacr
Problems, He Say?
/Vew Turk Tribune
Washington f?urta-u
WASHINGTON, Feb. 3.?Repeal of
all war legislation, so that the United
States can be unshackled from war con?
ditions in government and industry,
was advocated by Senator Warren G.
Harding, Ohio's favorite son for the
Republican nomination for President,
in a talk to-night at the National
Press Club.
"Every war measure ought to be
ended," he. declared in emphasizing
this point. "Wo need as much repeal
of obstruction as We need enactment
for construction."
"The world never wholly forgets its
commercial inclinations," he con?
tinued. "The student who sees no com?
mercial motives in the world war is
blind to the truth of the situation. And
the seeker after complete restoration
ignores the big fact if he sees no com?
mercial ambitions in the treaty and
efforts to resume the way of nations.
There must be a thought of it amid the
calls for aid. Only the other day 1
saw the proposal of a European power
to loan $30,000,000 to a South Ameri?
can state, with a view of promoting
commercial relations, when the records
in Washington show that the nation
proposing to make the loan is seeking
to borrow it of us."
Lowest Mark
Is Reached
By Exchange
Continued from ??agi? I
they ran rut down the loans which
carry them.
In one of tho large money reservoirs
thn opinion was expressed that the
Reserve Board was handling the situa?
tion scientifically, and was anxious to
have the ?readjustment awaj from over
expansion gradual and not precipitate.
Liberty bonds sank to now low priera
yesterday. This decline is in response
to heavy selling caused partly by thn
rise in rediscount rates at the Federal
Reserve Bank, which make it unprofit?
able to carry the bonds by means of
bank loans, and partly by the general
tightening of credit, which induced
business men unable to fret all the
accommodation desired at the bunks
to realize cash through the sale of
their Liberty bonds, which have a ready
and quick market. The second 4s and
.second 1'is sold lower than $90 per
SI 00 bond for the first time, and the
second 4s at the close were quoted at
80.94"'00. The yield on the Victory
4%s, which mature within two to three
years, exceeded 5.40 Der cent.
In the field of domestic commerce
the feeling of caution is beginning to
grow. Although many buyers from the
interior are now in New York, they
are not. clamoring for merchandise in
the same way they did last season, but
are shopping more. P. A. O'Connell, of
the National Garment Retailers' Asso?
ciation, told 600 apparel men at the
annual convention of thaht body, in
his opinion, the peak of commodity
prices had been reached and that the
purchasing public had absorbed all the
high prices they could.
The signs that America's trade with
Europe is progressively becoming
smaller multiply. The fact that the
offering of European bills arising from
new transactions is falling o,T in vol?
ume and that the demand for European
bottoms wan smaller tended to con?
firm the prediction of bankers that for?
eign exchange at the present levels
would be deatructive to commerce.
Although the closing; rate for demand
sterling was $3 3325, compared with a
normal parity of $4.866, the exchange
expert of one of the largest banks said
that, if one tried to sel! 5,00(1.000
pounds sterling a small sum compared
with the size of the trade balances?
he could not get $3 for each pound.
On the other hand, he said, the market
was so thin that Great Britain
shipped S50,000,(;00 in gold to this
country the pyschological effect would
be so great that "you could not see
the market because of the dust" caused
by the scramble of buyers.
It was reported that several banks
would no longer discount dollar bills
of exchange; but would merely hold
them for collection. By discounting
the; bills the banks tie up capital until
the paper matures, but by refusing to
they throw the burden on the exporter or
manufacturer and make' it impossible
ultimately for him to continue opera?
tions. Officers of the leading hanks
denied that they had definitely adopted
this policy, but said that they were
discouraging their customers from ac
cepting dollar bills from countries
where the dollars were at an excessive
premium. Bankers fear that the point
will soon he reached where dollars will
not be available in certain countries
and that' foreign buyers will thus be
unable to meet their commitments.
This would throw the merchandise
shipped into warehouses, and the Amer?
ican seller would be without payment.
For this reason, one authority si;^
irestod that it would be better for
American sellers to accept Swedish,
French, Belgian and orter ?oreijrn bills
from their cas to mer.; instead of dollar
i????????mfuM?m?f?
exchange, because then the seller would i
determine in New York whether the !
foreign currency could be converted !
into dollars, and. if not, he would not
ship the goods ordered and would thus,
it is argued, be protected against loss.
Departing from precedent New York
was yesterday the primary market for
tiie making of quotations on sterling.
Normally they originate in London and
New York follows the English city, but
toward the close of trading yesterday
for all practical purposes, according to
private cables, there were no dollars
available for purchase in London, and
I no transaction; could be made. TBere
j fore a further decline was anticipated
j by the drop of ?ruotations in New York,
where rates were from three to live
' cents lower than in London. Those
I with sterling bills to sell in New York
? were described by bankers as jjanic
! stricken and ready to throw bills into
the market without regard to price.
! It was decisively a buyers' market. A
I fairly large volume of sterling cotton
| bills came from the South and from
I other.parts of the coui?iry franc grain
j bills.
Whereas normally the do/lsrwill buy
I only 6.18 francs or lire, yelterday it
would purchase 14.52 Frencji francs,
14.82 Belgian franc* and 17 t-* lire.
Marks, which had rallied last weik be?
cause of technical market, conditions,
fell to 1.09 cents, the low level rcaohrd
last Monday.
If exchange rates go lower freigui
\ rates will follow the trend, shipping
brokers said yesterday.
During the last fortnight compara
i tively little grain has been shipped out
! of this port to England, it was asserted
: yesterday, whereas previously one-half
of the cargo space in steamers sailing
; for English ports were filled with grain.
: The rates for carrying grain are now
? 100 per cent lower than they were twe
! months ago, and according to shipping
men are near the point below which
i they cannot drop without eliminating
i the profit of the shipowners. The rat?
? per 100 pounds of grain on January 1
I last was between 60 and 70 cents, and
i is now 35 cents to England, brokers
i said. Moreover, the cost of transport
' ing a ton of coal to the continental
? countries, which is now about $21 to
shippers, is from $1 to $6 a ton lower
than it was two months ago when
the falling off of exports began to
manifest itself, as was shown in the
December export figures published by
the Department of Commerce.
Shippers say, too, that the volume of
general merchandise being offered Is
: smaller. Coal is difficult of shipment,
1 because licenses are required and, ac
! cording to shippers, are given only
I sparingly because of the shortage ??*
? coal available for domestic use. ?
Peak of High Prices V
In Sight, Federal Y
Reserve Board Think* ?
WASHINGTON. Feb. 3..ReR,j!ts * J
the action of the Federal resen-?.
- sys?
tem in raising discount rate.| t0 (5
cent, forcing a r?duction in 'ntstand
ing lines of credit, have become ?s
1 dent in the last month, the Fpq? .,
! Reserve Board announced to-night ?
j a summary of the nation'? busin?.
j conditions. Coupled with this '"ont
' mistic outlook." the hoard extire?^*
j th? belief "that a peak In h:Kh' pr,rT
j and inflation bad been approached *ii
not reached." ' n
Federal reserve agents in t^w*.'
to the board have pointed to a "?For*
, ened lending power." This wa,' u
terpreted as Indicative of le?* Pa 5
' credit because of danger* of varioc"
kinds growing ont of "extravagan*?'
excessive prices and overtrading." '
Another result of the higher di?
'? count rates was cited by the board b
the action of commercial house? b
; discouraging clients from exte&shi
' borrowings. The market for comme*.
cial paper generally has been dull, th?
statement, showed.
The general liquidation in the Mock
market also -.vas continued durin*
' January and. according to th" board's
; view, the higher discount no? v,5,
forced a slowing down tn stock actrvp
i ties.
Foreign trade, the statement >a.\J
continues at an abnormally high We*
. although a heavy reduction is pri'.'
. dieted if the exchange continues at
its present unfavorable figure.
Judge Sweeney Promoted .
Democratic Assemblymen Re?
fuse to Vote in Election
PROVIDENCE. Feb. 3. Judge John ?
j W. Sweeney, of Westerly, Associ?t?
t Justice of the Superior Court, wa=
! elected Associate Justice of the P.hod?
j Tsiand Supreme Court this afternoon -
i by the General Assembly.
j The Democratic members of the K?
\ sembly refused to take part in t'-.e'
I election, as a protest against the systen ?
j of electing judges. In its piar? thee '
j propose a constitutional amendment :a
provide for the election of Supreme
Court justices by the people
Ovington Lamps
at February Prices
THE lamp sale is on. Lit?
tle lamps and large
lamps, cosy lamps and state?
ly lamps all with their shades
?all are here.
They never were absurdly
priced?these lamps and
shades of Ovington's. But
now, with the reductions of
the February sale?I0c/o to
50%?their price is low and
out of all proportion to their
beauty and their quality.
OVINGTON'S
?* The Gift Shop of Fifth Avenue "
312-314 Fifth Ave. Near 32nd St.
A.J1 Ovington ?amp? and
shades are: included
at prices 10% to SOi leas.
Il
f?r?*
TIM
MID
IN'DIOCH?MAKTUDTHES
r&?i
Broadway at 32?* Street
Facing Greeley Square If
HALF-YEARLY SALE
Of Stein-Bloch Suits
I
i
V
$50 and $45 Suits.now $39.50
$60 and $55 Suits.now $49.50
$70 and $65 Suits.now $59.50
$90, $85. $75 Suits. .now $69.50
Buy a Suit, Not a Price! Price Is No Attrac?
tion, Unless It Is Bracketed With Reputation.
True Economy" Lies In Selecting The Best And
Skipping The Rest. When We Say Stein-Bloch,
We Speak Volumes In Two Words. Our En?
tire Stock Of Overcoats Is Also Reduced. No
Charge For Alterations, If They Are Needed.
