The Indianapolis times. [volume], August 09, 1934, Home Edition, Image 1

About The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965

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- I
LOVE FOR BABY
STIRS STRANGE
LEGAL TANGLE
Wandering With Child of
Another Is Bared by
Woman’s Arrest.
MATE ‘TOO TALKATIVE’
Husband’s Statement Leads
to Police Probe: 52.000
Set as Bond.
BV IlfcZF C LARK
limi-c ''laff Writer
Almo t a year oi wandering over
the middle west with the child of
another, to whom she apparently is
; irately devoted vnut ended to
day for Mrs. Mabel C N. McCane.
32. owner of a Minneapolis <Minn.
hospital, with her arrest on
vagrancy charges.
Mrs. McCane. a buxom woman,
is held in $2,003 bond at the city
prison. She is scheduled for ar
raignment In municipal court thus
afternoon, at which tune the state
.till seek a continuance until au
thoril in hear from Min
neapolis authorities.
Mrs. McCane was arrested last
night at the home where she was
employed as a nurse. The 2-year
old child. Juliet Korth. was being
kept at the north side residence
of a friend of Mrs. McCane Juliet
is a beautiful, blue-eyed child with
a mop of curly, blond hair.
Police here are said to have con
tacted Minneapolis first when the
woman husband, Charles H. Mc-
Cane. liecame too talkative while
with friends one night and men
tioned the fart that he and his wife
had moved frequently and that she
feared the Juvenile court at Minne
apolis might be trying to take Juliet
from her.
Agreement Is Reported
He later denied making such a
statement.
From Minneapolis authorities,
police learned that Mrs. McCane.
operator of the Midwest hospital
there, said to be a 512.000 property,
had had custody of Juliet .since
soon after the time of her birth.
Jan. 23. 1332. The child is the j
daughter of Mrs. Elva Elizabeth
Korth.
Mum r a polls authorities said Mrs.
Korth had signed an agreement, i
la or verified in juvenile court, giv- (
mg Mrs. McCane the right to bring ;
up the child as her own.
In October. 1933. according to
, M McCane vu subpe-1
naed to appear in the Minneaopiis,
juvenile court. She tailed to ap
jiear and it developed later that
this was because she feared the
court might take Juliet from her
and reurn the eliild to Mrs. Korth.
Chicago First Slop
Mrs. McCanes wanderings began
then. Accompanied by her hus
band. she went first to Chicago,
where she stayed one month. She
next went to Cincinnati, where she
stayed until Jan. 1. From Cincin
nati. she came to Indianapolis.
She and her husband obtained
lodEing in the north side home
where the child lias been kept since
that time Her husband obtained
employment as a salesman and Mrs.
McCr.oe went to work as a nurse.
Her father. Joseph La Motte. is said
to be operating the Minneapolis
hospital for her.
Juliet believes that Mrs. McCane
is laer mother and calls her
“Mother" in lisping, baby speech.
Happy in the north side home of
Mrs. McCanes friend, she plays
constantly with Laddie, a big bun
dle bulldog, which is as devoted to
her as she is to it.
Arrested While at Work
The child was asleep last night
when detectives, after arresting
Mrs McCane at her place of em
ployment. took her to the north side
home When she entered the room
where the baby was sleeping, she
locked at it a moment, took it in her
arms and. tears streaming down
her face, said:
Oh* I could go to the end of
the world with you!"
The detectives asked her if she
wished the child taken to the
juvenile detention home's nursery.
She said she wished it left with her
iriend. Detectives agreed after first
taking the child to headquarters
with her mother.
Mrs. McCane. whose husiand left
the city earlier this week after
telling frinds he had obtained fed
eral employment in Washington.
D. c. is maintaining a steady
silence at the prison. She spoke
only a little to detectives and was
even less communicative to news
paper men.
ARMY SERGEANT HURT
IN AUTO CRASH HERE
Victim Burned Severely in Wreck
Near Ft. Harrison.
Sergrcim Frank Campbell. Ft.
Benjamin Harrison, was severely
burned about the head and arms
last night when an army car in
which he was riding was iped
on Pendleton pike near Thirtieth
street, spun in a ditch and de
stroyed by flames.
Times Index
Bridge 8
Broun 13
Classified 18
Comics 19
Crossword Puzzle 17
Editorial 11
Financial 15
Pegler 13
Quintuplets' Pictures 3
Radio 1... 12
Sports 16. 17
State News 4
Vital Statistics 15
Woman s Pages b, 9
The Indianapolis Times
NR A,
v*f CO 9U4 SAS-
VOLUME 46—NUMBER 77
PRETTY JULIET. 2. CENTER OF UNIQUE CASE
. 1 * __ JfiK' WU.:'
Shown here playing with "Laddie,” a big, brindle buldog. 2-year
old Juliet Korth is the center of an unusual custody case in which
Indianapolis police are holding Mrs. Mabel C. N. McCane, 32, buxom
Minneapolis nurse, pending word fro mjuvenile. authorities in the Min
nesota city
Fear Gang War Brewing
in Slot Machine Racket
Gunfire Looms as Result of Hijackings in City, Is Belief
of Observers: Police Not Concerned.
The possibility of gang warfare over the slot machine racket, with
gunfire and possible death of innocent persons, looms large here.
While police officially scoffed at
possibility of a slot machine war
earlier in the week when The Times
revealed hijacking of the illegal
gambling devices from private clubs,
it was learned beyond dispute today
that well-informed detectives fear
it and are working against time to
try to halt it.
These men fear that the owners
of the machines will not take their
lesses calmly and will try to defend
their property.
Without any rights in the law,
because their machines are illegal,
the owners of the gambling devices
must turn to force, it is pointed out
by those familiar with the under
world.
Another factor leading those in
the know to fear violence is that
eight or nine individuals now are
reported to be operating in the slot
machine racket in this city.
With such a large number, the
spoils necessarily must be cut down.
Police are said to believe that the
hijacking may be the work of one
of the more ambitious opeiatois.
trying to force his rivals from the
field.
This, it is believed, would lead
almost certainly to gunplay
The machines in the city are
located mostly in private or semi
private clubs, beer taverns and
pool rooms shunning them for the
most part as too liable to draw more
attention from the police, already
keeping a close scrutiny on such
establishments.
The machines operating in the
county, under a more unified owner
ship. are in beer taverns as well as
clubs.
ARAB-JEWISH RACE
RIOTING CONTINUES
Moslems Set Fire to Homes
of Foes.
By United Pres/
CONSTANTINE, Aug. 9.—Race
rioting continued sporadically in
widely separated quarters of Con
stantine today.
The firse department was called
repeatedly to extinguish blazes set
by Arabs in the Jewish quarter.
Police and soldiers arrested 144
rioters, of whom two were charged
with murder.
Mother of 3Awaits Death at Sing Sing;
Fate Rests in Hands of Kindly Governor
By l nited Press
ALBANY, N. Y.. Aug. 9—Within
the privacy of his own mind and
conscience. Governor Herbert H.
Lehman today fought a battle be
tween ideals of abstract justice and
man’s age-old tenderness for wom
an.
Upon his decision depended
whether the state of New York to
night executes a woman in its elec
tric chair at Sing Sing prison.
In the reception room outside, sat
Daniel H. Prior, attorney for Mrs.
Anna Antonio, 29, mother of three
children, who had her husband
killed so she could collect his insur
ance. Mr. Prior, white-faced, was
determined to see Governor Lehman
if it took all day.
Governor Lehman seemed just as
determined not to see him. Appar
ently. he wanted to make his de
cision without the eloquent Prior
dinning into his ear that the chair's
proposed victim was a woman and
a mother.
Down the Hudson river 125 miles.
I behind me loruixan* wans ul Sing
Partly cloudy with occasional showers tonight and possibly tomorrow rfiorning; cooler tomorrow.
ANTI-ROBIN-SON
DISPLAY DENIED
Veterans Did Not Leave at
Mention of Li’l Arthur,
Chief Says.
Denial that 400 veterans attend
ing a Disabled Veterans of the
World War district rally at Ham
mond Aug. 4 walked out when Sen
ator Arthur R. Robinson’s name
was mentioned, was made to The
Times today by James E. Fleming,
Gary, Veterans of Foreign Wars
state judge advocate.
A story from Hammond in The
Times Aug. 6 referred to the re
ported incident as occurring during
an address by Mr. Fleming before a
group of approximately 3.000 vet
erans in a Hammond park.
Mr. Fleming said that when the
speaking program began, the serv
ing of beer was stopped. Some
members of a drum and bugle corps
vociferously demanded more beer
and began playing, "How Dry I
Am,” he said, nearly drowning out
Mayor Charles O. Schonert, Ham
mond. the first speaker.
Six of the noisiest veterans were
requested to leave the meeting, and
these were the only persons leaving
the gathering, Mr. Fleming said.
The disturbance was moderated
during Mr. Fleming's address, he
said, in which he praised President
Roosevelt as a friend of the vet
erans.
He said one of the six asked to
leave the meeting was president of
a "Robinson-for-Senator” club,
KIDNAP SCARE PROVES
FALSE: GIRL, 2, HOME
Police Squads Spring Into Hunt on
West Side.
Police squads had a few moments
of feverish activity in the west side
today on a false report that Loretta
Thompson. 2. of 860 South Holmes
avenue, had been kidnaped from a
garage in the rear of her home.
The child had been taken for a
walk by a neighbor and was re
turned to her mother. Mrs. Myrtle
Thompson, within thirty minutes of
the time police were notified of the
•kidnaping."
Sing, Mrs. Antonio lay stretched
across her cot in a death cell, her
eyes open, but giving no other in
diaction she was alive. Presently, a
prison barber would renew the
shaved spot, on her head for the
electrode, where the hair had
grown out again after it was first
shaved several weeks ago when Gov
ernor Lehman's last-minute renrieve
postponed her death.
In an adjourning room, a matron
laid out her trousseau for her
grisly marriage to the chair—a cot
ton dress, a pair of slippers, a
brassiere, a pair of black stockings.
The yellow-walled execution
chamber was made ready. The
chair was tested. Its last woman
victim was Mrs. Ruth Snyder, who
died with her paramour. Judd Gray,
for the murder of her husband. Al
bert. At that time, the then Gov
ernor Alfred E. Smith, was ada
mant to all pleas, legal and humani
tarian.
Now Governor Lehman faced the
decision. He has made many :n
tuis Lleuine. Asa Wall Street bank
INDIANAPOLIS, THURSDAY, AUGUST 9,1934
SILVER IS NATIONALIZED BY U. S.
IN DRAMATIC MONETARY MOVE
ROBINSON, OLD
DIAMOND HERO,
DIES SUDDENLY
Beloved ‘Uncle Wilbert’ One
of Games Most
Colorful.
! By United Press
ATLANTA. Ga„ Aug. 9.—Wilbert
Robertson, baseball player and man
ager, died here last night. From
| coast to coast millions of Americans
who grew up in the lore of the
diamond, mourned the passing of
; one of the game’s most colorful
I and beloved heroes.
Death was caused by a brain
hemorrhage. He was 70 last
I June 29.
"Uncle Wilbert,” last veteran of
the legendary Baltimore Orioles,
carried to his death bed the flair
for the dramatics and the heroic
that endeared him to baseball loving
America.
He slipped in his bathtub, landing
on his head. Taken to the hospi
tal, he sensed from anxious faces
that death was tapping on his
shoulder.
"None of that stuff,” he said.
"I’m too tough to die.”
Age had softened him up, and he
died smiling with Mrs. Robinson
i holding his hand.
One of Greatest Catchers
His active baseball career ended
in 1930, when he stepped out of the
presidency and management of the
Broklyn Dodgers—after a long and
bitter feud with internal factions in
the club.
One of the greatest catchers and
strategists the game has known, he
worked his way up through the
toughest of baseball schools, to be
; come one of three presidents who
have been active players—the other
two being Clark Griffith of the
Washington Senators and the late
Christy Mathewson.
Born in Hudson, Mass., he man
aged an amateur baseball team at
the age of 13. In 1886 he was sold
by the Haverhill (Mass.) profes
sional team to the Philadelphia
Athletics of the old American Asso
ciation. From there he went to the
Baltimore Orioles, with whom he
was identified until 1911, except for
brief periods.
Called by McGraw
In 1911, John McGraw called him
to the Giants as coach and three
years later he became manager of
the Brooklyn club. There for
seventeen years the colorful "Uncle
Robbie” wove the glamour of a jo
vial personality and keen sense of
baseball strategy into star players
and pennants.
Twice his teams won the National
League flag—in 1916 and 1920—and
twice again, in 1924 and 1928, they
were within a hair’s breadth of win
ning. But in good seasons or bad,
i the Robins w r ere the most colorful
1 club in baseball. Taking new re
i cruits and broken-down veterans,
"Robbie” created patchwork in
: fields and broken-down outfields
; that staggered repeatedly to within
a hand’s reach of the pennant.
Neither John McGraw nor Con
nie Mack were regarded as Robin
i son’s superior at master-minding,
. but he preferred to let his men
play the game as it came, and de
| veloped, as a result, as strange a
1 collection of athletes as baseball or
any other game has known.
Wife at Bedside
In 1930, the long feud in the
Brooklyn front office that had
plagued him on and off the field,
broke over his head for the last
time. "Uncle Robbie” retired to
duck hunting at Dover Hall Club,
Brunswick, Ga. He had been presi
dent of the Dodgers since 1925 and
manager since 1914.
Circumstances of the bath room
accident Wednesday afternoon were
not clearly revealed. Physicians be
lieved a brain hemorrhage had
caused the fall, in which he broke
his arm.
His wife, Mary, went to the hos
pital with him, but later returned
home, thinking the broken arm was
his only injury. She was hur
riedly called back, just before he
died. They had no children.
er he was called upon to make deci
sion which meant the profit or loss
of millions. But now a life was at
stake; more important, the life of
a woman and a mother.
Governor Lehman's long service
as governor and lieutenant governor
has been characterized by a stern
and idealistic approach to official
duties. To save Mrs. Antonio by
commuting her death sentence to
life imprisonment, he would have
to over-rule three courts and a
Opposed to his active official con
science, is a gentle, tender nature.
He is known to his friends as a
devoted family man, an idealistic
admirer of womankind.
He is not the politician type.
The question of Mrs. Antonio's
life or death was placed in Governor
Lehmans hands yesterday after
Supreme Court Justice O. Byron
Brewster at Elizabethtown dismissed
her plea for anew trial on the basis
of new evidence.
His decision closed every legal ave
nue of escape from the chair for
Mrs. Antonio.
New Deal Here to Stay, Says
Roosevelt, Pledging Prosperity
President Hurls Challenging Defiance at His Critics in
Wisconsin Speech; Old Order Is Gone For
ever, He Declares.
By United Press
GREEN BAY, Wis., Aug. 9. —President Roosevelt pro
jected the New Deal to great objectives today in a challeng
ing defiance to his critics, pledging a multiplication of na
tional wealth in which all may share.
Thousands of north country men and women—farmers,
business men and their families—whooped an enthusiastic
response to Mr. Roosevelt’s words.
OCEAN FLIERS
REAGHJLONDON
Daring Pair Forced Down
in Attempt to Set Dis
tance Mark.
By United Press
LONDON, Aug. 9.—Leonard G.
Reid and J. R. Ayling, attempting a
non-stop flight from Ontario to
Bagdad, landed at Heston airdrome
at 6 p. m. today (11 p. m. Indianap
olis time).
The flyers completed a successful
crossing of the Atlantic but their at
tempt to set anew world non-stop
distance record was spoiled.
They had been in the air approxi
mately thirty-one hours since leav
ing Wasaga Beach, Ont., early yes
terday.
After landing at Heston, near
London, the fliers took off almost
immediately for Hatfield airdrome,
about twenty miles northwest of
here.
ACCUSED OF POSING
AS TIMES EMPLOYE
Police Allege Man Made
False Collections.
Accused of pretending to be a
representative of The Indianapolis
Times and collecting dimes from
persons induced to sign a petition
for “reduction of utility rates,”
Frank Trowbridge, 58, of 1513 De
loss street, today was held to the
grand jury.
He was arrested yesterday after
he is alleged to have solicited money
from several persons in the vicinity
of the 1000 block, South Meridian
street.
Trowbridge, who pleaded not
guilty, told Municipal Judge Dewey
Myers a man named “Black” in the
K. of P. building employed him to
make the solicitation and told him
to use the name of The Times to
“make it easier.” He said he had
not seen Black in several weeks.
The Times never has authorized
any one to use its name in circulat
ing petitions or collection of money
for utility rate fights, and has no
representatives circulating petitions.
FEENEY CONFERS WITH
GOVERNOR ON RADIO
Report Current That McNutt Will
Give Funds.
Final steps toward consummation
of the state police radio project
were taken today when A G. Fee
ney, state safety director, and a
committee from the Indiana State
Bankers’ Association conferred with
Governor Paul V. McNutt.
No announcement of action taken
at the meeting was made, but it
was reported that the Governor
agreed to supply funds to augment
the $37,000 raised by the bankers’
association.
M'NUTT TO WELCOME
ROOSEVELT IN CHICAGO
Governor Will Ride to Ft. Wayne
With President.
Governor Paul V. McNutt was
scheduled to leave early this aft
ernoon for Chicago to confer with
President Franklin D. Roosevelt,
who is returning to the national
capitol from a trip to the north
west.
The President will be accompa
nied by Governor McNutt from Chi
cago to Ft. Wayne. From there,
the Governor will leave tomorrow
for French Lick to attend the In
diana Democratic Editorial Asso
ciation meeting.
U. S. AID SOUGHT IN
LIFTING MARTIAL LAW
Minneapolis Employers Move in
Truck Strike.
By United Press
MINNEAPOLIS. Aug. 9 —Employ
ers in the strike of 6.000 truck driv
ers today asked three federal judges
to order termination of martial law
in Minneapolis.
Attorneys for the employers
argued that civil authority had been
subordinated to the will of Governor
Bloyd B. Olson under martial law
in violation of the Consul uuwfc
He said that the old econ
omy of tooth and claw is
gone; that all who read the
times aright know this coun
try has seen the last of the old
order.
Speaking in the heart of progres
sive movement, Mr. Roosevelt defied
his political and economic oppo
nents. He counselled them to look
in the minds of the Average man
and woman for confidence in the
future.
As Mr. Roosevelt spoke to some
40,000 persons jammed together be
fore him news wires from Washing
ton flashed to the press the latest
New Deal move; silver is national
ized at 50.01 cents an ounce.
Concluding his speech shortly
after 10 a. m. (Indianapolis time),
the presidential party left Bayside
Park on the last lap of a journey
which skirted the Atlantic coast,
half-spanned the Pacific and led
finally through the drought-tortured
farm lands at home.
Observers counted today’s ad
dress a political success. Presi
dential attaches were content. The
President left as he came, smil
ing.
Wisconsin ‘‘Sounding Board”
The schedule is almost completed;
Chicago briefly late today and to
morrow, Washington.
Politicians read strategy into the
President’s careful avoidance in
Green Bay of any mention of the
silver nationalization which was
announced in Washington as he
spoke.
It appeared to be Mr. Roosevelt’s
purpose to make Wisconsin the
sounding board for an appeal to the
common man to ignore the warn
ings of calamity heard in the mid
west as the national campaign
moves into high.
Announcement of silver nationali
zation here would have buried under
layers of words the promise Mr.
Roosevelt brought of more of every
thing for everybody.
Mr. Roosevelt defied those who
complain that the nation lacks
confidence. He bluntly warned that
the New Deal is here to stay and
will move forward, not retreat.
La Follette Is Praised
"There is no lack of confidence,”
the President said, “on the part of
those business men, farmers and
workers who clearly read the signs
of the times. Sound economic im
provement comes from improved
conditions of the whole population
and not the small fraction thereof.
"Those who measure confidence in
this country in the future must
look first to the average citizen.”
Honest business is secure, Mr.
Roosevelt assured his audience in de
claring that the methods employed
in seeking social justice would not
“rob Peter to pay Paul.”
His words—especially his unex
pected direct reference in support
of Senator Bob La Follette and
Ryan Duffy—brought cheers from
the crowd. His voice trembled with
emotion as he bore down on the
purposes and objectives of the New
Deal.
His face was sparkling with en
thusiasm as he stood on a high,
flag-draped platform under a big
shade tree and carried into the
stronghold of progressiveism, that
last mesage before his return to
the national capitol.
Cab Driver Charged With Knifing
Harry Carr, 44, ot 244 South La
Salle street, cab driver, is under
arrest today as the result of a com
plaint by John Pfennig. 21, of 3002
Ruckle street, that Carr had cut
him with a knife in an argument
last night, Carr was charged with
assault and battery.
Keep Up With the Times
by Reading Your Times
Keeping up with The Times is one way of keeping up with the
world.
Another striking group of pictures of the famous Dionne quin
tuplets are on page three of this newspaper. Thousands of Indian
apolis readers have lauded The Times for these exclusive photo
graphs of the world's most famous babies.
The drought that has kept the midwest in its grip for the bet
ter half of the summer shows no signs of letting up. In today’s
Times, every effort is made to “cover" the story perfectly. On page
four of this edition is a story of President Roosevelt's efforts to
help the drught-ridden area.
Russia has entered the family of nations once mort. William
Phillip Simms tells about it on page ten.
On page six you will find a comprehensive account of the na
tional housing act.
And all through the rest of this newspaper are stories and de
partments of interest to both young and old.
Keep up with The Times.
Entered as Second-Class Matter
at Postoffice. Indianapolis, Ind.
HEAT ADDS TO
DISASTER TOLL
IN ARID ZONE
1,000 Dead in Drought
Area, Is Estimate: Mer
cury at New Heights.
By United Press
CHICAGO. Aug. 9.—A blinding,
beating sun that already has taken
merciless toll among crops and hu
man lives, today spread new havoc
over broad stretches of the nation.
Except in scattered sections there
were not even scant hopes of escape
for suffering millions.
At noon, government weather
forecasters were resigned to another
day of blistering heat. Tempera
tures were mounting rapidly in
thirty states and the only prospects
of showers were in Ohio. Even
there they were expected to provide
only meager solace.
Official government teperatures at
11 o'clock were:
Chicago, 93: Kansas City, 99; Des
Moines, 93; Omaha, 3; Toledo, 90;
Newark, N. J„ 80; Detroit, 82.
Death followed the sun across the
stricken territory. A toll of more
than 1,000 human lives, taken by
three months of almost uninter
rupted heat, grew with every hour.
Hospitals in Chicago, St. Louis,
Kansas City, Wichita and dozens of
other metropolitan areas were filled
with protrated sufferers. Unofficial
ly, it was estimated that more than
250 persons died of heat induced
heart failure in twenty-four hours.
The hard-baked earth, radiating
stored up heat in shimmering
waves, aided the sun in boosting
temperatures even above those of
yesterday, w r hen all time records fell
from Louisiana to California.
At Ottumwa, la., a high pressure
area drifting down from Canada
offered little hope that yesterday’s
115 degrees—highest recorded in 115
years—would not be surpassed.
Omaha saw the mercury simmer
again toward the 110 degree mark.
It was 108 yesterday in Kansas
City, Mo., 109 in Topeka, Kan., 106
in St. Louis and Lincoln, Neb., 110
in Des Moines and 108 at Spring
field, 111.—another all time record.
Toll Is Terrific
Today threatened to bring even
more intolerable conditions at vir
tually every point.
Through the great wheat and
corn belt—across Illinois, Wiscon
sin, Minnesota, the Dakotas, Mis
souri, Kansas, Nebraska —the toll in
crop damage was terrific.
Experts say it has passed $2,000,-
000,000 this year.
The last seven days have dashed
virtually every hope that the broil
ing countryside might recover, even
with a period of real gully-washers,
from six months of drought. In the
week temperatures ran from 5 to 30
degrees above normal. Over eight
states the temperature averaged
close to 100 degrees, and in many
places never fell below that mark.
Rain fell only locally and so
lightly as to be of no value.
Thunderstorms and high winds
touched Minnesota and North Da
kota in the last two days, but re
vival of wilted corn was impossible.
The government forecast yester
day of the smallest cotton crop
since 1896, coupled with an almost
panicky increase in grain prices,
was an index to the alarm felt in
agricultural circles.
Cooler Weather Forecast
The low pressure field which
brought a rebirth of the heat w r ave
to the midwest today raised the
temperature to 90 degrees at noon.
Cooler weather sweeping down
from the northwest is expected to
reach here tomorrow. Occasional
showers are forecast for tonight
and possibly tomorrow morning.
Hourly Temperatures
6a. m 77 10 a. m 85
7a. m 73 11 a. m 88
8 a. m 81 12 (noon).. 90
9 a. m 83 1 p. m 92
HOME
EDITION
PRICE TWO CENTS
Outside Marion County. 3 Cents
Roosevelt Authorizes Step
by Executive Order
to Nation.
NOT INFLATION ACTION
Move Permits Government
to Save Money in Pur
chase Plan.
Bu United Press
WASHINGTON, Aug. 9.
President Roosevelt today ra
tionalized silver in a dramatic
monetary policy move which
gives the government com
plete ownership of gold and
silver—the precious metals
backing the nation’s currency.
Bv executive order and proclama
tion, all silver in the nation with a
few exceptions was ordered turned
over to the mints. Gold already is
in government vaults under a sim
ilar nationalization order.
Nationalization in brief, is gov
ernment ownership of all silver
stocks in the country.
The move permits the government
to save money in its silver purchase
plan under the requirements of the
silver policy act of the last con
gress requiring a build up of silver
reserves to a 1 to 3 ratio with gold.
Silver nationalization immediate
ly was applauded by congressional
monetary leaders who warned, how
ever, that the move was in no sense
a currency inflation maneuver.
31orgenthou Gives Explanation
By its absolute grip on silver as
well as gold, the administration is
believed to be attempting to in
crease its monetary stocks.
Treasury officials estimated that
there are between 150,000,000 and
200.000,000 ounces of silver in the
United States at present, of which
45,000,000 are in depositories rec
ognized by the silver exchange.
Silver was nationalized at 50.01
cents an ounce. Treasury Secretary
Henry Morgenthau Jr. explained
that the fixed price will save the
government money by not requir
ing it to buy silver at rising specu
lative market prices. Silver was
quoted at 49.5 cents an ounce in
New York shortly before the treas
ury flashed the silver nationaliza
tion order, effective today. The
market price has been rising
steadily.
Silver under the order must be
turned over to government mints
within ninety days. Payments will
be made in standard silver dollars,
silver certificates or in other cur
rency. Silver ore and fabricated
silver is exempted.
New Mined Silver Exempt
Newly mined silver also is exempt,
the treasury continuing to pay 63
cents an ounce for it.
Mr. Morgenthau explained that
under the 1934 silver purchase act,
the treasury would be unable to pay
more than 50 cents an ounce and
had the quotations risen, the secre
tary would have been unable to con
trol the silver market.
Financial circles here attributed
the move to control silver, the same
as is already in effect for gold, as
an important step toward what
President Roosevelt termed the or
ganization of a currency system that
will be “sound and adequate,” and
which contemplates a large issuance
of currency which ultimately will be
based upon three-fourths gold and
one-fourth silver.
The effect of the nationalization
is to give the government absolute
control of all domestic silver stocks.
It is aimed to prevent passible sales
by domestic sources in foreign
markets should prices have gone
above the 50-cent per ounce limit
attached to the treasury’s powers.
Thomas Lauds Move
The executive order also exempts
foreign and domestic silver coins,
ore, foreign government owned sil
ver, silver owned by foreign central
banks and manufactured silver ar
ticles.
The mints under the order will
deduct 61 and 8-25 per cent of the
silver recived for seignorage, which
is expected to give the treasury a
slight profit on the forced silver
transactions.
Mr. Morgenthau explained that
the nationalization order, which
exempts newly mined silver, was on
the theory of eminent domain,
which gives the government powers
to condemn it. This was regarded
as the explanation of how the
treasury was able to peg the price
at 50.1 cents an ounce instead of
50, the limit at which Mr. Morgen
thau said could be paid on all sil
ver.
Senator Elmer D. Thomas 1 Dem.,
Okla.), inflationist leader, hailed the
nationalization order as “a very
necessary move to carry out the
policy outlined by congress.”
"I believe it will have a far-reach
ing effect and be of vast assistance
to the administration in adjusting
our monetary policy to regulate th#
buying value of the dollar.” he
added.
Mr. Thomas recently criticised
Secretary Morgenthau for not pro
ceeding vigorously with the silver
purchase policy adopted by the
seventy-third congress.
$2,600 Is Loot in Bank Raid
By United Press
TAUNTON. Minn.. Aug. 9.—Two
youthful bandits robbed the Farmers
and Merchants bank of $2,600 here
late yesterday and escaped in a car
with stolen license £lau*.