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MILLS OUTLINES REASONS FOR INCREASES IN TAXES i Undersecretary of Treasury Discusses * J Government Finances in Radio Forum Address. THE full text of the address o1 Ogden L. Mills, Undersecretary of the Treasury, on Government finances, delivered last night In the National Radio Forum, ar ranged by The Washington Star and broadcast over a Nation-wide network of the Columbia Broadcasting System, follows: 1 assume that the fact which Is up permost in the minds of all listeners this evening is that recommendations have been made to Congress with a view to raising more than $900,000,000 cf additional revenue in the fiscal year ending June 30. 1933 I trust that I mr.y be able to present to you the facts cf the situation which required such recommendations as to substitute, for the natural reaction against a higher tax bill, a genuinely favorable response to a policy which is designed to assure the continuance of the finances of the Federal Government on a sound basis. Severe decline and depression in business over the past two years have very materially affected the budget, particularly the Government’s revenues, income tax receipts, which are a major ■ource of Federal revenue, averaged $2,370,000,000 in the fiscal year 1929 and 1930. Present estimates indicate that income tax collections for the fiscal year 1932 will be $1,140,000,000, or a decline of $1,230,000,000. Esti mated ordinary rece.pts in 1932 from all sources show a decline of about $1,750,000,000 from the average level of 1929 and 1930. The effect of the depression has also been reflected in larger expenditures, as the result of unusual outlays for relief and construc tion. Three Means to Get Funds. The Treasury closed the year 4 931 With a deficit of $903,000,000, and estimates indicate that the aggregate deficits for the three-year period ending in 1932 will be $4,400,000,000. This Is the prospect, notwithstanding the fact that, in forecasting the revenues, it has been assumed that in the calendar year 1932 there will be definite Improvement in general conditions of industry and trade. There are only three ways of meeting the needs of the Government under such circumstances, either by increased taxation, by borrowing, or by both The Treasury cannot of itself create funds Whatever it spends must be obtained either through taxation or through the sale of Government securities, and the securities in the end must be redeemed by taxes. To attempt to cover the com bined deficits of the three years in ques tion entirely by borrowing is unthink able. and would present enormous diffi culties. It must not be forgotten that the very ability of the Government to borrow depends not only upon the con viction on the part of purchaser, and holders of Government obligations that the Government will maintain Itself in such a position as to meet at all times and under any circumstances Its own obligations, but that its finances will be conducted with such regard for sound principles that Government se curities will not suffer drastic deprecia tion. If, In disregard of every dictate of financial and business judgment we should attempt to raise all of the addi tional sums required as a result of the depression through the sale of Govern ment securities, we would, I am con fident, encounter real resistance on the part of investors, not only' because of the immense volume of new securities to be marketed—which would neces sarily depreciate the value of all exist ing securities—but because of the ap prehension such a temporizing policy would engender. In the midst of our difficulties, let *is not forget that there is nothing more important to the Nation than the main tenance unimpaired of the credit of the United States Government. Balanced Budget Ideal. It is sometimes urged that, since in the course of 11 years prior to the fiscal year 1931 we have reduced the total debt by about *9.300,000,000. some *3, 460,000,000 of this amount from sur plus receipts, we are justified in exten sive borrowing now. There is some force to the argument. We have cre ated something in the nature of a re serve which we are warranted Ln draw ing on. certainly to some extent. But there are definite limitations. In the first place, these earlier surpluses re sulted in large part from special non recurring receipts, such as the sale of capital assets, which were most prop erly applicable to debt reduction. In the second place, when the sinking fund was created, it was assumed that the proceeds of repayment of loans to for eign governments would be available ln full for the retirement of a very large part of our public debt, whereas the amounts due us were subsequently re duced by the debt funding agreements. And, finally, even if we assume that we are justified in borrowing up to the full amount of *3,460.000,000. that sum will be almost absorbed by last year’s and this year's deficits. What, then, is the wise course to pursue, under all the circumstances? The Ideal would be a balanced budget in 1932 and in 1933, This ideal cannot be reached ln thus fiscal year, since half of the year has already passed and the size of the deficit makes it impossible of attainment. In the fiscal year 1933, It is conceivable that we might attain a balanced budget, but our doing so would imply such an enor mous increase in taxation as to pre sent a serious barrier to business recov ery. It seemed to the Treasury De partment that we might meet the | needs of the situation with due ob servance of sound financial principles, i and without any impairment of the 1 national credit, by the adoption of a J program which would aim at three j definite objectives; first, reduction in {the prospective deficit for the current fiscal year: second, no further increase | in the public debt in the fiscal year 1933: third, a balanced budget in 193* Existing conditions would not, in my ! opinion, justify a request for more, and we should have failed in our duty had we recommended less. Return to 1924 Aet. The Treasury has based its program *n the main upon the relinquishment of the principal tax reductions which have been effective since the revenue act of 1924 It has. in short, recommended returning in principle to the general plan of taxation existing under that act, with such changes as may be ap propriate in the light of temporary conditions, the new measures to termi nate at the close of the fiscal year 1934. The public has paid taxes under such a law, and the Treasury can ad minister it more expeditiously and ef fectively than would be the case with new' and untried ventures. In our earlier experience with such taxes, they did not constitute by anv means an unbearable burden, nor did thev pre vent increased prosperity. Although it is perhaps unnecessary, I wish to point out that, although the proposal is made to cover the two coming fiscal j years, it should not, of course, be in I terpreted as implying an expected con i tinuance of depression during that | period. It will not be until the fiscal | yeaT 1934 that income taxes will oe free from the influence of severely de | presssed incomes for the calendar yar I 1931. The program should be consid ! ered rather as provision for repairing the gap in our revenues—actual and Itn prospect—which conditions to date | have created. It is unnecessary to describe the program in detail. Doubtless all of ; you have read it. Generally speaking. | provides for the retention, and in j some instances, an increase in existing ; excise taxes, a restoration of the man ufacturers’ sales tax on automobiles, trucks and accessories, of the stamp tax on conveyances of realty, and of the tax on telephone, telegraph, radio and cable messages, and the imposition of new i taxes on manufacturers' sales of radio i and phonograph equipment, and on j checks and drafts. Tire rate of tax nn corporate income is increased but slightly, from 12 to 12'2 per cent. A return to the 1924 act necessarily in volves a sharp increase in the rates applicable to large incomes and the ,ooing °f sonie taxpayers who, since 1924. owing to very high exemptions, have been relieved from the obligation of contributing to the support of their Government, though enjoying a very genuine ability to contribute certainly £etheeriy92n4 mratC am0Unt* dPmanded t naerestimate Intelligence. thLhaf',L?een t0!? by some gentlemen that, from a political standpoini we are making a terrible mistake in re du„c.ln8 exemptions. Aside from, the I cann a/' UndeJ e5d-stin« circumstances I cannot concede tnat politics has any thing to do with the drafting of a revenue bin, I think those gentlemen trinHreStln?ati5 lbe lntolllgence and pa triotism of the American people Oth^r flnileK5' conf,ronted with difficulties in finitely greater than our own have met the needs of their government to an unheard of extent without protest or murmur. K I am confident that, once the neces sities of the situation and the pnn that afe at stake ^e under stood, our taxpayers will respond with equal willingness and. if not cheerfully at least without complaint Even in these days which appear so ^rk. we are st)11 fortunate Ts con trasted with other nations. For in thatCm ttoilable flnformaUon indicates tnat in this country Federal and local taxes combined are about 10 per cent hfnrtht .natl,onal income, while In Eng land t°tal taxes are about 22 per cent I ?/ £e, natlonal income. After all can ! K^v Vhl- contended In such an e mer gency that a married man. with an tribute fn'°00 year' cannot con tribute $16.50 or less than one-half of port ofehu°rhiS lncome' 10 the sup port oi his Government, or one with an Income of $5,000. $31.50 or slightiv more than ha)f 0f 1 per’ cent one income of $10,000, $153. which Is only 1 *, per cent of his total Income? Not Intolerable Burdens. g ™nentheer»?rne to the miscellaneous ! toterfere ttith '\vare «0t 80 hi«h «* to imeriere with the flow of goods or , services, or to constitute a real burden on those who buy or enjoy them Can 7aVrrdy CflTPlain lf ' igai'cttes and radios and admissions to places of amusement-yes. even if semlneces sities such as automobiles—are to cost a trifle more, or if we are to pav 2 cents for the privilege of using checks and an additional cent on the trans fer of securities? Tliese are not intol askeri bllrdens- esPccially when we are asked to assume them to meet the necessities of a real emergency We shall emerge from this depression, as we have emerged from depressions in the past. We shall do so all the earlier and with greater certainty If we face the realities of the situation squarely, deal with them intelligently and courageously and proceed to follow the right road, even if it isn't the I easiest one. Turks, Turning Modern, to Drop Friday As Day of Rest for Efficiency's Sake •> ISTANBUL. Turkey.—Turkey, having realized that she is losing forty-eight days a year by keeping the Moslem Sab bath and resting on Friday instead of Sunday, has decided to Change the day of rest and prayer. The Turk will either close shop on Sunday, together with millions of Christians, or w ill wake up to find his Friday disguised as Sun day by a government that has ac complished even more astonishing things. When Turkey adopted the European calendar the Arabic numerals and the Latin alphabet, there was also a strong rumor that Friday would iose its all im portant meaning as the day of rest for Turks. Although the question was then discussed at length the change was not made. Perhaps the religious element was considered and the tho :ght of adopting the Christian Sunday as the holy day of rest for 14.000,000 Moslem Turks seemed too bold at that time Yet this is not a religious question. The Moslem religion orders one day of rest, when the Moslem is to devote a lengthy prayer to Allah. Whether that prayer is said on Friday or any other day of the week is not important. Ramazan, the month of fasting, changes months with ease, as It is bound to the fickle moon. The learned hojas study the heavens and declare that Ramazan will fall on a certain month of the year. That month Is called Ramazan, and the faithful start to fast and keep fasting until the end. The same can be true of the day of rest, ana Sun day seems to be just as goo' a : ay Friday to go to mosque and enjoy life afterward in a coffee house. It is not that Turkey has become so Westernized that she has to copy every thing the West has to offer. The ques tion is deeper, as it is an economic on# and thus all important at present. Turkey i* bound to Europe for her eco nomic reiauo&a The stock exchange. the banks, the merchants all have their eyes on the European market and fol low the movements of the European stock exchanges. When all the official and business institutions close on Fri day Turkey loses 24 hours and then another 24 when Europe rests on Sun day No bank merchants can deal on Sunday as the European stock ex changes are closed, which means that Sunday, although a work day, is wasted through lack of information. Impor tant transactions have been lost that wav If a European bank sends a telegram to Turkey on Thursday afternoon it is received Friday morning, but as every body is away, the answer is wired on Saturday, received on Sunday by the bank, and laid aside until Monday morning. Even a European institution cannot wait tliat long to close a busi ness deal. The same bank dealing with rurkey s close neighbor, Greece, jwould receive an answer in 24 hours instead (*f having to wait 72. Up to now busi ness was not Important to the Turk. He neglected stock exchanges, bonds, banks and work. But in these new tepubhcan days the Turk has become a budding business man and cannot afford such waste. On the other hand, there are thou sands of people who are going with a long face at the thought of having to get up at seven on Friday instead of enjoying the luxury of bed and sleeping until noon. The foreign institutions of I ui key either granted two da vs a week —Friday and Sunday—or a day and a nan, so that tile employes were spoiled and the change will hit them very hard. Turkey is the land of numerous holi days. The Moslem rests on Friday, the “** cannot give up his Saturday and the Christian has to go to church cm Sunday. Three days out of seven some body is resting in Turkey. * lOewrlthti M|f,» V 2 ' J r Daredevils of the Skies % ------ - -- Men Who Make Pictures in the Air Face Danger as Every flay Occurrence. HAPPY LANDINGS! A VIEW OF THE MOUNTAINS NF.\R MEXICO CITY. Suppose that instead of reading this printed page you were clinging to a hard wooden bench in a swaying airplane cabin. You are sw'athed in leather clothing, felt boots and fur-lined hel met. There are great gauntlets on your hands, making them look like the forepaws of a black bear. Up ahead of you is the broad back of your pilot. By your side is a small row of instru ments. The altimeter reads 19,700 feet, and the temperature is 60 degrees below zero. Reconstruct such a scene in your mind and you have a picture of the working conditions of the man who holds the highest job in the world. He is the aerial photographer; the most misunderstood and generally abused person in the whole flying game He showed the aviation industry how to make flying pay, and his was the first flying job to graduate into the realm of big business. But nobody cars. He seldom gets his name in the j papers and never receives spectacular i-----— welcomes after his record-breaking flights. The pilots get the praise and the man with the camera frequently doesn't even get credit for the photographs he took. But if the mob that surges around the pilot knew what sort of thrills, excitement, danger, hardship and adventure there was in the pho tographer's job. he might push the pilot off the front page. A stricken liner sinks a hundred miles at sea. A prison riot breaks upon a Middle Western town. A forest fire threaters a dozen cities. A swollen river floods a score of counties. The first man on the job is the flying pho tographer, and the first picture you see will have been taken from the air This man's life is a bewildering whirl of big cities and trackless jun gles. the sizzling heat of the tropics and the numbing cold of the top layer of the atmosphere. He defies the laws of nature and lives to tell about it. His office is five, six or seven miles above the earth—so high in the air that there Is insufficient aii to breathe and not enough warmth tc keep him alive—and should his man made oxygen and heat fart he suffers physical strains that sometimes result in death. But his job makes him forget the danger. A man named Russell was making ! a map over Pennsylvania a few weeks ago, and was kicking to himself that i life was so monotonous. His mapping i camera had an electric drive and he ! was Just sitting there holding it level ! and wish he were back in Brooklyn i shooting a few holes of midget golf. The i wind changed direction with some 1 abruptness and started blowing along the same course that his plane was fol j lowing. The plane, with the gale blow ! ing under its tail, started to whiz along at more than 200 miles an hour. The camera's electric timing gear couldn't keep up with it. Russell yanked out the electric con nection, twined his feet around a stan chion and began cranking film like a maniac. "He had been over Harrisburg | when the wind changed; exactly 28 minutes later he was over Philadelphia | with the map all finished and blisters ; on his hands from cranking film i through the camera at breakneck j speed. About a week later Russell's partner, Capt. Robert A. Smith, was* in the same ship. The wind played the same trick, this time blowing directly I at the nose. There was no movement I at all. The plane just hung there for more than half an hour, progressing | not a foot. The pilot was worried ! about it. He was for landing then and there. But Smith picked up a book "> ' ' looking over the ,. . . ’’ ’ ' had decided to move. When it did, he • ‘ -.. Wv.i. OdCK to Vi Vji This same Smith, a ruddy, yellow haired dynamo of energy, is’ used to having the unexpected happen, and it doesn't bother him any more. He has been flying with a camera for the last 15 years—all over Europe and most of (Continued on" Fourth Page.) Alfonso Has Price on Head While Former Ruler Is Man Without Country His Patriot Victims Are Honored. n I SLB1.\ fc. JOHNSON. MADRID.—Alfonso, former King of Spain, has been declared an outlaw, his properties ordered confiscated and every Spaniard Is empowered to arrest him at sight should he ever again set foot on the soil of Spain. From the proudest throne in Europe, the last of the Bour bons has tumbled to the low estate of sn ordinary fugitive, with a price upon his head. That is the decision of the Cortes, and from now on the Cortes, which Alfonso despised, is supreme in Spain, As the last of the oldest line of hereditary monarchs in Europe—the Hapsburgs, Bourbons and Lorraines— Alfonso is now net only a former king without a throne, but a man without a country. Behind the dramatic sentence imposed upon Alfonso, however, lies an even more dramatic story. It will be remem bered that it was a soldier, Gen. San Jurgo, commander of the Civil Guard, who almost singlehandedly checkmated the former King's trump card when he was preparing to plunge the country into bloodshed in a last effort to keep his throne: it was the ghosts of two ether soldiers, Capts. Firmln Galan and Garcia Hernandez, for whose executions King Alfonso is held responsible, which placed the once proud and vengeful Castillian beyond the pale of Spanish law. There were many crimes with which the Republican Tribunal could have charged Alfonso. The former King had caused the deaths of many men, not the least of whom were the thousands who fell In the futile campaign against Abdul-el-Krim in the Riffian Wars. These sacrifices, however, were more or less "within the law.” Alfonso was then recognized as King of Spain, ruling un der the constitution of 1878. The ex cesses of the monarchy after the coup of Primo de Rivera, whom Alfonso used as a tool for overriding the constitu tional rights of the people, were the ones which the Cortes consider unfor givable. Officers Loyal. Capts. Galan and Hernandez, although officers in the army, were loyal to their oaths under constitutional Spain when they sought to overthrow an illegally constituted dictatorship. Theirs was a loyalty far greater than allegiance to a King who had broken faith with his subjects. Gen. Primo de Rivera’s court martial, which tried the former mon archist premier, Sanchez Guerra, ad mitted that fact when it disehaiged the leader of the abortive Valencia and Cui dad Real rebellion even after he had confessed that he sought to overthrow the existing government. Alfon&o's bloodthirsty demand for the lives of the two popular officers has now been legally defined in republican Spain as ‘murder.” Germany's judgment against the former Kaiser was never so severe. Today, and probably down through the new republic's history Ga lan and Hernandez will rank as mar tyrs, former King Alfonso as the de spised sovereign who was first a Bourbon and then a Spaniard, and who put his dynasty above his country. Capts. Galan and Hernandez first appeared in the public eye largely as a result of the tragic Jaca rebellion tragic because the impetuous officers could not wait for the "zero hour” when two-thirds of the garrisons in Spain and the ReDublicans, Socialists and Workers' organizations were to have driven Alfonso from the land last | December. When the Jaca troops found that something had again gone wrong and that they were not supported bv other garrisons, Galan and Hernandez | voluntarily surrendered to the civil authorities, naturally expecting con liberation as political offenders Cteo. Damasco Berenguer -was then ( APT. FF.RMIN GALAN. dictator. Acting under Alfonso's orders he saw to It that the two officers were summarily executed, without even the consideration ordinarily shown victims of a drum-head court-martial In time of war. Berenguer and his Monarchist colleagues are now in Spanish prisons awaiting their fate at the hands of the Republican Responsibilities Commis sion which pissed judgment on Alfonso. For Berenguer, at least, it is not the first time he has faced death. It seems as if the hand of fate is moving in his case. Not many years ago. after the Moroccan disasters in 1921, Gen. Beren guer was arrested, tried by a military court, and sentenced to death for hav ing been involved in the civil, political and military scandals which caused such frightful losses in wealth and men in Spain's Riffian expeditions. Capt. Galan, then a young officer, be lieving his chief was being sacrificed by King Alfonso, penetrated the fortress where he was confined and offered to j lead a small band to forcibly release j him. Later Gen. Primo de Rivera, as ; dictator, illegally amnestied Berenguer, I only to see him again become the in strument of Alfonso when Rivera no longer proved useful to the intriguing j King. Tli n. to crown his checkered carter. Berenguer did not raise a finger to save the life of the voung officer who ; would have befriended him. It was Alfonso's determination to | "make an example" of some Rtpublic ! ans that caused him to insist upon I Galan’s and Hernandez’s death. At the time there were around 6.000 other Re publicans in Spanish jails. According to the chief of police of Madrid. 80 per cent of these were ‘‘intellectuals,’’ any one of whom was far more dangerous to the monarchy than the two army officers. Most of the men in the pres ent Alcala Zamora government were imprisoned at the time. However, it was easier for Alfonso to use a military drum-head court than the civil or dic | tatorial tribunals in creating “ex ! amples” calculated to strike fear in the ! hearts of the revolutionaries. Within a few hours of the time the Jaca officers had given themselves up, the court-martial had sentenced them i to death. The Berenguer cabinet met immediately to consider the sentence, j The ministers of interior, economy, public works and public instruction op posed the verdict and demanded clem ! ency. Berenguer, close to King Al j fonso, beat down their pleas and finally the judgment was confirmed. The I cabinet officials t^en asked tbe premier CAPT. GARCIA HERNANDEZ. to present a decree of reprieve to the King. If tjtot is your wish,” Berenguer told them, * shall do so, but remember the same time we ask his majesty for a reprieve we shall be presenting the cabinet's resignation, for the King cer tainly will refuse mercy.” Berenguer then again convinced the majority of his monarchist colleagues that this was no time to leave the country without a government. They had pledged them selves to early elections and resignation would have meant another military dic tatorship which the King wanted an excuse to establish. The throne was tottering. Alfonso’s back was to the wall. He had announced: “I was born a king and despite the efforts of these Indians, I shall die a king.” (Alfonso was ^ born after his father had been as sassinated and consequently was liter ally ushered into the world with a crown on his head. Indians is a word of approbrium among Spaniards). But even Berenguer’s persuasiveness and argument failed to win over one mem ber of his cabinet, the minister of pub lic instruction, who insisted that his disapproval of the entire proceedings be inscribed in the official minutes. Capt Galan was shot within six hour; after his arrest. Not only that, but lie was executed on Sunday, which is against all tradition and religious custom in a Catholic country, where even wartime executions are forbidden cn the Sabbath. The act cost King Alfonso more friends than any one tiling he had done since he bolstered up his shaky throne by breaking his oath to defend the constitution. It is one thing the army will never forget —that is, the lower rank and file The details of Capt. Galan’s death, as told the writer by an eyewitness played an important part in formu lating the Cortes’ sentence against Al fonso. As stated before, when they saw that the game was up. Galan and Hernandez surrendered to the civil authorities rather than shed needless ly the blood of their troops. It would have been easy for them to escape across the Franco-Spanish frontier. Galan Disgusted. "I am surrendering to the civil au thorities because I am disgusted with the military men, with whom I have been associated in the movement to liberate Spain,” Capt. Galan told the mayor of the small frontier village “I will now show them that these are some of us willing to die for our Ideals.” In all truth. Capt. Galan had large ly himself to blame for his ill-fortune. He had led his troops against the mon archy 60 hours before the time set for the uprising. He did this partially because of his hot-headedness and im petuosity, and partly because of a fixed idea that he was the man ‘‘cho sen" to bring the republic to Spain. He aspired to be first to enter Madrid with a republican army. There also was a certain amount of friendly rival ry between the dashing artillery offi cer and the spectacular airman. Maj. Ramon Franco, who, a few days later, to avenge1 his fallen comrade, “bomb ed" Alfonso's palace with revolutionary leaflets and led the Quatros Vientras Air Corps in a second abortive mutiny. Before the drumhead court-martial, composed of generals and colonels, sit ting over the two officers, the follow ing dialogue took place: “Have you any accomplices?” the judge asked Galan. "Yes," replied the accused. “Who are they?” "All of you, as you well know. All o* you who are cowards and traitors to Spain," retorted Capt. Galan, im petuously. Warned Against Replies. The judge then warned him against his replies, calling attention also to the fact that he was addressing his “su perior officers.” "There are no superiors or inferiors here." retorted Galan. "In this court there are only men and traitors. You are the traitors. Capt. Garcia Hern andez and I at least are men.” When Galan himself signed the court’s record, calm and smiling, he as tounded all of those present, most of | whom were his comrades of many years, and also implicated at one time or I another with him in the republican I, movement, by saying: “You see how easily one can sign his : own death warrant, if he be a real' man ...” A priest came forth to offer consola- : tion. Galan politely waved him aside. "I do not need what you have to offer,” : he said. "Only let me live the few re- i maining moments of my life intensely." : Refuses Blindfolding. The scene then shifts to the country side, with Galan and Hernandez march- ! ing beside a platoon of soldieis. Re- 1 fusing to be blindfolded Galan faced ; the firing squad, still smiling. He took ‘ out one last cigarette, lighted it. and ] tossed the case to one of the officers as a souvenir. Then, after a few puffs, , he tossed the cigarette aside, faced the soldiers, and himself gave the com mand to fire. The volley re-echoed across the hills. , Galan slumped to the ground. There , was not a bullet mark in his head. The soldiers either couldn’t or wouldn’t look into those burning eyes. Neither had ■ any shot pierced a vital spot. The offi cer in charge, wishing to end Galan's i suffering, borrowed a service revolver | \ from a trooper. The bullet glanced off i the skull. Sick at heart the officer 1 turned aside and motioned to a soldier t to end it. 1 That is how Capt. Firmin Galan died, t according to the story told the Cortes’ ; 1 Committee on Responsibilities. They < decided that former King Alfonso was i to blame—also for the equally poignant 1 execution of Capt. Hernandez. Some < members of the committee demanded 1 a death sentence for the former King. 1 Others held that that would be too i good. i Today, from one end of Spain to the i other, they are erecting statues, tablets and memorials to "Galan and Her- < Uandea " Street* which bore the names j at Alfonso ^nd hie Ida mg betas R- 1 PAN-AMERICAN THEORY ORIGINATED BY BOLIVAR Liberator Who Died 101 Years Ago Thursday Laid Plan for “Society of States." BY GASTON NERVAL. NEXT Thursday marks the 101st anniversary of the passing of Simon Bolivar, the "George Washington" of South America. On that date Latin Americans throughout the cr-aiinent will pay re spect to the memory of the greatest man that ever lived in that part of the world. Bolivar, “The Liberator." has been hailed as a military genius, as a politi cal organizer of extraordinary vision, as a statesman, as the apostle and the man of action working for a great ideal. But the liberator of five South Ameri can nations is seldom known or men tioned here as the real pioneer of the most interesting political tendency of our days, the pan-American movement. It is with this aspect of his multiform personality that readers in this country should particularly be acquainted. Bol ivar the visionary stateman is even greater than Bolivar the leader of sol diers and emancipator of nations. Bolivar father of Pan-Americanism be comes a continental figure and deserves just as much the admiration of Saxon Americans as he does the gratitude and immortal homage of the South Ameri cans he liberated. Preceded Leaders of U. S. Secretary of State Blaine, Henry Clay, even President Monroe, are often mentioned here as the pioneers of the pan-American spirit. But long before these distinguished statesmen of the North had achieved public prominence and used it to promote international co operation in the New World Simon Bolivar had divulged his dreams of a united American continent from one extreme of the Southern continent to the other. The first international assembly ever to give thought to the ideal of a united Westen'' Hemisphere, in which peace and nrVtual co-operation would reign Supreme was the Congress of Panama, convoke by Bolivar in 1826. At that time th* South American countries had just completed their liberation from the Spanish (town and were attempting to take th«lr first steps as independent, sovereign states in the community of nations. c,ven oeiore mat congress me mili tary genius and thinker who promoted it had given the New World the mo mentous idea of a united America in his personal letters, proclamations, po litical Instructions and speeches. He spoke of establishing an "Ameri can Compact,” hoping that "America • referring to all the American repub lics) so united, may, if heaven so grant, be called the Queen of Nations, the Mother of Republics.” In a note to his secretary of foreign affairs, he wrote: "Nothing is of such interest at this time as the formation of a truly American League; but this confederation should not be formed simply on the principles of an ordinary alliance for offense and defense; it should be a much closer union than that recently formed in Europe (the Holy Alliance) against the liberties of the people. It is necessary that our league be a society of sister nations, at present separated In the exercise of their sovereignty by reason of the course of human events, but which must be strongly and powerfully united in order to defend themselves against the aggressions of foreign powers.” And then, setting forth the ideal of a continental congress, which should discuss such union, he instructed his secretary of foreign affairs: "It is necessary that you shall henceforth incessantly urge the necessity of laying the foundations of an amphictyonic body, or assembly of plenipotentiaries, that shall gdvance the common inter ests of the American states and settle the misunderstandings which may arise in the future between peoples who have the same common destiny.” He also warned that such misunderstandings, if not properly attended to and solved, "may perhaps kindle lamentable wars, such as those which have desolated other less fortunate regions.” Urged Treaties of Union. To prepare the way for his final project of a continental league of the American states, Bolivar invited the Latin American republics as early as 1822 to draw up treaties of "union, association and perpetual confedera tion.” Such treaties were concluded by Co lombia with Chile, 1822; with Peru, the same year; with Buenos Aires and Mexico, 1823, and with Central Amer ica. 1825. In these treaties it is stipu lated that the parties bind themselves to use their good offices with the gov ernments of the other states of what was formerly Spanish America to enter Into a pact of union, association and confederation. It is stipulated, moreover, that as soon as this great and important ob ject has been attained there will be a jeneral assembly of all the American states, composed of their plenipotenti- ; tries, for the purpose of cementing and 1 establishing more firmly the intimate : •elations which should exist among hem. This .assembly should serve as i council in serious disputes, as a point it contact in common danger, as an luthentlc Interpreter of their public reaties when difficulties arise, and as judge-arbitrator and conciliator in their nisunderstandings and differences. In 1824 Bolivar, then president of Peru, sent a circular letter to the gov •rnments of Latin America inviting hem to meet in a congress in Panama 'or the purpose of outlining the basis if the pact of union and confederation vmcn was proposed in the treaties re ferred to. The circular ends thus: ‘When, after a hundred centuries, pos :erity shall search for the origin of our public law and shall remember the pompacts that solidified its destiny, ;hey will finger with respect the pr ocols of the isthmus. In them they vill find the plan of the first alliances hat shall sketch the mark of our re ations with the universe. What, then, hall be the Isthmus of Corinth corn ered with that of Panama?” It is j nteresting to note that the Govern- I nent of the United States also was in- I dted to the congress, for the Monroe doctrine was to be promulgated therein md the most adequate means discussed or the abolition of the slave traffic. Knew No Limits. Bolivar was the “spiritual father” of )an-Americanism. His flight of thought mew no limits. First, he conceived the iberation of his native country, Vene uela; then he widened its frontiers, and, living it a new name, caused that of Colombia to be written into the annals if history. He formed "Gran Colombla" vith the territory which constitutes to !ay the republics of Venezuela, Colombia md Ecuador, and. with the pride of a :reator, called himself a Colombian, rhen he gave freedom to Peru and Bo ivia and became the leader In the lib ration of a whole continent. And when this continent was free :hristened after leaders and martyrs of he revolution. But that is not all. Posted ih the Town Halls and public mildlngs are official edicts informing he people that the former King has been ound guilty of "the most criminal acts gainst the Juridical order of his coun ry.” His property is all to be taken ’ver by the state. Dignities, titles and i ights accruing to the former king and lis kin are forever forfeit. The republican Jortes is going ever farther than that. Ivery government in the world which | ias diplomatic relations with the new epubllc is to be officially notified of klfonso's status. The League of Nations Hill get a copy of the official decree. As for Capt. Firmin Galan and Capt. Jarcia Hernandez . . . their future efta.aacum.ia the hearts of their coun-. tmea, _ _ , Bolivar dreamed of a “strong and united America which would present itself to the world with an unexampled aspect of majesty and grandeur.” The racial boundary that separated Latin and Saxon peoples did not stop him. He spoke of the necessity of “arriving at a clear and distinct understanding re garding the interests of Colombia and her allies (Spanish America) in connec tion with those of the United States.” His mind and soul were first in Vene zuela. then in Colombia, then in South America. Finally, he dreamed of pan^ America. His dreams were not onlv those of a theoretical idealist He had the vision ta lay the political foundations which would preserve the union of the Ameri can republics. He was the first one to use the nhrase "society of nations”; he proposed the formulation of an Ameri can constitution binding all the coun tries of the New World. And he even went so far as t» indicate that the best form of representation for that America, so united by ties of intimate friendship and concord, was the establishment of an international organization under the name of the “assembly of plenipoten tiaries." with its seat in Panama, which would have had the task of being, in his own words, "a counselor in great con flicts, a point of contact in common perils, a faithful interpreter of treaties in the event of any doubt arising and a conciliator of all differences that might develop.” His plan was that of a confederation of American republics, in which all of them, retaining their sovereignty, would sacrifice something of their individual interests and political freedom to a su preme power, made up of their own rep resentatives, which would guarantee their security, peace and progress through mutual co-operation. Racial differences, political misunder standings, internal dissensions, and a complete ignorance of the psychology of each other—factors which still exist to a lesser extent in our days—prevented the success of Bolivar's pan-American scheme, but in the treaty drafted by the Congress of Panama, convoked in 1826 by the Liberator, his ideals are clearly expressed, and may still be used for the basis for a powerful continental union. Four Signed Treaty. This treaty of “Union, League and Perpetual Confederation," was signed between the republics of Colombia (in cluding Venezuela and Ecuador) Cen tral America (including all the present Central American nations), Peru and Mexico, which participated in the Bo livarian Congress, and was inspired and drafted by the Liberator himself. The Bolivarian ideals of pan-Amer icanism which are embodied in that treaty—which, by the way, was only ratified by the Colombian Congress, and therefore never came into effect—can thus be summarized: 1. Intimate character of relations be tween the American peoples, members of the league, which any other conti nental nation might later join. (Intro duction to the treaty.) 2. Permanence and inviolability of a close friendship and union with each and every one of its parties between the signers of the treaty. (Article 1 of the treaty.) 3. Defensive and, if necessary, offen sive common support of the sovereignty and independence of each of the con federated powers of America against all foreign domination. 4. Immutability of peace and har mony between the confederated Amer ican peoples, or between them and the citizens of other nations of the world. (Article 13.) 5. Impossibility of declaring war among themselves without previous con ciliatory Intervention by the assembly of plenipotentiaries. (Article 17.) Urged Conciliatory Methods. 6. Agreement to settle amicably, and by direct means, the differences that might exist between the countries of the league, and, in the event of being unable to arrive at an agreement/ to give preference to conciliatory methods rather than to warlike ones, by bring ing the question before the assembly of plenipotentiaries for decision. (Article 7. Impossibility of going to war with nations not members of the league,, ex cept in the case of failure of the good offices which should be requested of the other members of the league, who would be obliged to offer them in order to prevent conflict. (Article 18.) 8. Mutual guarantee of territorial in tegrity of all the contracting parties. (Article 22.) 9. Facilities for the acquiring of ' citizenship among citizens of the con tracting countries and alleviation of the conditions imposed upon aliens among them, there being stated here, for the first time, the principles of recognition of professional titles. (Article 23.) 10. Retention of the sovereignty of each member of the league for its own determination, even in the case of for eign relations, in so far as the same was not in conflict with the provisions of the treaty. (Article 28.) Provided for Assembly. And for the carrying out of all the details of this program, the treaty pro vided for the establishment of the “As sembly of Plenipotentiaries of America,” with supreme power over the relations of the confederated countries. Such a masterfully conceived plan of an American League of Nations, the first, is still the most ambitious and the most complete one ever drafted. Ad vanced political ideals which today are changing the course of international re lations—such as the Societies of Na tions, the outlawing of war, the arbitra tion of disputes, the permanence of unions—are there mentioned for the first time. Bolivar was the first ever to speak of pan-Americanism. And after Bolivar no one has spoken so clearly, so force fully, so intelligently. (Copyright, 1931.) Soviet Union Visited By Group From Denmark MOSCOW, U. S. S. R —A Danish in dustrial delegation representing almost every branch of the Danish national economy visited the Soviet Union in or der to ascertain the possibilities of a further development of Russian-Danish trade relations. The All-Union Chamber of Commerce arranged a reception In honor of the delegation. The Danish Minister, lead ers of Soviet export and import organi zations and representatives of the peo ple's commissariat for foreign trade were present. K. Begge, vice president of the Chamber of Commerce, greeted the delegation heartily. The Danish Minister stressed in his reply the nor mal and untroubled relations between the two countries. There is. he said, v certain similarity in their economic' structures, forming a natural basis for economic collaboration. In the course of the banquet a mem ber of the executive council of the Chamber of Commerce gave a brief summary of the aims and activities of the chamber and stated the problems facing Russia In its active participation In the world foreign trade. The delegation expressed great inter est in the export museum, which they visited after the banquet. A number of lectures took place in the Chamber of Commerce during the visit of the delegation In Moscow, Mr. Blache, president of the delegation, lec turing on Diesel motor construction, Mr. Dye Peterson on Diesel engines. Mr. Man»% on steam-driven machinery and . Mr. CUftottacaon on bpdrauUo gfwtui