Evening star. [volume], April 28, 1937, Page A-11, Image 11

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Some Worry
Avoided by
President
Roosevelt Fishing Trip
Called Tribute
to Poise.
BY DAVID LAWRENCE.
WHATEVER his critics may
think of him otherwise,
president floosevelt must
certainly be given credit
for having the most remarkable
poise of any man in the fcountry.
Certainly no business man or executive
of large responsi
bility anywhere
compares with
him in the ealm
attitude and
peace of mind
which Mr. Roose
velt exhibits to
ward current
problems.
For the Presi
dent is going fish
ing. Every day
there comes over
the ticker into
his office, as it
comes into the
offices of other
David Lawrence.
people, a simple little table of ex
penses and receipts for the biggest
business in the world—the Govern
ment of the United States. Many
another person would get the jitters
looking at these figures. Many
another person, if it were a private
business, would hesitate to venture
two blocks from his office, let alone
take a vacation. Many another per
son would have deep furrows in his
forehead and wouldn't sleep nights.
But rot President Roosevelt, wrho is
going on a two weeks’ fishing trip.
What Is the condition of the "big
gest business in the world"? Take
April 24 for an example, though each,
day is more or less alike.
The official Treasury figures say the
•xpenses this year are $6,147,024,503,
end at this time last year they were
$5,874,203,651.
The official figures say that the
receipts are $4,036,540,530, as com
pared with $3,294,674,339.
So it might be expected that, with
the receipts about $842,000,000 higher
than they were last year the Treasury
•tight to be that much better off.
Present Deficit.
But actually the deficit is now
12.110.483.973, as compared with
$2,579,529,311 last year, and the
reason is that expenses are growing
even as receipts grow, too.
The most important figure that
stares one in the face, however, in
studying the daily announcements
from the Treasury, is the public debt.
East year at this time it was $31,436.
531.536, but now it is $34,877,002,968.
If a private business were faced
with a growing debt and a big deficit,
the executive in charge would be wor
rying how to get rid of the debt, or
how to make income and outgo bal
ance. If Mr. Roosevelt worries about
it, nobody ran observe it in his de
meanor. He is always buoyant and
cheerful as he meets the press. He
has faith in*his own ability to see
things through and he has the same
engaging smile that he has always
had before he ever entered the White
House.
But the condition of the Treasury
Is not the only problem Mr. Roosevelt
leaves behind as he goes fishing on
the Gulf of Mexico for the next two
weeks. He leaves behind a contro
versy over which millions of his fel
low citizens have been bestirred,
namely, the change in the relation
ship between the judicial and the
other branches of the Government.
The Senate comfnittee has just fin
ished hearings. Mr. Roosevelt’s sup
porters are being besought by col
leagues of the same party to work
cut a compromise.
Legislative Program.
Then there's the whole legislative
program. The President thinks the
anti-trust laws ought to be rewritten.
He has soft-pedaled action on some
bills and left others to hang fire till
his return. It cannot be said that
he has informed the leadership in
Congress exactly what he wants done.
They must wait till he comes back
Irom his fishing trip.
Then there’s the delicate situation
with respect to gold. The problem of
revaluing the dollar or letting it alone
at the present gold price is filling the
air with rumors. There may or may
not be anything urgent about this, but
anyway when Mr. Roosevelt goes fish
ing it is a sign that he isn’t prepared
to take action in these fields as yet.
Tax receipts constitute another
problem. The estimates were proved
wrong and now the task is to find
other taxes or to revise the whole
tax structure to bring in more taxes.
Mr. Roosevelt has delegated all this
to subordinates, but anybody else
would be conferring with them and
possibly with others to find a way to
keep the Government from running
along “on the road toward bank
ruptcy.” Mr. Roosevelt is different.
He prefers to let Congress stew in its
legislative juice, so to speak—Supreme
Court bill, relief spending, and all—
whilst he goes off to the blue waters
of the gulf to do battle with the tar
pons. Some day Mr. Roosevelt will
go away and find that Congress has
gone off the track and decided to
assert its independence. But with the
tremendous leverage that the White
House has over members of Congress
because the latter have voted lump
sums to the Executive for his discre
tionary use in their districts, the
chances of this happening soon are
remote.
Causes for Worry.
Why doesn't Mr. Roosevelt worry
about the condition of the Treasury
and the fact that the Government
bond market shows a lack of confi
dence in his budget balancing predic
tions? Maybe it is because Mr. Roose
velt has a philosophy of sunshine that
doesn’t permit of worry, but one ex
planation being advanced is that it
Isn't his money—it is other people's
money. His position is akin to that
of the corporation executives whose
bonds have been floated to the public
and who do not themselves have any
thing invested in their corporation.
Borne of these executives do not worry
either, unless it is about their salaries,
and In the case of a President of the
United States, the salary goes on for
four years.
Mr. Roosevelt likes to travel. He
likes to go to sea. He takes frequent
trips and vacations. He is physically
strong. But if everybody else who
had a big deficit to meet in his busi
ness went off on a vacation, America
Would find herself in the midst of a
real “sit-down.” Maybe the thing to
do is to forget worries and go fishing
and trust to the wonders of nature to
reveal the answer to the arithmetical
miracle whereby deficits in billions of
dollars and growing expenses seem to
be a nr-.ttr. rf only incidental concern.
A
News Behind the News
Slight Business Recession Believed Ahead—Specu
lators Seen Losing Enthusiasm.
BY PAUL MALLON.
INDUSTRY is continuing to swell its output even beyond 1829 bounds.
You may have noticed the Federal Reserve Board officially announced
the other day that industrial production had reached 119 per cent in
March, as compared with the 1929 average of 119. Now it is being
estimated unofficially but authoritatively here that April will be up 3
points more to about 121 per cent, which is 2 points above 1929.
Bigwigs in the stock market generally know about changing trends
before outsiders. At least that is their business. From the manner in which
the market has been acting lately,
it is evident that they sense a re
cession.
This guess is sanctioned by
nearly every economist in the
Government, but only in private, of
course.
The economists seem to agree
unanimously that a period of re
adjustment is in prospect, that it
probably will not be extensive or
serious. They disagree about when
THESE PANTS.
SEEM TO BE
SHRINKING^
MIME SEEM
TO GET URGE*
EVEK.Y PAY
it will come; some say now, some say in the Fall.
A rather significant hint apparently lies in the fact that prices,
which have been going up steadily since last Summer, reached a
peak four weeks ago.
* * * *
This may mean that expanding production has reached a temporary
price ceiling, but authorities who value their record for accuracy will wait
a few weeks before saying so in print.
For one thing, the reversal of the price trend started in a peculiar way.
Immediately after President Roosevelt announced that heavy goods prices
were too high, some of the heavy goods values started easing ofT.
But commodity prices generally failed to follow this trend. The index
of all commodities, except farm products and foods, kept going right up
from 84 4 on February 27 to 85.2 on March 27 and to 86.5 on April 25.
Also going up are textiles, metals, building materials.
Until these still-increasing prices decide what they are going to do
Ihe general trend will be in doubt. But there are indisputable indications
that the sensitive speculators have lost some of their enthusiasm. Their
ardor is cooling, both here and abroad.
Note—Of course, few of these price decreases have reached the con
eumer yet. All cited are wholesale prices
* * * *
The business chart which follows, shows employment and wages in
the factories are still going up beyond the recently announced official
figures. It shows the wage earner is in relatively a better position than
1929. with his wages at 102.5 and his prices around 87.4.
Earh figure in the chart represents the percentage of 1923-25 as normal
for the period stated.
?3 5? S? og SO 283
O Q. 3 t, 9S a. c - 3*
2-= ES “? °-' 5- 2* »2o
= * 28 3 ■ ■ »' srS S'
s'* S 2 o _-S
§ s ? ;■?=»
Year. r “ £*
1929 average. 119 105.0 109.0 106 111 117 95 3
1936 average. 105 92.0 82 0 72 88 55 80.6
1937 January . 97 89.0 74^1 70 81 61 80 6
1937 February.. 116 99 7 95 8 80 95 62 86 3
1937 March.. 118 100 8 101 2 83 92 55 87 8
(Est.) April .. 121 101.5 102.5 82 91 58 87,4
* * * *
What Gen. Franco is trying to do is to clean out Bilbao before
turning back again on Madrid. He realizes at last the danger to his
communications by the sizable force of Loyalists in the rear. Military
men think he had better hurry.
Those new .secret Treasury tax revision recommendations were pre
pared by Undersecretary Magill, instead of Treasury Counsel Oliphant,
although both worked on them.
That Anglo-French pact guaranteeing a free Belgium merely
made the best of a bad situation for Britain and France. W/icn
Belgium announced she mould be neutral in the next European uar,
she practically forced her two ex-allies into renewing their fealty.
It has not been brought out. but the State Department had a prowl
through files for days before establishing the American citizenship of
STATE.
LOU
Helmut Hirsch, who has been sen
tenced to death In Hitlerland for
high treason. There was some
doubt about Helmut and his father,
Siegfried, but the department
finally decided the grandfather
Hirsch had claims to citizenship,
which makes Helmut a citizen, but
not a very clcee one.
Representative Warren of North
Carolina keeps in his pocket a
constant budget reminder, a clip
ping from J. Micawber's recipe for happiness to David Copperfleld: “Annual
income, 20 pounds; annual expenditure, 19 pounds. 19 shillings, 6 pence
Result: Happiness. Annual Income, 20 pounds; annual expenditures, 20
pounds, 0 shillings, 6 pence. Result: Misery."
iCoDTTUht. 1P37.)
The Spring Home-Furnishings
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CTHE opinions of the writers on this page are their own, not
± necessarily The Star’s. Such opinions are presented in
The Star’s effort to give all sides of questions of interest to its
readers, although such opinions may be contradictory among
themselves and directly opposed to The Star’s.
Again Eyes Look West
Nations in Berlin-Rome Sphere Seek Help of More
Liberal Powers.
BY DOROTHY THOMPSON.
INTERESTING and somewhat en
couraging developments—from the
viewpoint of the future or liberal
democracy in Europe—are occur
ring In the small states which lie be
tween Germany and Italy, in the
course of what has come to be known
as the Berlin-Rome axis. The news
papers in the last
weeks have re
ported numerous
developments, the
last one being the
visit of the Aus
trian chancellor,
Schuschnigg, to
Mussolini. The
apparent infer
ence to be drawn
from the news re
ports, and the In
ference which is
drawn by the
controlled G e r
Dorothy Thompson.
man press, is that
Austria, which is
one of the most important states in the
whole complex, is retreating from its
close collaboration with Mussolini’s
Italy and is moving toward Germany.
But actually what has happened is
that Austria, Hungary and Rumania
are all finding it extremely uncom
fortable to sit on an axis and are modi
fying both their internal and external
policies with a view of again working
together with, and basing their hopes
on, the liberal, democratic nations of
the West. For the first time since 1933
liberal democracy in this part of the
world is beginning to ascend. Nu
merous forces are responsible for it.
but probably the two most Important
are the British rearmament and the
evidence that the democratic system in
France and the middle-of-the-road
policy there are likely to survive.
Like Pawns in a Game.
Central European states, which
cover an important part of Europe
from any point of view—considered
either economically or strategically—
have been divided into two groups:
The war-formed alliance of Czecho
slovakia, Rumania and Yugoslavia in
the Little Entente, and the states of
the Rome Protocol—Austria, Hun
gary, with Rumania, which regards
itself as a ‘'Roman” nation, having a
foot in both camps. The intimacy
of Austria with Italy was conditioned
as far as the Austrians were con
cerned by the fear of Nazi Germany.
It reached its peak in the Summer of
1934, when Chancellor Dollfuss was
assassinated by the Nazis and Musso
lini mobilized on the Brenner Pass to
prevent the Germans from taking
Austria.
But as Berlin and Rome draw to
gether, if not for purposes of mutual
collaboration, at least for purposes of
mutual blackmail, these states are
coming to realize that a perfectly
cynical game is being played with
them, which in no way contributes to
their inner or outer stability.
Some time ago Italy made a treaty
with Yugoslavia which is not unlike
the one which Hitler, early in his
regime, made with Poland. The deal
shocked the Little Entente, because
in making it Yugoslavia disregarded
the distinct wording of the Little
Entente protocol, which compels her
to consult her allies before making
any such agreement with an outside
power. An attempt was made to
--
smooth things out, but considerable
distrust was awakened, particularly
in Rumania. Yugoslavia Is the only
Little Entente country which has not
recognized the Soviet government,
and Czechoslovakia, in particular,
wishes the members of the Little En
tente to be on a decent footing with
the Soviets, particularly Rumania, be
cause Czechoslovakia depends upon
Russian support in case of an at
tack from Germany, and can estab
lish contact with Russia only via
Rumania.
Tilelescu’s Star Rising.
In Rumania the pro-Nazi party of
the Iron Guard has made so much
disorder and trouble that a really
organized resistance against them is
beginning to form as people realize
that they are merely the tools of Ger
many and Italy. The ousting of
Prince Nicholas was an indication
j of the collapse of public patience.
! It was preceded by unification, at
1 long last, of the strongly anti-Fascist
j Peasants’ party, under the leader
ship of Mihalachi. Titelescu, who was
the perennial foreign minister of
Rumania until he fell afoul of the
Nazi Iron Guard and who has clung
consistently to collaboration with
Great Britain and France, is slowly
recovering in St. Moritz, and his
star is again in the ascendant. Ru
mor had it that Titelescu was pois
oned, and rumor now has it that his
bills in an expensive sanatorium are
being paid by his poisoners—a Bal
kanesque story. But at any rate he
is being constantly coasulted on for
eign policy.
Hungary, too, played with fascism
until a couple of months ago, when a
Nazi putsch was aborted and the
government realized that playing with
fire was dangerous business. An
anti-Fascist government in Rumania,
Hungary realizes, would be willing
to give more liberal treatment to |
Magyar minorities and give Hungary
a reason for slowly abandoning ideas
| of territorial revision. The Yugoslav
j Italian treaty is not popular in Hun
gary.
As for Austria, a close relation with
Italy was never popular. The defeat
j of Italian troops on the Spanish front
; reminds the Austrians again that they
! repulsed the Italians in the World
■ War—and the Austrians have no
great idea of themselves as soldiers.
I Schuschnigg postponed his visit to
Italy after the debacle in Spain, and
| now it is announced that the Austrian
i foreign minister will use the occa
i sion of the coronation, not only to
: visit England, but also to stop in
; Paris.
! These *mall Central European coun
i tries are always a barometer for
Europe. That they are beginning to
draw away from both Rome and
Berlin, approach each other and turn
I their eyes toward the west is not with
j out significance.
(Copyrutit, 1P3T.)
This Changing World
Nations Flirt With Debt Settlement Idea to Avoid
Johnson Act Penalty.
BY CONSTANTINE BROWN.
SENATOR J. HAMILTON LEWIS’ keen interest in an early settlement
of the war debts has produced deep satisfaction among the debtors
and somewhat of a surprise among those who want to see this coun
try aloof In another international conflagration.
For the last four years the principal debtor nations have stubbornly
maintained that as long as they have cut down the German reparations
to next to nothing they ought to have a debt settlement amounting to the
same thing. Great Britain, France and Co. have maintained that there
was an interrelation between war debts and reparations. The administra
tion refused to accept this point of view. Hence the defaulting. The
debtors have announced repeatedly, however, that they are willing to
pay something like ten cents on the dollar. Whatever the feeling of
the White House and the State Department about this may be, there
is no doubt that Congress will not accept such a compromise. It would
pay us to lose 10 per cent of $20,000,000,000 and not loan money again
to warring and would-be warring nations.
Since the possibilities of another international conflagration have
become more immediate, the principal debtor countries, hit by the Johnson
WALL ,
ST&trrs
MILLIONS
act, have begun to flirt with the
idea of a "debt settlement." They
would like to resume payments in
order to avoid the penalties of the
Johnson act.
Ir> other words, they would not
mind paying this country a few
hundred million dollars each in
order to have access to the billions
of "unemployed” dollars in this
country. If a debtor government
pays, say, $200,000,000 next month,
in cash or otherwise, it will be free to go to Wall Street and borrow five
or six times that amount. New York bankers are more than willing to
open the gates to foreign loans. It's a profitable business for the bankers
and promoters, regardless as to how unprofitable it may be for the investor.
An agreement to settle debts these days is tantamount to loaning
the debtor nations several times the amount they owe as each year and
receive back payments from our owm pockets.
* * * *
Liberty is a great thing, but unfortunately, it is a luxury only rich
nations can afford. This is the theory Dr. Schaeht, Hitler's minister of
national economy, expounded recently in Brussels. “A nation,” the
German economist said, "which has to live in a regime of managed cur
rency and mast not only preserve, but create, its raw materials cannot
afford the luxury of individual freedom.”
* * *
Dr. Schacht is now number one traveling salesman of the Reich. He
actually sells whatever Germany produces. He is good at it because his
father used to be a traveling salesman and had intended to make young
Hjalmar Horace Greely follow his profession. Mamma Schacht, the daugh
ter of a German nobleman decided that the son should follow the noble
profession of arms and sent him to a military preparatory school. But
Hjalmar did not like the goose step and studied political economy.
His method of work in the Reichsbank and the department of national
economy is unique. There are many of his collaborators who have worked
with him for the last 15 years who don't even know him by sight. Schacht
believes In minute and written reports. If a department head has any
thing to say, some suggestion to make, he must put it on paper and the
boss answers immediately in the same manner. Thus, he avoids waste of
time and quibbling. It's ail in black and white.
* * * *
All the German war material which has proved in the Spanish civil
war unsatisfactory for a campaign against a highly modernized army is
being dumped now by the German arms salesmen in the Balkans, at a
reduced price. The material, they say, Is not bad, but not efficient enough
against the most modem tanks and
airplanes.
Some of the Balkan states
are jumping at the bargain offered
by Krupp <te Co. and are sending
hogs, wheat and oil In payment
for guns, tanks and bombers.
The fact that the Balkans
are becoming almost exclusively
dependent of the German amuni
tion market has a capital political
TO THE
BALKANS
- ■ -_
■ “*« '•> «PW>
importance. In 1914 the states
whose armies were equipped with the French "75" gun joined the allies
because they could not change their armament overnight. Rumania, which
was equipped with the German "77," suffered defeat, partly because she
did not have time to get her artillery from the allies and had'only a scanty
supply of shells. It's a well-known fact that countries which do not possess
their own arsenals are politically dependent of the industrial countries
which supply them with the necessities of war. And Germany now is
making an effort to become the sole purveyor of instruments of death to
the Balkans.
Headline Folk
and What
They Do
U. S. Sends Pierson to
China to Develop
New Trade.
BY LEMUEL F. PARTOV.
IT WAS on April 8 that Warren Lee
Pierson, president of the Export
Import Bank of the United States,
landed In Shanghai. Right on
time is the Japanese kick-back. They
set up a sharp complaint and chal
lenge against ‘‘China's becoming a
colonial market of Great Britain
and the United
States."
A market, prof
itable if not co
lonial. was what
Uncle Sam had
in mind when he
sent Mr. Pierson
over there. W.
M. Kirkpatrick,
agent of Great
Britain, also se
cret, was a jump
or two ahead of
him. As the drag
on wakes up and
W. L. Pierson.
scrambles to Its
feet, everybody is
trying to sell it something. Europeans
were ahead of us in supplying rails and
other railroad material for China's
new and extensive transportation proj
ects. Road-building machinery, it is
understood here, offers the best sales
opportunity. Chances for big deals in
this and other machinery are said to
have inspired Mr. Pierson’s mission.
The bank cannot finance governmental
purchases, but it can arrange credit
for individual deals.
Mr. Pierson, a youngish, energetic
man, was a Los Angeles lawyer, with a
little sideline of Democratic politics,
who became general counsel for the
bank in 1934 and its pretident last
February*. He is an alumnus of the uni
j versity of California and the Harvard
Law School, schooled in knowledge of
international trade by a specialized law
•practice. He succeeded George N. Peek
as president of the bank when the lat
ter withdrew in an intra-mural New
Deal row. The function of the bank
\ is to lucubrate foreign trade deals with
credit, after assurance of sound se
curity.
A friend of mine who returned from
the Orient last week said China had
vast road-building and construction
projects under way and that it had
undeveloped resources to pay for them.
He was bitter about the sloth and in
difference of the United States in let
| ting Britain, particularly, fudge in
i ahead of her in supplying machines
and materials—not having heard of
Mr. Pierson's secret mission, perhaps.
fCopvright, 1937.)
Board Names Secretary.
! LA PLATA, Md.. April 28 i>P) —
Mrs. William Croft was appointed sec
retary to the Charles County Board of
County Commissioners. She fills tha
vacancy left by the resignation of P.
Wills Posey.
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Iron. sq. ft. __ °/2C
Garage Doors, clear soft $17.50
Garaire Sash, t] AA
up *
Build It yourself, or we’ll recom
mend a competent carpenter to do
the job. Come in or phone.
Insulate Your Own Home With Guaranteed
Balsam Wool Insulation Blanket
It’* fully guaranteed. Moisturcproof. fire
resisting, vermin-proof—Just lay it be
tween the studding. Makes your home
cooler in Summer—warmer in Winter.
tytll 1" thick, covers 125 sq. ft. 17.50
Roll 14" thick, covers 250 sq. ft. JJ.0
Phone Your Orders
Call NORTH 1341
SPECIAL
MILLWORK
We make special Millwork—
Sash, Doors, Cabinets, Mould
ing, etc., on special order In
our own mill. Bring in your
ideas for a FREE ESTIMATE!
J. FRANK
ELLY s
Next to the Ball Park
2121 Georgia Ave.
Phone NOrth 1341 *
BUSINESS HOURS
We«k Days, 7:30 A.M. to S P.M.
Saturdays, 7:30 A.M. to 1 P.M.
LUMBER FOR EVERY BUILDING NEED
For Any Repairing or Remodeling
Soft Pine Shelving, gg
ftfing_8V2C ft.
2x4, 2x0, 2x8 Pine Framinr Cr ff
10 to 10' lenrth*. a*
p«t,r F*nc* 65c up
2x4. 2x8, 2x8 Georria Q1 /' - ft
Heart Pine _» /2C
Best Quality % Q, ft
Oak Flooring _** ***
Boot Quality Soft Pine <3 4ft nn
Window Frames _ ^ F
dW.w,* $2.30 up
An; site order gladly filled and
delivered free of ro«t.
«r
I »cu-?i