OCR Interpretation

Evening star. [volume] (Washington, D.C.) 1854-1972, December 17, 1937, Image 13

Image and text provided by Library of Congress, Washington, DC

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83045462/1937-12-17/ed-1/seq-13/

What is OCR?

Thumbnail for A-13

. Relief Effort
Should Be

Taxpayers Should Be
Told How Money
| Was Spent.
IT SEEMS startling to have It pro
posed, and doubtless for sound
bookkeeping reasons it is wise
to consider the wiping out of
$3,675,000,000 from the “receivable"
assets group of accounts on Uncle
Barn’s balance sheet, but the American
taxpayers w no
are going to pay
that enormous
•urn might wish
to have something
to say on the
Jesse Jones,
head of the Re
construction Fin
ance Corp., and
one of the ablest
men In Govern
ment who has
seen service right
through the
Hoover and
Roosevelt admin
David Lawrence.
istratlons, has announced his inten
tion o#- asking Congress to cancel
these debts.
It fc natural for some such afction
to be proposed because other wise the
sums stand on the books as assets
that really are not going to be re
covered. Much criticism has been
visited on the Treasury for counting
as assets some of these sums which
will never come back.
But when the $2,675,000,000 sum is
analyzed, it is interesting to find that
$1,783,000,000 was spent for direct
reli^, while $500,000,000 was allocated
to the “Federal emergency relief ad
ministrator" in 1933, 1934 and 1935.
Apart from this about $280,000,000
was advanced to States and munici
palities in 1932 and 1933.
Would Seem Wise to Pay.
The important question for tax
payers to consider is whether the re
cipients of this money can pay not all
of it but some of it back. Thus the
States and municipalities will always
have the taxing power and even if it
takes 25 years to pay back these
borrowings, it would seem wise for
those communities to pay back a sub
stantial part if not all of what was
borrowed. To do otherwise is to put
some States and municipalities in a
better position than others which
financed their relief out of their own
iborrowings and are now asking their
taxpayers to meet the obligations
As for the sums spent in relief, an
accounting of what was done with the
$500,000,000 spent by the Federal
Emergency Relief Administration
would soon reveal whether anything
is recoverable. But it does certainly
seem as if the citizens who received
$1,783,000,000 ought to be asked to
give Uncle Sam some sort of an
I. O. U. payable without interest but
some time in the next 10 years or so
when they begin to make money
Some May Wish to Pay.
It is, of course, probable that some
of the citizens will want to pay back
something to the government and will
not want to feel that they accepted a
direct gift especially if later on they
came into funds again. But there are
other citizens who will feci that the
Government owed them a living dur
ing the depression and that it isn’t
necessary for them ever to pay any
thing to Uncle Sam.
Such a spirit would tend to break
down the whole attitude of self-reli
ance which has made nations virile
and productive. There are doubtless
many persons in the very lowest in
come brackets who never will be able
to pay back what they received in the
way of relief, but it would seem in
credible if out of the $1,783,000,000
the Federal Government couldn't get
•ome of It back.
The bill proposed by Mr. Jones
ought to be passed so as to make our
bookkeping show the item no longer
as an asset, but at the same time the
legislation might well provide that the
municipalities and the citizens who
received direct benefits should be re
quired over a period of years! to make
•ome form of restitution.
When Congress considers this debt
cancellation, the American taxpayer
who will have to pay the bill may not,
of course, find the payment on his
part cancelled. It merely means that
the Treasury will no longer carry
$2,875,000,000 as “recoverable assets”
and not that the borrowers or bene
ficiaries should be immune from pay
ment. Banks frequently “write off”
debts on their books or set up re
serves against them, but when pay
ment is made by the borrower the
items are credited to “recoveries.”
Perhaps the Treasury will deal with
the matter in much the same way as
the banks, though doubtless much
money has been spent in administra
tive costs and for experimental proj
ects and payroll which can never be
The least the taxpayers who are
going to foot the bill can demand is
to be told just how and where the
money was spent, how much went for
relief and how much for salaries and
overhead. Our experience of direct
relief is something that ought to be
historically recorded in much detail.
(Copyright, 1037.)
She Suffer* Two Fraotures After
Colliding With Car—Two
Others Are Hurt.
An 80-year-old woman was in a
serious condition in Emergency Hos
pital today after colliding with an
automobile last night near her home,
1.120 Vermont avenue N.W.
The accident occurred as Mrs. Emma
Carter, the victim, crossed from the
west to the east curb on Vermont
avenue at N street. She was struck
by a car driven by James Herbert
Vance, jr., 24, of Bowie, Md. Mrs.
Carter suffered a fracture of the left
hip and a partial fracture of the knee.
Two other persons were treated at
Emergency Hospital last night for in
juries received when the car in which
they were riding sideswiped a tree
on Blagden avenue in Rock Creek
Park. Carlton White, 28, of 2500 K
street N.W. suffered a broken leg and
Miss Elizabeth Johnson, 24, 1113 K
street N.E., was treated for head
The driver, Stephen E. Havasy, 28,
Murine Corps, QuanUco, escaped in
The Capital Parade
1 ! ■»■■■■*" ' " .. ..
Great Public Row Threatens to Break Out in New York
Stock Exchange. -
FOR the first time since the beaver-hatted brokers swapped stock!
under the old Wall Street buttonwood tree, a great public row
threatens to break out In the New York Stock Exchange.
At a recent meeting, the governors of the Association of Stock
Exchange Firms, most powerful of the exchange members’ trade organiza
tions, voted secretly, but unanimously, to work for a salaried, non-member
president of the exchange. The vote was tantamount to a declaration of
open war on the present president of the exchange, Charles R. Gay, and hi!
influential predecessor, Richard Whitney.
Mr. Gay, Mr. Whitney and their big following of specialists, fljor
traders find conservative brokers, who like to think of the exchange as a
private club, find the idea of a salaried non-member exchange president
supremely repugnant. Mr. Gay is not publicly on record, but he summed
up the feelings of his group when
he told a close associate that an
“outside” president would mean the
end of the exchange's self-govern
ment and usher in an era of “paid
bureaucratic” control.
The non-member president
Idea has been given strong behlnd
scenes encouragement by Chair
man William O. Douglas and other
members of the Securities and Ex
change Commission, their idea
being that a non-member would administer the exchange rules more
stringently. The vote of the governors of the Association of Stock Firms
has the effect of putting behind Mr. Douglas the great wire houses, which
give the stock exchange its most direct contact with the public.
* * * *
The vote took place at a meeting in the association offices at
42 Broadway. Eleven of the fifteen governors were present. The sub
ject of an outsider president for the exchange was put before the
■meeting. Being wary' of the heretical proposal, the men around the
long table agreed to vote without preliminary discussion. The question
was put, and infinitely to every one’s surprise, the hands of all 11
governors were raised in support of the heresy. /
• * * * *
It was decided to defer official announcement of the vote until after
the exchange's recently appointed Committee on Reorganization should
make a report. Thus the publication of the reorganization report is likely
to be the signal for the outbreak of hostilities.
* * * *
It's very hard to say who will win, although with S. E. C. backing, the
big wire houses of the association have a fair chance to best the old guard
and Mr. Gay. If the old guard is defeated, the stock exchange help
wanted advertisement for the presidential job will be about as follows:
"Wanted, a man skilled in administration, without embarrassing po
litical ties, w'ho is willing to tackle a tough job on a three-year contract, at
a salary of $50,000 a year.” Gen. Frank T Hines of the Veterans’ Admin
istration, Gen. James G. Harbord of the Radio Corp. of America and Robert
E. Wood of Sears, floebuck & Co. have already been mentioned for the
place by the backers of the outsider-president scheme.
• * * *
A recent odd development in the administrative history of the
the New Deal is the S. E. C.’s sudden decision to pay old dealers *25 a
day for “practical business” advice.
r * * * *
Not long ago the S. E. C. completed its new set of rules governing the
market-pegging and stabilizing carried on by underwriting houses when
they are offering a new' stock issue. Chairman Douglas, slightly sensitive
after all the recent charges that he was ‘‘destroying" the securities ex
changes by “visionary” regulation, decided that before issuing the rules it
would be wise to consult the most interested parties. ’
Therefore, he applied to Monroe Gutman of Lehman Bros, and Sidney
Weinberg of Goldman Sachs & Co.
Lehman Bros, and Goldman Sachs
are two of the largest underwriting
firms in the country, so tylr. Douglas
was going straight to the fountain
head. He asked Mr. Gutman and
Mr. Weinberg to come down to
Washington to criticize the new
regulations for the 6. E. C.. and
he promised them a $25 per diem.
He also called in Prof. George E.
Bates of the Harvard Business
School for the same purpose and on the same terms.
* * * *
All three men consented. Each of the three was alloued every
opportunity to study the prospective regulations, and each criticised
them'for three hours before the S. E. C. commissioners. Many technical
changes which they suggested were accepted by the S. E. C.
* * * *
The funniest part of the whole business was that Messrs. Gutman,
Weinberg and Bates played hide and seek with one another through the
S. E. C. Building's bleak corridors. Mr. Douglas wanted each of the three
to give his independent opinion. With this in mind, he let each man think
that no other expert had been summoned to help. Unfortunately, the three
arrived simultaneously, so each of them had to be carefully shepherded
out of the others’ way by S. E. C. officials.
While the S. E. C. commissioners don’t expect to repeat their super
vised hide-and-seek game, they were so well satisfied with the results of
their request for Old Deal advice that they plan to follow the same pro
cedure with any other new rules they may promulgate in the future.
(Copyright, 1837, by the North American Newspaper Alliance, Inc.)
J'HK 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.
London Times’ War Views
~ /
Let Aggressor Run Wild Unless It Hurts Britain,
Appears to Be Attitude, Writer Says.
IT IS time, I think, that some one
Mid a few harah words on behalf
of Anglo-American relations.
Many of us believe that with the
state of the world what It Is today, it
is highly desirable that Great Britain
and the united States should under
stand MCh Other. We are both In.
volved as inno
cent bystanders
and common vic
tims In the Chi
ne s e - J apanese
conflict; •we are
both anxious for
peace, and for
the restoration of
decent interna
tional relation
ships. And there
Is no basis for
conflict between
the twro nations,
which together
represent the n.nikr ntmvm
greatest amount
of population and power In the West
ern World.
If, however, we are to regard the
Times of London as the mouthpiece
of British opinion and policy—and
that is how the London Times would
like us to regard It—then there is %
wide difference between the Ameri
can attitude toward the international
scene and the British attitude. The
London Times is now constantly
stressing the desirability of joint
Anglo-American representations to
Japan. But the United States finds
it difficult to forget that in 1031, when
our Secretary of State, Mr. Stlmson,
made overtures to Britain for a Joint
demarche to Japan at the time of the
invasion of Manchuria, he was very'
coldly snubbed—and with the whole
hearted support of the London Times.
Once Made Spirited Defense.
Nor has the United States forgotten
that Sir John Simon made a spirited
defense of Japan before the League
of Nations, leading the Japanese dele
gate, Yosuke Matsuoka—now the all
powerful president of the South
Manchurian Railway—to say that
"Sir John Simon has said in 15 min
utes what I have been trying to say
for three months.”
In those days the London Times,
Sir John Simon, and the same little
group, who are now of the Times’
inner coterie, were pro-Japanese,
favored the restoration of the Anglo
Japanese alliance, and did not care
if Japan invaded Manchuria, for two
reasons: First, the Japanese, they
contended, would restore order in
Manchuria, and open wider markets
for British goods, with possible pref
erential treatment for Britain, and,
second, in any event, the great Brit
ish interests were centered around
Shanghai and in the rich Yangtse
The British demonstrated at that
time that they were interested pri
marily in the protection of specifically
British interests and not in the main
tenance of international law and the
sanctity of treaties. Notice was served
by the greatest naval power in tlje
world that aggressors were free to act
as they pleased as long as they did
not interfere with British Interests.
The American attitude was quite
different. From the viewpoint of trade
and investments In China we were,
and are, far less concerned than the
British. After the United Kingdom
and Canada. Japan Is the best custo
mer of the United States. Our invest
ments In China are small. And while
potentially the Chinese market often
a considerable outlet for American
goods, within recent years the Unite*
States has imported from China fai
more than it has sold her. And, lr
standing for the open door in China
we were helping to maintain equalltj
of opportunity for everybody.
Therefore, in being willing to mak<
strong representations to Japan lr
1931 we ran the risk of offending on«
of our best customers in behalf of i
principle. And that principle wa;
clearly stated by Secretary Stimson
It was, and is, that a peaceful an*
orderly world can exist only wher
treaties are respected, that peace lr
the modern world is indivisible, anc
that wars, anywhere, may spread an*
eventually threaten the peace ant
prosperity of the United States. Ho*
sound that principle is—and it hai
been restated by the present State De
partment—is now being demonstrate*
by the war in Spain and in China.
Feeling tor Isolation.
The strongest feeling in the United
States at present is for isolation. But
it is safe to say that If this feeling li
modified it will only be upon the fore
going principle. The people of the
United States might be willing to col
laborate with the rest of the world
for the purpose of maintaining inter
national law. They will never be will
ing to collaborate, without principle
for the sake of maintaining the in
terests of the British Empire.
And that brings us back to the Lon
don Times and the clique that it rep
resents today. The Times has seen th«
Chinese-Japanese conflict spread lr
the Yangtze Valley until it has become
a major disaster for Britain. Not onlj
in terms of trade and Investments de
stroyed, but in terms of the indis
pensable qualities of empire—reputa
tion and prestige. So now the Londor
Times is reaching out after American
But in its attitude toward the Eu
ropean situation the Times is exactlj
where it was in 1931 in the Man
churian affair.
Opportunist Policy.
That is to say, it is advocating a
purely opportunistic policy and is
showing itself cynically prepared te
close its eyes to any aggrandizements
that do not immediately affect the em
pire. It supported the visit of Lord
Halifax to Hitler, and shows itsell
willing to give away any colonies tc
Germany except the British colonies
and to close an eye to German raidi
and incursions into Austria, Szecho
Slovakia, Poland or Lithuania. In fact
it goes further, and actually says tha1
the method of the coup de main hai
not been practiced by Germany in th<
last few years wholly without reason.
So we find the Times in 1937 making
exactly the same apology for the u«
What to Give HIM??
The Most Useful Gift
of All Gifts—
*1950 *
$22-5° $29-50 1
Take this tip—come to a man's storo for a ||
man's gift. FIELDS is his storo—FIELDS ®
CLOTHES art his dothas. The usually hard ||
job of giving HIM what he will appreciate is
made easy when you step in here. Any selec*
tion you make can be exchanged if the size K|
is not right—we guarantee “his" satisfaction. K
Famous SEE
722 14th St. N.W.
This Changing World
Japan Apologizes, but Roosevelt Demands Emperor’s
Pledge Panay Incident Will Not Be Repeated.
Tin Japanese government la all ready to give us any amount of formal
satisfaction for the sinking of the Panay and the killing and Injur
ing of American cltlsens. Apologies, guards of honor for the funeral
of the dead, removal of high ranking officers from positions of
responsibilities, etc., are offered. By governmental order the Japanese people
have gone even so far as to develop a passionate love for the American peo
ple-since last Monday. Reports from Toklo indicate that whenever an indi
vidual With the American colors In his buttonhole Is aeen on the streets
he la subjected to a good deal of
cheering and nose rubbing (the lat
ter being the outward sign of af
fection expressed by the Japanese
and replacing the unhygienic kiss
ing of the westerners). School
children and sailors are collecting
funds to be offered to the American
Government for the building of
another Panay. All these things
are highly satisfactory and flatter
ing to our national pride. This dis
play of emotionalism is bound to soften the hearts of the angered American
peopla who were indignant at the news of the sinking of an American man
of-war while the two governments continued to remain on friendly relations
(The word friendly is used here in the diplomatic sense.)
A * * *
The administration continues, however, to remain hard-boiled. These
outward signs of regret and friendliness mean mighty little. The State De
partment has learned that these emotional outbursts, like all emotions, are
not lasting. And It Is feared that If the United States Goveramen were sat
isfied with them, It is quite possible that another trend of emotionalism
should grip Japan—some anti-American emotionalism which might lead to
another series of Incidents.
It Is for this reason that the State Department insists on positive guar
antees that such incidents shall not occur In the future.
The Japanese government believes that formal expressions of
regret and repentence must be sufficient. The American Government
u<ants positive assurances that its citizens and their properties in
the Far East will no longer be submitted to the whims of army
commanders; that our citizens in the Far East voill cease to be the
doormats of the Japanese military.
Whether the Emperer of Japan will undertake to give such assur
ance remains to be seen.
President Roosevelt asked for the Emperor's own pledge because
governments In Japan come and go. The Emperor stays. Governments
in Japan are useful tools in the hands of the military. The Emperor is
supreme. The minister of war and the minister of the navy can act in
dependently of the government. The two senior officers can never be
influenced or disciplined by the prime minister or any other government
agency. They are responsible directly to the Emperor and obey him alone.
In the past, when we had trouble with Japan, we frequently dealt
with honest and well-meaning civilians In the Japanese cabinet. They
gave formal undertakings which our State Department trusted. And when
our Ambassador at Tokio remonstrated with them, because the pledges were
not kept, they whispered: “We can’t do anything against the army ’’ For
the sake erf our Interest* m the Far East and for the sake of our good
relations with the Japanese it Is considered necessary that this shall not
be repeated.
♦ * * *
Thirty years ago today, the United States Navy started the famous
flag-showing cruise around the world. President Theodore Roosevelt
ordered that cruise. In those days, like now, our relations with Japan were
The news that the fleet would undertake such a long trip leaked out
"no j/uvxiancu in newspapers.
The Secretary of the Navy. Victor
H. Metcalf, issued a prompt denial
to “such unwarranted stories."
About 10 days later the fleet sailed
from Hampton Hoads under the
command of Fighting Bob Evans.
Upon arrival in San Francisco
Admiral Evans had to be relieved
of his command because of fail
ing health and the fleet proceeded
under the leadership of Admiral
Charles S. Perry.
mere were misgiving* in the country then, as now, about the risks of
a war with Japan because the fleet had orders to "visit'’ Japanese ports.
Nothing happened, the Japanese ceased grumbling and the fleet returned
unscathed a year later.
of force In international affairs that
it made in 1931. It is prepared to
come to terms with aggression—for a
(Copyrlsht, 1937.)
Dog Care* for Tiger*.
A big St. Bernard has been chosen
to care for three tiger cubs in the
Zoo in Chessington, England.
Headline Folk
and What
They Do
Gerry Highly Skilled
Craftsman in Art
of Politics.
Rhode Island Democrat, co
author of the Republican-Dem
ocratic coalition plan with Sen
ator Arthur H. Vanderberg, la a highly
skilled craftsman In practical, realistic
politics. While the tentative program
Is a statement of broad principles, 8en
aior uerry nas
proved his ability
in specific meth
od and action.
There Is doubt
less a working
blueprint In the
Of the Newport
and New York
aristocracy, he was
conceded small
chance of beat
ing the formida
ble Henry F. Lip
pitt when he ran
for the Senate In
1916. There are
Senator Gorrr.
many foreign-bom voters in Rhode
Island and it seemed unlikely that
the polo player and yachtsman could
reach them.
He summoned from New York the
shrewd old Henry De Witt Hamilton
of Tammany Hall and was tutored by
him in old and dependable techniques
in foreign language campaigning. His
campaign was translated into more
foreign languages than any before or
since. In simple leaflets he told his
story. He won handsomely, the young
est Rhode Islander to get to the Sen
ate. He was then 37. He was re
elected in 1922, beaten in 1928 hy
Senator Hebert, and in 1930 by Sen
ator Metcalfe. Again, a candidate of
ancient Colonial lineage, supported by
voters of alien origin, in won in 1934,
defeating the incumbent Felix Hebert
by 35,000 votes.
He supported Alfred E. Smith but
backed the New Deal in 1934. When
the New Deal met disastrous defeat
in the Rhode Island election of 1935
he remained “regular,” questioning
much of the Washington program but
maintaining party loyalty. HU rec
ord of party orthodoxy has increased
hU power and stature in the bl
partUan renovating plan, say Capital
(Copyright, 1837.)
Racing Prince Halted.
Prince Birabongse of Siam, 23-year
old sculptor and speed king, U return
ing to his native land for the first time
since hU arrival in England 10 years
ago, and plans to continue there the
speeding from which he U excluded in
the United Kingdom. The prince, who,
under the name of “B. Bira" has been
a big attraction at automobile raees,
was fined $100 in Coleshill for speed
ing and endangering the public. HU
driving license was suspended for a
year and this automatically debarred
I him from racing for that period.
CONNIE does her buying by telephone,
wherever possible.
She doesn’t believe in wasting time and energy
walking, walking, walking to the stores and
shops. And she has learned what a boon shop*
ping by telephone is to busy people—learned,
too, that merchants like it and encourage it.
Clever is the word for anyone—who shops vSKwfes?
*** ** uras -Jr
by telephone!
723 13th Street, N. W. MEtropolitan 9900

xml | txt