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Evening star. [volume] (Washington, D.C.) 1854-1972, February 14, 1938, Image 11

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- Policy Conflict
Is Retarding
Trade
Domestic Program
Stymies Plan for
Reciprocity.
By DAVID LAWRENCE.
David Lawrence.
CONDITIONS X world trade
have such an important bear
ing on whether the United
States is to get added im
petus for economic recovery through
increased exchanges of goods between
♦ourselves and foreign countries that
an examination of the trend at this
particular time becomes pertinent.
Pew subjects are surrounded with
more deep-seated
prejudices and]
more controversy:
than the present]
method of in- j
creasing world]
trade through
jecijtroclty agree
ments, but at the 1
same time it may I
be said that the |
two conflicting §
theories as to |
what should be f
our national pol- |
Icy often are bur- |
led in a mass of *
figures from
wmcn amering conclusions are drawn.
The contention of the high tariff
or isolationist school at present is
that because the physical volume of
world trade by the middle of 1937
^had for 75 countries gotten back to
"the high peace-time levels of 1929
the state of our own foreign trade
Is so satisfactory that tariffs should
not be touched. Attention is drawn
by them to the fact that gold values
should not be a yardstick of measure
ment, but the actual quantities of
goods passing each year to and from
our ports should be considered para
mount.
Using quantity as a basis for com
putation, it is agreed that our im
ports are slightly higher than 1929
already and our exports are about
24 per cent below the level of that
,same year.
Hull Has Other Views.
The answer of the co-opefationist
school of thought, headed by Secre
tary Cordell Hull, is that even though
one disregards the gold value of our
trade, which in 1937 was 21 per cent
below the 1929 level, the conditions
of world trade are far from satis
factory on a quantity basis, too.
The Secretary’s main argument is
that recovery in world trade has not
kept pace with the increase in world
production. In 1936, for example,
. world industrial production, excluding
Russia, was only 3.7 per cent below
the 1929 level, yet the quantity of
world trade In manufactures was still
24.5 below the level of 1929.
While world production in 1936
was at the same level as 1929, the
quantity of world trade in raw mate
rials was 4.5 per cent below 1929.
Foodstuffs showed an increase of 4.8
in world production, but the quantity
of world trade in foodstuffs remained
14.5 per cent below the 1929 level.
The same trend was maintained in
A1937, for which complete records are
not yet available, but It is shown
from the incomplete figures that the
greatest recovery in the quantity of
world trade has occurred in raw ma
terials. Manufactured goods in world
trade, on the other hand, showed the
greatest lag behind production. Food
stuffs, too, are not advancing in trade
quantities to keep pace with world
production.
Setback in world Prices.
Countries mainly dependent on the
‘export of raw materials have pros
pered. Recently, however, there has
been a setback in world prices which
it is hoped may prove only temporary,
and if it does, these raw material pro
ducing countries, in the view of the
reciprocity advocates, may be expected
to increase their purchases from in
dustrial countries so that our own
manufacturing industries should bene
fit.
Comparisons with 1929 as a goal of
recovery, however, are considered fal
lacious by the sponsors of the Hull
policy, the principal contention now
being that since population and the
rate of output per worker have in
creased since 1929, it is necessary that
the total production and trade be
increased correspondingly in order to
avoid larger and larger unemployment.
Thus, for. instance, it is set forth
by the United States Bureau of Labor
Statistics that if there had been em
ployed in the United States in 1936
the same proportion of the population
as in 1929 (using the 1936 rate of
output per worker), we would have had
in 1936 an increase of 20 per cent in
the combined production of all manu
facturing industries.
The enlargement of export markets
for the United States is, therefore,
one means of stimulating domestic
production and employment in the
important export branches of industry
and agriculture. Since the productive
capacity of those parts of agriculture
and Industry which are on an export
basis are not at present fully utilized,
«an increase of exports is held by Sec
retary Hull to mean an Increase in
domestic employment and incomes.
Policy of Lower Tariffs.
To make possible such an increase
of exports it is the Government’s
policy here to increase the purchasing
power of foreigners by reducing ex
cessive tariff duties that now limit
' or shut out their buying. Increased
efficiency and lower prices within the
United States are, of course, expected
to increase the purchasing power of
our own people. These tariffs are
•selected mostly from products that
are only remotely competitive with
domestic products. , Hence, it is in
sisted that any reduction of employ
ment or incomes which may result in
certain businesses in America from
the reduction of tariff duties is in
significant compared with the benefits
resulting to Nation-wide employment
because of increased production at
home for export.
* Naturally those businesses “inci
dentally” affected when trade as a
whole is considered feel the pinch
acutely and are loudest in their pro
tests. So they inevitably stir up the
apprehensions of others not affected
that their turn will come next. Mean
while readjustments and loss of In
come and employment are occurring
within our own borders because
America’s great productive powers
are not fully utilized for export These
same companies which are “inci
dentally” affected would make up at
vhome losses suffered by tariff reduc
tions were it not for the fact that the
exchange of goods within the United
States is impaired due to artificial
barriers such as excessive prices, undue
labor costs and arbitrarily imposed]
taxes.
(Copyrifht, 1988.) I
The Capital Parade
T. V. A. Internal Squabble Is Reported Extremely
Irritating to Roosevelt.
By JOSEPH ALSOP AND ROBERT KINTNER.
*iJkR AmY RoT-TiA.
Ajo- A/OCtS- .4
a»o s' '7j
+ MS' sir
C«?0<.<*/£>
'/Wr
WHILE he seems to be unable to do anything about it, the President
definitely is sick and tired of the unending conservative-radical
squabble in the Tennessee Valley Authority. When he entrusted
J. D. Ross, leading public ownership advocate, with the manage
ment of Oregon's great Bonneville power project, his only injunction to
him was:
“Don’t get me into a mess like the mess in the T. V. A. It s given me a
neaaacne most aays ana a stom
ach-ache some nights.”
Under ordinary circumstances,
this piece of presidential outspo
kenness might be taken as a clear
indication that the White House
was preparing to fish or cut bait
in the T. V. A. matter. But the
truth is; informed sources believe
that, although Dr. Arthur E. Mor
gan, T. V. A. conservative chair-'
man, has prepared a minority
afinuai report compounded oi dynamite ana ini, tne same ncseiy ana
puzzling status quo will be continued.
A settlement is certainly long overdue. Dr. Morgan and his
radical colleagues, David E. Lilienthal and Harcourt A. Morgan,
have been at one another’s throats for a couple of years.
Dr. Morgan wants a reasonable peace with tne private utilities; his
opponents want war to the death, and T. V. A. policy is constantly confused
by their tweedledee-tweedledum conflicts. Last year, when Dr. Morgan pre
pared a public statement as full of dynamite as his new minority report,
the President warded off a settlement by persuading him to suppress it. It's
rather expected that Dr. Morgan’s present effort may also be suppressed.
Of course, the T. V. A. situation is immensely important, since the whole
future of administration utilities policy is intimately bound up with it. At
the same time, it's rather ludicrous.
When Dr. Morgan hurries tearfully to the White House, the President
soothes him with intimations that he thinks the Morgan notions are just
fine. A reasonable peace accounting on the Morgan plan and the establish
ment of a grid system with the private utilities in the Tennessee Valley, all
appear to be possible next steps. And then the left-wing White House advis
ers slip in the back door, remind the President of the sins of the utilities
men, and prepare him to receive Mr. Lilienthal, when he turns up in tears,
quite as encouragingly as he has received Di Morgan.
* * * *
A thing that infuriates New Dealers and congressional left wingers as
much as anything else is the invasion of Washington by Wall Street. At
any given moment the most expensive hotels in town contain at least 50
important figures from the New York brokerage and banking houses. What
90 per cent of them arc here for is to find out what’s going to happen.
Sometimes the Wall Streeters are successful, for men of money can
offer pleasingly tempting inducements. A recent case was the leak in
Senator Burton K. Wheeler’s railroad investigation committee, by which
the Montana Democrat’s plans for revising the railroad statutes, to put
the roads through the wringer, found their way to the stock exchange floor.
The trickle is supposed to have been through a lawyer, formerly connected
with the Interstate Commerce Commission, who had access to the
documents.
Senator Wheeler is furious, and his friends among the left-wing New
Dealers, who join him in desiring an uncompromising railroad policy, are
holding indignation meetings. The whole business is rather silly, since
the importance of Government to business is now such that the unfortunate
business men can hardly be blamed for seeking information about Govern
ment, whether by hook or even by crook.
* * * *
The irrepressible David Dubinsky of the International Ladies' Garment
Workers isn’t conftnin his headache-giving to John L. Lewis and his col
leagues in the C. I. O. of late, the mere mention of the name of Dubinsky
has been enough to fetch a howl of pain out of any of the influential White
House left wingers who are backing Robert H. Jackson fcr Governor of
New York.
The fact is that Mr. Dubin
sky, having promised the left
wingers that the powerful Ameri
can Labor party would support
Mr. Jackson, is new growing chil
lier by the day. Since the Labor
party now appears to hold the
balance of power in New York, its
obvious play is either to force a
favorite candidate on the Demo
crats or make a deal with the Re
publicans to run an independent. The object of the Republican deal
would be concessions in congressional races in return for cutting Democratic
strength in the State-wide gubernatorial contest.
Mr. Dubinsky is now showing the most obvious signs of nervous
ness. He fears that he <* out on a limb with Mr. Jackson, since the
chances of forcing the able and personable Assistant Attorney Gen
eral on the New York Democratic leaders look rather slim. At the
same time unqualified indorsement of Mr. Jackson destroys Mr.
Dubinsky’s bargaining power with the Republicans. Thus Mr. Du
binsky is trying to crawl back closer to the trunk of the tree, and
Mr. Jackson’s backers are exceedingly unhappy about the Labor
party support.
* * * *
Shortly after the White House had intimated the Chicago machine
might ditch Senator William H. Dieterich of Illinois, without undue inter
ference from above, the unhappy Mr. Dieterich ran into Senator Wheeler
in the Senate corridors. The two men are enemies tram the time of the
court fight, when Mr. Dieterich bid for White House approval by a violent,
if ungainly, support of the court bill.
“I see where the White House is going to indorse you,” said Senator
Wheeler, with a sharp sarcasm. Senator Dieterich turned purple.
“You mind your own business, Burt,” he roared. “You'll have enough
trouble in Montana yourself.”
(Copyright, 1938, by the North American Newspaper Alliance. Inc.)
rfHE 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 he contradictory among
themselves ana directly opposed to The Star's.
Rope for the Hanging
Dictatorships Grow Progressively Weaker as Dictators
Become Stronger, Is Observation.
Dorothy Thompson.
By DOROTHY THOMPSON.
IT WOULD appear that if the coun
tries which, still have free econ
omies and democratic govern
ment hold on, maintain their de
fenses, and above all refuse to be se
duced by the apparent advantages of
the dictatorial and militarized col
lectivisms, we may live to see the
jailer same uuo
a condition where
few will consider
them dangerous,
because they will
be too weak.
The dictator
ships grow pro
gressively weaker
as their dictators
become progres
sively stronger. If
the reports from
Germany are
credible, it would
appear that
Messrs. Hitler,
Goering, Goeb
Deis, rtusenDerg tuiu niinmier, me
high functionaries of the Nazi regime,
are succeeding in doing what not even
the treaty of Versailles could do^
gradually demoralizing the German
Army.
With German armament strictly
limited by treaty, with ^Germany filled
with inter-allied military missions to
spy out whether the treaty was being
kept, under the handicap of a war
disastrously lost, Gen. von Seeckt,
under the German Republic, never
theless built up an army of 100,000
men, which, though deficient in heavy
artillery and other accoutrements for
modern warfare, was second to none
in the world in discipline and morale.
Its inner solidarity, discipline and
devotion were unquestioned.
Internal Solidarity Doubted.
The Hitler regime has enormously
enlarged it, and to increase its arma
ments lias been prepared to demand
every sacrifice from the German peo
ple. It has been built into a machine
which the whole world has been afraid
of, and now suddenly the world is not
quite so afraid, because we begin to
doubt whether it has the first essential
of a good army—internal solidarity.
The German Army is riddled with
espionage among its own members.
Tlie Storm Troopers and S. S. men
from the Hitler bodyguard who are
taken into the armed forces have
been members of a political army
that fifiw warfare not in the trenches
but in street fighting against work
men.
rney nave seen rapid advance lor
themselves measured by how loudly
they cried "Heil, Hitler!” They
wanted to push thei^way up in the
regular army in the same way, but
the Reichswehr has other standards
for promotion.
One1 way to get on in Germany,
as in all dictatorships, is to denounce
your neighbors, to prove that your
colleagues are not as true to the ruling
political principles as they should be.
So disgruntled young men could tittle
tattle to the political police about the
disloyalty of their officers. The offi
cers themselves have come out in the
open time and again with their criti
cisms of the Hitler regime. But the
Nazi politicians are Jealoiis of them
and afraid of their power, and so
the undermining goes on from below.
It Happened In Russia.
The same thing has happened In
Russia. We have seen Russia build
up what was apparently one of the
most magnificent armies in the world.
But all of a sudden Mr. Stalin has to
choose between having his own throat
cut or killing a lot of officers. And at
that moment the world eeases to take
the Russian Army quite so seriously—
and Stalin prays to whatever god he
has that the Inefficient democracies
will some day save Russia.
The very idea of the leadership
principle which is supposed to be in
corporated in the Hitler regime is
obviously flouted by the way in which
the regime works out. The charac
teristics of leadership are courage, in
dependence, originality, creative abil
ity and Intelligence, and, given a free
society, these qualities come to the
top and have an 'opportunity to assert
themselves. But precisely the oppo
site of these qualities are rewarded
under the dictatorships. What gets
you into office in the dictatorships
and keeps you there is intrigue, syc
ophancy, political conformity, obse
quiousness to those above you and the
willingness to scramble up on the
faces of those below you.
But the sum total of these qualities
is not national strength. Germany
now has as commander in chief of
the army a neurotic Austrian ex-lance
corporal and house painter. Its en-<
tire economic life is regimented and
controlled under that master econo
mist, Gen. Goering, an ex-aviator. Its
religious philosophy is dictated by a"
White Russian fanatic and pseudo
Nietzchean, Alfred Rosenberg. Its cul
ture is controlled by a fourth-rate
coffee-house "intellectual,” Dr. Goeb
bels. And its foreign affairs are in
the hands of a frivolous Nazi careerist
and former champagne salesman, Mr.
Ribbentrop, who, during his stay at
the German Embassy in London, dis
played almost a genius for awakening
distaste for himself and the regime he
represented.
And looming above them all and
feared by them all is the head of the
secret political police, a pathological
sadist, Mr. Himmler, the very sight
of whom is likely to make an old-line
German officer retch.
Aad this sextet is supposed to repre
sent the leadership of a powerful
renascent nation!
>avod by Daisy Chains.
This is what personal government
shakes down to in the end: Intrigue,
internecine hatred, personal jealousies,
overwhelming fear that the loss of a
single personal advantage may mean
death and oblivion, and eventually the
total failure of the single thing that
personal government is supposed to
promote: Efficiency. The able and the
brave perish. Fourth-raters with suf
ficient ruthlessness come to the top
and keep themselves there by more
ruthlessness.
In the middle of the army crisis the
German people are treated to a speech
by Dr. Goebbels saying that there is
a conspiracy of German-Jewish milli
ners to ruin the artificial flower in
dustry by creating small hats with no
room on them for flowers! Presum
ably Germany is to be saved by daisy
chains.
If I try to point out with vehemence
what seems to me to be the lesson of
the developments in the dictatorships,
it is because the democratic world is
so hypnotized by them. Our New
Dealers also think that the farther you
extend the power of the state under
personal leadership, the stronger the
Nation becomes. One can go back
through 2,000 years of history to prove
that it is a complete illusion—or one
can come to Washington and mark
the deterioration of personnel in the
kitchen cabinets of the last five years.
Personal government and the ag
grandizement of }he state over so
ciety is the death of the creative spirit,
the death of courage, inventiveness,
elasticity and intelligence.
And in the end you do not even have
This Changing World
Short-Cut Methods of Democracies Blamed for World
Mess—Carol’s Dictatorship Seen Short-Lived.
t
By CONSTANTINE BROWN.
ONE of the reasons why the world is In a mess now is that statesmen
representing the democratic nations took the short and easy-in
thelr-mind cut whenever they were faced with some serious trouble.
Instead of attacking the problems seriously, they said: "Let’s
have another conference. Diplomats will let out a lot of wind, people will
Imagine that something is being done for their happiness and everything will
be all right.”
Although every limitation of arms or disarmament effort has been a
tragic failure, our legislators believe they can find the solution of the new
arms and naval race in "another conference."
They forget that even the successful (?) London Naval Con
ference of 1910 forced thit Government to adopt a naval program
more cottly than if no naval conference had taken place.
The late Austin Chamberlain told this writer in 1928, when the idea
of a naval conference began to be agitated: “It seems to me superfluous
to limit navies theoretically. It would be better to allow each nation to
build what it wants. The costliness of naval construction is so great that
nations will not build more than they actually need. But when you estab
lish ratios the jingoistic element is bound to play an Important role and
governments will be compelled to spend more money than they actually
desire.”
Subsequent events proved that the former British foreign secretary
was right.
The idea of summoning another naval limitation conference, .which
is gaining popularity in the Senate and House, is nothing but laying the
baby on the conference’s doorstep. It seems improbable that at a time
when certain political conditions which are far from being remediated yet
are the cause of this armament race another disarmament conference
could help in any way. It might, however, precipitate a war.
* * * *
King Carol of Rumania has had his wish—he has become the de facto
dictator of a country with some 19,000,000 inhabitants.
It is highly doubtful that he will be a successful dictator, for he does
not have the stuff in him.
Mussolini, Hitler, Stalin, Mustapha Kemal and the late Field
Marshal Pilsudsky are men who come from the ranks. They have
horny hands, not the fine, white, long-fingered hands Carol has.
They come from the people and appeal to the masses.
Stalin is a former factory hand; Mussolini, the son of a peasant, has
been a newspaper man and an active Socialist; Hitler is a former house
painter; Kemal. the son of poor Salonica people, has worked his way up
in the Turkish Army and had to lead a bitter fight until he reached the
top. It seems that in order to make a successful dictator you must come
from the bottom and not be bom like Carol with a silver spoon in your
mouth. Prlmo di Rivera had a short-lived dictatorship in Spain because
he never knew what the masses wanted and he did not appeal to them.
* * * *
The old Rumanian constitution, the work of liberal men who took
advantage of the liberal teachings of the French democracy of the ’80s,
was a pretty-good chart. The new constitution will be framed up by the
court camarilla and will be drafted exclusively to please Carol.
The Rumanian dictator, according to reports from his intimate
friends, is interested in the welfare of the masses in the same man
ner the farmer is interested in the health and the well-being of his
mules. It is expected that the new constitution will take good care
of the monarch end his friends.
Despite the assuranoes that the Jews would receive fairer treatment,
grave doubts are expressed that they will be better off under the new regime
than under Goga. It may be less drastic, but their rights will be curtailed
all the same.
For the time being Rumania is in a bad financial condition and the
feelings of the Jewish bankers in Paris and in London must be softened.
That Rumania will eventually go formally in the Nazi-Fascist camp
seems also to be a foregone conclusion among diplomatic observers. It may
take a little longer than if Goga had remained in office. Carol wants to
play with the much-pressed Western democracies, but his country has gone
too far in its flirtation with Berlin and Rome—the German and Italian
industrial organizations have their claws too far in the Rumanian govern
ment to enable Carol to reverse his policies.
personal leadership. You have a lead- !
er held up by his own Frankenstein,
and a public weary of a repetitious
theater which has exhausted its pro
grams,
(Copyright, 1938, New York Tribune, Inc.)
Dancing Bears Ruled Out.
Dancing bears of Rumania are to
“sit out” the rest of their dances. A
government decree just issued in
Bucharest forbids the bruins being
exhibited. The order is the result of
complaints that gypsies were cruel
to the beasts when training them.
Poison Penman.
ST. LOUIS UP).—Salesmen and
beauticians received plain, unsigned
cards reading, "It will happen Febru
ary 26.” At one shop, an awning
caught on Are. The alarmed owner
turned his card over to police. So did
a salesman involved in a lawsuit. A
worried Oife called her husband’s boss.
So H. L. Gerding had to explain
that the cards were only advertising
a fashion show.
Australia reports that its unemploy
ment is at the lowest level in II years.
The Mode’s Annual
One Day Sale
Requires Quick Action
Tuesday, February 15 (only) 9 A.M. to 6 P.M.
\
350 Richard Prince Suits
194 Richard Prince Top Coats
141 Richard Prince O’Coats
Formerly $35 to $45
Every Garment From
This Season's Stock
A $5 Deposit Will Reserve
Your Selection Until March 15
Charge Accounts
You may have 30, 60 or 90 days to pay your
account, depending on the amount of time that
you consider essential. THERE ARE NO SPECIAL
PAYMENT OATES. You hove an OPEN
ACCOUNT PAYABLE AT YOUR CONVEN
IENCE os long os it is liquidated within the
agreed period.
*
Headline Folk
and What
They Do
Vinson, Long Advocate
of Big Navy, Now Is
Having Field Day.
By LEMUEL F. PARTON.
Mr. Vinion.
Representative carl vtn
SON, chairman of the House
Naval Affairs Committee never
has adn^tted that the Navy
ought to be mara to call its shots in
advance, like a pool player. During
his 24 years in Congress he has been
plugging for a big
Navy, and the ex
planation that it
is for national
defense, which he
embodies in his
$8,000,000,000 bill,
he regards as
adequate and suf
ficient.
In 1932 Mr.
V i n s c n wanted
$616,000,000 for
the Navy, to be
spent in a 10
year plan. The
big Navy mood
of the a dm inis
tration makes this his field day. From
the day of his graduation from the
Georgia Military College he has been
insisting that the salvai. n of America
lay in bigger and better battleships.
Barring an occasional boost for cot
ton, /r for Franklin D. Roosevelt, this
has filled his career. He was a Mil
lidgeville farm boy, edging into politics
as city solicitor and county judge. He
is a bachelor, little given to social
diversions, earnest and industrious.
His one moment of frivolity put into
the Congressional Record a poem, as
long as a naval building program,
about Calvin Coolidge’s electric horse.
Here is a sample verse:
"Electric currents fill Its veins,
Instead of thoroughbred blood,
So it never gives the rider pains,
Or throws him in the mud."
Tins is also a field day for Louise
Weiss, famous French feminist who led
the successful battle to eliminate the
word "obey” from the marriage cere
mony. The Susan B. Anthony of
France, she heads an equal rights’
drive comparable to that of the Na
tional Women's Party In this country.
She is Mine. Jose Imbert, an alumna
of the Sorbonne and Oxford, for many
years owner and editor of l'Europe
Nouvelle. foe of fanatical nationalism
and protagonist of peace and concili
ation.
(Copyright, 1938.)
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