Evening star. [volume], November 28, 1939, Page A-9, Image 9

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

Image provided by: Library of Congress, Washington, DC

                
NoSigns Seen
Of Balanced
Budget
Defense Requirements
About to Become
Smoke Screen
By DAVID LAWRENCE.
Theoretically, when business gets
better and tax receipts increase,
expenses of the Federal Government
should go down. Plenty of indica^
tions are avail- . .
able that em
ployment in the
last four months m
has been in- P
creasing steadily, i.
and hence re- |||
lief expenditures p
ought to be com- g
lng down. t
But already the 4
word has gone s
forth that a def- *
icit of at least
about $2,500,000.- ^
000 may be ex
pected for the
coming fiscal D»vid Lawrmce.
year. There is no sign of a balanced
budget, and, what is worse, there is
no sign of any formula by which
such a result can be achieved.
Between now and January 1, the
various Government departments
submit their final estimates. The
director of the budget is in the
midst of his conferences now with
President Roosevelt, The first weel
in January, a thick book containing
a bewildering set of figures will be
released as the President's budge'
message, and hardly a hundred per
sons in the whole United States out
side of the Government itself wil
read the document, or, reading it
w-ill be able to tell what the Federa
disbursements really cover.
The budget is classified and there
is a form of comparison with othei
years, but the necessity for the ex
penditures or the reasons why in
creases are made never are revealec
in detail in the document. When the
various committees of Congress take
up the different appropriations, there
is again a maze of figures, and politi
cal pressure is applied behind this
or that item, so that the countrj
never gets a clear picture of whal
might be eliminated from the ex
pense side.
Minority in Dark.
The public, of course, has dele
gated the task of budget making
to the party in power. But undei
our system of government the mi
nority is as much in the dark a:
the rest of the people, and no re
sponsibility attaches to the minority
party to present a rival budget. Ir
parliamentary governments abroac
the opposition party demands ade
quate information and presents it:
own budget. The mere fact that
details can be obtained assists in
the process of keeping the budget
down to essentials.
It is possible, of course, for minor
ity members of congressional com
mittees to ask for detailed informa
tion, but this process is long drawn
out and is a piecemeal affair spread
over a number of groups. At nc
time is the whole budget brought
together by the minority party and
presented to the country as an ex
ample of what could be done.
One reason, of course, for this
hesitancy to offer a rival budget is
that it makes the minority party
say publicly what it would cut out
This is considered, politically speak
ing, a dangerous thing, because the
groups which are to have expendi
tures in their behalf curtailed soor
build up a political backfire againsi
Senators and Representatives whc
are seeking to lop off specific ap
propriations.
Another Side of Picture.
It would be a novelty indeed il
the Republican party, casting asidf
all thought of political reprisals
were to dissect the coming budgei
and show the Nation how cuts coulc
be made.
But there's another aspect to th<
budget picture. It's the revenue
cutting side. If business were per
mitted to expand, if the industria
machinery of the Nation were al
lowed to function, and if labor rack
eteering and unwarranted interfer
ences with production were seri
ously attacked by governmental au
thority, the total volume of busi
ness done would jump materially
Then tax receipts would rise. It’!
another approach to the balancinf
of the budget. Though, to be sure
the only way the job ever will bi
done effectively is by applying boil
methods—stimulating business vol
ume and reducing Government ex
penses.
American business is increasint
Its volume. The need for ‘‘pumi
priming" is daily less and less. I
is true that national defense wil
require more money than hereto
fore. but even this item is tem
porary. being related to the dura
tion of the war abroad. The ques
tion is being asked here: Can th<
country be given assurance that thi
budget will be balanced except fo:
the new national defense outlay? Thi
answer is the national defense re
quirements are about to become s
smoke screen for more unbalancec
budgets, whereas the financial am
economic resources of America di
permit of a balanced budget largelj
through stimuhis to business vol
ume. The constructive legislativi
program needed to expand employ
ment has been forced to one side b)
overemphasis on extraneous issue;
growing out of the European war.
(Reproduction Rights Reserved.)
Symphony to Give Three
School Concerts This Weet
The National Symphony Orches
tra wil present three students’ con'
certs this week, with Dr. Han:
Kindler conducting.
The first was set for 2:30 p.m
today at Anacostia High School
The program will be repeated a
the same hour tomorrow at Wood
row Wilson High School and at 2:3<
p.m. Friday at McKinley Higl
School.
The program includes the overturi
to “Oberon.” by Weber: the “Bal
let of the Sylphs,” by Berlioz: “It
the Hall of the Mountain King,’
by Grieg; "Clouds,” by Debussy
the “Marche Slav.” of Tschaikovsky
“Two Short Stories in Music,” b;
Salzedo, with harp solos by Sylvit
Meyer: “To a Wild Rose,” by Mac'
Dowell, and the Rossini overture t<
“William Tell.”
The second series of students
concerts will be given during Feb'
ruary in five Washington higl
schools. The third and final in thi
series will be given at Constitutior
Hall March 16.
This is the ninth season of stu
dents’ concerts.
t
The Capital Parade
New Technique Being Applied in Relations
Between Government and Business
By JOSEPH ALSOP and ROBERT KINTNER.
Unobserved by all but a few score of Government officials and big
businessmen, a striking new development has appeared in the vital field
of Government-business relations. This is nothing less than the perfec
tion of an informal technique, combining persuasion and psychological
pressure, by which the administration directly participates in matters of
private business policy affecting the general welfare.
For example, the United States steel Corp. will soon announce the
steel price for the next quarter. Steel production is running at capacity;
; the backlog of orders is huge, and past practice in the steel industry would
suggest the inevitability of a marked price rise. If past practice should be
j followed, other prices of all sorts would rise with the steel price, for steel is
iuc uuinxiuci ui uui cwuuuill j.
Such price rises, which are thought
to contract demand and reduce pro
duction, are greatly feared by gov
ernmental economists of the school
of s. E. C. Commissioner Leon Hen
derson. Commissioner of Labor Sta
tistics Isador Lubin and Lauchlin
Currie, economic adviser to the
President.
The confident prediction now is,
however, that steel nrices will not
rise appreciably. If the prediction is fulfilled, other prices will probably
remain in line. Unless the Government thinkers are deceived, the upward
surge of prosperity will continue with only a short winter setback. And
all this may be achieved by application of the new technique to the steel
industry.
Iron in Velvet
I The technique is of comparatively recent origin, as can be seen by
: the fact that United States Steel upped its prices in December, 1936, and
again in February, 1937, both times despite the outraged protests of the
administration. It dates, in fact, to the establishment of reasonably good
relations between certain sectors of big business and the Government,
i This process began only a couple of years ago, when Averell Harriman of
the Business Advisory Council sent a pleasant stock-broking friend,
Prentiss Coonley, down to Washington to act as a liaison man between
business and Government. Coonley began giving a series of get-together
dinners, and at these dinners men of the caliber of United States Steel’s
Edward Stettinius and the White House’s Thomas G. Corcoran met and got
to know one another.
Perhaps the first instance of the technique's application in a rough
way was in the spring of 1938, when United States Steel was considering a
depression-induced wage cut. Joseph P. Kennedy, who was then in this
country, was hastily mobilized. Corcoran and his partner, Benjamin V.
Cohen, joined Kennedy in negotiating with Stettinius and other repre
sentatives of the steel company. It was made pretty plain that, if big
steel cut wages the President would blame the economic consequences on
the company. The Board of Directors then unanimously voted to main
tain the wage scale, and, in his fireside chat beginning his summer vaca
i tion. the President offered a handsome compliment to the steel leaders.
Since then the technique has been somew’hat refined by the creation
of the Temporary National Economic Committee. This body, commonly
known as the Monopoly Committee, serves as the vehicle for publicity
which would otherwise have to go through the White House. If steel
should defy the prophets and raise its prices after all, officials of United
States Steel would certainly be called before the T. N. E. C. to explain
and defend their action. The steel business would also be subjected to
whatever other pains and inconveniences the administration could devise.
Through informal contact^. Stettinius and his colleagues are well aware
of these facts, and will naturally be influenced by their awareness. Such
is the new technique. 1
Pro and Con
As to the extent of this influence, there is a wide disparity of opinion.
Businessmen, who naturally regard the new technique as an infringement
on their freedom, simultaneously complain of this and state that they
v AAiuvii iiiuuciitcu anci
all. The Government men prob
ably entertain exaggerated notions
of their own importance. Neverthe
less, the new technique is quite defi
nitely a fact, and, being quiet, flexi
ble, not cursed with the usual irri
tations of regulatory bureaucracy
and on the whole friendly, it is an
extremely interesting fact. Nor is it
unprecedented, for numerous paral
lels exist in England.
Since publicity is the Government men's real weapon, there is a
sort of democratic check on them. If they go too far, the businessmen
can tell them. “Publish and be damned." The technique has already been
applied in other directions, notably to the oil business, which was recently
called before the T. N E. C. to give an account of itself. It is undoubtedly
due for further development, and deserves to be watched and tested with
care and without prejudice.
(Released by the North American Newspaper Alliance, Inc.)
NOW. WUAX
IS IN THAT
I i V.rM'l I
BLUFF ME/
\ ft
121,361 Enrolled
In Red Cross Drive
In expressing confidence that the
District quota of 125.000 members
will be reached in the current drive
of the Red Cross. Edgar Morris,
Roll Call chairman, announced yes
terday that 121.361 memberships
have been recorded.
At the Executive Committee meet
ing of the local chapter at 1730 E
i street NAV. Mr. Morris said 11.626
volunteers have given 32.000 hours
of service to Roll Call work. Gen.
F. R. Keefer, chapter chairman,
presided Otto Lund, chapter man
ager, reported that nearly 55,000
surgical dressings and 8.000 gar
ments have been accepted for use
by Red Cross Societies in the aid
to refugees and wounded in bel
ligerent nations. Already 9,700
dressings and 600 garments have
been sent to Europe, and another
shipment is expected to go this
week, he said.
Miss Mabel Boardman, chairman
of volunteer special services, praised
work of volunteers and outlined
work being done. Nearly 1,400 wom
en worked last month making surgi
cal dressings and garments, she re
ported
Management Society
To Dine Tomorrow
The Society for the Advancement
of Management will hold a dinner
meeting tomorrow at 6:30 p.m. at
Barker Hall, Seventeenth and K
streets N.W.
“The Role of Management in a
Democracy” will be the subject for
discussion. Speakers are Marshall
E. Dimock, Second Assistant Secre
tary of Labor; Orday Tead, editor
of economic books, and Harlow Per
son, consulting economist for the
Rural Electrification Administra
tion.
CT"HE 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.
The Political Mill
Primary Laws of 'Early' States Put 1940
Political Race Just Around the Corner
By G. GOULD LINCOLN.
Presidential candidates have an
opportunity to call for a showdown
in ■ Arkansas the first of the year.
Under the State law governing pref
erential presi
rips tHp ronSI.
dates must sub
mit requests for
the holding of
such a primary
in Arkansas “at
least six months
before the par
ty’s national
convention—and
the date of the
primary must be
fixed, if such re- ,
quests are made, MKm
at least two
months before G. Gould Lincoln,
the convention is held.
It has been the invariable rule,
over a period of many years, for
the Republicans and Democrats to
hold their national conventions for
the selection of presidential nomi
nees in June. If that rule is adhered
to in 1940 it is obvious that candi
dates who desire to enter a preferen
tial primary in Arkansas must get
busy within a very short time. Their
requests, if they make them, must
go through the State committees.
Here is a chance for President
Roosevelt, Vice President Garner
or Paul V. McNutt, Federal security
administrator, or any of the other
potential candidates to declare
themselves, in accordance with the
Arkansas State law; to get their
hats officially in the ring at an early
date. If no such requests are made,
then no primary will be held and
the delegates to the national con
vention will be selected by the State
convention route.
n_1_:_ 1 o oi.i..
aw I'taii a.
A list of the presidential prefer
ential primaries in 13 States has
just been compiled by Edwin A.
Halsey, secretary of the Senate. In
addition to Arkansas, here they are.
with the filing dates for candidates
who wish to enter these popular
contests:
California—the first Tuesday in
May, and candidates must file 65
days before the primary.
Illinois—the second Tuesday in
April, filing date 60 days before
primary.
Maryland—the first Monday in
May, filing date 15 days before
primary.
Massachusetts—the last Tuesday
in April, filing date the seventh
Tuesday before the primary.
New Hampshire—the second Tues
day in March, filing date 60 to 30
days before the primary.
New Jersey—the third Tuesday in
May, filing date on or before April 1.
Ohio—the second Tuesday in May,
filing date 60 days before the pri
mary.
Oregon—the third Friday in May,
filing date 45 days before the pri
mary.
Pennsylvania—the fourth Tuesday
in April, filing date 50 days before
the primary.
South Dakota—the first Tuesday
in May, filing date 30 to 60 days
before the primary.
West Virginia—the second Tues
day in May, filing date 30 days
before primary.
Wisconsin—the first Tuesday in
April, filing date 32 days before the
primary.
The earliest primary for the se
lection of delegates to the national
conventions Is that in New Hamp
shire, and the candidates or their
supporters must enter their names
at least a month before the primary
They must therefore be entered in
February.
The presidential primary law in
Arkansas which compels candidates
to show their hands so early in the
game was passed last February. The
candidates, however, must file—il
they desire to enter the primaries—
in the other 12 States in February
March or April. Arkansas Demo
crats are on the lookout to see
whether any of the potential candi
dates will avail themselves of the
opportunity, under the new law, of
asking for a primary election.
Some Allow Candidate Names.
Of the 13 States where primaries
may be held, nine permit the print
ing of the candidates’ names on
the ballots. The four other States—
California, Massachusetts, New
I Hampshire and South Dakota—
| allow the candidates for delegate
i to the national conventions to indi
| cate on the ballot the name of the
. candidate he will support for the
i presidential nomination. This
amounts in the final analysis to vot
! ing for the presidential candidate
One State. Ohio, makes it man
datory that candidates for delegate
■ give their presidential choice—and
! that the presidential candidate give
: in his assent to having his name sc
used. In some of the States candi
dates for delegate may enter the
primary and have printed beside
inrir names no preierence.
It is assumed that Senator Robert
A. Taft, an active candidate for
| the Republican presidential nomina
I tion. will have no contest for the
; delegation in Ohio, his own State
Gov. Bricker of Ohio has indicated
he will not enter the race against
Senator Taft. Other Republicans
inside or outside Ohio are, of course
at liberty to have their names filed
and to enter lists of delegate candi
dates. but it is considered unlikely
they will do so. In 1936 Senatoi
Borah of Idaho entered the Ohio pri
mary and campaigned there—with
Senator Taft, who then had not
been elected to the Senate, as his
opponent Talt won all the dele
gates to the national convention
, except for a very few.
Donahey May Capture Delegation
On the Democratic side, there if
talk of putting forward Senator Vic
Donahey in the Ohio primary
known as the greatest vote gettei
in the State. Donahey is not s
! candidate for President, but he
would serve to hold the Ohio dele
gation to the national convention ir
line, to vote when the time was ripe
| for the most desirable candidate.
In New York district delegates—
SS
%
This Changing World
Finland, Aware Soviet Seeks Pretext
For Attack, Takes Steps to Avoid Trap
By CONSTANTINE BROWN.
The fox is howling that the chicken is nabbing him.
This is the situation between the U. S. S R. and Finland.
Moscow believes the time is ripe to strike at the Finns. Great Britain
is busy trying to discover some means to combat the dangerously increasing
mines and submarine blockade. France is doing all she can to help her
ally. Holland is menaced by the presence of some 28 divisions on the
vjciiiuui-ncuiciumua uuiua. inc
United States appears further than
ever from the picture of the Euro
pean war. Talk about finding some
way to peace in Europe is growing
every day as the present war of
attrition increases. People are no
longer required to shed their blood
only but are menaced with a com
plete economic and financial col
lanse. The Moscow leaders are
^ - afraid that out of this complete mess
some sort of suspension of hostilities might result. And in order not to
lose their prey they have decided to increase the pressure on Finland in
the hope of rounding up their conquest of the Baltic states which, before
the collapse of the Czarist empire, formed a part of the Russian territory.
* * * *
According to reports from unbiased official observers there has not
been a single shot fired by the Finnish guards on the Finnish-Soviet
border. It is true that the Finns have brought their border garrison to
war strength. It is also true that they exercise their rights under the
international law to fire at warplanes flying over their territory. But the
Finnish government, which is fully aware that the Russians are looking
for a pretext to attack them, has sent very definite instructions to the
local commanders not to fire a shot and not to allow themselves to be
trapped by Russian provocations. Since the Finnish delegation has
returned to Helsinki there have been a number of cases of provocation
on the part of the Russian border troops.
These have been ignored. The Finnish government has not even
taken the trouble to protest to Moscow. It knew that such protests would
either remain unanswered or the blame for minor incidents would be
placed on the Finnish Army. The commanders of the border detachments
are fully aware of the implications of an incident with Russia and they
themselves without orders from headquarters are doing the utmost to
prevent incidents which might get them into a war with the U. S. S. R.
* * * *
How far Moscow will push this alleged incident on the Karelian
border nobody knows. It may form a part of the war of nerves and it may
have a more dramatic and somber meaning.
The Russians havd1 done all in their power to shake the nerves of the
Finns ever since the Finnish delegation has refused to sign on the dotted
line like the other Baltic states. But they have not been successful.
* * * *
The co-operation of the Swedes and the Norwegians, in the event of
a Russian attack against Finland, is not as certain as it appeared a few
weeks ago.
The Scandinavian countries are all in favor of the Finns not only
for sentimental reasons but also because they feel themselves directly
menaced by the presence of Russian troops directly on.their borders.
The continued defensive attitude on the part of the allies and their
inability to cope with the German naval warfare has rendered the Nordics
cautious. They are endeavoring to find out how deep the Russian-German
friendship is and whether in the event of their assisting Finland, the
Germans would make common cause with their Muscovite allies and attack
Sweden and Norway. Until these things are fully ascertained, the Scan
dinavian kingdoms are likely to remain outside any conflict. They figure
that they can intervene later after the struggle between Finland and
Russia has started. The Finnish
Army is small, but it is believed it
will be able to give a good account
of itself for a few weeks at least.
* * * *
The Scotch are grumbling and
are angry with the London govern
ment. After a German submarine
entered Scapa Flow right under the
nose of the British guns and sank
a British man of war, the govern
rw fits f rl ( Va Am A nf a a m a m aa^J (am
the usual court of inquiry into the cause of the sinking of the Royal Oak.
This is being interpreted by many that the guilt for the inadequate de
fense of Britain’s No. 1 naval base lies with the highest-ups and in order
to avoid a public scandal the usual court of inquiry has not been
! summoned.
It is recalled that early in 1914 when Lord Jellicoe believed defenses of
that naval base were not adequate to protect his fleet, he took the ships
: somewhere else and waited until the defenses were perfected before making
Scapa his principal base.
HUPftfaNtDBlt
t\m QejNh
ATTACK* &*
mow {gM
jtj mvif
, —
not the delegates at large—to the
national conventions are elected In
a primary The “preference” for j
presidential candidates is not, how
ever, carried on the ballot.
It is obvious from the list of pref- >
erential primaries and the filing I
wmmmmmmmmmmmmmmw
—
dates that it is now only a question
of a very’ brief period before poten
tial candidates must come out into
the open—or else risk having these
State delegations instructed for
other candidates than themselves.
Indeed, the great political race of
1940 is just around the corner. I
Headline Folk
And What
They Do
Monnet Highly
Regarded for His
Financial Acumen
*>y Lt>ur.L r, rAKlun.
The Volstead Act crowded Jean
Monnet out of his first venture in
internationalism. The new “eco
nomic director” for the allies had to
quit hurriedly as deputy secretary
general of the League of Nations,
and return to the French village of
Cognac to save his ancestral brandy
business, from which he had gained
a considerable fortune in American
and Canadian sales. He was cred
ited with some masterful finan
ciering in saving his firm.
His exporting activities had
schooled him in world finance and
he became a swing man around the
world for the international bankers,
credited with being a deep insider
in this field. In 1927, he negotiated
the French loan to Poland. Here
in 1928. he became the European
partner of Blair & Co., New York
investment bankers, and on that
visit sketched out the future of
France as possibly the greatest
lending nation of the world.
In 1930, he became vice chairman
of the Trans-America Corp., before
Amadeo Giannini's successful out
reach for control. He remained ac
tive and powerful in Wall Street,
and. in 1933, was a member of the
joint committee representing Amer
ican interests in the Kreuger and
Toll upset. In 1934 he became
financial adviser to China and ar
ranged America's $50,000,000 loan to
China.
In the immediate post-war years
he represented the interests of the
French government in London.
His skill in negotiating led Lord
Robert Cecil to suggest his appoint
ment on the League of Nations’
secretariat for France. He is highly
regarded in Europe for his financial
acumen and his astute knowledge of
the subtleties and intricacies of in
ternational credit.
(Released by Consolidated News Features i
Per Capita Donations
Of Protestants Increase
By the Associated Press.
ST. LOUIS, Nov. 28.—Members of
25 Protestant denominations in the
United States gave an average of
$13.57 each to the church last year.
This amount represents an in
crease of 10 cents per capita over
the year before, said Dr. Harry S.
Myers of Hillsdale, Mich., secretary
of the United Stewardship Coun
cil, in his annual report before the
association here yesterday.
Celery Harvesting
Tied Up by Strike
By the Associated Press.
STOCKTON. Calif., Nov. 28 —
Filipino celery workers struck yes
terday, tying up this region's $2.
300,000 industry at the peak of the
harvest.
Workers demanded an increase of
5 cents an hour. Field workers now
get 25 cents and shed workers 27 ft
and 30 cents an hour.
.'"r v ,....> •»>»' <■ .
IlMcLT WflHHIRU:—
I Pair days will deceive you about
the roof. Don’t let winter storms
flood your rooms, ruin plaster. Let
us make these needed repairs now.
Fe°l safe. Call us up!
tfnniK ROOFING 933 V St. N.W.
Shoe prices
here are different
Different in 4 ways. The price
covers a scientific fitting, comfort,
style and long service. Some women
would pay any price for these 4
things—yet our prices are modest.
STACH’S
521 llth St. N.W.
"We Fit the Feet as Nature Intended"
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sofa designs with regular sofa heights and yet they 1
open into double beds with comfortable innerspring
mattress. See our display of Pullman Sleepers.
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This Pullman Sleeper . . •
This is one of the many Pullman
Sleepers shown now. It is styled like
a sofa yet it contains a comfortable
double bed with innerspring mat
tress. It is here in cotton and
rayon figured damask. Three re
versible spring seat cushions and
5 regular sofa height.
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At the right is sketched one of
the higher-priced models and
shows how all Pullman Sleeper!
j§ look when opened as beds.
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Other Pullman Sleepers From $137.50 to $200
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I MAYER & CO. |
| Seventh Street Between D and E j