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MIDLAND JOURNAL. RISING SUN. MD.
— ——— mm*—m-mim—mm— National Topics Interpreted JIM w||p|| by William Bruckaft . For the first time since the federal reserve system was created a very real rift has developed /* Politics between the federal Creeping In? reserve board and the federal advisory council, that group of business leaders which is supposed to act as inter mediary between the reserve board and the public. The line of cleavage has developed over gold. How far it may .go in disturbing faith in the federal reserve system as a banking structure It is yet too early to fell, but I find in many quarters frequent questions as to the indication that politics may be creeping into government supervision of the country’s largest banking unit, the federal reserve systepi. The controversy had its origin in a statement of views delivered to the reserve board by the advisory council last month. Of course, the advisory council has no power and can only function in accordance with its name and give suggestions to the reserve board. Its influence nevertheless here tofore always has been an important factor in federal supervision of bank policies and any wide difference of opinion between the advisory council and the reserve board naturally is an influential factor in financial condi tions. The reserve board did not enjoy the statement of views from the advisory council, which was to the effect that “no real or permanent recovery” can be hoped for until the federal govern ment returns to the gold standard for our currency. It said unequivocally that the currency and credit supply now existing is ample for all needs and that business cannot be expected to go forward until it has some assur ance of a permanency in our currency. In other words, the advisory council takes no stock in the “baloney dollar” which has been so strongly advocated by Prof. George F. Warren, one of the important brain trust advisors to the President. In addition to the council’s criticism of the currency policy of the adminis tration, it did not pull its punches with respect to the countless governmental experiments in business. I quote that paragraph of ns statement: "A serious factor of rapidly increas ing importance is the tendency of busi ness enterprises directly conducted by government agencies to reach out further and further into fields hereto fore occupied by private capital, there by destroying taxable values. The use of government money in competition with private business is not only paralyzing to private initiative but ex perience has amply demonstrated that it is costly, generally inefficient, and that its disastrous effects reach far be yond the limitation of the particular industry immediately affected.” * * * The council had much more to say respecting other policies of the pres ent administration, Fear Savings including what it de- Threatened scribed as a con stant “threat of in flation,” a condition that the council felt was stifling personal thrift. It asked directly whether there was any inducement for an individual to save i or to buy life insurance and preserve earnings against the time when age will prevent continued production of income if there was an overhanging threat that all these savings may be wiped out by uncontrolled inflation of the currency. Obviously, the federal reserve board was wrought up when the advisory council did the unusual thing of mak ing public its views. -Although the council withheld its statement until three weeks after the meeting at which it was drafted and given the reserve board, that lapse of time did not salve the feeling of the board. To show how It felt about the action of the advisory council, the board very promptly met and adopted a resolution by unanimous vote returning the coun cil's statement to its secretary. This “spnnking” has aroused a great many business leaders who have expressed fears that politics now is ipermeating the two federal agencies, for the ad visory council is a body created by statute Just as much as the federal re serve board. No one can tell what the outcropping of this situation may be. There are a number of men in the ad visory council membership who have been outspoken in their support of President Roosevelt. Likewise, the President has named two members of the present reserve board, and one or two others of that group of seven are entirely In harmony with his economic policies. Consequently, there is much talk in Washington that the two schools of economic thought are engaged in a clash that* may be serious In its effect on the supervision of the country’s banking structure. • * • Whatever may be the attitude of the reserve board, I have found a con , siderable body of Wtthin opinion holding that Its Rights the advisory council was functioning with in Us own sphere wheD it made the statem.ent to the board. As explained above, the board was under no com punction to abide by the expressions from the advisory council, and if It elected to do so it could allow the -council’s views to be pigeon-holed and forgotten. But the point is that the council is representative of business and financial interests and therefore, when it considered federal policies it was speaking for that segment of our national life which otherwise had no means of making Itself vocal, accord ing to much opinion in the National Capital. Further, the fact that the council took direct issue with the administra tion is being regarded in many quar ters as a healthy sign. I believe there is no dispute about the right of indi viduals or groups to criticize the po litical party responsible for govern ment management at any time and if the particular part of our commerce and industry, represented by the ad visory. council, feels dissatisfied with the gold policy, with the unbalanced budget, with the continual spending and experiments that have gone on, there is a great number of people who insist those views should be disclosed. Some students of economy and govern ment here hold to the opinion that such expressions may have a tendency to lead to policies acceptable to both sides. This phase of the situation may be linked to the efforts which the admin istration has been making to accom plish an understanding with some im portant business leaders through fre quent conferences at the White House and through informal and indirect meetings outside of Washington. I re fer to the dinners and meetings which have been held, many in New York, by Prof. Raymond Moley. formerly the number one member of the brain trust but now a magazine editor. Although White House sources deny any part in the Moley dinners, most Washington observers accept the denial with a grain of salt. They are convinced that Mr. Roosevelt is fully informed of the views expressed by individual business leaders in those meetings and that he is seeking some basis of understand ing with business. It takes no stretch of the imagination then to connect these various happenings, despite the wounded feelings of the federal reserve board. * * * Henry P. Fletcher, chairman of the Republican national committee, said the other day he an- Makes It ticipated little in- Losing Fight crease in Republican membership in the house of representatives. He can see no method, he said, of defeating the disbursement of cash that has been going on in the Roosevelt administra tion. The Republican chairman’s statement followed compilation by the Democratic national committee of figures showing the amount of cash that has been paid out by the government through its vari ous channels since President Roose velt took the reins. The Democratic committee compiled a list of states and set off against each state the amount of money distributed therein for relief, agricultural benefits, public works con struction and otherwise. Democratic campaigners were not invited to use these figures but Chairman Fletcher insisted that was the basis and the real reason for their compilation. Mr. Fletcher proved his statement with hands full of clippings gathered from newspapers throughout the country, each one quoting some Democratic can didate who had informed an audience as to the benefactions of the federal government in that particular state. The Republican chairman told news paper correspondents in a press con ference that he was not accusing the Roosevelt administration of buying votes but he added with candor that , votes naturally were going to go towards the source of money supplied. With several billions being distributed and a considerable amount being turned loose within the last month, Mr. j Fletcher made a clean breast of his feelings that it was difficult to battle : Santa Claus. In connection with the Itepubliean charges over cash distribution both of the national committees have heen com piling statistics respecting registration of voters through the country in prep aration for the election. These reports indicate that public interest is aroused far beyond the usual condition. Vot ers are awakened to the importance of these elections. Obviously, there are many local Is sues to be fought out and settled by the ballot. The situation in California is illustrative of this. Never before, I am told, has California seen such a registration list as is made up there in anticipation of the vote on Upton Sin clair’s program to “eliminate poverty In California.” Agricultural areas, according to the registration lists, are prepared to sup port or upset policies of the agricul tural adjustment administration and some industrial centers show figures Indicating widespread interest in the vote that is naturally to havp a bearing on the status of the national recovery administration. Many astute politi cians are sayiug that the great regis-' tration makes guesses as to the out come rather hazardous, while the tu dents of government welcome the large polling lists as encouraging evidence of an awakened interest among the" populace in this thing we call govern rnent. It is proof, they suy, that, whether right or wrong, more voters want their feeling known in the current election than hitherto has been the case except when the ballot involved the I’resi Ueocy. e, Western Nmpoei Union. News Review of Current Events the World Over Bankers and President Roosevelt Move Toward an Accord; War Clouds Still Hover Over Balkans; Legion for Bonus Cash Payment. By EDWARD W. PICKARD © by Western Newspaper Union. FOUR thousand or so financiers gath ered in Washington for the annual invention of the American Bankers’ association, and it became apparent at once that they were far from unani mous in their opinions concerning the economic policies of the New Deal. Francis Marion Law of Houston, Texas, retiring president of the association, gave out an interview in which he said he believed that economic recovery had arrived at a point where bankers of the United States could honestly advise business men to go into debt again in order to put idle bank re serve's to work. Further, he stated that bankers feel that the securities of the United States government are the best investment "on the face of the earth" and that there need be no con cern over the condition of government ! credit What made this expression especial ly noteworthy was the fact that only recently the federal advisory council, composed of leading bankers, issued a warning that government credit was being menaced by the unbalanced con dition of the federal budget and the unstabilized dollar. Then appeared before the bankers in Constitution hall President Roosevelt himself and made an appeal for ‘‘an alliance of all forces intent upon the business of recovery." He called on the banks to lend more money to finance the New Deal program. “Government should assert its lead ership in encouraging not only confi dence of the people in banks but the confidence of the banks In the people,” he said. “In March, 1933, I asked the people of this country to renew their confi dence in banks. They took me at my word. Tonight I ask the bankers of this country to renew their confidence In the people of this country. I think you will take me at my word.” He said that the administration stood squarely back of continuance of the profit system and that emergency activities would be curtailed as fast as private business could pick up the load. It was noted that the President, made no promise to balance the budget or to stabilize the currency; also that he did not comment on the proposal to create a central bank. His talk was heartily applauded, but many of his hearers were far from satisfied. Before Mr. Roosevelt spoke, the bankers were addressed by Jackson Reynolds, president of the First Na tional bank of New York and a stanch sound money advocate. He appealed for co-operation with the President, highly praising his efforts at rehabili tation and saying: “If the government and the banks continue in the role of antagonists it will invoke the gravest consequences to our country, perhaps even the de struction of many institutions and principles we have long held dear. "The poor, whom we have always with us, will not be much worse off. The rich will survive in comfort at least, as they always have, but the great stratum of our people between I these two groups will be irretrievably ruined. “If, on the other hand, we abandon our antagonism for friendly, under standing, sympathetic co-operation, I believe we can make a great contribu ! tion toward the perpetuation of our ! cherished institutions, the encourage ment of our fellow citizens, and the gradual and sound rebuilding of the shattered economic and financial struc ture of our country.” / Further overtures to the bankers were made by Jesse H. Jones, chair man of the Reconstruction Finance cor poration, and J. F. T. O’Connor, comp troller of the currency. Both of them gave assurance that the economic con dition of the country is sound, and Mr. Jones urged the bankers to expand their loans to business. To all this the bankers responded by unanimously adopting resolutions promising to co-operate with the gov ernment but demanding a balanced budget. ' Rudolf S. Hecht of New Orleans was elected president of the association to succeed Mr. Law. WAR clouds over central Europe are not dissipated by the partial solution of the plot that resulted in the assassination of King Alexander of Mm- g ~>* Jugoslavia. It is es- *£ 1 tablished that the mur der was the work of terrorists called the Oustacha. and the head of the gang, Dr. Anton I‘avelic, has .’si heen arrested, togeth- I er with his assistant, - Eugene Kvaternik. I The three companions “ of the assassin, who Pavelic Were ca P tured in ravelic France, have con fessed that they trained for the Job in a camp in Hungary and held Hun garian passports. It is charged in the French press that they or their Ous tacha chiefs were in secret contact with Hungarian or Italian officials, and if It can be established that their funds came from such sources, most serious complications may result. The permanent councils of both the little entente and the Balkan entente, which include Rumania, Jugoslavia, Czechoslovakia, Greece and Turkey, have issued Identical communiques as serting their solidarity with Jugo slavia and laying responsibility for King Alexander’s assassination upon terrorists urged on by the foreign pol icies of nations which were not named but which clearly are indicated to be Hungary and Italy. The communiques gave warning of a probable war unless “international measures are loyally adopted” to stop political assassination and conspiracy. Both the ententes decided to adopt common measures against all political conspirators. So far, Hungary is bearing the brunt of the blame for the Marseilles assas sination, but Premier Goemboes as serts his country is “entirely guiltless of any connection with the foul crime.” BREAKING records all along the route, M-10001, the new streamlined train of the Union Pacific, made an ex traordinary run from Los Angeles to New York in 56 hours 55 minutes. The best previous time for a transcontinen tal train crossing was established in 1906, when the late E. H. Harrlman, then chairman of the Union Pacific, traveled from San Francisco to New York in 71 hours 27 minutes. The new tube-shaped train also es tablished a world's speed record of 120 miles an hour as it sped from Buffalo to New York. The train passed over the 30-mile stretch of straight-away between Buffalo and Batavia, on which the Empire State Express of the New York Central achieved a speed of 112*£ miles an hour on May 10, 1893. IMMEDIATE cash payment of the veterans’ bonus certificates was de manded by the American Legion in convention at Miami, Fla., despite the knowledge that it is opposed by President Roosevelt and the be \ lief that he would veto AS!* any le S ls,at 'on provid ® Up ing for such payment. k _ ~ The vote was 957 to k 183. The Legion’s new national commander is k Frank Belgrano, Jr., of I*. mi Snn Francisco> now a banker. AH other can- Frank didates withdrew and Belgrano, Jr. jn r . Helgrano was elected unanimously. In his speech of acceptance he said he would conduct his office with vigor and determination and would give it his undivided atten tion. "Our country is filled today with too much talk about isms,” he said. “Ev erywhere we hear about Communism, Socialism, Fascism, Hitlerism, and oth ers too numerous to mention. “There is room in this country for only one ism. That is Americanism. Without equivocation or reservation, I say to you that under my administra tion this American Legion is a sworn enemy of every other ism. That is a declaration of war.” The following were elected as na tional vice commanders: Daniel J. Doherty, Woburn, Mass.; Harold J. Warner, Pendleton, Ore.; John Kenell.v. Mandan. N. D.; Milo J. Warner, Toledo. Ohio; and Quimby Melton. Griffin, Ga. Rev. Dr. Park W. Huntington, pastor of St. Stephen’s Lutheran church in Wilmington. Del., was chosen unani mously as national chaplain. John D. CYowley of Cambridge, Mass., was elected chef du chemin de fer of the “40 and 8,” play organiza tion of the Legion, and Mrs. A, C. Carl son of Willmar, Minn!, was elected na tional president of the American Le gion auxiliary. Next year’s convention was awarded to St Louis, Mo. PROF. JEAN PICCARD made anoth er balloon excursion into the strat osphere, and accompanying him was his plucky wife, Jeanette, the only li censed woman balloon pilot In the United States. They ascended from Detroit with their 600,000 cubic-foot bag. passed over Lake Erie, rose to a height of about ten miles, and then came down on a farm four miles west of Cadiz, Ohio. The gondola landed in a tree but the two occupants were only slightly bruised and scratched, and it was believed the delicate scien tific instruments they carried were un injured. > EIGHT federal officers led by Melvin Purvis, head of the Justice de partment’s bureau of investigation in Chicago, caught up with Charles A. Floyd, known as "Pretty Boy,” on a farm near East Liverpool, Ohio, and a few minutes later the desperado of the Ozarks was dead with fifteen bul lets in his body. He had two auto matic pistols but did not fire a shot as he sought to escape across a field. Floyd, accused of at least seven mur ders and lately of complicity in the Kansas City depot massacre, was hunt ed for years. He was Oklahoma’s most notorious outlaw since the days of A1 Jennings and the Daltons. C ILK and rayon dyers did not Join tile workers because of their contract, but 30,000 of them in the Passaic val ley and the New York metropolitan area have now quit their Jobs and the dye houses were closed perforce. When negotiations for a new con tract begaD two months ago the union asked for a 30-hour week at $1 an hour and a closed shop. The closed shop was the sore point of issue. Neither side would change its attitude. George Baldanzi, president of the Federation of Silk and Rayon Dyers, then waived the demand for a 30-hour week at S3O a week and said the union would accept a minimum guarantee of S2O. This proposal was rejected by the employers. P. W. Chappell, conciliator of the Department of Labor, was on the ground trying to effect a compromise. JOHN B. CHAPPLE, Republican can didate for United States senator from Wisconsin, proved himself to be a gentleman at Waukesha. He was listed as principal mjg g p en ker at a rally there. John Gay, can didate for congress, ■Hf: 1 preceded him on the l lro £ ram atul alluded HPlrj|| to President Roose || velt as “a man who can’t stand on his own feet without crutches.” Mr. Chap pie arose and said; J. B. Chappie “ Men and women of Waukesha, the President of the United States has been insulted by a previous speaker on this program in a serious personal way, and while I may differ with Dem ocratic policies, I will not stand for that kind of an attack on the Presi dent’s physical Infirmity, and I there fore refuse to speak on this program and will return to Waukesha at some later time.” CONVERSATIONS preliminary to the 1935 naval conference opened in London, and the Japanese did what was expected of them. Ambassador Matsudaira and Admiral Yamamoto told the British and the Americans in turn that Japan was not satisfied with the existing treaties —everyone knew that —and set forth these main points: 1. The powers should agree that Japan may have equality, “in princi ple,” in defensive armaments. 2. The ratio system should be abol ished, and "defensive” ships limited on a total tonnage basis, instead of by categories. 3. Each nation would drastically re duce “offensive" armaments, thus cut ting down the chances of any war of aggression, while building whatever “defensive” ships within the tonnage limit agreed it feels It needs for se curity. Lieut, francesco agello ot Italy, known as “Crazy Boy” be cause of his daring aerial perform ances, set a new record for speed In flight when he drove his seaplane over a course at Desenzano, four times at an average of 440.29 miles an hour. It was his own record that he broke by about 16 miles an hour. He used his old plane but it had a new Fiat AS 6-V type motor developing 3,500 horse power. Mahatma gandhi has quit as leader of the All-India National ist congress. He insisted on the im portance of the spinning wheel in the home of every congress voter and on the wearing of homespun, and asked various changes in the constitution of the congress. Other leaders did not agree with him, so he refused to act longer as their chief. THREE American physicians have been awarded the Nobel prize in medicine for 1934. They are Dr. George Minot and Dr. William B. Murphy of the Harvard medical school and Dr. George H. Whipple of the University of Rochester. The prize of $41,000 Is divided among them for their develop ment of liver therapy in anemia. CW. A. SCOTT and Campbell Black • of England, flying their Red Comet plane, won the great London to Mel bourne air derby, reducing the record by many hours. The second plane to arrive in Melbourne was that of If. D. I’armentler and J. J. Moll of Holland. They gave the winners a close race though flying a longer route. Col. Ros coe Turner and Clyde Fangborn, Amer icans, lost time when they wandered from the course near Allahabad, India, but came in third. James and Amy Mollison, the famous flying couple from England, led at the start, but were forced to quit in India by damaged motors. Tragedy marked the race when Har old Gilman and James Baines of Eng land crashed in flames in Italy and were burned to death. Bruno hauptmann’S effort to avoid extradition from New York failed, so he was taken to jail at Flemington. N. J., to await trial for the murder of Colonel Lindbergh’s baby boy. Attorney General Wilentz and" his staff of assistants were com pleting their arrangements for pre senting the case against the carpenter. Hauptmann was arraigned before Justice ’Thomas E. Trenchard and pleaded not guilty. The trial was set for Junuary 2 at the request of Mr. Wilentz, who said: “I don't think this trial should go through the holidays. I think It would be distasteful to the people. Then. too. this Is a capital case and the defense should have am ple time to prepare Its case.” Housewife's Idea Box To Keep Jars Airtight If you wish to keep food In Jars airtight and have no paraffin or rings and covers, try this method. Dip tis sue paper into milk. Place the pa per over your jars while very wet. Tie it in place and allow it to dry. It will dry like parchment and the jnrs will be airtight as long as it is left on. THE HOUSEWIFE. Copyright by Public Ledper. Inc. WNU Service Land Moving Westward Observations and calculations are being made to affirm or deny the truth of the report by the Naval ob servatory that San Diego, Calif., has moved 40 feet in the last seven years. If the calculations of the ob servatory are found to be correct tli,ey will support the theory that all land Is drifting westward due to the eastward rotation of the earth. The theory holds that this drifting of the land causes the earth’s crust to bend nnd thus form mountains. It is also thought that the movement may be a cause for earthquakes.—Pathfind er Magazine. Why Liquid Laxatives Do You No Harm The dose of a liquid laxative can be measured. The action can thus be regulated to suit individual need. It forms no habit; you need not take a “double dose” a day or two later. Nor will a mild liquid laxative irritate the kidneys. The right liquid laxative will bring a more natural movement, and with no discomfort at the time, or after ward. The wrong cathartic may often do more harm than good. An approved liquid laxative (one which is most widely used for both adults and children) is Dr. Caldwell’s Syrup Pepsin, a prescription. It is perfectly safe. Its laxative action is based onssennaa —a natural laxative. The bowels will not become depend ent on this form of help, as they may do in the case of cathartics contain ing mineral drugs. Ask your druggist for Dr. Caldwell’s Syrup Pepsin. , An Exception Patient—An ounce of prevention Is worth a pound of cure. Doctor—Not to me. —Stray Stories Magazine. PLUGS SAVE YOU money! STOP THE WASTE OF 1 GALLON OF GAS IN 10 . . . HAVE YOU 3 SPARK PLUGS CLEANED BY THE AC SPARK PLUG CLEANER only a plug When your spark plugs are Oxide-Coated, they mis-fire intermittently. This wastes as much as 1 gallon of gas in 10. Ask any Registered AC ■ Dealer, Garage or Serv ice Station to stop this I lossof money—by clean- CLEANING I ing your spark plugs STATION B with the AC Cleaner. Replace badly worn plugs with new ACs. Tub" WNU—4 44—34 HELP KIDNEYS IP your kidneys function badly and you have a lame, aching back, with attacks of dizziness, burning, scanty or too frequent urination, getting up at night, swollen feet and ankles, rheumatic pains . . . use Doan's Pills. Doan’s are especially for poorly functioning kidneys. Millions of boxes are used every year. They are recommended the country over Asle your neighborl DOAN'S PILLS