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Weekly Xews Analysis
G.O.P. Frowns on Early Booms While Wooing Insurgent Denis Wy Joseph W. La Bine— EDITOR S NOTE— When opinions are expressed in these columns, they are those of the news analyst, and not necessarily of the newspaper. Politics To stand a chance of winning 1940’s presidential election. Repub licanism’s two biggest jobs for 1939 are <1 > stopping any premature boom which might shatter party unity, and <2) win support from Democratic leaders who have aban doned the New Deal. These objec ti\es clash because few Democrats will desert their traditional political faction for nothing more stable than the hope that a suitable candidate can be found. But the G. O. P. is tackling both jobs with fingers crossed: Candidates. Most favored presi dential nominee is youthful New York District Attorney Thomas Dewey, whose sensational racket busting record is offset in veteran political minds by the realization ir~ mSL x ' r • SENATOR TAFT . . . uelcomed an “insulting ultimatum.” that he has no administrative expe rience. Second choice is Michigan’s able Sen. Arthur Vandenberg. Trail ing far behind are Ohio’s ambitious Sen. Robert Taft, his home state’s Gov. John W. Bricker, and ex- President Herbert Hoover. Since most danger of a premature boom centers in Washington, minority leaders in both houses (Oregon's Sen. Charles McNary, Massachu setts’ Rep. Joseph Martin) are re portedly urging their colleagues to avoid commitments. On the G. O. P. calendar are party dinners, each of which will hear a potential candi date. One such affair, originally scheduled to hear both Candidates Taft and Bricker, was split two ways when Governor Bricker’s name took greater importance. Co&.ition. Possibility of Democrat ic support for a Republican candi date started during last autumn’s "purge” and grew when President Roosevelt plumped for liberalism over partisanship. This season’s rebel congress gave it more im petus, and in late April Mr. Roose velt told junior Jackson day cele brants via letter that the Democrat ic party must uphold New Deal prin ciples to win next year. ' Seizing the cudgel, Ohio's Taft labeled the letter an ‘‘insulting ulti matum.” Said he at a “Republi cans-on-the-March” banquet: “To the President, anyone who disagrees with him is moved only by preju dice and ... is disloyal to his lord and master. The Republican par ty .. . welcomes them (anti-admin istration Democrats) to our party councils. There is no fundamental difference between us which cannot . be reconciled.” Meanwhile New Dealers on Capitol Hill thought the President’s letter was highly significant. Louisiana’s Sen. Allen J. Ellender thought Mr. Roosevelt was asserting aggressive leadership to block a “reactionary candidate” in 1940. Pennsylvania’s Sen. Joseph Guffey thought what he had believed all along—that Mr. Roosevelt should seek a third term. Europe From his Paris office, the Chicago Daily News’ Edgar Ansel Mowrer apparently sent first word of Der Fuehrer s crafty scheme to devalu ate President Roosevelt’s peace ap peal. The scheme: Germany asked individual nations whose peace Mr. Roosevelt said is threatened, wheth er ’hey felt menaced by Germany. Said Mr. Mowrer: “It is the old story of the wolf asking the lamb whether it really believes that wolves sometimes eat lambs.” Though Mr. Mowrer’s revelations and subsequent diplomatic maneu vers took the edge of Herr Hitler’s plan, democracies had little reason for giee. In the week preceding Der Fuehrer’s Reichstag answer to Mr Roosevelt, both dictators and democracies made frantic efforts to line up Europe’s few remaining neu trals, all of them located in the Balkans. At negotiations’ end, the Rome-Berlin axis had won a signal victory by the simple procedure of Jerking a keystone—Jugoslavia— from under the tottering Balkan entente. Hemmed in north and south by Hungary and Italy respec tively, the Belgrade government joined Germany, Italy, Spain, Hun gary. Japan and Manchukuo in the anti-Communist allance, framed a ! mutual defense pact with Hungary | and began leading a new pro-Fascist j Balkan entente in which Bulgaria will be a member. For remaining Balkan states this constitutes a menace. Rumania becomes the focal point, wooed des perately by democracies as the last hope of stopping a solid dictator front in southeast Europe, yet in clined to conform with Nazi de mands on pain of invasion from land-hungry Jugoslavia, Hungary and Bulgaria. Deeper in the Balkans, British- French alliances with Greece and Turkey may meet similar fate. Though expressing gratitude to the democracies for guaranteeing her integrity, Greece has announced she seeks to remain on a friendly basis with the Axis powers who now threaten her entire northern front via Albania, Jugoslavia and Bul garia. Meanwhile Turkey has given Germany a contract to build her $12,000,000 new naval base and granted Lufthansa, German airline, ' an operating concession. With the Balkans apparently lost to Naziism. Britain’s last chance for anything like a parity of European power lies in the last-resort military treaty with Russia. The unexpected return to Berlin of Ambassador Sir Nevile Henderson has given rise to belief that Britain man seek peace with the Reich rather than accept a Russian pact. Furthermore, France’s move to return her Ger man ambassador, coupled with ru mors of U. S. trade concessions to a peaceful Hitler, produces a world wide atmosphere suspiciously like the long-since discredited instru ment of “appeasement.” Relief Workers Alliance is a WPA union which thrives mainly on contribu tions from a reputed 400,000 (out of 2,756,000) U. S. reliefers. From its Washington headquarters go fre quent mimeographed statements for newspaper men and persistent lob byists to plague Capitol Hill. Os the latter, most famous is Theodore Oz man who had his face slapped by Georgia's fiery Rep. E. E. Cox dur ing debate on the $150,000,000 de ficiency relief bill. Workers Alli ance’s most famous officer is Pres ident David Lasser, who last year drew from Aubrey Williams, then deputy WPA administrator, a terri ble pre-election statement for WPA consumption: “We’ve got to keep our friends in power . . . The men j you are going to (elect) should be those who stand for projects such as WPA sponsored.” Though Harry Hopkins squelched further Williams outbursts, David Lasser’s reliefers no doubt took the Williams advice. Whether their vote was big enough remains to be < —-r-’v .If Ia Sy.-.y :•"&/, , " ~ -S.. -JO DAVID LASSER Congress fears his union. seen, for now pending in congress are measures to toss relief back into the states’ lap, to junk all present agencies for a new federal unit, and take politics out of relief. Workers Alliance is primarily inter ested in the latter. Chief puzzle facing West Vir ginia’s Rep. Clifton Woodrum and his relief subcommittee is whether reliefers should or can be denied the right to organize for a patently political purpose. Already on rec ord are several disturbing facts. Samples: (1) Though David Lasser denied he is a Communist, most official Washingtonians rate him distinctly pinkish. Workers Alliance Secre tary-Treasurer Herman Benjamin boasted to committeemen that he has been a Communist for 20 years, also that he reported personally to Moscow last year on the Alliance’s activities. (2) Alliancers have threatened and may some day exert pressure on congress. When President Roosevelt asked an $875,000,000 de ficiency relief appropriation, the Al liance asked $1,000,000,000. Congress coughed up $725,000,000. When the White House asked restoration of the $150,000,000 cut, Mr. Lasser turned on heat and threatened to ballot all reliefers on a protest march to Washington. Probable outcome will not be an attempt to dissolve the Alliance, but a hastening of back-to-the-states legislation in the hope that individ ualized relief setups will give the union less chance for a unified na tional front. * DATE BOOK MAY 14—Mother’s day, with Golden Rule foundation honoring Mrs. Ilias Compton of Wooster, Ohio, as “American Mother for 1939.” MAY 15—King George and j Queen Elizabeth of Britain ar rive at Quebec for North Ameri ! can tour. MAY 17—Germany to conduct one-day census with 750,000 volun tary workers, expected to show accurately for first time the ex tent of Jewish emigration. MAY 30—Generalissimo Fran cisco Franco’s triumphal entry into Madrid, accompanied by Italian and German troops. Ital ian Count Galeazzo Ciano and German Field Marshal Herman Goering expected to participate. Asia Primarily an exporter of cheap substitutes, Japan’s foreign trade is normally unbalanced on the debit side since total value of exports falls short of total imports. Biggest sin gle export, however, has been precious silk to the U. S., a SIOO.- 000,000 annual trade which brings an average of SSO to each of 1,815,- 246 Jap families raising cocoons as a sideline. But recently U. S. chem ists perfected nylon, a synthetic substance which threatens to re place Japanese silk. An important discovery in itself, nylon has upset Nippon’s business applecart far enough to precipitate a major indus trial revolution. With cotton imports curtailed and its U. S. market dis appearing, Jap silk production will become smaller and sale restricted to domestic markets. Thus forced into even greater self sufficiency, Japan has launched a three-year program of industrial ex pansion with the double purpose of giving its people hope and informing other nations of its strength. Sam ple production increases: Magne sium, 1.000 per cent; artificial gaso line, 800 per cent; dehydrated alco hol, 1.200; w’ool, 200; steel, pig iron, machine tools, 100. Noteworthy is the heavy emphasis on iron ore and gasoline, both of which have been purchased entirely abroad, and both of which will be needed the day Japan tackles Russia in a great Asiatic war. Sampling its first fruits of conquest, Tokyo will depend largely on Chinese and Manchukuoan resources. T ransportation On some future date all U. S. motorists may be forced to insure against public liability and property damage, a coverage at once most essential (to protect fellow motor i ists) and most ignored (because of high rates). Originally a rich man’s insurance, “P. L. and P. D.” was offered mainly by 37 member com panies of the National Bureau of Casualty and Surety Underwriters, who eventually began losing busi ness to newer, lower priced com panies. To recover business, bu reau firms have just effected new low prices in 30 states, cutting 20 to 25 per cent from rates charged private motorists. Thus a down ward price trend has been stimulat ed, which may eventually place li ability rates at a point where state legislatures can make this coverage mandatory without suffering undue criticism. Aviation U. S. isolationists to the contrary, each European dictator encroach ment apparently has its repercus sions on this side of the Atlantic. Looking ahead, observers are now sizing up the results-to-be of a very likely dictator coup, the unification of Portugal with Spain through an externally inspired revolution. Two Portuguese landmarks, the Azore islands and Lisbon, are vital stopping points on the southern route of Pan-American’s transatlan tic air service which is scheduled to start this spring. Over nearby routes from Europe to South Amer ica fly German and Italian lines ! which would like a slice of lucrative | U. S.-to-Europe air business. Since Spain’s puppet Dictator | Francisco Franco would share Por tugal’s spoils with his two friends, Germany and Italy, those two na tions would gain aviation rights at Lisbon and the Azores, thereby hold ing a monopoly over south Atlantic airlanes. Still open to U. S. boats would be the northern route from New York to Southampton, excellent in summer but risky in winter. Trend How the wind is blowing . . . CENSORSHIP?—Effective June 7, the British government will as sume complete control over the British Broadcasting corporation, strictly supervising all news bul letins and launching an army-re cruiting campaign. IMMIGRATION—InfIux of ali ens to the U. S., at low ebb dur ing the depression, is on increase with Jews leading the pack. Fig ures: 35,000 Jews have entered in the past three years. WEATHER U. S. winters have grown milder since 1900, but trend will soon be to cooler, wet ter phase of weather with more rain in summer and lower tem peratures in winter. Authority: J. B. Kincer, chief of U. S. weath er bureau’s climate and crop weather division. THE COOUOGF. EXAMINER Buy Wash Fabrics That Are Fast Color, Non-Shrinkable By CHERIE NICHOLAS yßtt/BB&sßßsMis jgs. HI -1 IT IS no wonder that smart cot -1 tons and other wash materials have attained to dizzy heights of styte prestige, which is especially true this season, for they are amaz ingly lovely and versatile, and tune to every occasion, formal or infor mal. However, their attractiveness is by no means their chief lure, for the really grand and glorious thing about most modern washables is the promise they carry of being both fast color and non-shrinkable. Mod ern science has worked miracles In this particular. Which should be particularly encouraging to mothers who are outfitting little daughter with pretty new dresses for spring and summer. For peace of mind it is only necessary to demand, when buying wash materials, the kinds that carry non-fade and non-shrink assurance. The materials that go to make up the charming dresses pictured take on added interest when you know they will not fade neither will they shrink. For everyday wear in class room and happy carefree hours of the day the shirtmaker dirndl type dress shown to the right couldn’t help but satisfy the pride of most any little style-alert girl. It is made of a sanforized-shrunk slub broadcloth in a smart triple stripe design, with white collar and trim on the sleeves. Shopping in wash-fabric sections these days is as refreshing an expe rience as walking through gardens abloom with spring flowers. The Swiss voile florals especially make you feel just like that, they are so Yoke and Pleats Pleating continues to add infinite charm to the majority of print silk dresses. Here is a fashionable Per sian design silk print in bayadere striped treatment. The silk for this attractive afternoon frock has cool lime green and black as its color scheme. Novel pleating lends in terest to the skirt front. The patent leather belt of corselet interpreta tion repeats the colors of the print. Notice the waist is made with a yoke which is a styling greatly em phasized this season. realistically flower-patterned in col ors that are breathtaking in beauty. If there is one sort of frock more than another that will make a dainty little maiden look her prettiest it is a dress of flower-printed sheer and to prove it the adorable child to the left in the picture says inviting ly, “look at me!” She is wearing a dress of fairyspun lawn, which, being pre-shrunk, will wash like a dream, and what’s more the beauti ful print is fast color, assured by the use of vat-dye. You can get these dainty, sheer lawns in the newest color schemes, both in flow ered and conventional patternings. The shops show dresses made up that are surprisingly inexpensive, and so pretty you will want several. Which all goes to show the chic, the charm and the dependable wear ableness of the wash materials that go to make up the new showings. By the way, had you heard that ging ham is making style-high fashion news for spring and summer? Not only are little girls wearing it with their usual enthusiasm for this ever attractive and colorful wash weave, but mother and big sister are order ing tailored suits made of it, for fashion decrees gingham as fashion able to wear about town, at the club and to bridge parties or wher ever you go during the active rounds of the day. Gingham also is the “pet” of the teen-age for party and prom evening frocks. Speaking of frocks for party wear, when you go fabric-seeking be sure to look over the showings of cloque organdies. © Western Newspaper Union. [ Ribbon Ruffles to Trim Chanel Suit Chanel trims a superb dressy suit with applique of tiny ribbon ruffles, around the collar, down the front, and around the lower edge of the jacket and sleeves. The jacket doesn’t meet, so a sparkling white gilet shows at the front. The skirt is slightly gathered and has a row of ribbon applique down the front. . From Molyneaux comes a suit that combines a rose-colored box jacket with a skirt of soft brown. The jacket has revers and pockets of brown. Hat Shapes Most Important Item This spring the shape of a hat will be more important than its trim ming. Straws are spreading out. enormous brims in odd shapes—pa lettes, or shovels or fans. Others, halo style, are tied on with ban danas, mammy style. Doll hats—if you still like ’em—in straw with stiffly starched veils; the inevitable school girl sailor; felts, their crowns blocked in odd shapes; straws with brims like royal crowns, will all be good. Due for Comeback Apparently scheduled for revival is the young-looking “baby blouse” in batiste and sheer. Sheer Formality A favorite for formal afternoon clothes is silk organdy in many in teresting variations. Skirts Are Shorter Seventeen to 20 inches from the floor is the correct length for skirts this spring. Eruckart’s V/ashington Digest Restore Jobs by Helping in Sale Os Products of Farm and Factory That Is Philosophy of Head of Export-Import Bank Which Is Doing Good Work in Financing Trade With S. America; Outstanding Commitments 229 Millions. By WILLIAM BRUCKART WNU Service, National Press Bldg., Washington, D. C. WASHINGTON.—“I am supreme ly confident of one thing—we are making a dent in the job of getting back some of our foreign trade that was lost to other nations in the last few years. Nobody can be sure that we ever will get all of it back, but I am hopeful because this little institution of ours here is showing • that it can function safely and sat isfactorily.” That statement, perhaps, is the best summary I can give of the philosophy of Warren Lee Pierson, the president—and pretty largely the heart and soul—of the export import bank. Likewise, it rather de lineates the program of that little known federal agency; because Mr. Pierson is determined to see Amer ican products, farm or factory, mov ing as of old into the hands of users and consumers in foreign lands. Moreover, to analyze the outlook of the man is to reach a conclusion that he believes the way to restore people to jobs in this country is to assist American farms and factories in the sale of their products. It is curiously true that some of the federal agencies which are doing important work and doing it ef ficiently are least known to the gen eral public. They have no staff of press agents; they seldom “break into print,” yet they seem to be serving all of the people well. Department of commerce reports have been showing how our exports have declined through many months. The records give one the impression that the lines on the chart, showing totals each month, are in a race to see which one can dive faster or deeper. I have won dered where we were headed, as a nation of producers. Secretary Hull’s reciprocal trade treaties have been getting exactly nowhere; and have done so at enormous speed. Secretary Wallace’s ideas for sell ing our farm products have proved to be nothing but dreams and, like dreams, they vanished the next morning, except that perhaps the next day Mr. Wallace’s publicity staff announced another plan. Solution of Unemployment Is to Encourage Industry “What,” I asked Mr. Pierson, “is the answer?” His reply was quoted as the intro ductory paragraph. He seemed fully to recognize all of the difficul ties confronting the United States at the moment. Further, there was every evidence that Mr. Pierson is ! one of the few officials of govern ment who are aware that the solu tion to our unemployment problem is to assist industry so that it can re-employ workers. Unless indus try can be encouraged, it appears that the nation is going to continue with 10,000,000 unemployed as it has for the last few years. I found it refreshing, therefore, to hear Mr. Pierson talk about how a few dozen large factories have been kept open and with relatively full payrolls be cause the export-import bank was able to help foreign buyers who wanted American products but could not pay cash for them. For reasons that I will mention subsequently, however, I had some misgivings about the operations of the export-import bank. I doubted that there would be repayment of money advanced by the bank. “Well, the default is a thing that happens to a greater or less extent wherever credit is extended,” Mr. Pierson explained. “If there were never any defaults, there would be no risk atached to banking busi ness. But, unfortunately, that ele ment must be taken into considera tion. The fact that there is credit risk is why this export-import bank was organized. Os course, there were other reasons, but the instabil ity of some foreign governments, the lack of exchange and such con ditions made it necessary for our government to step in and help those who are trying to export American-made goods. Collateral Behind Notes Is Guarantee of Payment “It is to be remembered that goods for export go in larger quan tities and that necessarily larger sums of money are needed to han dle the transactions. In addition, we have found that, in many in stances, the buyers were what can be termed as good credit risks, but they were unable to make payments of such large sums at one time. Nor were the American manufac turers able to wait for three or four or five years. To do so would ex haust their resources. That is where we come into the picture. “Take a case like this: A South American railroad company wanted to buy some locomotives. Those things cost money. They wanted American engines. But they wanted to pay the bill on an installment basis. We agreed to take about 60 per cent of the notes. Com mercial banks with which the man ufacturer was dealing agreed to take over the remainder on a short term oasis.” All of which sounded very well. But having watched the negotiations with foreign governments over re payment of the loans made by the United States during the World war, I had some misgivings. It seemed that here was another agency doing exactly what Mr. William Gibbs Mc- Adoo had done as secretary of the treasury during the World war. In other words, the futility of ever ex pecting a payment on foreign loans rather had been impressed upon me. I told Mr. Pierson of my feelings. That cannot be so in our case,” he explained. “We have collateral. We have ways of collecting. There are guarantees behind the notes we have received, for example, in the locomotives. We have no fears at all.” The guarantees, the collateral, about which Mr. Pierson spoke, I learned, were in the shape of a bank endorsement. That is to say, one of the South American banks, with deposits in New York and other large cities in the United States, has added its promise to pay to the promissory notes given by the pur chaser. Mr. Pierson did not say so, but it became readily apparent to me that, should the South Amer ican nation concerned decide to for bid payments to foreigners, as has happened before, the export-import bank, if need be, could grab for the South American deposits in this country. Mr. Pierson gave no inti mation that such a course had en tered his thoughts. Concentrate on Financing Exports to South America At the moment, there seems to be quite a concentration of effort to aid in financing exports to South Amer ica. Os course, there have been credits arranged for several places in Europe, too, and also in China. Mr. Pierson is very optimistic about future trade with China. But the bulk of the loans have been in con nection with South American propo sitions. And the fact that the export import bank is paying so much at tention to South America is impor tant in another way. The fascist dictators, Mussolini and Hitler, are driving hard to gain trade footholds in South America. Having the type of government Germany and Italy have, it is easy for them to make any kind of arrangements desired by using whatever government re sources are necessary. It strikes me, therefore, that if the export import bank is making that dent about which I quoted Mr. Pierson in the opening sentence; if it is gaining a toehold in South America against the high-pressure methods employed by the dictators, then it is perform ing a great service for the citizens of the United States. It is conceiv able, indeed, that extension of cred its in the manner described might possibly be the means by which North and South America can be tightly bound to each other in war as well as in peace. There is another thing about the export-import bank that impressed me. It is operating on borrowed money, of course; and the taxpayers will have to make up any losses be cause the federal government ob viously is morally bound to pay off the bank’s bonds if it were to col lapse. But thus far in its life, the export-import bank has had no losses. Thus far, it has been able to pay all of its own expenses out of the interest charged its borrowers. Export-Import Bank Stands To Make Large Profit And important also is the fact that in the current year, barring un foreseen developments, the export import bank stands to make a profit of something like $5,000,000. That ought to be good news to taxpayers during an era when spending money is the first thing to which attention is given. I believe that fact will im press you as much as it impressed me. Mr. Pierson told me that the bank has made commitments, now out standing, of slightly more than $229,000,000. That is to say, the bank has agreed to help finance ex ports to that extent, provided the terms are met, and it must not be overlooked that the bank is rather hard boiled. Mr. Pierson pointed out that the export-import bank had to be really as careful as any com mercial bank, but it can do some thing the commercial banks cannot do—make longer-term loans. Those are the loans represented in the $229,000,00. The figures showed that $67,000,- 000 actually has been paid out to borrowers in financing foreign trade and, of this amount, repay ments under the terms of the loans have amounted to $38,000,000. Which is to say that of the loans outstand ing, well over half have been liqui dated in orderly fashion. That is the record to date, and Mr. Pierson repeated that a dent has been made with a comparalive ly small sum of money. © Western Newspaper Union.