6“ E ARE off the gold standard,”
was the terse but momentous
announcement by Secretary of the
FeEasUY Woodin as he returned to
mess his office from a
conference with Pres-
ident Roosevelt; and
at the same time the
White House gave out
the news that the
Chief Executive had
placed an embargo on
the further export of
gold, permitting the
dollar to depreciate
in foreign exchange,
and was ready to ask
congress for authority
to put into action his
policy of “controlled inflation.” Mr.
Roosevelt himself calls this policy a
program for control of commodity
price levels and says it Is designed
to raise prices but to keep them from
going too far up. He gave assurance
that there would be no resort to
“printing press money.”
Senators Thomas, Byrnes and Pitt-
man drafted the measure to carry out
the President's plan, and it was
promptly introduced in the senale as
an amendment to the pending farm
relief bill, It provides:
1. For expansion of credit up to $3.-
000,000,000 through purchase of gov.
ernment obligations by the federal re-
serve banks. (This means the purchase
in the open market of government
bonds and was tried in the Hoover ad.
ministration.)
2. As an alternative, for the Inflation
of the currency by issuance of green-
backs up to $3,000,000, 000 under the act
of 1862, such currency to be legal ten-
der for all debts, public and private
3. For use of such greenbacks to
meet maturing government obligations
and to purchase government obliga-
tions.
4. For retirement of such greenbacks
&t the rate of 4 per cent a year,
§. For reduction of the gold content
of the dollar not more than 50 per cent
for the purpose of protecting American
foreign trade from the effects of depre-
ciated foreign currencies and to enable
the President to negotiate an interna-
tional agreement stabilizing monetary
standards.
€. For acceptance of war debt pay-
ments up to an aggregate of $100,000.
00¢ in silver at a value of not more
than 60 cents an ounce.
7. For coinage of such silver and de-
posit in the treasury for redemption of
gilver certificates issued aginst it, such
certificates to be used for paying obli.
gations of the United States.
Secretary Woodin drew up the or-
der concerning gold exportation. Un-
der It no gold is allowed to leave the
country except that earmarked for
foreign account before April 15 and
euch amounts as are required to save
American business men from loss on
commitments in foreign trade incurred
prior to the proclamation of the new
policy.
The United States thus has placed
itself on the same footing as Great
Britain and many other foreign na-
tions. Its money is unstable in value
in International trade. It was pointed
out that Mr. Roosevelt could now with
greater propriety propose that all
nations go back to the gold standard
together,
Effects of our plunge into the infla-
tion pool were immediate. Prices on
the stock exchanges and especially in
the commodity markets went up with
a rush and trading was heavier than
for many months, Millions of dollars
were added to the farm value of all
grains, and cotton and sugar also
moved upward, as did provisions.
On the London and Paris exchanges
the dollar sank decidedly. Neither the
British nor the French were pleased
with the President's action. The Lon.
don Daily Telegraph sald: “Following
America's latest action a demand will
arise In every country for fresh de-
preciation so that exporters may not
lose thelr power of competition in
world markets, The pew task of the
statesmen Is to prevent a chaotic proe-
ess of competitive depreciation of eur.
rencies.”
President
Roosevelt
OLICIES of the Roosevelt adminis.
tration are being expanded and ex-
tended so fast and so far that con-
gress and the country are seaicely
able to keep up with
the pace set. One of
the broadest and most
revolutionary of {ts
proposals was submit.
ted to the house com.
mittee on labor by
Secretary of Labor
Frances Perkins in
the form of a draft
bill offered as a sub-
stitute for Senator :
Black's 80-hour week
measure which was Stergiary
passed by the senate
and for the almost identical Connery
house bill, It Is designed to give the
federal government full control not
only over the hours of labor but also
over Industrial production and prices.
The passage of this legislation and of
the pending farm marketing bill would
make Secretaries PPerking and Wallace
virtual
life of the nution,
The legal basis of the labor bill is
to be found in the Interstate commerce
clnuge of the Constitution and in the
“unfair competition” sections of the
federnl trade net, |
It 18 upon these legal powers that
the secretary of labor is to depend
to exercise the following authority:
1. To prohibit from interstate com-
merce articles produced by any indus-
try working its labor more than 30
hours a week or more thangsix hours
in any one day. Milk and cream are
exempted; executives and managers are
exempted; and certain exemptions are
made in the cases of seasonal or oth-
er emergencies. Boards are set up to
regulate such exemptions.
2. To limit and if necessary pro-
hibit from interstate commerce the
production of any plant or Industrial
group which is overproducing.
8. To investigate wages through a
wage board, to fix and impose mini.
mum fair wages: to publish the names
of employers falling to raise wages in
accordance with a direct order to do
so; and to prohibit from Interstate
commerce goods produced by any em-
ployer refusing to comply with a
wage order.
IGHT now the eyes of the world
are turned on Washington, for
the series of talks between President
Roosevelt and representatives of many
other nations have begun, and if the
hopes of the Chief Executive are real
ized they will result in the finding of
a way out of the world depression,
Prime Minister J. Ramsay Mae
Donald was the first of the visitors
to arrive and the first to confer with
Mr, Roosevelt and Secretary of State
Hull. Edouard Herriot, former pre-
mier of France, was close on Mac
Donald's heels, and the others are
scheduled to follow rapidly. No one
of the “conversationalists” is empow-
ered to really decide anything, but all
of them are free to express the views
of their respective governments on
economic matters. It was understood
that MacDonald would not talk much
about the war debts, but Herriot was
authorized to state France's position
on that subject,
The whole series of conversations In
Washington is a preliminary to the
coming world economic conference,
and the hope of President Roosevelt
and Secretary Hull Is that the way
can be paved for rehabilitation of the
world by the lowering of trade bar-
riers and monetary stabilization. They
will gladly abandon America’s tradi
tional high tariff policy If the other
nations are willing to co-operate and
reciprocate,
EPUBLICAN postmasters who have
demonstrated their efficiency are
to’ be permitted to complete their
terms. So announces Postmaster Gen-
eral James A. Farley,
to the joy of several
thousand G. O. P. of-
fice holders and the
corresponding dismay
of a great army of
Democrats who would
like the jobs. Mr. |
Farley says his party
has long stood for the
civil service system
of competitive exam- i
inations and “will not
abandon that high JA Farley
ground,” so he gives out this message :
“No incumbent whose term has not
yet expired and who has been render.
ing loyal and efficient service to the
government need . have the slightest
fear of removal. It will be the policy
of the Post Office department to allow
every efficient postmaster to fill out
his term.”
District attorneys, marshals and
collectors are not under civil service
and in time these places probably will
be filled with deserving Democrats
Also there are hundreds of vacancies
in the postmasterships to be filled Im-
mediately, and these will be filled as
soon as Mr, Farley's department has
completed a study of examination
methods,
The postmaster general makes the
welcome assertion that the United
States post ‘office Is going to pay its
way héreafter. He alms to save $72.-
000,000 in the coming fiscal year, and
this, he belleves, will suffice to bail.
ance the postal budget.
APAN'S armies in China continued
their advance south of the great
wall, driving before them disorganized
or traitorous Chinese troops. The
Japanese at latest reporis had ocen-
pled the entire triangle between the
wall and the Lwan river, with its base
on the gulf of Pohal, and were moving
onward toward Tientsin. They crossed
the river near Lwanchow and bom-
barded that city and the surrounding
region. There was great alarm In
Tientsin, where some 400 Americans,
mostly business men and their fam-
flies, reside.
When the Japanese started their
push Into the undisputed Chinese ter-
ritory south of the great wall the
Lwan river was set as the limit, But
the Japanese command now has an-
nounced that they will continue the
pursuit as far as the Chinese con-
tinue to set up defenses. The Jap-
anese authorities deny, however, that
they Intend to occupy Peiping and
Tientsin, Their apparent plan is to
create a buffer area out of the triangle
newly conquered province of Jehol
They have gained control of all the Im
portant passes through the great wall
on the southern border of Jehol and
the gates have been sealed und heavy
guards placed at
waged we’ them.
UBA'S political disorders, murders
and bombings, of which much has
been written In recent months, have
finally enguged the attention of the ad-
ministration In Wnash-
ington Lepresenta-
tive Hamilton Fish of
New York has been
urging our govern-
ment to employ diplo-
matic intervention to
end the “reign of ter-
ror,” and sald he
would formally de-
mand that Secretary
Hull take such a step
unless the adminis-
tration got busy very
For a time Mr. Hull seemed
averse to any interference, but Mr.
Rep. Fish
Cuban ambassador, Don Oscar B. Cin-
tas, to the White House for a discus-
sion of the situation. The ambassador
also conferred with Sumner Welles,
assistant secretary of state, and then
Mr. Welles went to the White House
for instructions,
Mr. Roosevelt has no desire to or-
of Cuba, which he could do under the
Platt amendment, holding that this
would cost us a lot of money and be
sides would enrage President Machado
and create an unpleasant diplomatic
situation. Therefore his present plan
is to take steps to redeem the island's
financial situation, which is wretched,
and to relieve the unemployment and
discontent that are at the bottom of
Cuba's difficulties,
department wish to Increase the sugar
stantial reductions to the
the sugar tariff. This, naturally, wil!
not please the domestic cane and beet
sugar industries, whose representatives
are nervously watching developments
officials In Washington that opponents
forts to overthrow his regime, perpe-
trate some outrage against American
interests in Cuba,
uation in which the
might be compelled to intervene,
MBASSADOR JOSEPHUS
iels reached Mexico City
heavy military guard and after one
attempt was made to wreck his train,
Immediately after his arrival in the
capital the unofficial crities there of
his appointment let it be known that
they had had a change of heart and
no longer were hostile. Mr, Daniels wns
formally rece Foreign Minister
Casnsuranc,
and pleasant chat,
DAN-
ved by
and later presented
pression on me” Cassurance sald
“While it was simply a courtesy eall,
we had a very agreeable chat,
ing topics of general
nomic, educational,
interest In eco
and social fields.”
“1 had a very interesting and de
lightful visit,” Mr. Daniels said.
foreign minister was very gracious, 1
propose to avail myself of his hospi
tality often”
OSCOW'E famous trial of six Brit.
ish engineers and eleven Russians
bribery ended in the conviction of five
of the Britons and tem of the Ras
sians. lL. C Thornton was sentenced
to three years in prison: W,
Donald, who pleaded guilty, to
years; Allan Monkhouse, John Cushny
and Charles Nordwall were
deported; A. W. Gregory was acquit
ted. The ten Russians were given
prison terms up to ten years
unless it were the mildness of the pen.
alties inflicted.
The British government, which had
interest, struck back at the Soviet
union promptly. King George and the
privy council declared an 50 per cent
embargo on Russian imports and the
Metropolitan Vickers Electrical Equip.
ment company, employer of the con-
victed men, ordered an immediate ap-
who were sent to prison.
YRON C. TAYLOR, chairman of
the United States Steel corpora-
tion, has added his volce to the chorus
of industrial executives who believe
the course of the de.
pression has turned.
At the annual meet-
ing of stockholders in
Hoboken, Mr. Taylor,
who is noted in the
financial district for
the ecautiousness of
his utterances, de
clared:
“Better
ahead” 42
And In support of
this bellet he cited "-C-Taylor
the fact that the corporation was op-
erating at 21 per cent of capacity, the
first time that operations have reached
this level since March, 1082,
Following his address Mr. Taylor
presented to the meeting a motion by
a stockholder for a vote of confidence
in the Roosevelt administration. It
was carried without dissent by a stand.
ing vote.
times are
ister to Denmark and the first
American woman to be given such a
diplomatic post, has told the newspa-
per men that she intends to serve heer
in the legation in Copenhagen, which
is something for the daughter of Wil
liam Jennings Bryan, lifelong advocate
of prohibition,
“Yes,” she sald, “I will serve 8.2 per
cent beer, It is In Keeping with the
law of my own country and the custom
of the land to which I am going. Dut
1 don’t consider that important, | am
really interested in the progressive de
yelopmunt in Denmark which | hope
to study for my country.”
oe 1, Western Newspaper Union,
. *
Washington.—President Roosevelt is
secing the start of a great national
project that is for
Roosevelt’s him the realization
Dream of a dream he has
pursed for years.
His ideas for reforestation of idle
lands have been enacted into law that
may be met, Thousands of men are
being drawn from the ranks of the
unemployed In a score of cities and
are receiving thelr training that they
as the Civilian Conservation corps may
go into designated areas to replant
the forests that have been devastated
by the ever-encroaching hands of in-
dustry.
Mr. Roosevelt looks upon the pro-
gram that may cost ag much as $800,
definite purpose and a definite value to
the country. It is possible to employ
under the terms of the
Each man will be paid
he is
army and is fed and elothed on the
The
pay back to his family, thus relieving
local charity of that charge.
In purpose, the reforestation move
ment is broader than just the plant.
Ing of new trees; it is to be a scien
tific job In that engineers will consider
ing of soll erosion or washing, and
The
therefore, constitute a
sources of a national character and
the program as a whole bears the
The President Is under no illusions
shout the project. In chats with news.
paper correspondents he has made it
clear that he realizes the total of un
employed to be given work Is only a
drop in the bucket. But be contends
even that number gainfully employed
will have some effect on the general
situation and that they are doing a
useful work. Advocates of conserva
tion of national resources agree that
the work Is useful, yet among many
In this connection, some of the ar
gument used in debate on the legis
It was declared, for example, that an
the plan,
from an unemployment standpoint, Is
use of double the number, accomplish.
ing a distribution of the work. Such a
ers away from home without attendant
expenses of food and clothing for the
Hence, it was argued
that work should have been made In
the home communities of the men.
den upon the present taxpayers for
production of a future asset,
* . -
Considerable complaint has reached
Washington about the methods em
Recruiting the men for service
" Criticized ©! the. forestation
work Officials
charged with supervision of the work
say, however, that objections and crit.
feisms are to be expected and that
thelr instructions to the recruiting
agencies naturally must leave some
discretionary powers to the subord!-
nates,
In addition to the “red tape” so
usual in government affairs and not
iacking In administration of the for.
estation program, reports here Indl
cate a tendency on the part of some
recruiting officers to be dictatorial and
to arefuse to cooperate with local
charitable Institutions, Corps head.
quarters here denies that local charit-
able agencies have not been consulted
so that the most deserving individuals
may get a chance to join the civilian
service If they desire,
At any rate, the picture of the great
program for restoring the country's
forests and providing work at the
same time holds forth Indications of
trouble. In fairness, it ought to be
sald, according to general opinion
here, that Mr. Roosevelt has promoted
a scheme of exceedingly high purpose
bit that It Is of the character that
permits extreme abuse exactly as do
so many idealistic plans, T have heard
some of the President's supporters in
congress express fear coticerning the.
eventual reaction of the country to
the plan. That, of course, Is a polit.
ont one of the possibilities.
A few years ago, It was quite the
thing to lssue bonds to pay for public
I m provements,
Bonds and States, counties,
EmptyTreasuries cities towns,
school districts,
road districts, levee districts, drainage
districts, irrigation districts and every
other subdivision of government was
fssuing bonds with reckless abandon
and making improvements galore. 1
have been unable to obtain from any
Le
source ap accurate figure as to the
total amount of such honds, but with-
out doubt they run into a good many
billions of dollars.
But now the day of reckoning is at
hand. Bonds must be paid off and re-
tired by many communities, or if the
principal is not due, there is yet the
interest to be met. And ihe treasuries
are empty!
S80 it was only natural that the
theory of scaling down those debts
should be examined and In conse
quence of this, Representative Wilcox,
of Florida, has introduced in the house
a bill providing for any subdivision of
government to declare itself bankrupt
and ask the bankruptey court to help
it arrange a composition with its cred-
ftors. There Is, of course, nothing new
or radical about that dill, It pre
sents the only way out, both for the
communities whieh sold the bonds dur-
ing Its wild orgy of spending, and for
the Investors who acquired the bonds,
In the case of the community which
bonded itself, the bankruptcy court
presents a way by which a part of the
debts can be pald and the city's
finances, or whatever subdivision ft
may be, can be arranged to meet new
conditions. In the case of the bond
holder, it is either go along with the
community In a cooperative spirit,
share part of the loss and provide a
chance for the debtor to pay ont, or
see the whole Investment go up In
thin air,
® . .
With reference to the Wilcox bill, I
was told by a representative whose
district
Might Hart the city of New
City’s Credit York that enactment
of such
would damage the credit of that great
city. People would fear that its bonds
also would become worthless or that
they would have to accept a proposal
for composition of all claims, each
creditor taking a proportionate share,
My answer was that any person hold-
ing a bond of a city or county or road
district school district or what not
cannot possibly be so blind as to avoid
seeing the true facts
to fear:
try to “kid” the
has nothing
so, why should It
people?
I mention New York as an example,
and because there are a score of other
cities in the same situation. They
are not insolvent as long as the people
can pay the taxes lald upon them.
People are pot paying taxes, however,
because they cannot do so, In many
scores of localities, So a thorough
study of the entire situation would
seem to force the conclusion that some
legislation such as the Wilcox bill Is
inevitable. Creditors must take half
a loaf as better than no bread at all
The Wilcox bill proposes that when
8 comitnunily Is in default on its
bonds, it may seek the aid of the fed:
eral court and negotiate an adjust.
ment which, If it be acceptable to
three-fourths of the creditors, calen-
lated on the amount of the claims or
bonds they bold, the other onefourth
becomes bound by the court decision
or affirmation of the agreement. The
bill would compel the taxing dictrict to
make preparation in advance for rails
ing revenue to pay off the revised debt
80 that there could be some assurance
of final settlement,
- . -
But the Wilcox bill 1s having its
troubles in getting onto the greased
runways of favored legislation. De
spite the fact that the theory of it is
precisely the same as the Roosevelt
theory about scaling down debts owed
by farmers and by owners of homes ia
town, there has been no nod of Instroe.
tion from the White House thus far to
put the legigation through,
-
Few people In he country recog.
nize how many cities, towns town.
ships and the varl
Hundreds ous kinds of districts
in Default
the payment of In
terest or principal or both. It is a
condition that now has affected more
than 300 communities, and May and
June will see enormous additions to
that total for in those months there
are numerous bond issues on which
either the interest «or principal ma-
ture, and the issuing communities are
without funds to meet the obligations,
There are communities In 41 states
right now where bond issues are In
default, and this appalling condition
s*sws no signs of ahatement,
Truly, the politicians who cam-
paigned for such things and who
claimed to be promoting great Im-
provements for the common good are
no longer In a position to serve their
communities
from pure curiosity, I examined
gome of the statistics for half a dozen
or more communities whose bonds are
in default, and they showed the amaz-
ing result of total hond issues in one
or two Instances that ware as great
an the appraised value of the prop:
erty in the whole community. Theo
retically, you know, a bond issue of
that type congtitutes a first llen (Just
like a mortgage) on factories, stores,
residences and other property of the
community, It is easy to see, there
fore, why the names of those com:
munities have been omitted from this
analysie,
© 1933. Western Newspaper Union
Howe About:
Poor Advisers
Drag on Progress
Geniuses
By ED HOWE
N 1020 the President
Research Committee on Social
Trends. The members were the most
notable of the college professors, sev.
en In number, and thelr report has re
cently been made, With one exception
everything In it might have been ree
ommended by a similar commission
appointed by Joseph Stalin, the scoun-
drel who heads the Soviet government
in Russia. The one exception is that
the members express faith in private
property, but the belief Is also ex-
pressed that violent revolution In
America Is probable, If not inevitable,
and that the Injustices we
warrant such revolution,
Arthur Bchopenhauer is, 1 believe,
accepted as one of the ten most intelli.
gent and best educated men in sll his
tory. He contended steadily through
out his best years that college profes.
sors are the least reliable of all advis.
ers, because of thelr seclusion from
practical affairs, and their enormous
prejudices and over education
The President must have known this
I wonder he did pot appoint on the
commission some of the more notable
men of practical sense and educat]
and save us from this humiliat
broadcast, The report comes at
time when the Soviet doctrine is fall
ing to pieces of its own weight, from
having been put into effect. It comes
at a time, also, when the intelligent
world Is most interested In attempts
appointed a
practice
own borders.
A report
forts of the
encouraging renewed ef-
respectable majority ev-
the Russian monster would have been
wiser, and more in accord with the
The Rus
the
their own
that we si id be placed
on record as encouragir ir ghastly
another n
is not only humiliating, bu
The rep
glans are being starved out of
le expert-
ft as
ort of the commis
the
them-
more to be
. ® .
irs there is a new
much
tter of
their
Every twenty yes
crop of young men,
expected. As a ma
practical fact young men,
immature, rebel! 18 notior
drag on sound p
8 generation gets
seltled
ceed with greater
gence, along comes aNO
young men to disp
decided upon, and the
over again.
of whom so
with
ETERR
things
preparing t
peace and
oy lot
” 2
and is
* * *
The feats of have never
greatly astonished : 1 have been
more interested in the amazing manner
in which common men have been able
to get along with no greater effort
than the practice of natural habits,
1 have concluded there is no such
thing as genius, unless it is determl-
nation and ability to steadily follow
the simple rules of morality. History
tells of a people who were once slaves,
but able to overcome their masters by
patient practice of industry, efficiency,
reliability, saving. Such information
as the masters had, the slaves acquired
and improved. The rowdy masters
disappeared from the face of the earth,
but the slaves survived because of bet.
ter habits.
I wonder an American is not
ashamed to fail in & country where
a good living is so easily made.
»* » *
Women believe men hover around
them because they need the counsel,
wisdom and morality of the sex.
Men are not attracted to women by
any of these things; women them-
selves say men are famous for hover.
ing around silly women, and will not
warry women of real worth.
* - .
At a time when many of the Romans
had statues erected in their honor, &
man asked Cato, the elder, why he had
none. “He answered: “I much prefer
that men ask and wonder why I have
no statue than wonder that I had one.”
- * -
It Is aiways wise to remember that
your mind is as much a part of your
body, and needs as much help and man
agement as your stomach, your ears,
or your eyes; your mind is not a no-
ble thing that functions without care,
or assistance, or the teaching of ex-
perience.
.
When I hear men are steeped In sin,
it occurs to me they have done rather
well In spite of it. Of twenty discov.
eries of greatest use to mankind, thir
teen were made in the last hundred
years, as against seven in all preced-
ing time,
in the early days of the republic
one Cotton Mather believed Ameri
cans were 80 sinful they were likely
to be destroyed at any time, and he
expected no Improvement. Since his
day the country has shown a develop.
ment that the men of all time will
marvel about. What Cotton Mather
telleved the people needed most, they
the geniuses
A good many flirt with the devil,
but every morning there are sufficient
sober men at desks, benches, and
pove'te entry wn 4 Cruditatie Gag,
"Rn man arate wx tin
i a