By EDWARD
BACKED by the administration, by
the big Democratic majority in the
senate and apparently by the favor of
a large part of the population of the
: , country, the Thomas
inflation amendment
to the farm relief
bill won an easy vie
tory In the senate
With this most por
tentous addition the
farm bill was passed
and sent back to the
house for concurrence.
The anti-inflationists,
led by Senator David
A. Reed of Pennsyl-
vanin, made a des
perate but hopeless fight, arguing that
while “controlled” inflation, as prom:
ised by the amendment’s sponsors,
might temporarily restore a mensure
of prosperity to the nation, previous
experience here and abroad showed
that control could not be maintained
and that the ultimate results would
be disastrous. Reed, Tydings of Mary-
land, a Democrat, and others seemed
terribly dismayed by the prospects for
the future and their sincerity could
not be doubted.
Senator Thomas of Oklahoma him.
self led the debate for the affirmative,
opening with the startling statement
that the amendment, if it prevailed,
should transfer value to the extent of
almost £200,000 000.000 from
itor class to the debtor class
the effect
wenkened
people cannot
Sen. Thomas
y
the cred
Of course,
of this ass on is greatly
1lizes that
divided
when one our
really be into
a ered.
also a
such classes. There is sea
ftor in land who
debtor, and vice versa,
the
and many another were ignored by the
nts of inflation, Senator Pat
Mississippi, for instance,
on the second day of the debate, con-
fined his efforts mainly to taun
“Mellon-Mills- Reed” for
leged fail Hoover ad
ministration.
The Wheeler-King
amendment was accepted by the sen-
ate. It would enable the President to
fix the ratio between gold and silver
and to provide for unlimited
age of both metals at the ratio so
fixed.
z the
group its al
ures the
silver coinage
coin
UST what Inflation, even If *con-
trolled,” will do to the nation and
its business is a question on which
economists and financiers are as far
apart as the poles. For the present
the prospect of its adoption and the
abandonment of the gold standard
have served to create almost a boom
in certain lines of business. and the
prices of commodities have begun to
risa. But. how this will In the long
run benefit the ordinary citizen has not
been shown to the satisfaction of most
of us
An especially clause In
the Thomas amendment is the one giv.
ing the President power to devalue
the gold dollar to the extent of 50 per
cent. Senator Borah, an inflationist,
argued that this would be declared un-
constitutional. It may be this power
will never be exercised by the Presi
dent, but if it is it will be followed
by sieps to abrogate the gold clause
in bonds, mortgages and other con
tracts. Provision for such action is
made in the pending Goldsborough bill
which provides that existing contracts
shall be satisfied by payment of their
face amount in legal tender, that after
its enactment, gold clause contracts
cannot be made legally and that any
profit made from exchanging gold for
legal tender would be subject to a 100
per cent tax.
Some experts are of the opinion that
the inflation bill may never be used;
that it is “a mere bluff intended to
have the very effect it is now having
arresting and reversing the downward
course of prices,” and giving the Presi.
dent a better position in the economic
conversations with foreign statesmen,
as did the abandonment of the gold
standard, which also was inflationary.
dangerous
AR debts and reduction of arm-
aments came to the fore in the
White House conversations as Prime
Minister MacDonald concluded his part
of the parleys and
prepared to depart for
home, and former
Premier Edouard Her
riot of France began
his sessions with the
President. These three
gentlemen met togeth
er, and after an in
formal dinner, Mr. |
Roosevelt took up the
disarmament question
with them, his evi.
dent purpose being to
bring France into line at the Geneva
conference, French demands for
gunrantees of security against attack,
which bave blocked all agreement
hitherto, were discussed by the Presi
dent, and it was sald he indieated that
he wis “searching sincerely for means
of pecaciating the United Sintes” with
international ofiorts to check nggres
sor notions Ruch association might
tnhe the form of consultation with
glgnatories of the Kellogg peace pact
in the event of ig clolation., And in
Bi
M. Herriot
W. PICKARD
addition there is the administration
bill authorizing the President to join
other nations in declaring embargoes
on arms and munitions.
As for the war debts, they were first
brought up by Mr. MacDonald, who
let Mr. Roosevelt know that Great
Britain would like a downward re
vision; and their communique sald
that the basis was lald of a clearer
understanding of the situation affect.
ing the two nations, though no plan
or settlement was under way yet. This
encouraged M. Herriot and his expert
associates to press the arguments of
France for cancellation.
Then Mr. Roosevelt let the corre
spondents know that he was planning
to ask congress for authority to re
open the war debt settlements and
negotinte a reduction of the 11 bil
lions which European nations owe the
United States. If he were vested with
this power the United States would
enter the London conference prepared
to bargain for stabilization of curren
cies on a modified gold basis, re
monetization of silver, lowering of
tariffs and other trade barriers and
adoption of measures to ralse com:
modity prices and restore purchasing
power,
Members of the French delegation
said the President had promised Mac
Donald and Herriot that he would ask
congress for authority to postpone the
debt installments due June 15,
that in return Herriot would ask the
French parliament to pay the defanit-
ed December 15 payment of
(Hu)
As Mr. MacDonald said good by to
the White House, he and Mr
announced that
the following:
An increase in the general level of
commodity
and
£10.00), -
Hongevell
they had agreed on
prices
te-orientation of commercis
Reduction of tariffs, quotas
change restrictions.
World expansion of credit,
Capital expenditures by governments
to stimulate business,
Re-establishment of an international
monetary standard.
Improvement of the status of silver.
“
1 poli
{ ies
and ex
RIME MINISTER RICHARD B
lennett of Canada was already in
Washington to talk with the Presi
dent ; Finance Minister Guido Jung of
italy and Hjalmar
Schact of Germany
were on their way,
and Japan announced
that Viscount Kikujiro
Ishii would arrive
May 23. Mr. Beonett
told the newspaper
men that Canad
stands ready to
cuss any proposals
he! _ that look toward clos
er commercial rela.
R. B. Bennett tions with the United
States, and sald the Ottawa agree
ments do not affect these trading pos
sibilities, In a prepared statement he
used these emphatic phrases:
“We have reached a point where it
is certain that nothing but united ac
tion can avert world disaster.”
“Immediate action is imperative™
“The world Is in tragic trouble and
distress.”
“If we do not soon defeat the forces
of disruption and discord, they will
defeat us”
“We must act boldly and unselfishly,
otherwise we shall be certain wit
nesses of the wreck of our civiliza.
tion."
Asked whether Canada really had
gone off the gold standard. as had been
asserted by Finance Minister Rhodes,
the prime minister replied: “Canada
is as much off the gold standard and
ns much on the gold standard as the
United States.”
dis
EFUSING to accept the Norris
senate bill as a substitute, the
house passed the McSwaln bill for the
operation of the Muscle Shoals devel
opment, the vote being 300 to 01. Sev.
enteen Republicans and five Farmer
Laborites voted with the majority,
The house version is regarded as a
less drasiic messure than the Norris
bill. The principal point of difference
between the two Is that the house bill
provides an appropriation of $10,000,
000 and a bond issue of $50,000,000 for
starting the development program,
while the Norris bill simply authorizes
“all appropriation necessary.” The
Nebraskan's measure Is likewise more
rigid with regard to government con
struction of power transmission lines
HEN the world disarmament con.
ference resumed its sessions In
Geneva the French plan for an antl
war pact of consultation was present
ed by Rene Massigll. It excluded
the American continent on the ground
that it was Impossible at present to
make the pact aniversal. Massigli sug.
gested the creation in the capital of
ench signatory power of a commission
which would determine violutions of
the Briand-Kellogg pact and the rights
of a victim to assistance,
Conerete mensures to prevent mis
ure of civil airplanes for military pur
poses were presented by the United
States, Canada, Argentina and Japan,
NjussoLInrs four-power pence
plan Is causing a lot of excited
discussion In various European coun.
tries, Great Britain and Germany
might gladly agree to this, but France
still asserts the sanctity of treaties
must be respected, and in this she is
of course supported by all the nations
of the little entente, and by Poland,
In Czechoslovakia especially sentiment
was aroused, and Foreign Minister
Edouard Benes told the parliament in
Prague that whoever desires to change
the boundaries of that country must
bring an army along with him. [He
criticized the Mussolini plan as a
“oreat backward step,” and
with
ritory always Is connected
bloodiest wars."
Gorner Russia was on the verge of
‘J a quarrel with Japan over the
equipment of the Chinese Eastern rail.
way, and In that connection It
interesting to note that a new align-
together, the former drifting away
from Germany and the latter begin.
ning to take sides agninst Japan. Al
ready the French and Russinns have
formation and military Instructors,
Before long the situation on the Euro
pean continent may be pan-German.
ism against pan-Slavism, with France
on the side of the latter and Italy
with the former.
ONTINUED Chinese resistance near
+ Kupeikow pass on the road to
PPeiping so enraged the Japanese mill.
tary command that it announced the
early occupation of all strategic points
in the North China area. With this
in view, the Japanese launched a gen-
eral attack south of the Great Wall
designed to open the way to the old
Chinese capital, As usual, Japan
finds a ready excuse for offensive
movements already planned,
The Manchukuoan government has
announced that only nations recognisz
ing that state will benefit by iis prom-
ise of an open door trade policy
HE Nazi
Jews
azainst the
continues with
If th
ency is
teach them
Goebbels procinimed
serve,
1 as the
to the
May
wf labor
festal day tional
disgust of the Co unista, who have
long consideres day sacred to
their
Students of
the
fessors to resign,
The anti-Jewish movement also was
manifested in Rumania, where a ten.
day boycott of all Jewish shops in the
province of Bukovina was ordered by
a Fascist organization,
CR Use,
asked
pro-
Kiel university
rector to compel 28 Jewish
ORMER Nellie Tayxloe
of Wyoming finally has been placed
in a federal position. The President
appointed her the mint
Obviously Mrs, Ross was entitled to a
good place, for as chairman of
the Democratic national
and head of the pariy’s women's or-
ganization she has been very active
and valuable
Gov floss
director of
vice
commitiee
“ EPUBLICAN Federal Assocl
ates” is the name given an or
ganization just formed by men promi
nent in the Hoover administration to
aid the party in re
turning to power In
the 1084 congression-
al elections. Walter
F. Brown, former
postmaster general,
is its president, and
Ogden Mills, secre
tary of the treasury
under Hoover Is
chairman of the
bo board. Arch Coleman,
who was first assist.
Ogden Mills ant postmaster gener.
al in the Hoover administration, is In
charge of Washington headquarters,
and W, Irving Glover, who was second
assistant postmaster general, is di
rector of organization,
Mr, Coleman said the organization
was primarily to keep together those
who have been active In Republican
circles for the last twelve years; to
on, and to bring back to the party fold
those Republicans who supported
Roosevelt last year
Ernest Lee Jahncke, the Hoover as.
sistant secretary of the navy, Is first
vice president; Mrs, Nicholas Long.
worth, second vice president; Charles
J. Moos, third vice president; William
R. Castle, treasurer, and Coleman,
general secretary.
Six of the Hoover cabinet members
are represented on the board of di
rectors—Mills, Brown, Roy D. Chapin,
Arthur M. Hyde, William N. Doak and
Ray Lyman Wilbur, Others include
Walter E. Hope, former assistant sec
retary of the treasury: James J.
Patchell, Union City, Ind. ; Mrs, Long:
worth, Castle, Moos, St. Paul; Jahncke,
Harry Culver, Culver, Calif, ; Coleman,
Glover, John Richardson, Boston; Fer
ry K. Heath, former assistant secre-
tary of the treasury, and Mrs Albert
3, Sims, New Mexico.
ISCONSIN has the honor of be
ing the second state to ratify the
prohibition repes! amendment to the
Constitution, and the first to do that
by unanimous vote, Fifteen delegates,
assembled In the Capitol building in
Madison, were addressed by Governor
Schmedeman, and in eight minutes
thereafter the resolution of ratifica
tion had been drawn up and adopted
to the a niment of cheers,
© 1932. Western Newspaper Union.
{
Howe About:
Ordinary Men
Washington.~The structure which
we know as our currency has been
undergoing a
Epochal Change change in the last
. few weeks that Is
urrenc,
in C y epochal, and It
America's departure
dered by President Roosevelt on April
21 undoubtedly will stand as one of
the milestones of this age, and it is
a thing constituting a new experience
millions, They, and they alone, can
tell of their own knowledge what hap-
pened in the “greenback days” after
the Clvil war,
In addition to the action of the
President in ordering the country's
currency off of its basis of gold, other
and equally important phases of the
currency changes have been accom-
plished in the time which we may
later recall as the crisis of 1033. We
have seen the most extraordinary pow-
er ever accorded to a President of the
United States delegated by congress to
Mr. Roosevelt so that he can exercise
the unlimited powers of a dictator over
our currency within a specified range.
He sald he considered those powers
essential, and congress gave them to
im without question.
Thus in the space of short
weeks, our nation has seen cur-
rency structure lifted bodily from the
foundation upon which it has rested
more than half a century and rebuilt
into a fabric of flexil y equaled only
by the
the
the i
empowered
value of the mone)
a few
its
possible changes in the coat of
chameleon, Within the range of
imits fixed, the President has been
actually to prescribe the
and I use,
at you
appened, an
d, if that be |
wiedge of the fac
the banking
a kno
ugh
ed. Since
embrac
iday of March, the money
of the country has been |r
the sn has been watched by all
nations, been
nervon
peared that the
in the United States was not regarded
throughout the world as able to meet
stunt
many of whom have
signs
enormous gold stock
18, and frequent have ap-
ths demands should all foreigners hav-
ing in this country
withdraw it. The President,
and the Federal Reserve board
read those signs as dangerous. They
saw, the tendency of American
commodity and security values to slide
and down. A choice
had to be made. The President made it
money decide to
the treans
urs
fon,
further further
By one simple order, the President
iaid an embargo on exports of gold
In effect, he sald the United States
government will no longer permit any-
body to pay their bills abroad in gold,
that is what happens
po gold exports allowed,
simaple order had a broader effect
The result of It was that dollar
in American money, measured as it
must be alongside of foreign curren-
cles, was worth less than when those
abroad entitled to receive funds were
able to get the gold if they wanted it,
One may consider that the effect is
pes chological or however you may de-
scribe it, yet the end is the same, The
law of supply and demand encom-
passes the currency like it does every
other material thing.
* . -
80 the President decided to allow
the dollar to shift for itself in the for.
eign exchange field
Dollar Down, In reaching that con-
Prices Up clusion. he elected
to provide protec
tion against further declines, tem-
porarily at least, In the prices of farm
products, of commodities such as iron
and the natural mineral resources,
because
That
are
the
Those prices automatically increased
as the value of the dollar, measured in
exchange of other currencies, de
clined.
To state it in another fashion, when
gold standard, immediately there was
the possibility of a limitless amount
of currency being Issued. If the cur
rency were on the gold standard, each
paper dollar was supported by a re
serve of 40 per cent in gold and the
amount of currency that could be issued,
therefore, never could be more than two
and a half times the amount of gold
held In the Treasury and Federal Re-
serve banks, That amount is in ex-
cess of £8,000,000,000,
But the fact that there is a topmost
Himit beyond which currency could
not be issued, because there is not
gold to support It, is held by the sound
money advocates to establish a unit
of value of currency which is not sus
ceptible of fluctuation. That is the
reason they urge retention of the gold
standard, Departure from the gold
standard then was a8 matter of grave
concern to them, for they believe the
dollars they own will be worth less,
measured in the commodities the dol
jars will buy and by the value at
which they will be taken in trading
with foreign countries,
On the other hand, there were many
who were overjoyed when the Uresi
dent withdrew support for the dollar,
which is the tenchnienl way of saying
that gold would not be paid out in set-
tiement of foreign bills owed hy Amer
teans, It is the contention of this
school of thought that the dollar has
fluctuated and that the commodities
constitute the thing of fixed units of
value, Consequently, when Mr, Roose-
velt's action caused an Increase in
commodity prices, this group argued
the dollar was and had been 100
“dear” and ought to be made cheaper.
Similarly, they asserted there had been
a shortage of currency throughout the
depression and that there could never
be sufficient currency if the gold basis
were continued, This was so, they
claimed, because there was not enough
gold in the world to permit retention
of a gold backing for each dollar of
currency.
» » .
of those favoring a
of currency was in-
creasing numerically
through the last
several years. Con-
sequently, there
were more of them in congress, This
is attested by a vote which the senate
took on an amendment to permit free
and unlimited coinage of silver. The
amendment was defeated, it Is true,
but the vote showed 33 senators in fa-
vor of it compared with 47 nays. That
is the largest vote polled on the ques
tion In more than 30 years,
In the meantime, the President was
getting ready for conferences with
the heads of eleven foreign govern-
ments on economic and financial ques-
tions, Most of those nations were
using exactly the same cur.
rency as ours became after support
for the dollar was withdrawn, He en-
on even
The strength
greater amount
Free Coinage
of Silver
busls
tered those conferences then
terms, insofar as currency wis oon
cerned.
. »
the departure fre
ird eanused a need
Hence
was needed an
stand
intion. the Pres
what
give hin
whatever was needed,
demands of the | n
ation au-
any or all of
in his discretion,
them to put into
thority for him to use
their several schemes
There is nothing mandatory
He can use the powers or not
as he chooses, or as the pressure of
public opinion makes a given course
of action seem advisable,
Under the terms of the legiglation,
are permitted between
the Treasury and the Federal Reserve
board and the Federal Reserve banks
whereby the Reserve hanks would buy
$2000,000,000 worth of government
bonds from private owners The holders
would be given the reserve
institutions In their securi-
ties. Thus banks holding government
bonds would be given cash Instead of
interest-bearing bonds, and the theory
is that since the cash would not bring
8 return, would seek to
about
them
negotiations
cash hy
place of
they
If it works that way, it means
that the banks would seek to encour
age use of money in business enter.
prises. A condition known as an “easy
money market” woud obtain,
. . *
It Is to be remembered, however,
the Federal Reserve Banks are
quasi-private
As Greenbacks banks It is poss
Were Issued ble for them to re
fuse to buy the
government bonds In the manner sug-
gested, so the law provides that the
Treasury may buy $3.000,000,000 In
government bonds and pay for them
in “United States notes,” just as were
issued in the days of the greenbacks
after the Civil war. This would pour
just $3.000,000,000 of new money into
circulation. It will have either gold or
silver back of it, but it remains to be
determined which and in what amount,
so it is an inflationary provision,
In the case of purchase by the Fed.
eral Reserve banks of the bonds in
question, the law provides that the
that
moneyswas issued by the Treasury to
pay the bonds, a sinking fund is set |
up to retire the notes. It Is provided |
that at least 4 per cent of the out |
standing United States notes would be |
retired each year through an appro- |
priation of funds by congress for that |
purpose.
Another provision of the law allows
the President to change the value of |
the gold dollar. Under the previous !
law, it was required that a gold dollar |
should contain 25.8 grains of fine gold, |
or pure gold as we know it. The new |
jaw, however, gives the President pow
er to reduce that gold content by as
much as 50 per cent,
The third major section of the law
allows the President to accept sliver |
of their war debts to the United |
States. He 1s limited in this respect,
however, and may not accept more
than $£100,000,000 in any one year, or
about one-third of the annual pay-
ments in interest and principal. He
eannot receive it If the price is above
50 cents an ounce. Present quotations
are less than that, The silver accepted
in payment of war debts is to be the
bakin for the issuing of silver certifi:
cutes, but there is no payment due on
these debts until mid-June and so if
any of the foreign nations are granted
the privilege by the President, there |
ean be no currency Issued against the
funds until after June 15,
© 10" Western Newspaper Union,
By ED HOWE
ggo on reading a statement in a
phers, professors and prophets go so far
I was startled by the statement be.
reading books of the Intelligentsia de-
creatures, and must be constantly di-
rected by preachers and writers,
I think this great compliment was
paid us by Herbert Spencer; and there
evidence to warrant it. In
the ordinary working Ameri-
are accepted as superior men,
and sent for as foremen in building
factories, railroads, power and irriga-
tion dams, ete. But note the contempt
the Russian leaders express for our
writers and statesmen! None of thelr
notions are accepted,
I give credit above to Herbert Epen-
cer for the compliment. It may have
been Xamuel Butler; 1 should have
better remembered the name, in grati-
tude. Anyway, both men have come
down to us with reputations for un-
usual and learning; and
let working remem-
ber that such 8 man believed they are
the source of real | and in
future combat ml notions of
writers and
vigor.
Russia
intelligence
ordinary citizens
gtatesmen wilh nore
The
some excellent ides
Soviet Russia have
One is that the
th na i die anc mischievous
men in the hig towns must give good
exuse
the cou
ing
who
charity
dead beats
excessive charity
distinctly ren
grants were arrested with consi
promptness and discretion, and ma
Ne nriy
n charge
work on the rock 3
where now the vagrant
of pu r affairs,
every-
Writers high
in some ways
viciously in others
Writers almost
that mothers do not
daughters In sex ma
er Was a who neglected
education.
I have long b
ents for children
er falls. And parents add
and self-sacrifice In dealing with their
children that is about the most credit-
able thing to be said of our miserable
race,
Some parents, poor wretches, have
bad judgment, but fierce devotion to
children never fails so far as | have
observed. If love for our
will save us we will all finally get to
heaven.
Some children may fail to sit on the
right hand of God because of mean-
ness to their parents, but if Jove of
children is sufficient virtue to save us,
1 expect to find all parents there.
. » -
An English writer says: “A boy is
more often disqualified than qualified
in economic life by a prolonged educa-
tion.” H. G. Wells has long been say-
ing time spent in a university is wast.
ed, and a training in idleness and
rowdyism. England is deliberately
cutting its educational budget; and it
has never been as foolish about edo-
cation as have Americans who have
steadily made It more expensive and
ineflective.
One of the impressive incidents of
my Jife has been knowing an old wom-
an who had had two worthless hus-
bande, several children, and on an av-
erage not more than half enough to
eat and wear. She almost worships
every man able to make a good living.
Such a man is her ideal, and a success.
1 rate men in the same way. Those
There nev-
such
mother
the love of par-
is the thing that nev-
elieved
a patience
children
debts with reasonable promptness,
help somewhat in decent human prog-
ress, and are in line for honest promo-
tion, are our best men. From their
ranks come the millions who have
There are many lim-
but If he is ambitious to get out of
life the best there is admittedly In it,
he is good enough and a success.
*® . -
1 have long believed a majority of
the people are good enough, consider.
ing all their handicaps. . . . But
now that times are harder than ever
before, I am wavering somewhat; hon.
esty is always at a specially low ebb
during hard times One is most apt
to be honest when getting along fair.
1¥ well; the word of the man in worst
trouble must be discounted most,
.« » »
1 have lived a long time in the Unit.
od States, and my wrongs have not
been those of a slave, but of a free
man badly managing himself,
§