Buying of newly mined American
gold at prices above prevailing fig-
ures did not prove so efficacious In
boosting commodity prices as the ad-
3 : ministration had
hoped, so President
Roosevelt called Into
conference his finan-
cial advisers and 1t
was decided to buy
gold In the world mar-
kets. Prof. George FP.
Warren of Cornell and
Prof. James Harvey
Rogers of Yale, who
had devised the dollar
depreciation polley
which Is being tried,
were among the con-
ferees, naturally, and the partial fail-
ure of the plan was put up to them.
They then told the President that fit
would be necessary to force down the
value of the dollar in the foreign ex-
changes as well as at home, and that
if that were done the scheme was sure
to work.
The purchase of gold abroad is un-
dertaken by the Reconstruction
Finance corporation, as is that in
America, by direction of Mr. Roose
velt. It is preliminary to revaluation
of the dollar and establishment of the
President's plan for a managed cur-
rency.
Chairman Jesse Jones of the R. F.C.
said the Federal Reserve bank of New
York had been authorized to dispose
of R. F. C. notes and take foreign
gold In payment. The bank also has
made overtures to the Bank of Eng-
land and the Bank of France for the
purchase of pounds and francs respec
tively in exchange for gold. The co-
operation of the French and British
banks would tend to support an ear
lier White House statement that inter.
pretations of this government's foreign
gold purchases as the beginning of
an international depreciation race, “a
currency war," were erroneous,
In Washington it is the opinion of
many observers that conservatism in
finance is being gradually abandoned
and that the dollar will ultimately be
forced down to a 50-cent value. Bro
kers in Wall Street were frankly con-
fused and avoided any extensive mar-
ket operations.
Meeting with President Roosevelt
and the professional authors of the
gold plan were Acting Secretary of
the Treasury Dean Acheson, Gov. Eu-
gene Black of the federal reserve
board, George IL. Harrison, governor,
and J. E, Crane and Fred I. Kent of
the Federal Reserve bank of New
York; Henry Morgenthau, Jr. gover
nor of the farm credit administration;
Jesse H. Jones, chairman of the Re-
construction Finance corporation:
and Henry Bruere, the President's
financial co-ordinator,
At least some of these gentlemen
have formerly opposed any program
that smacks of inflation: but the Pres-
ident evidently felt the Warren-Rogers
plan was an experiment that deserved
a trial
Prof.George F.
Warren
ARRY L. HOPKINS, federal re
lief administrator, went to Kan-
sas City, met with relief delegations
of Missouri, Towa, Kansas, Nebraska,
x wen Arkansas and Okla-
f homa, and told them
that the need for re
lief was going to be
greater than ever and
that each state and lo-
cal government must
do its part fully, “We
are going to start the
winter with a million
more families on the
relief rolls than there
were a year ago at
this time” he said,
emphatically, “the
Hopkins
present time. During the five months
the federal emergency rellef adminis
tration has been in operation $216,000,
000 has been allotted by the federal
government to care for the needy, he
said,
He noted that when new jobs open
up most of them are filled at first by
“self-sustaining idle who have never
been on relief rolls.”
“The idle rellef bINl of the nation,
which Is about one billion dollars a
year, must be paid,” he sald. “This
means that the need for private con.
tributions is greater.”
Explaining that the federal emer-
gency relief administration is caring
for 15,000,000 persons by two meth.
ods, direct relief and “work relief,”
Mr. Hopkins expressed a preference
for the latter.
JoL1ovinG a conference In Des
Moines, Governors Herring of
Towa, Olson of Minnesota, Langer of
North Dakota and Schmedeman of
Wisconsin went to Washington to lay
before President Roosevelt the plans
approved by the conference for hoost-
ing prices of farm products. Immedi.
ate steps held necessary to securing
benefits to farmers before the 10233
crops leave their hands Include cur
rency Inflation, pegging the prices of
basie farm crops, the adoption of a
code for agriculture under the NRA,
and Improvement of the federal farm
refinancing machinery, especially In
the Omaha land bank district. The
program has been indorsed by Gov-
ernors Horner of Illinois, Bryan of
Nebraska, McNutt of Indiana and
Berry of South Dakota.
The proposed code for agriculture
would authorize the creation of a
board of farmers which would have
functions similar to those of trade as-
soclations In existing Industrial codes
The board, in conjunction with fed.
eral authorities, would determine the
cost of production of principal crops,
determine what is a fair margin of
profit for farmers, and set minimum
prices for domestic consumption.
Though President Milo Reno of the
National Farmers' Holiday association
declared the farm strike off pending
developments In Washington, the
strike was kept up, especially in Min.
nesota and Wisconsin,
j AzE developments concerning the
recovery program include these
events:
Counsel for an employees’ brother.
hood obtained a temporary injunction
restraining the New York Edison com-
pany from violating the NRA and the
re-employment agreement,
President Roosevelt settled two dis
putes with the steel Industry. He ob.
tained a “substantial agreement” be
tween the United Mine Workers and
the captive mines of Pennsylvania op-
erated by the steel companies, forcing
the latter to accept the checkoff sys
tem. He ended the differences between
Transportation Co-ordinator J. B. East
man and the steel companies over the
price of rails to be bought by the rail
ways with money loaned by the gov-
and that demanded by Eastman.
The Ford dealer whose bld was re-
by the government because
Ford had not signed the NRA sued to
prevent the award of the contract to
the next lowest bidder,
More than 300 charges that the Ford
Motor company is violating the NRA
automobile code provisions were dis
missed as “not legitimate” by the De
troit compliance board.
ECRETARY OF STATE HULL and
his aides have made everything
ready for the conversations with
Maxim Litvinov of Russia concerning
establishment of re :
lations with the Sov-
fet republic, and the
foreign affairs com
missar is speeding to
Washington, It Is
taken for granted
that when recogni
tion of Russia is com-
pleted the Moscow
government will ap-
point as its first :
ambassador to Amer Eo
fea M. Sokolnikoy, M- Sokoinikov
now vice commissar of foreign affairs.
He was formerly ambassador to London
and was Russia's delegate to The
Hague. He Is descended from a fam.
ily that was prominent in the days of
the czars.
Valery Meshlauk, It is expected, will
be chairman of the Russian trade dele.
gation to the United States. He is
board and has often visited this ecoun-
try in behalf of Russian governmental
purchases,
ERARD SWOPE, president of the
General Electrie company, ex-in.
dustrial and labor adviser to the re-
covery administraticn, outlined a plan
for the gradual conversion of the NRA
into a great private organization with
governing powers over all industry.
Administrator Hugh 8. Johnson and
Henry I. Harriman, president of the
United States Chamber of Commerce,
indorse the plan, the former asserting
such a scheme would make it possible
to avold cycles of depression, and the
latter warning that the NRA would he
a failure If it were allowed to become
“just a government bureaucracy.”
Briefly, the plan outlined is to en.
trust to a national council the ende
supervision authority now In govern.
ment hands. Government officials
would be members of the council, and
it would work in close collaboration
with government departments, main.
taining extensive research and statis
tical staffs,
The council might be created by an
enlargement of the United States
Chambers of Commerce with labor
representation, it was suggested,
SAMUEL INSULL, fugitive former
public wtilities magnate, and the
Greek people were equally Jubilant
when the Greek court of appeals again
refused to extradite Insull to the
United States and ordered his release
from custody. The judges held the in-
dictment against Insull did not furnish
sufficient basis for his extradition.
What the American government will
do next, If anything, was in doubt,
A
N DECEMBER 15 France will owe
the United States another install
ment on the war debt, amounting to
$22,200,928. But we won't get it, or
any part of it. The new French gov-
ernment headed by Albert Sarraut in-
tends to default as did that of Dala-
dier on June 15. It was sald semi
officially in Paris that the government
would abstain from raising the ques-
tion In parliament, and this policy,
rather than his health, would be re-
sponsible for the absence of former
Premier Herriot because his partiel-
pation would be certain to revive the
debt question,
HE senate banking subcommittee
and its counsel, Ferdinand Pecora,
kept up thelr hammering at Albert H.
Wiggin, former head of the Chase Na
tional bank of New
York, and the compli
cated transactions car
ried on by him and
his companies. It was
brought out that the
Chase bank made
huge loans to Wig-
¢ zin's personal com
panies for trading in
the bank's stock and
for the creation by
Wiggin of companies
in Canada to escape
income taxes. Sher
mar, one of the Wigzin companies, be
gan selling the Chase bank stock short
in 1929, a month before the great mar
ket crash, and big profits were made,
“What prompted you to sell the bank
Stock? asked Pecora.
“1 don’t know" replied Wiggin, “1
must have had some trend of thought
at that time, I thought all bank stocks
were too high and that Chase was in
line with the other stocks"
“If you thought Chase bank stock
was too high, why did you permit the
Chase Securities corporation and its
wholly owned subsidiary, the Metpotap
corporation, to go Into these various
pools to stabilize the market? asked
Pecora.
After considerable discussion with
counsel Wiggin replied that the pool
bought and sold stock and that “the
net resnit
the same
N BS. FRANKLIN D. ROOSEVELT
+ Is taking an exceedingly active
part in the winter's campaign for the
relief human wants, being chair
In the
course of her dutres she spent two
strenuous days in Chicago attending a
conference of community welfare
workers of the nation called by Gen
eral Chairman Newton DD. Baker.
Representatives of 34 national wel
fare and health agencies and dele
gates from cities preparing to cam.
paign for community chests were
present.
“Coming in a crisis year,” Mr. Baker
said, “these community campaigns for
welfare work represent a challenge to
Albert H.
Wiggin
as 1 did”
of
|
=
Washington.—President Roosevelt's
bold move in ordering the Reconstrue-
tion Finance corpor-
What Gold ation to purchase
: newly mined gold,
Buying Means with a view to fore-
ing higher commodity prices, has led to
more discussion and, I may add, con-
fusion, than anything he has done
since the banking holiday of last
March. He described the action as a
move toward development of a “man-
aged currency” for the new deal. His
action was as swift as it was unex-
pected,
The fact that his announcement cre-
ated so much confusion and resulted
in so much discussion is attributable
largely, I belleve, to the lack of knowl.
edge generally among people concern-
ing the part gold plays in the coun-
try's economic structure. In the ab-
sence of that understanding, the nat-
ural question was: what's it all about?
And to show how the program suc-
ceeded In stirring things up, I need add
only that the discussion continues and
the confusion remains,
Mr. Roosevelt sought, by having a
federal agency buy the new gold at
prices above that which gold is val
ued at in world markets, to make the
dollar less valuable as it Is measured
in world trade. It was a move, there
fore, supplemental to his action of last
March when he placed an embargo on
export of gold. That action resulted
in more dollars being required to buy
an ounce of gold than when gold could
be bought and sold freely. In other
ed States even when it was issued
against gold,
Thus, as a correlative fact, more dol-
cotton or a wagonload of corn or
wheat or a hog or share of stock in
a corporation than had been required
before the embargo on export was
Inid. When the federal government,
for the Reconstruction Finance corpor-
ation Is an agency of the government,
began to buy the newly mined gold at
prices higher than If the gold were
being bought for minting Into money,
the dollars became cheaper again.
The President hoped for an increase
in prices of farm commodities and all
other things entering into trade cor-
responding with the reduction of value
‘Over the top’ must be the cry this
year.”
A CCORDING to Becretary of Agri
culture Wallace, the
wheat farmers have signed up about
SO per cent of the average seeded acre
age in the farm adjustment adminis
Wallace estimates that
trade. (After all ix sald and done,
world trade governs the valoe of com-
modities because only in world trade
does the age-old law of supply and de.
mand operate unhampered,) For ex
the federal statute providing
The
this fall
ers in West Virginia,
grown and representing 51.925.012
acres, A reduction of 15 per cent on
this area for the crop to be harvested
next year will reduce plantings about
T980,000 acres.
ODERN Turkey, the republic, is
M
It was Mr. Roose.
and the theory of the
economists who believe in the Roose-
velit program, that prices would ad-
vance so that commodities would be
worth roughly one-third more after the
purchase of the new gold than they
were worth In February before gold
was withdrawn from circulation. To
nearer to each other: the price at
which the Initial purchases of new
gold were made should have increased
the price of commodities by a percent.
age as large as was the difference be-
tween the price paid by the govern
exists is largely the
work of Mustapha
Kemal, the president,
and it was with just)
flable pride that he
recounted its growth
and achievements be.
fore 100,000 of his fel
low citizens at the
race course. He said:
“Our greatest accom-
plishment is the Turk.
on ish republic whieh
President 4. heroism and high
Kemal culture of the Turk.
ish people created, thanks to the na-
tion's will and valorous army, but our
task is unfinished. What we have done
is Insufficient,
“We will raise our fatherland to the
most civilized nations of the world
with the speed of this age in which
we live, We shall succeed because the
of positive science and by the love of
fine arts.”
Turkey today, added the president,
is dedicated to peace and Is satisfied
with her present physical boundaries,
but he daclared that, as the cradle of
ancient civilization, she Is determined
to spread her cultural boundaries far
into Europe,
HAT many Britons are dissatisfied
with thelr country's present Inter.
national attitude was manifested at
two great mass meetings In London
in which demands were made that the
get ont of entanglements
that might Involve her In another Eu.
ropean war. At one meeting a resolu.
tion was adopted calling on the gov.
ernment to declare “Great Britain's
forces are no longer at the dis-
| of the league council to be used
a declared aggressor nation,
| @ 1913, Western Newspaper Union.
sold in the world market,
- » ®
Whether the thing Is capable of
working that way remains unanswered
as far as I am able
Calllt an to see. Indeed. the
Experiment ©onviction held by
ne most monetary ex-
ington is that the program cannot be
regarded In any other light than as
an experiment. It must be considered
an experiment for the reason it never
of a test are not available
But Mr. Roosevelt believed that the
argument advanced by some of his
“brain trust” advisers was worth an
experiment. I am told on what I con-
sider to be good authority that prac
tical monetary men in the administra.
tion had no part in formulating the
program. The theorists developed the
scheme and the President accepted it.
*. * 9
Use of the experiment had to be
adopted before any further moves
could be made toward a “managed
currency” 1s that the value of the cur-
rency shall be made to fluctuate, thus
maintaining a stable price for a bushel
of wheat or a bale of cotton or prod.
ucts made from them. In other words,
the theorists argue that the value of
the dollar ean be controlled to such
an extent that the prices of all com-
modities, whatever they are, will range
within a very narrow limitation from
year to year,
:
i
:
3
g
:
:
:
£9F
5%
als
i
is
iH
it
§2X
Hn
go up and that would result in a dol
opment of the
Human Factors present program
Involved just how they
will overcome
certain human factors in the situation
For Instance, the value of the dollar
may be fixed so it will buy one bushel
of wheat, but other wheat countries
in the world may have a tremendous
crop. They will have much more than
they can use and, naturally, the pro-
ducers will want to seil badly, so bad-
ly, in fact, that they will take 25 cents
a bushel for the wheat. Will Ameri-
cans deliberately pay $1 when they
can get wheat for 25 cents, or will
there be a tariff wall built so high that
no wheat can enter this country at ail?
And If there is isa: tariff wall, how
will foreigners buy our goods, some of
which they obviously are going to
want? The circumstance is that un-
less they can sell something here, they
will run out of money eventually and
cannot pny for purchases in America.
That situation will run through our
ness,
duction and if
can be stabilized and if employment
ington, however, that the gold
chase plan constitutes the first
In a general inflation of the currency.
On the face of things, It would seem
that infiation is certain. On the other
hand, Mr. Roosevelt Is regarded by
many men who know him snd have
known him through
wants and will have
They are saying that
individual who
sound money.
fiation because he has seen what in-
flation did to Germany and what it has
done to every other country attempt-
ing it. Sooner or later, thelr currency
became worth only the value of the
paper as script or waste, or souvenirs
* - »
There seems to be no doubt that fox
farming is an important industry, It
has at last been ree-
Help for ognized as such by
Fox Farmers the farm credit ad-
ministration. The
fox farmers, it seems, have suffered
like others during the depression and
have to have help. They are going to
get it, too, from the farm credit ad.
ministration. Here is the announce
ment, officially made by the Depart-
ment of Agriculture:
“Considering silver fox raising a
business that calls for long experience
and special equipment, the farm credit
administration has informed the De
to make loans on silver foxes as pri-
mary security, but it will make such
loans only to those
have specialized In fox farming have
proper equipment and have shown ex-
feeding of the animals,
cation, It Is added, will be considered
ing or other business operations, silver
security, within reasonahila limits”
In other words, the farm credit ad-
fox Is Just as good as a horse, or a
make loans on that basis. After talk.
better security than some other farm
who ean afford such luxuries still have
money, and they are zbout the only
ones in the country still having it.
L I -
The truth of the old adage that “pol.
itics makes strange bedfellows” never
has been better demonstrated than un-
der the present administration, There
is considerable comment on these con.
ditions among Washington observers,
and Republicans are overflowing with
mirth about the actions taken.
“We Republicans have been enjoying
this one phase of the administration's
recovery efforts,” said one Republican
leader. “Just think of it! Here is a
political party that throughout its his.
tory has argued for low tariffs and has
criticized those of us who have Insist
ed there must be protection for home
industry. That same party, having
full responsibility for the government,
now is turning to high tariffs in a num-
ber of cases and has even gone to the
extreme of laying an embargo on com.
petitive goods from abrusd. Shade of
Boles Penrose, (the late Senator Pen.
rose of Pennsylvania) the thing is
laughable,”
And the Republican leader's asser-
tion about use of the tariff by the
Roosevelt administration was true,
More than that, It is apssarent that
there will be additional use made of
high rates that can be invoked under
'
si s———— toe
ROADSIDE
MARKETING
By T. J. Delohery
CLEAR CIDER MORE
PROFITABLE
A PROFIT of at least $10 could
be added to the Income from the
100 gallons of apple cider which is
Juice was clarified.
The truth of this statement 1s borne
out in the experience of farmers who
have been using the homemade filter.
ing device recently developed in Mich-
igan, The filterer, costing little more
than $1 to make, has revolutionized
clear and clarified Juice has been of-
fered the publie,
College experts and fruit growers
feel that, with clear apple julce possi.
ble for every farmer to make, and the
consumer responding as they have
when it has been placed on sale at
roadside markets, retall stores and
restaurants, there is an opportunity
for greatly Increasing the consump~
tion of this pure fruit beverage
While clear cider is not a new
drink from a commercial standpoint,
farm production has been lin
the larger orchards because
cost of machinery, The
device for producing quality apple
cider gives the farmer, who can con-
tact the public or retail]
chance to turn low grade fruit
& nice profit,
Experiments with consumer demand
homemad
outlets, a
Ty #
BLO
wise unmarketable or saleable fo
p r
YS FuTERED CI0ER
A Cider Filterer.
more than 10 to 15 cents a bushel.
grossed 90 cents to $1.50 a bushel 8
cider, basing the yield on 23% gallons
to the bushel of apples
cost of producing the
on, everythin
considered,
Clear cider is easy to make. Apples
are in the usual manner and
the with a
called pectinol. It is an enzyme which
breaks down the collodial matter or
pulp. The mixture is allowed to re
main overnight, the exact time depend.
ing upon ripeness
of the apples and the amount of pec
tinol used. The process can be speed
ed up or retarded, as desired
Shortly before the cider is placed
in the supply tank, a flitering agent
called hyflo is added. It is an
sorbing agent like Spanish clay and
other such materials, which catches
the sediment and permits the clear
Juice to flow,
The filtering device consists of a
five feet of garden hose a
pressed
juice treated chemical
the temperature,
ab-
The hyflo settles
in the muslin tube and the juice from
the barrel or supply tank, hoisted five
flows through it. The
tube, by the way, is rested In a wood.
en trough somewhat similar to that
‘he accompanying sketch shows
or tank, unless it is bought
new, should not cost much more than
The
device and parts should be thorough-
Iy cleaned after use.
Farmers who have been making and
selling clear cider report an unusual
demand, some marketing 100 gallons
a day at 50 to 75 cents a gallon, with
ordinary cider, on adjoining farms and
slow sale
even at 25 cents a gallon. Where both
clear and ordinary cider have been
offered, consumers have expressed an
exclusive desire for the clear juice,
even though it costs more,
Something new In farm products,
processing clea: cider has an adver
tising advantage, Consumers are
anxious to see how it Is made and
progressive producers have been mak-
ing it a practice to do the job In
public and on certain days which are
announced before hand, to which the
public are invited,
Farmers who have no direct selling
opportunities have found city retail
ers willing to handie and display clear
cider where they will not bother with
the ordinary fruit julce. And where
clear cider has been placed In restau.
rants to get public reaction, sales not
only have been larger but the price
higher. In one restaurant, diners mis.
took It for tea because of its clear
ness,
In addition to clarifying apple of
der, the new homemade device can be
©. 1922, Western Newspaper Union,
Peas From Tut's Tomb Grow