BECRETARY OF THE TREASURY
MORGENTHAU, in his first speech
since taking office, forecast an even
tual inflation of $2,800,600,000 by an.
nouncing the treasury
expects sooner or later
to apply its gold “prof.
it" to a reduction of
the national debt.
“For the present this
$2 800,000,000 is un-
der lock and key,” Mr.
Morgenthau said,
“Most of it, by au-
thority of congress is
segregated in the so-
called stabilization
fund, and for the
Morgenthau cont we propose to
keep It there. But 1 call your atten.
tion to the fact that ultimately we ex-
pect this ‘profit’ to flow back Into the
stream of our other revenues and
thereby reduce the national debt”
The “profit” in question accrued
through a bookkeeping operation when
the amount of gold fixed by law as the
equivalent of $1 was reduced from
23.22 grains to 13.71 grains. This
meant that an ounce of gold was
worth $2067 one day and the next
had a value of £35.
Just previously the treasury had
taken title to all the monetary gold In
the country, paying for it at the £20.67
rate. On every ounce it made a “prof.
it” of £14.33 the difference between
the purchase figure and $35,
The secretary gave in figures his es
timate of the cost of the New Deal
Against an Increase of $6,000,000,
000 in the national debt, he asserted,
various assets should be deducted.
He listed them as follows:
An Increase of 21.600.000000 in the
treasury's cash balance since March 4,
1933.
The gold “profit,”
800,000,000,
An increase In the net assets of
agencies wholly owned or financed by
the government, amounting to $1.0035.-
000,000.
Morgenthau did not carry the prop-
osition through to Its arithmetical
conclusion, but the cost of the New
Deal under his theory would amount
to $3505,000,000,
Secretary
amounting to $2.-
EN. HUGH 8. JOHNSON, through
& spokesman, has flatly denied
the story of his dispute with Donald
Richberg and Secretary of Labor Per.
kins over control of the NRA, but well
informed persons in Washington be-
lieve It is true. The President calmed
the storm but put off the decision. The
NRA Is being reorganized temporarily
to serve until the next congress gives
it permanent form, and for the pres
ent Johnson retains his supremacy,
To bring about greater efficiency
and economy the codes of the NRA
are being realigned. Industry is di-
vided Into 22 classes, the initial move
toward cutting down the number of
codes from 682 to about 250 and group-
ing them In ten grand divisions Merg-
ers are relied on to make the drastic
reduction in the number of codes
Codes with similar or related inter
ests are grouped together. Allied
businesses will thus receive Identical
treatment on common problems, offi:
cisls sald. The codes also are ex.
pected to be easier and cheaper to ad-
minister,
The 22 classifications In turn are
based on four fundamental groups as
follows :
Producing Industries—Food, textiles,
leather and fur, ferrous metals, non-
ferrous metals, non-metallic products,
fuel, lumber and timber, chemicals and
paints and drugs, paper, rubber:
Fabricating Industries—Equipment,
manufacturing, graphic arts, construc
tion,
Service Industries—Public utilities,
transportation, communications, amuse.
ments, finance,
Distributing trades— Professions and
services, wholesale and retall codes.
GF ERAL JOHNSON has repeated
ly said that he could not afford
to sacrifice his private business earn-
ing capacity by remaining at the head
of the NRA on a salary of $6,000 a
year, intimating that he would have
to retire from his governmental Job,
It 1s now revealed that on July 1 his
salary was Increased to $15,000 a year
by order of President Roosevelt.
MocH political benefit to the ad-
ministration in ‘the congressional
campaign is expected to accrue from
the reciprocal trade treaty with Cuba
which bas just been anmounced It
Is the first of the projected trade
agreements and little eriticlsm of it 1s
likely to be heard, The domestic sugar
producers, who of course do not like
the reduction In the duty en Cuban
sugar, were yrepared for the action
by discussions of past months and ae
cordingly had adjusted themselves to
the situation. ,
The domestic tobacco Interests are
consoled for reductions in duties by
the limitation of imports of Cuban
cigar leaf tobacco, cigars and che
roots of all kinds to 18 per cent of
the total quantity of tobacco used in
the United States during the previous
year for the manufacture of cigars,
The reductions In duties on fruits
and vegetables imported from Cuhs
apply only to certain seasons and thus
are not as objectionable to domestic
producers as they might otherwise be,
As against the concessions made to
Cuba, which are regarded as so Im-
portant from the standpoint of that
country as to offer great promise of
economic recovery, there should be
rather widespread benefits to agricul.
tural and Industrial producers of the
United States. The most valuable con.
cession is a great reduction In the
Cuban duty on hog lard.
| ELIEVING the emergency phase of
agricultural adjustment is about
over, the AAA officials are simplifying
thelr program for the future, Tenta-
tively they propose these control plans
for 1935:
Wheat—10 per cent reduction In
acreage that of the base pe-
riod, 1930.32 inclusive; desired acre-
age, about 62,000,000: desired produc.
tion, 750,000,000 to 775.000.000 bushels,
Corn—Possibly a 15 to 20 per cent
reduction in acreage, Instead of 20 to
30 per cent as specified by the 1034
program,
Hogs and other livestock—No direct
control, supply being regulated by ad-
Justment of feed crops.
Cotton—10 to 15 per cent acreage
reduction under base period, 1928.32,
Inclusive, Instead of about 40 per cent:
desired acreage, 52000.000 to 37.000.
000; desired production, 11,500,000 to
13,000,000 bales.
below
GS IERGUSONISM" in Texas was
struck a probably fatal blow
when James V. Allred, the young at.
torney general of the state, won the
. Democratic nomina-
tion for governor In
the Democratic run
off primary. By a ma-
ority of about 45.000
votes he defeated
Tom F. Hunter, who
was backed for the
nomination by *“Ma“
Ferguson, the present
governor, and her hus.
band, James E. Fer.
guson, who formerly
J. V. Allred occupied the office un.
til ousted by the legislature. The Fer
gusons have controlled Democratic
politics in Texas for some twenty
years, but their sway probably is now
coming to an end. Mr. Allred is only
thirty-five years old, but has come to
the top swiftly. His nomination is
equivalent to election,
PTON SINCLAIR, the Socialist
author who turned Democrat in
order to run for the Democratic nomi-
nation for governor of California, suc
ceeded in his purpose. In the primaries
he ran far ahead of George Creel, who
was director of propaganda during the
World war; Justus 8. Wardell con-
servative, and Milton K. Young, the
Democratic candidate in 1830. Sin-
clair campaigned on a plan “to end
poverty In California” which was set
forth in a book he published. It calls
for the state to take over and operate
defunct factories and businesses and
farms acquired because of tax delin-
quencies as a means of placing the
unemployed. Sinclair's opponent In
the election will be Frank ¥. Merriam,
the Republican acting governor. Sen-
ator Hiram W. Johnson easily won re
nomination and Is on the Republican,
Democratic, Progressive and Common
wealth tickets; his only opponent is
George R. Kirkpatrick, Socialist.
South Carolina Democrats will have
to hold a runoff primary to decide be-
tween Cole LL. Blease, former governor
and senator, and Olin D, Johnston,
young attorney of Spartansburg, for
the gubernatorial nomination. Iz a
referendum held as a guide for the leg.
islature the drys were defeated.
Democrats of Mississippl also will
hold a runoff primary to determine
whether Former Governor Theodore OQ.
Bilbo or Senator Hubert D. Stephens
shall represent the state In the senate.
prinsy people the world over re
Jolced at the annomncement that
Prince George, fourth son of the King,
was engaged to wed the lovely Prin.
cess Marina, nlece of
the late King Constan-
tine of Greece. The
announcement from
the palace in London
said: “It is with the
greatest pleasure that
the king and. queen
unce the betroth.
al of their dearly be
loved son Prince
FRANCIS J. GORMAN, head of the
strike committee of the United Tex-
tile Workers, sent to the sectional
leaders the secret instructions for a
general walk-out In the cotton textile
industry on September 4. Tha order
affects approximately 0500,000 cotton
mill workers; and about 800,000 more
will go on strike then or soon after
in the silk, rayon and woolen mills,
“1 am fully convinced,” Gorman told
reporters, “that the strike not only
will materialize but will be success-
ful.”
The administration, however, still
hoped that the strike could be avert-
ed through the efforts of the national
labor relations board headed by Lloyd
Garrison. The union leaders have
made it plain that they expect the
strike will be Indirectly financed by
the government through the relief or-
ganizations, They admit that thelr
unions have not sufficient funds to
carry the workers through the pros-
pective period of idleness,
ENATOR THOMAS D, SCHALL of
J Minnesota, Republican, engaged
In an acrimonious controversy with
President Roosevelt concerning the
former's assertion that
the administration is
seeking
press, and the blind
senator used language
that was so disre-
spectful to the Chief
Executive
Mr. Roosevelt's sever-
est critics could not
approve of it. The
President had asked
Mr. Schall for the
“facts” on which he
based his recent assertion that
plans are under consideration Tor
“a national press service to take the
place of the Associated Press, the
Hearst News service and the Unit
ed Press.” This service, Mr. Schall
sald, would “have exclusive use
of all government news and be In a
position to give its service only to
those newspapers loyal to the Roose-
velt dictatorship.”
“Once these facts are In my handa™
sald Mr. Roosevelt, “they will receive
immediate attention In order to make
impossible the things you say will be
done, because I am just as much op-
posed to them as you are”
The senator immediately sent to the
President and made public a 650 word
letter in which he sald in part:
“You ask me for ‘Information’ con.
cerning what you yourself have done.
Are you attempting to secure the facts
80 that you may be in a position to re-
fute yourself?
“Your telegram to me bears out the
suggestion of the constant effort to
mislead and fool the public. Your de-
sire to make yourself appear before
the people of the United States as cham-
plon of a free press may be as insin-
cere as your promises to the people
when you accepted the Democratic
nomination at Chicago with the state-
ment that you were for their platform
100 per cent.
"To date you have not kept one
of the covenants you pledged the peo
ple at that time. Let me recall your
testy anger at your disappointment in
keeping out of the press code the ex-
pression of a free press”
Schall went on to cite what he
called “specific evidence” of an inten-
tion by the President to force a cen-
sorship of the press so that “your acts
and the acts of your Communistie
bureaucrats might be hidden from pub-
lic gaze”
Senator Schall
answer sharply rebuking him for his
“vituperative™ letter “which gives no
facts and does not answer my simple
request.” In conclusion be sald: “The
Incident is closed.”
" Schall retorted In somewhat milder
language that he as a representative
of the people could not let the affalr
rest,
ORE electricity for more people
federal power commission in a nation-
al survey which has just boen started.
According to Basil Manley, vice chate
man of the commission, the survey will
mit to the next congress the “most
comprehensive and authentic exhibit
of our power resources and possibill-
ties ever made In this or any other
country.” To obtain the data required
the commission has sent a question.
naire to every private and municipaily
owned power plant in the land.
“Determining the nation’s power re-
quirements and how they ean be most
economically and advantageously sup.
plied is the primary purpose” Mr.
Manley explained. “Markets must be
considered, as well as power sites that
can be developed at reasonable cost,
either by governmental enterprise or
private capital,
“One purpose is to establish and
maintain that balance between steam
and hydro-electric power which will
give America the most dependable
sources of energy at the lowest
sible rates.”
———
sri the Polish denials that a
Washington.—Recent developments
in the Nation's Capital tend to Indicate,
. in the opinion of
Campaign long time observers,
Issues that the issues of the
coming election cam-
palgn and for the next session of con-
gress are being sharply drawn. It (3
recognized here that the line of
cleavage will be whether the Roose
velt administration shall go further
to the radical side or whether it shall
be forced to a more conservative be-
lef.
There has been so much confusion
in administration affairs that the issue
is being forced. Each time heretofore
that conservatives have fought against
proposais by the Roosevelt administra-
tlon or have criticized acts performed
the discretionary authority
granted the President by congress, the
conservative element has been badly
defeated. It should be sald that the
conservatives have lacked any particu
worthwhile. Consequently thelr at.
tacks have lacked wirility and have
amounted to the same thing as an at
tempt to kill a bear with birdshot.
Now, however, there seems to be a
conservatives, both Democratic
is evidenced by
the formation of the American Liberty
league. This group, headed by such
cratic national committee head, former
United States Senator James M. Wads-
candidate for President, has announced
Constitution. It also is prepared to
make war on radicalism, Mr. Shouse,
who will be the league's president, de
clared jt was not antl-Roosevelt., or
anti-administration but that it admit
tedly will be against some features of
the New Deal.
Thus, for the first
Roosevelt became President,
fronted with frank outright
tion of a serious kind on those parts
of his program which the league and
other conservatives believe go beyond
of American My
Information is that the league Is well
supplied with funds and that it will
be able to disseminate its views In
extensive fashion, The purpose, It is
sald, is to make sure that the rank and
file of voters hear all sides to the vari
ous questions,
The non-partisan character of the
work to be done is being emphasized.
The names of the men who head the
organization are advanced as proof of
the statement that It will not dabble
in partisan politics, It remains, never
theless, that this group naturally must
oppose a good many of the New Deal
plans and in some quarters it is be
lieved the New Dealers will attempt
to catalogue It purely as an antiad
ministration propaganda machine, It
is to be seen thus that Mr. Shouse and
his associates have a battle on their
hands In gddition to defense of the
But those factors do not
Mr
he is con-
time since
opposi
history.
in the American Liberty league we
actually are seeing the birth of a new
It is this manner that
. » »
The lack of co-ordination In govern.
mental agencies is giving the Presi
. dent fresh concern
Richberg’s 4 a new program
Job is being considered
In order to fend off
partisan attacks. Donald Richberg,
Chicago lawyer and former general
charge. He will attempt. where his
predecessor Frank Walker fafled, to
has resulted In many of the agencies
of the New Deal running counter to
each other,
Mr. Hoosevelt wants “balanced con-
trol” among these agencies. That is
he wants to see that the various units
whose functions may overlap are not
warkiug at cross purposes and he
wants to see the recovery machine set
tied down so that there may be har
mony among the officials of the ad
ministration. * “
For an example of what 1 mean,
take the case of NRA and AAA. It
has been recognized for some months
that the purpose behind these two
groupe and upon which they have been
attempting to expand government
supervision of agriculture on the one
hand and industry on the other have
led officials in different directions. It
has resulted in an undercurrent of dis
satisfaction each with the other. Mr.
Richberg thinks that some way must
be found for this to be eliminated,
Then we have the Public Works
administration, the Reconstruction
Finance corporation, and the Home
Owners Loan corporation and now the
Federal] Housing administration, It
is éasy to see how many times any one
of these may cross up the plans of
the others. The result obviously has
been difficulties and embarrassments
that ought never occur and would have
Mr, Richberg's job, therefore, plain.
; fraught with great difficulties
Lh fraught with potential
program steps on toes,
observers here think they foresee a
more serious disagreement among ad.
ministration leaders than has yet taken
place,
If he succeeds In accomplishing the
purpose assigned to him by the Presi.
dent, Mr. Richberg will face the op-
position of the newly formed Ameri-
can Liberty league and the conserva-
tive element throughout the country
with a well olied machine to carry out
his policies.
® % .
The critics of Gen. Hugh 8. John-
son, national recovery administrator,
. have had thelr turn
Their Turn to laugh. The gen-
to Laugh eral, who has
come famous for his
frequent threats to “crack down”
where Industry failed to live up to
the codes which the administration
laid down, has run afoul of one of his
own agencles, the national labor rela-
tions board,
be.
John L.- Donovan, a labor board ad-
visor apparently because Mr.
van had been active in organizing a
union among employees of the NRA
of whom there were some 2.000. Mr.
Donovan was dismissed officially for
being “inefficient” and for “insubordi-
nation,” but few observers ever accept.
ed that as the explanation.
Now, General Johnson has been
directed by the labor board to reem.
ploy Mr. Donovan, and told that if he
¢id not reinstate the dismissed worker
he would be violating one of the pro-
visions of his ofn law and one which
he bad used many times in his threats
to crack down,
The Incident has a ¥ig-
nificance, however, as observers here
There Is much
around Washington to the effect that
further
Boe it discussion
General Johnson in the Donovan case
he had
promises to organ.
ing the crop which
iis many
i ; In other words,
to appear In the opinion of 1
that the
much and when he found the vulner.
able spots In his
sought to get away
peated preachments
f 1 #
it is made
J per
BONS sed
general prog too
own program he
from his oft re
only to be con
made an investigation of the merits of
the case,
No one can tell at this time how
far-reaching the
sion may prove to be. Some observers
figure that a way will be found to
eliminate Mr. Donovan from the NRA
organization later but If that takes
labor [teelf will rise up and there
General Johnson of their interpreta.
tion of the labor provisions In the
recovery act. Suggestions have been
heard likewise to the effect that If an
employer, private or public. is not per-
efficiency or insubordination. employ-
ers of labor through the country, sub
servient to the national recovery act
and the codes, are faced with a situa-
tion the scope of which cannot now
even be hinted.
* - »
It has been anticipated generally
that the administration will
greater difficulty In
House May the house of repre.
Make Troublesentatives next win-
ter with the new
crop of members than obtained during
the last session of congress when the
house was quite subservient to the
White House orders. Advance notice
of the difficulties already has appeared
in the shape of a fourcornered race
for the speakership made vacant by
the death of Henry T. Rainey of Mii
nois. It is sald now that the White
House is prepared to stay out of the
fight because, traditionally, the Chief
Executive has not messed with the
choice of house leaders. It Is a fact
nevertheless that the present list of
entries for the speakership assure a
battle between the friends of the
brain trust and the more conservative,
practical politicians in the house mem-
bership.
To date Joseph W. Byrns. the pres
ent floor leader and long time repre.
sentative from Tennessee, appears to
have the jump on the other candi
dates. It cannot be overlooked, never.
theless, that Representative Sam Ray
burn of Texas, chairman of the pow.
erful committee on “Interstate com
merce, and Representative Willlam
Bankhead, of Alabama, are very much
in the race. Representative John Ran
kin, of Mississippl, must be considered
also because Mr. Rankin has been
active In assisting the Democratic or
ganization In the house in the ast two
sessions and he has many friends,
No one ean tell, of course. what
kind of a jam will result and what
trading will be Initiated between the
Oats Grown With
Alfalfa Advised
Serves as Good Nurse Crop,
Protects During Winter,
Halts Erosion.
By C. H Varnham. Assistant in Soil Brperi.
ment Fields, University of ifinels--WHU
Bervice.
Damage from dust storms, which
proved so devastating to young alfalfa
seedings in some sections, can be prac-
tically eliminated If oats is sown as &
nurse crop with the new alfalfa seed-
ings this fall,
Largely as a result of the poor
stands of forage caused by the drouth
and the provisions of the AAA pro-
grams, it is anticipated that an excep.
tionally large acreage of alfalfa will
be seeded during the next few weeks,
An appreciable amount of these seed.
ings will be on sandy or light wind.
| blown soils which are subject to wind
| erosion ruir seedings
| made during latter part of the
| summer,
| Tests at the Oqua
| ment fleld, maintaines
county by the
College of Agricuit
capable of
the
damage a
{ with by the
| nation nurse
seeded alfalfa or
i vai
Le . unt
Ns made
closed no damag
fall
grove
where
last
outs
away
nif
where Irrous
Howevey
no oats h
ia was either badly
entirely killed by
In a larger
i, sand
deep,
the wind -blown sand.
the
inches
inprotected area on
| field ad drifted several
completely burying
bluegrass,
In addition to 1
ment of
BOWH a8 a ni
i
irse crop with alfalfs
fall supplies at least three
vantages Grasshopper
ents to the young
thus
the
ire not
floors »
CR UInNe
Sweet Clover Hay Rated
High in Minnesota Tests
Steers w
en pr as well
n trial
universit :
two kinds of hay
were about equal also for winter beef
| cows and Tria
| like results with lambs,
Cutting the cured sweet clover with
an was found
i able for cattle it there was
| no apparent advantage cutting It
{ for fattening lambs. Fine grinding of
| roughage makes the feed too expen-
sive for cattle
Cut
| fairly satis
| beef
helfers. is have given
ensilage cutter advis-
feeding b
was found a
ary
fed in
corn fodde
for
COWS 81 when
| limited quantities with corn silage and
| cut sweet clover hay and when fed
| with shelled corn to fattening lambs.
‘he heifers lost some flesh on a ration
{ of roughage only, and it was found
i necessary to add a little grain to keep
| them gaining. Adding linseed meal to
! the lamb ration of shelled corn and
| cut corn fodder Improved it slightly
| but decreased the feeding profit
Prairie hay, even though of excel-
lent quality and supplemented with
linseed meal and limestone, proved an
| unsatisfactory roughage for fattening
yearling steer calves and lambs.
Give Pastures Start
Good pastures are an asset to any
farm, and particularly to a good lve
stock farm. Many farmers damage
their pastures by turning stock on
them during the early days of spring.
The ground is usually soft and tramp-
ing damages the plants. The worst
damage, however, comes through close
grazing of the young plants before
they have a chance to get started.
Plants require a reasonable top growth
in order that their roots become firmly
established. The young, tender grass
of early spring does not have as much
nutritive value as it will have a few
weeks later. It Is best for the live
stock and much the best for pastures
if they are given a chance to get
a gosd start.
Use Planes to Fight Hoppers
The adoption of airplanes to fight
grasshoppers is another Hlustration of
the resourcefulness of the western
Canada farmer. Spreading of poison
for grasshoppers has been so success
ful In one or two areas in southern
Alberta that it will probably be adopt:
ed as a regular method in future. The
planes were used In flying at 100-feot
elevation, using four pounds of bait te
the acre. The cost per section was
$8 to £10, and the distribution thinly
and evenly done, and so effective,
with the use of oiled bait, that hoppers
were still dying a week after the bal
was spread. : ;