Current
By EDWARD
W. PICKARD
RESIDENT ROOSEVELT ended his
vacation at Hyde Park and left for
Washington where his administration
faces serious trouble, involving the
prestige of the White
House. Capitol HI Is
full of lively curlosity
over the President's
program, and whether
he will fight the pres.
ent congressional de
flance of his leader
ship and go before the
people with one of his
famed fireside talks,
or whether he will
gree to a compromise.
Mr. Roosevelt at the
end of his second year in office faces
a predicate In his relations to congress
similar to that which confronted Mr.
Hoover In 1631
Unless he repains control his entire
program Is likely to bog down, The
fight hinges on the $4,8%0,000.000 work-
relief program, the first item in the
President's budget message and the
principal mainstay of his program, Se
ecret conferences at which slices of
pork were reported to have been dan
gled before the avid eves of revolting
senators were sald to have been held
A few supporters of the McCarran
prevailing wage amendment which
wrecked the bill and forced its recom
mission to the appropriations commit.
tee were sald to be wavering under
the pressure, Senator Robert F. Wag-
nor, who voted for the amendment, act
ed as peacemaker. He intimated the
possibility of a compromise by paying
more than the so-called security wage
of 850 a month, but still lower than
the prevailing rates. Other leaders de
clared they would not budge from thelr
positions.
Secretary Ickes has been no
to the President in quelling the re
volt. In his recent testimony, Ickes was
reluctant to tell a senate committee
about allocation of $238.000.000 for a
naval shipbullding program. The sen.
ators finally pried out Information
which would indicate that the navy
and the speculators knew all about the
appropriation, but none of the mem-
bers of congress knew about It. The
money was to be spent at executive
discretion, and senators feel this does
not auger well for the proposal to
hand to Mr. Rosevelt unlimited power
in spending the proposed five billion
dollar appropriation.
Since next year will bring another
Presidential election, a third of the
senators will be up for re-election, and
all of the house members. They are
watching closely the present situation
because, If the President Is slipping,
they want their own records back home
in good order.
Sen. Wagner
help
ss
USSOLINI has sent 5,000 more
Italian troops to east Africa,
making 10,000 that have been dis
patched for the possible war with the
empire of Ethiopia. With the Iatest
contingent went Gen. Rudolfo Graziani,
who will be In command of the expedi-
tionary army. The soldiers were given
a fine send-off at Naples, Crown Prince
Humbert being present.
Mussolin! has set European govern-
ments buzzing in a speech In which he
roared deflance at Italy's foes, assert
ing that he could put eight million
armed men In the field If necessary.
Newspapers during the past few weeks
have openly referred to the possibility
of a war between Italy and Germany
over Austria, and It was thought that
11 Duce’s speech was made to impress
upon the Nazis that he was prepared
to defend Brenner pass, although a
part of the troops are being used In
Ethiopia.
Britain is keeping a close watch on
Ethiopian developments, Sir John
Simon, foreign secretary, told the house
of commons. Simon sald that the agree.
ment of 1908 between Italy, France and
Great Britain to preserve the political
and territorial status quo ‘in Ethiopia
is in force and that Britain has drawn
Italy's attention to this fact. He added,
that the whole trouble is over the fron.
tier between Ethiopia ahd [Italian
Somaliland which has never been prop
erly defined
HE Blue Eagle lost another tall
feather the other day, when Fed
eral Judge Nields at Wilmington, Del,
held that the collective bargaining pro-
vision of NIRA Is unconstitutional
when anplied to companies not engaged
in interstate commerce. The adminis
tration and organized labor immediate
1y joined in a fight to preserve the va
lidity of Section 7-A, and announced
that an immediate appeal would be tak-
en before the United States Supreme
court,
The Wagner labor relations bill mak-
ing Section 7-A the law of the land
and outlawing company unions may
have to be revised, If Judge Nields is
apheld by the high court. The ruling
also gives support to opposition now
forming In congress against extension
of KRA unless it Is reorganized.
Judge Nields' ruling was on an in
junction sult brought by the govern
ment against the Weirton Steel com
pany to enjoin the steel firm from al
1eged violations of Section 7-A of NIRA
td the labor section of the falr com:
petition code of the iron and steel In-
dustry. He upheld the right of em-
ployees to form company unions for
collective bargaining, thus upsetting
the claim of the Amalgamated Assocl-
ation of Iron, Steel and Tin Workers,
that the company intimidated employ-
ees and dominated the company union,
The court held that the company is
primarily engaged In state, not inter
state commerce, which congress Is not
empowered to regulate. Judge Nlelds
stated:
“Power to enact Section 7-A was not
conferred upon congress by the ‘gen.
eral welfare’ recital in the preamble
of the Constitution, nor by the welfare
clause, Article 1, Section 8, of the Con-
stitution.”
Unless the Supreme court reverses
Judge Nlields, the decision will prevent
the New Deal from interfering with
employee-employer relationships of a
vast majority of American business,
New Deal policies received another
Jolt the same day when Judge Charles
IL. Dawson on application of 85 west
ern Kentucky coal operators lssued »
writ enjoining the government from
enforcing the bituminous coal code, re
affirming an earller decision that the
national Industrial recovery act was
unconstitutional. Judge Dawson de
clared that the coal mining Is an in
trastate business, and beyond the pow-
er of congress to regulate,
He had previously issued a tempor
ary writ, on petition of the operators
on the ground of invalidity of the code,
but the court of appeal remanded the
case for a finding of fact on the ques
tion of irreparable injury, “When the
government unconstitutionally Inter
feres with the right of a citizen to do
business in his own way, that interfer
ence constitutes an Injury to the prop-
erty rights of the citizen,” sald Judge
Dawson, who labeled as fallacious the
government lawyers’ contention that
gains resulting from the coal code
CEDERAL JUDGE W. I. GRUBB of
Alabama gave the New Deal a
sharp rap that threatens the great
electric power development in the Ten.
nessee valley. He ruled that the Ten-
nessee Valley Authority has no legal
authority to dispose of surpius power
generated at hydro-electric plants on
the Tennessee river. The administra-
tion is depending on this enterprise to
bring about the lowering of private
power plant rates, and It was believed
there would be an immediate appeal
from the decision,
In Washington especial note was
taken of the fact that Judge Grubb
made permanent ano Injunction re
straining 14 north Alabama cities and
towns from negotiating with the Public
Works administration for Joana to
build electric distribution aystems
There was speculation as to what ef-
fect, if any, this might have nationally
on PWA's policy of giving financial
encouragement to municipal power de-
velopments,
NTERNAL troubles continue to rock
Cuba, and President Carlos Mendi-
eta's regime appears tottering. Manuel
Despaigne, the only member of Mendl-
eta’'s cabinet who was
in office, has resigned
a8 secretary of the
treasury, completing
! the rout of the min-
istry brought about by
the school strike, And
twelve assistant cabl-
net secretaries have
also deserted the ad-
ministration
The cabinet resigna-
orion, Sor vega aves ier
Mendieta ,'w to deal with the
strike of several hundred thousand stu-
dents and teachers which has devel
oped into a national movement to oust
the Mendieta administration. Commu-
nist-led labor organizations are ready
to throw their strength behind a revo.
jutionary general strike, and the situa.
tion 1s becoming critical. Although
armed forces are being held In readl-
ness to quell disorders, there is some
doubt as to thelr loyalty to the presi-
dent. Col. Fulgencio Batista, army
chief of staff, was reported ready to
throw _ his support to Dr. Carlos Manuel
de la Cruz for president if the Mendl
eta government falls, but leaders of
the anti-Mendieta movement have indi
cated Batista's cholce would not be
acceptable to them.
Terrorism continues rampant. Bomb
ing has become general, raliroads have
been blown up, and Havana has suf-
fered considerable damage to property.
POastiLIIES of a merger of Dem-
ocrats with Republicans In fighting
for repeal of the “pink slip” or income
tax publicity section of the 1034 rev.
enue act was seen as Representative
Bell, Missouri, pleaded for Immediate
passage of his bill eliminating the
publicity provision,
“Not only Is there fear on the part
of the people of the country on ae
count of gangsters and racketeers,”
Bell asserted "but there also is concern
among business men, because their
competitors will have the opportunity
of nosing into their secret files”
SWEEPING investigation of NRA
and charges of graft and corrup-
tion was started by the senate, when it
passed the Nye-McCarran resolution
for a finance committee inquiry after
a series of floor conferences between
the sponsors, administration leaders, lib-
eral Democrats, and western progres-
sives. Sponsors of the bill originally
demanded a special committee to in-
vestigate NRA, but finally agreed to
the finance committee handling the In-
quiry.
headed by Senator Pat Harrison, ad
ministration follower, this may mean
little. However, it is understood that
Harrison agreed that counsel and pro-
fessional Investigators be employed,
and also ylelded to demands that the
committee confer with McCarran and
Nye In planning the Investigation. If
Harrison attempts to “whitewash” the
NRA, It Is rumored that Nye will take
the floor to demand that the Inquiry
be placed in the hands of the judiclary
committee,
HE Irrepressible Huey Long an-
nounced In Baton Rouge that he
will be a candidate for governor of
Louisiana In 1038. That may be just
more Kingfish conversation, However
it Is known that Long has not preferred
the office he now holds, and there Is
some possibility that he may seek the
chief executive's chair of his state
When asked what would become of his
candidacy for the presidency, he sald
that being elected governor and being
a candidate for president would not
interfere with each other,
ETERMINED not to accept the
McCarran-Federation of Labor
prevailing wage amendment, the ad
ministration forces In the senate sent
. the work rellef bill
back to the committee,
What will happen now
to the President's big
program is probleimat-
ileal. Senator Byrnes
of South Carolina, one
of the sdministration
men, deciared the
measure had met its
death,
Insisting he was ex-
N pressing his own be.
Senator Huey ior and not talking
Long for the President,
Byrnes sald, “There Is no prospect” of
reviving the works program and “The
committee probably will do nothing
about it"
“The President stated that if the
McCarran amendment were adopted be
would pot sign the bill," Byroes sald
“The senate adopted it, therefore, 80 as
far as the works part is concerned, the
bill is gone.”
He expressed the thought the com-
mittee would report out an appropria-
tion of $880,000,000 or $1.880,000.000 to
carry out the present relief program
for six months or a year,
Adoption of the McCarran amend-
ment by the senate was brought about
only after a hard fight and by means of
a rather tricky shifting of pairs in
which Huey Long took a leading part
it won by a margin of one vole, where
upon Senator Robinson, Democratic
leader, moved that the bill be sent back
to the committee. This was done, Sen
ator Glass expressing the hope that
the committee would report out a bill
“that will not be quite so controver
sial™
Senator Long. who loses no oppor.
tunity to pester the administration
and to display his political shrewdness,
has started a movement for the specifi
cation of $2.500,000,000 of the work re
Hef measure’s total for the purpose of
highway construction. Highway com
missions in every state were asked by
him to Indorse this plan. Long said he
had discussed It with some other sen
ators and that they liked It
HANCELLOR HITLER has been
forced to abandon his Intensive
campalgn against the Jews, Economie
pressure has caused Der Fuehrer to
give up public manifestations of his
cherished anti-Semitic policy, speeches
at & meeting of political leaders and
Nazi party members indicated. Boy-
cotta, foreign exchange difficulties and
other troubles cannot be risked by the
reich at the present moment.
HE Saarland after fifteen years un-
der League of Nations rule returned
to Germany. Baron Pompeo Aloisi,
Italian chairman of the league's Saar
committee, took over the reins from
Col. Geoffrey Knox, British chairman
of the territorial governing commission.
The next day, Aloisi formally surren-
dered the Saar to Germany, and the
German flag was hoisted over the ter
ritory for the first time since the World
War,
renewed its defiance of “imperialistic”
and Japan
HANCELLOR KURT SCHUSCH.
NIGG of Austria pald a visit to
Ramsay MacDonald, British prime min
ister, and was told that while Britain
1s all for malotaining the Independence
of Austria, return of the Hapsburgs in
Austria and more British loans were
strictly tabooed. Incidentally, Britain
binted that Austria might be a little
more popular If it were a little lows
rough with the Socialists and trade
unionists, Austria saw the light, and
gave a half promise to be » little
gentler, Everything was very friendly,
but the Austrians came to London
without invitation, and little effort was
made to conceal official Britain's feel
ing that they would rather they had
stayed at home,
5
Bo
SEEN« HEARD
around the
National Capital
Washington.—Increasing evidence of
dent Roosevelt from both the extreme
conservative and the extreme radical
sides 1s obvious to the most casual ob-
It is dificult to prove any given case,
members of the house are honestly and
enthusiastically for the particular thing
that the White House thinks would
hamstring its program. Proof of the
real underlying desires of any given
senator being so difficult to obtain, it
would be very misleading to name
names.
The Interesting point sbout the
whole situation, however, lies not in
any particular move against the ad-
ministration which may gain unexpect-
ed support, but in the possible conse
quences for 1066.
It muddies what until now had been
a very clear view of what seemed cer-
tain to happen, and which In all prob-
ability still is very sure. It is only the
fact that there is now a bit of a cloud
on the horizon—which may or may not
grow—that is really interesting at all
The cloud Is the possibility that a
group of the extremists may get to-
gether and form a third party next
year, For such a move to get any-
where it must surmount several rather
tall hurdles. One is whether they
could even get together on a candidate,
there being no such person in the of-
fing as the elder La Follette was In
1024.
With that hurdle surmounted, and
assuming--which is much easier—that
the third party leaders could agree on
a platform, the next hurdle Is some-
thing over which the radicals have no
control whatever—what the regular Re-
publicans will do.
Big Handicap
For. the only possible Importance of
a third party entering the field would
not be the possibility of electing its
own candidates, but of giving the Re-
publicans a chance to beat Roosevelt,
just as the elder La Follette's candi
dacy io 1024 assured the election of
Calvin Coolidge by a landslide. The
third party would draw votes from the
New Deal. It would not get any of
the 13.000000 men and women who
voted the Republican ticket last No-
vember,
Even with this big handicap, how-
ever, the Republicans would have to
make a good showing to win, a big:
ger showing, In fact, than there is any
apparent probability at this time of
their making. Their difficuities re
volve not only around the candidate,
but the platform,
What could they
tional convention
agree on in a na-
as to platform?
Talks with half a dozen leading Re
publican survivors in the house and
senate indicate almost that number of
widely varying views as to the proper
course to be taken as to issues. And
the same is true with respect to candl-
dates, with the notable difference that
here it 1s not a case of warmly advo
eating different candidates, but of cold-
ly rejecting nearly all candidates in
sight,
There Is not the personal angle
which usually is so apparent at this
stage of the Presidential term among
the outs. No one is screaming for this
or that candidate. All unite in saying
they do not know what candidate would
make a good run,
There Is less opposition to Senator
Arthur H. Vandenberg of Michigan,
and to Frank Knog, the publisher, than
to most, but even those who like these
particular men disagree as to what the
platform should be,
Altogether, even with more success
for the radicals than is now antici
pated, the picture is not very discon-
certing to the New Deal. Actually, the
far more Important clement is whether
business can revive sufficiently by No-
vember, 1086, for America to sce Its
path leading out of the present dif.
culties,
The Baby Bonds
Anticipated objections from the life
insurance companies to the baby bonds
the government proposes to sell at post
offices have not materialized, most rep.
resentatives of the companies saying
there is no strictly insurance feature,
in that the amount of return is not
changed by the death of the holder.
Actually the baby bonds present an
fdeal arrangement for the purchaser
the purchaser figures that ten years
there is no reasonable possibility that
the money will be required before that
time,
For example, If a father has a son
now six years old, and is figuring on
providing a sum of money for that
hence, the bonds might be very attrac
tive. The rate of interest would not
be high. It would be slightly under
8 per cent. But the money would be
as safe as anything ean be—the direct
obligation of the government
If on the other hand he should find
it necessary to use the money before
the expiration of that ten years, he
would be forced to take a lower rate
of Interest. For during the first year
no Interest whatever accumulates. And
for the next six years the rate Is only
a little above 2 per cent. It Is only In
the last three years, when the rate per
year goes over 4 per cent, that the
average ls pushed up—and then not
quite to 8 per cent.
The government is figuring on & very
-
waiting for safe investment. Every
banker, broker and Insurance man
loan
which cannot be filled. And the gov-
at around 1 per cent repeatedly.
Different Proposition
But, bankers and
point out, this baby bond issue pre-
sents an entirely different proposition,
In the case of people taking short term
government loans, thelr motive is to
obtain a little return on their money
while they are waiting. They hope
that by the end of the period of that
loan they may find some safe invest
ment, which will yleld them a larger
return. Proof of this Is in the fact
that for long term bonds the govern.
ment has to pay from two to four
times as much interest.
But in the case of the baby bonds
there Is no return at all during the
first year, and only a very small return
for the next six years. Moreover, the
holder is compelled, if he wants to cash
in before the higher interest rate be-
comes effective, to take the price fixed
in advance by the government. Other
investors might be willing to pay more,
but the bonds are not transferable.
One of the government's objects here
is to save money, of course, Every
person cashing the bonds In before ma-
turity takes a very low interest rate.
Another object is to keep the bonds
out of the hands of the banks. There
has been a great deal of criticism of
government financing on the score that
it was loading the banks up with gov-
ernment bonds, and thus restricting the
amount of money which could better be
employed at stimulating industry.
Not being negotiable, these baby
bonds will stay out of the banks, thus
serving this purpose. But the fact
that the bonds are not negotiable also
lessens their attractiveness to inves
tors. This might not interest the chap
who buys just one bond for $18.75. But
it would Interest considerably the man
or woman with a few thousand dollars
to invest. Hence the prediction that
the total sales will not figure heavily
in the government's fiscal plans.
In fact, this is frankly sdmitted by
some administration officials. They ad-
mit they would like to see certain oth-
er effects. Just holding a bond of any
sort. they point out, has the effect of
making the holder just a little more
conservative. And Incidentally making
him in a way a partner in the New
Deal.
Gold Clause Decision
One of the most significant things
about the gold clause decision of the
Supreme court was not only the se-
crecy which shrouded what that de
cision wonld be—indicated by the fact
that some of the first news flashes were
very misieading—but also the moves
the administration had planned to coun
teract the effects in case the decision
should have gone 100 per cent against
the government.
For It can now be stated that not
even the speaker of the house, nor
leading administration senators, had the
slightest idea what would be done.
Just three people really knew. They
were: President Roosevelt, Secretary
of the Treasury Morgenthau, and At-
torney General Cummings,
And that Cummings knew Is the writ-
er's guess. Cummings does not admit
it. So it might be possible that the
third person who knew was not Cum-
mings, but some other lawyer on whose
judgment the President and Morgen-
thay could rely.
Legal advice was produced for the
treasury in plenty, but those furnish-
ing it were not sure how it would be
used. Bome of the decisions asked for
were as to public utility rates. For in-
stance, in many past decisions, courts
have ruled that contracts between util.
ity companies and thelr customers did
not bind either side If a legal body,
which had the right to change rates,
should change them.
Inference of the employees supply-
ing this Information assumed, and still
assumes, that this was for calculating
the court's decison, in advance, rather
than deciding what to do should the
court rule otherwise than it did
what would be done in the event of a
decision against the government may
never be known, and will not be unless
leak out, there are some excelient
guesses.
Some Deductions
One high treasury official, known fot
his shrewdness, made some interesting
deductions In advance. For example,
be had the idea, stressed In the ma-
jority opinion by the court, that the
amount of damages would have to be
determined in court—that certainly no
court would force a company to pay
the full $1.60 for each dollar of a gold
clause bond.
“And,” this official added In a con-
versation several days before the de-
cision, “1 do not think it will be pos
sible actually to demonstrate damages
to the extent of the decision.”
Now this was not just a haphazard
opinion. Nor was it a “leak” from the
court. It grew in that official's mind
as a result of various questions he had
to answer for Secretary Morgenthau.
The administration was sure of sev.
eral things about the decision—that 1s
as to what it could do in this or that
event—but it was hoping there would
be some such loophole as forcing hold.
ers of the bonds to demand their dam-
ages through the courts Instead of a
flat order to pay $1.00.
Copyright.~WNU Services,
CRUTCHES FOR EYELIDS
“lyelld erutches” are now being
by persons suffering from
the permanent drooping or
paralysis
writes W.
of the ufting muscles,
A. Bummers, Lansdale,
Collier's Weekly. These
crutches, which are made of plat.
num and attached to the ordinary
Read the offer made by the Postum
Company in another part of this pa.
per. They will send a full week's sup-
ply of health giving Postum free to
anyone who writes for it.—Ady,
Nothing Finer
Friendship is the highest degree
of perfection in soclety. Montaigne,
Dr. Pierce's Favorite Prescription makes
weak women st . No aleohol. Bold
by druggists in tablets or liquid.—Ady,
Root of Justice
Where doth justice dwell? First, In
the conscience,
CONSTIPATION
Can be Helped!
(Use what Doctors do)
Why do the bowels usually move
regularly and thoroughly, long efter
a physician has rm you treatment
for constipation
Because the doctor gives a liguid
laxative that can always be taken in
the right amount. You can gradually
reduce the dose. Reduced dosage is
the secret of real and safe relief from
constipation.
Ask your doctor about this. Ask
> d ist how popular liquid
axatives have become. The night
liquid laxative gives the right kind
of help, and the right amount of help.
When the dose is repeated, instead of
more each time, you take less. Until
the bowels are moving regularly and
thoroughly without any belp at all
The liquid laxative generally used
is Dr. Caldwell's Syrup Pepsin. It
contains senna and cascara, and
these are natural laxatives that form
no habit — even in children. Your
druggist has it; ask for—
vo. (Lldrells
| SYRUP PEPSIN
Be Wise!
The legal penalty for flirting is
marriage. Exchange.
aR
A MOTHER'S ADVICE
DO) we
Parker's Hair
ta
Bair soft and rors. Matha
FEEL TIRED, ACHY-
“ALL WORN 0T?”