EDITOR'S NOTE—When opinions are
expressed in these columns, they are those
of the news analyst, and not necessarily
of the newspaper.
Europe
At Rome, British Prime Minister
Neville Chamberlain had received
no reassurances but merely Benito
Mussolini's threat to end the Span-
ish war immediately by helping
Rebels against Loyalists. That done,
II Duce would have his hands free
to press Mediterranean territorial
demands against France. England
and France could choose between
helping the Loyalists or keeping
hands off and letting Mussolini win
the war. Since Chamberlain had
reportedly made no concession in
Rome, it was first thought a new
policy of non-appeasement was
dawning, inferring a Franco-British
plump for the Loyalists.
But within a few days some nega-
tive results of the Rome conversa-
tions were apparent. Back in Lon-
don, Mr. Chamberlain paid no at-
tention to a letter from Clement R.
Attlee, Parliament's labor leader:
“‘It is obvious that the policy of non-
intervention (in Spain) has now be-
LABOR’S CLEMENT ATTLEE
Mr. Chamberlain ignored his letter.
come the means of insuring that the
Spanish (Loyalist) government shall |
be unable to provide for its defense
against aggression by a foreign
power.”
In Paris, where first news of
Chamberlain's alleged non-appease- |
ment was greeted by demands for |
French assistance to Loyalist Spain
as a self-defense measure, later
news from London brought a cool-
ing off. The whispers: That Cham-
berlain had secretly agreed with
Mussolini to let Rebel Spain win,
constituting an additional appease-
ment at the expense of France.
Whatever the cause, the Paris
chamber of deputies felt obliged to
approve Foreign Minister Georges
Bonnet's declaration decreeing
“hands off’ in Spain.
Meanwhile despite disastrous |
losses in northeastern Catalonia,
Spain's Loyalists felt their cause
was not defeated. Authoritatively
reported from Paris was the fact
that Loyalists had reached an un-
derstanding with the Vatican, aided
by a growing Catholic opinion that
Rebel Generalissimo Francisco
Franco may be using the religious
issue merely as a cloak for his fun-
damental Fascist Neverthe-
less, Loyalist Spain still has much
weaker friends than General Fran-
co, who continues to get aid from
both Italy and Germany.
Precsing their current advantage,
Berlin and Rome are hastening dip-
lomatic victories in the east before
Britain gets around to calling a new
four-power conference for European
peace. While Italy's County Gal-
leazo Ciano viegits in Jugoslavia and |
Warsaw, Germany is making hay
in at least three eastern countries:
(1) A $60,000,000 credit agreement
has been signed with Turkey for de-
livery of German manufactured
goods; (2) Germany has accredited
a minister to Saudi Arabia; (3) Hun-
gary and Germany have tightened
their bonds.
aims.
Agriculture
When commodity prices drop, U.
8. farmers co-operating in the AAA
crop control program receive parity
payments, designed to maintain
farm purchasing power. Under the
first AAA parity payments came
from processing taxes, later out-
lawed by the Supreme court. Un-
der the second AAA parity pay-
ments merely increase the federal
deficit since last winter's congress
made no provision for them. This
shortcoming was brought to con-
gress’ attention in President Roose-
velt's recent budget message.
But even the President has failed
to suggest means of financing the
payments, having merely stipulated
that no new taxes shall be levied
which increase the consumers’ bur-
den. Processing taxes would do
this but Secretary of Agriculture
Henry A. Wallace favors pulling this
trick from the bag once more, hop-
ing a liberalized Supreme court will
approve the idea. Secretary of the
Treasury Henry Morgenthau, whose
department must handle the deal,
opposes processing taxes.
Since the administration cannot
agree on a method of financing cur-
rent parity payments of $212,000,-
000, congress is in no mood to take
the initiative. It may well be that
this indecision is responsible for re-
vival of last year's McAdoo-Eicher
farm bill, just reintroduced in house
and senate respectively by North
Dakota's Rep. William Lemke and
Sen. Lynn J. Frazier. Its crux:
Minimum cost-of-production price
levels would be established for do-
mestically consumed farm prod-
ucts, while all surplus products
would be dumped on world markets
for whatever they would bring, Pro-
ceeds, less marketing costs, would
be returned to the farmer.
Cost-of-production critics argue
that removal of crop restrictions
would glut the market, drive prices
down and force grain dealers to pay
a large margin between the actual
market price and the cost-of-produc-
tion price. This margin, it is main-
tained, would eventually be assessed
against the consumer.
Taxation
Two former U. S. treasury secre-
taries, Andrew W. Mellon and Og-
den L. Mills, condemned the in-
equity of tax exempt federal, state
and local bonds. Since his ‘“‘soak-
the-rich' revenue proposal of 1935,
President Roosevelt has fought tax
exempt securities and one other un-
popular exemption, that on federal,
state and local employees’ salaries.
If these exemptions could be abol-
ished the U. S. government figures
it would net eventually $300,000,000
annually from government securi-
ties, plus $16,000,000 from employ-
ees’ income taxes.
One day before the President of-
fered this program to congress in
a special message, he sent Treas-
ury Undersecretary John W. Hanes
to pave the way before a special
senate committee. Said Mr. Hanes:
“The time for action has come.”
The Constitution's Sixteenth
amendment gives congress power to
‘““lay and collect taxes on incomes
fromm whatever source derived,”
therefore the administration thinks
statutory enactment rather than
constitutional amendment will suf-
fice. Later, after congress has spo-
ken, the courts can decide whether
its action is constituti onal. Argued
Mr. Hanes
Tax exempt securities now per-
larg persons to
income taxes entirely, there-
they are unfair. The $65, 000,-
eS now
ne 50.000. -
is so for-
invest
ment in private enterprises involv-
ing risk. Thus industry cannot com-
pete. As for income tax exemp-
tions, the U. S. Supreme court has
already set a precedent by ruling
that salaries of such quazi-public
agencies as the Port of New York
authority are subject to federal tax-
ation.
As might be expected,
local groups jumped into
overnight.
e-income
outstanding (of which sor
000,000 would be taxable)
state
Hg
TREASURY'S HANES
*The time for action has come.”
of State Defense: Tax yield would
not approach the immediate treas-
ury estimate of $70,000,000 a year.
Moreover it would work hardship on
states and municipalities by increas-
ing financing costs, The statutory
procedure would be unconstitution-
al. Most important, once congress’
power to tax income of state and lo-
cal securities has been established,
a situation could arise in which con-
gress would attempt to tax state
revenues. Argued the U. 8S. Confer-
ence of Mayors, in a similar vein:
Federal and state governments may
recoup from income taxes the high-
er costs to municipalities in interest
on their bonds.
Observers thought income tax ex-
emption could be repealed easily,
but were less confident about tax
exempt securities,
People
Left, for the U. S., Brazilian For-
eign Minister Oswaldo Aranha, to
confer with President Roosevelt.
"The purpose, as explained in a Rio
de Janeiro newspaper: “To discuss
practical instruments for continental
defense as well as national protec-
tion of each of the two countries
against foreign infiltration.”
Public Works
Two of President Roosevelt's pet
{
|
bay, and the digging of a ship canal
across northern Florida.
“Quoddy’’ was started
on preliminaries to the actual job.
ation was refused in 1936.
by NYA.
Florida canal, but last year
gress balked on more funds.
arguments against it:
fruit industry might be damaged by
seepage of salt water; that
The
SENATOR GLASS
“It won't happen again.”
Florida
economic
unnecessary; that southern
would suffer irreparable
damages.
This winter President Roosevelt
has asked an economy-minded con-
gress to revi both projects and
appropriate $100,000,000 to complete
them. On Quoddy: ** The time
will come when there will be a joint
agree ment between Can
Jnited States for the joint de
ment of the larger sized project
which would utilize all tidal power
in that bay on both sides of the
international date line . . . It is my
thought that appropriation for
test borings and a small
experimental plant . would be
justified.”” On the : “A Florida
ship canal will be one of these
days It by
commercial and
While the
bors committee un
Joseph J. M
gue the proposal,
spoken Sen. Carter Glas
words: “In 1936 the
Fletcher of Florida
with tears in his eyes, saying his po
litical future would be i
Florida didn't get the
ada and the
velop-
an
canal
built
is justified today
military needs.’
house rivers i
der Texas
prepare
and
anfield
8 spared
Sen
came to me
no
»
atc :
iate
- old fool I dic
happen again."
International
Last summer oppressed China
ap
prove sanctions against Japan. This
was done, but only by resolution sug
gesting that league members take
whatever action they saw fit.
ing happened until a non-member,
the U. S., began applying pressure
against export arms to Ja-
pan. Great Britain followed suit in
small measure, but thus far the in-
ternational boycott has failed.
Showing typical Oriental resigna-
tion to fate, China's Dr. Wellington
Koo, ambassador to France, has
again broached the boycott issue in
Geneva. His proposal: That an in.
ternational ‘‘co-ordination commit.
tee'’ be named to unify world action
against Tokyo. Membership would
include both league and non-league
nations.
Only result of Dr. Koo's plea has
been to focus attention on the
league's weakness, also to point out
that only Britain, France and Russia
now hold that badly battered organi.
zation together. The Chinese diplo
mat knew he could get no Anglo
Franco-Russian support without first
winning U. S. support. Hence he
pointed out that President Roose
velt's January 4 message to con
gress had “proffered the co-opera-
tion of the American people in sup
port of the cause of democracy and
peace.” France, Britain and Russia
agreed. Not daring to speak, all
three turned eyes westward across
the Atlantic awaiting Washington's
leadership.
of
Religion
In prosperous years church mem
bership and attendance remains
even or shows a very slight in
crease, During depressions mem
bership and attendance will rise
through a return to religion. Fore
most among U. 8. religious statisti.
cians is Rev. Dr. Herman C. Weber
whose report for 1837 has just been
released.
Salient facts and figures: Tota
membership early in 1938 was 64,
156,895, church members having in
creased 080,000 in 1937 (twice as
fast as the population). Churches
increased by 1743. A trend to
church unity was evident, since 97.3
of the total U. 8. church population
belongs to the 50 larger bodies.
About 160 smaller bodies account
for the remaining 2.7 per cent.
WASHINGTON.—Many times in
these columns I have written ex-
pressions of fear about the size of
this thing we call the federal gov-
It is so huge that few per-
the magnitude of the
And
sons grasp
machinery.
can not say that it is just ‘“‘so big,”
it by extended arms.
the other hand, incidents or ac-
tions of a unit of the federal govern-
|
Such an incident came in the
recently and, unfortunate
very little attention was ps
daily newspapers of the na
Here is the
and it tells its own
size of our national gov
hin , +
son.
news
aid to it in
tion
basis of comparison,
as to the
ental
story
ernn
the
130,215,000 persons living within
continental United State
During the year 1938,
corporations within the Inited
States were ipelled by law or
regulation or special orders to file
with federal government agenc
total 35,000,000 reports,
census here were
the
izens and
con
ies
agencies upon
toosevelt., The Presid
know whether 1
for the the
editorial
mendous b
placed upon ev
including indi
ernment,
however, have dem
understanding way just what an oc-
ere
usands «
criticise
urden
ery
nstrated in an
topus our
pecome,
is likely—tha
ed a
rk the begi
eral governm
lings ought to have ths
ny event,
Then Began an Expansion
Of the Federal Government
Shortly af i war ended
and the federal gover nent
back to norm }
aod
ter the Worl
) size
he fu nections it was ar of rime-
th ere was a time when 1 the popu-
sed because
vernment was spendin a
a year.
nes along in 1919 ;
year or so more,
there was the call of the suffer
for help from their national govern-
ment, There were, too, numerous
ideas being fomented and allowed
to ferment.
something new in
ernment functions.
contemplated some
eral expense.
In this way, there began an ex-
pansion of the federal
that has carried on with an ever-
accelerating pace until the New
Deal took over, six years ago. Then,
we really went to town in expand-
ing the number of arms and legs
and eyes and ears of the federal
government. Yes, and with that ex-
pansion there came additional ex-
pense-—expense, not in millions, but
in billions. Recently, you know,
President Roosevelt asked congress
to appropriate more than $9,000,000,-
000 for the government year begin-
ning July 1, 1939. That total is not
all. There will be other and addi-
tional sums called for as each one
of these agencies, or many of them,
fails to live within its appropriation
and goes back to congress to ask
for more money. The relief admin-
istration came in a few weeks ago
and asked for $875,000,000 more to
run it until July 1 when congress
believed in May, 1938, that it was
al
in
Ye e shot ut
their pon
iillion dollars
some hard tir
1920 and a
the way of
Well,
additional
gov-
But to get back to Mr. Rice's sur-
I am not informed as to de-
to show
in some cases for an agency of the
government to have all details of
businesses over which it has super-
vision; yet, I can not help wonder-
ing whether it is necessary to have
such supervision in the first in-
stance.
How Many of These Agencies
Can We Get Along Without?
Hence, the Rice survey calls at-
tention to something much deeper
than just the burden that govern-
ment places on its citizens. It sug-
gests the question: how many of
these governmental agencies and
their functions can we do without?
How many can be abandoned with
benefit, both in the matter of sound
government and in the elimination
of useless expense to the taxpayers
and the individuals or corporations
required to meet government
mands? My guess is that at least a
third of our present government
structure is of no value: that at
least that portion could be elimi-
nated and everyone would be hap-
pier, and that if a large chunk of
these functions were forgotten
ing w
de-
, liv-
vouldn’t be so complicated and
certainly not so costly. It must be
remembered that every time cost of
government is increased, there is
more than the outlay for govern-
ment expense involved. Every time
ronment agency gets slimy fin-
bus just ti
arise an added cost
gers into ine does
there
It is not hearsay with me when I
say that high pressure groups force
government expenses
nation. 1 have watched
after year.
the
in order tha
gress
“informed.”
ai
bers
agency
persons
ie to convince mem
hat unless the
nds of
die.
i5dl
maybe
Too Much Burden Placed
On Every Kind of Business
ir. Ri !
contention
Surely, }
the
placi
every
g too much 1
kind of business by
of
demand-
and taining all
weekly, monthly,
my knowledge, I can
ndred small businesses
ad to hire extra account-
ther experts to do noth-
make out reports to the fed-
government—and cor-
some squirt here
Is them they
in the proper items
It has happened to
once, and
is myself
these re-
an-
eral answer
respondence from
in Wash
have nt
ngton who tel
on line §
me, cre than
there office
my
all
and secretary.
that farmers got a taste
business of reporting to
Washington with the
agricultural adjustment program. In
connection
in
persons checking and
contra
rechecking
reports of agents
unty committees,
Those farmers who did not en-
for statements
about this, the other still
have some 1 which they can
look forward, because they will get
such demands sooner or later.
cis,
etc.
counter
thir g
Like the government machine it-
self, I can not help puzzling as to
what 135,000,000 reports mean. Of
course, it can be said that it is one
report for every man, woman and
child in the nation, but it is not a
true perspective. There are, of
course, many millions of persons
who make no reports to the govern-
ment in Washington. That means
reports.
Agencies Doing Same Work?
From the standpoint of effective
administration assuming that
many of the government activities
are proper—why is it necessary for
the government to have 11 different
agencies interested in housing? Why
should the departments of com-
merce, labor,
another example,
be asking the
to each one on the same subject?
posit insurance company, a board
investigators, doing very much the
same thing, making investigations
and examinations and reports to
their respective agencies? And I for-
got this one: the securities and ex-
change commission also horns into
bank management evéry now and
then!
Aside from these types, there is
the ever-present taxing authority.
Now, there must be taxes and they
must be collected and it must be
gators are going around and around
tangled up with other investigators
and examiners, One wonders where
the end is.
© Western Newspaper Union.
Ask Me Another
® A General Quiz
asssssssssnonn
SOOO
1. What furnishes the motive
power to ships passing through
the Panama canal?
2. What does the Statue of Libs
erty hold in her left hand?
3. What is a barcarolle?
4. Who is the highest paid ao-
tress in the world?
5. Did Franz Schubert play the
music of other composers?
6. How much will it cost to take
the next census?
7. How old is the Nazi party?
The Answers
1. Small electric
2. A book representing
3. A popular Z
sung by Venetian
4. Gracie Fields,
medienne, makes
$750,000 a year.
5. It
record of his
but his own.
6. The
will cost approx
7. It was fo
Wait, Mother-
Ask Your
Doctor First
locomotives.
the law.
elody
i8 Bau
Never dv your children unknown
“Bargain” remedies to take un-
less you ask your doctor.
A mother may save a few pennies
giving her children unknown prep-
arations. But a child's life is pre-
cious beyond pennies. So—Ask pour
doctor before you give any remedy
you don’t know all a ut.
And when giving the comm
children’s remedy, milk of mu:
nesia, always ask for “Phillips™
Milk of Magnesia.
Because for three generations
Phillips’ has been favored by many
physicians as a standa urd, reliable
and proved preparation — - marvel-
ously gentle for youngster
Many children like Phi in
the newer form — tiny peppermint-
flavored tablets that chew like
candy. Each tablet contains the
equivalent of one teaspoonful of the
liguid Phillips.” 25¢ for a big box.
A bottle of Phillips’ liquid Milk
of Magnesia costs but 25¢. So—anp-
one can afford the genuine. Careful
mothers ask for it by its full name
“Phillips’ Milk of Magnesia.”
PHILLIPS’ MILK OF MAGNESIA
w IN LIQUID OR TABLET FORM
on
lips’
Man Higher Up
Visitor—Is the master of the
Worried Father
asleep upstairs in
He's
OR SPREAD I ROOSTS
Place of Amusement
Let amusement fill up the chin
of your existence, but not the
great spaces thereof.—T. Parker.
bb
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WNU-—4 4-39
First Catch the Bear
Sell not the bear's skin before
you have caught the bear.
BLACKMAN
STOCK AND POL
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BLACKMAN
8 STOCK MEDICINE cO.B
ECE CT.