FEDERAL SECURITY AGENCY
Social Security Board
Employment Service (from Labor Dept.)
Office of Education (from Interior Dept.)
Public Health Service (from Treas. Dept.)
National Youth Administration
{from W.P. A}
Civilian Conservation Corps
FEDERAL WORKS AGENCY
Bureau of Public Roads (from Agr.Dept.)
Public Bulidings Procurement
(from Treomry Dept.)
Bulldings M
{from National Park Service)
U.S. Housing Authority
Public Works Administration
(to become Works Projects Adminktration)
Works Progress Administration
FEDERAL LOAN AGENCY
Reconstruction Finanez Corporation
Electric Home ard Farm Authority
Home Owners’ Loan Corporation
Federal Home Lozn Bank Board
Federal Housing Administration
Export-Import Bank
(Farm Credit Administration, Federal
Form Mortgage Corporation ond Come
modity Credit Corporation to be trons.
ferred to Agricuitural Department)
TO THE PRESIDENCY
Budget Bureau [from Trecsury Dept.)
Central Statistical Board
{to be combined with Budget Bureou)
National Resources Committee
(10 be President's planning ogency)
Federal Employment Stabilization Office
(from Commerce Dept. to be consol
dated withNot'| Resources Committee)
EUROPE:
Prelude, Song, Postlude
Democracy was adamant one
week before Der Fuehrer gave
Reichstag and the world his an-
swer to President Roosevelt's peace
appeal. By four days before speech
time Hitler had beceme adamant,
Britain and the U. S. cautiously
shifting their stand to show simul-
taneously that democracies (1) will
not, and (2) can be persuaded to,
participate in another Munich con-
ference.
Britain showed appeasement in-
clinations by rushing her previous-
ly recalled ambassador, pro-Nazi Sir
Nevile Henderson, back to Berlin.
Next day, as Nazi Foreign Minister
Joachim von Ribbentrop delighted-
ly kept Sir Nevile waiting outside
his door, Britain indignantly inaug-
urated her first peacetime conscrip-
tion and presented parliament with
a $6,213,000,000 budget (of which 47
U.
conquests in favor of ““peace before
war’’ via negotiation. Meanwhile
the treasury wooed Hitler's good will
by modifying its 25 per cent penalty
against German imports.
Poland prepared to defend her
borders at all cost. Rumania de-
cided to avoid an anti-Nazi pact.
Japan fidgeted excitedly and com-
plained she did not want war with
democracies despite her anti-Com-
SIR NEVILE HENDERSON
Herr von Ribbentrop had fun.
mitern pact with Italy and Germa-
ny. The Balkans were apparently
a solid Nazi front. With Rome and
Paris waiting in strange silence, the
world finished its quavering prelude
to the most vital speech Adolf Hit-
ler will ever make:
Song. Never a brief speaker, Der
Fuehrer took more than an hour to
lay foundation for a point-by-point
rejection of Mr. Roosevelt's peace
plea, a rebuttal he interlarded with
fine sarcasm. Biggest pre-sarcasm
revelations:
~ (1) Germany considers the Anglo-
French-Polish non-aggression pact
unfriendly, therefore denounces its
10-year friendship pact with Poland.
But Poland can still have the treaty
Germany sécretly proposed several
months ago, a 25-year friendship
pact contingent upon return of Dan-
zig to the Reich and designation of
a pathway from Germany to East
Prussia through the Polish corridor.
In return, Hitler guarantees the Pol-
ish corridor and recognizes Polish
commercial rights in Danzig.
(2) Treaty or no, Danzig must be
returned to Germany.
(3) Hitler denounces the Anglo-
German naval limitations treaty,
but will gladly discuss the problem
to prevent a naval race,
Highlight of the rebuttal was that
Germany will give non-aggression
promises to each of the nations al-
legedly ‘‘threatened,” but that each
guarantee will be made individually
upon petition and on a basis of ab-
solute reciprocity. Greatest rebut-
tal sarcasm concerned such “threat.
"
ened’’ nations as Ireland and Pal-
estine, which—according to Hitler—
have more to fear from English sup-
pression than German aggression,
Point-by-point rebuttal:
(1) Mr. Roosevelt pointed to three
European and one African nation
whose independence has been ter-
minated since 1936. Answer: What
is “independence,” anyway? Alba-
nia, Austria and Czecho-Slovakia
really had their “independence” ter-
minated after the World war. As
for Africa, Mussolini's Ethiopian
conquest merely followed a prece-
dence of aggression established by
France and Britain.
2)
sive? Answer:
kept peace since 10918, compared
with repeated U. S. intervention in
the world's wars.
(3) Has any nation the right to
wage war except in self defense?
Answer: No, and certainly the U. 8S.
did not enter the World war in self
(4) Can world problems be solved
via conference? Answer: Yes, the-
oretically; no, practically. Exam-
ple is the League of Nations which
shunned, thereby admit-
ting the failure of peace by confer-
ence. Hence Germany followed U.
was the U. 8S. civil war.
of the speech was (1) a promise that
Germany intended no invasion, (2)
a supplication that President Roose-
velt take the lead in world peace
efforts. For British, biggest news
was a very obvious bid for good
will despite denunciation of the naval
pact.
Postlude. Best opinion held the
two-hour harangue a conciliatory re-
fusal of Mr. Roosevelt's appeal. Said
Kansas’ Sen. Arthur Capper: “After
listening to Hitler, I still hope Eu-
rope’s troubles can be settled by
peaceful methods.” Informed ob-
servers left their loud speakers ex-
pecting both the U. S. and Britain
to make new overtures, confident
that war had been averted for the
nonce, but certain above all else
that Adolf Hitler positively holds the
European whip hand,
WHITE HOUSE:
Reorganization
“Dictator” criticism notwithstand-
ing, U. S. governmental reorganiza-
tion is substantially a sound idea if
it promotes economy and efficiency
by lumping miscellaneous, isolated
and similarly functioning offices un-
der a single administrator. Last
year’s reorganization bill stumbled
partly because it might have given
an unscrupulous future President
too much power. Modified and
passed this session, it allows the
President six administrative assist.
ants and permits him to draft re-
organization plans which congress
must accept entirely or reject with-
in 60 days.
Already submitted is the major
portion of Mr. Roosevelt's plan (see
chart above) designed ‘to make de-
mocracy work—to strengthen the
arms of democracy in peace or war
and ensure the solid blessings of
free government . . .” Three new
agencies (public works, social se-
curity, loans) will be managed by
three of the six new $12,000-a-year
administrative assistants, each of
which will have a $9,000-a-year as-
sistant administrator. Lacking cab-
inet portfolio (the original plan con-
templated new cabinet posts for se-
curity and work agencies), the new
administrative assistants will never-
theless be virtually of that rank.
Two more reorganization plans to
come will (1) shift bureaus from one
department to another, thus secur-
ing more logical classifications, and
(2) reorganize intra-departmental
machinery. Biggest contemplated
objective jn the latter plan, since
dropped, was consolidation of all six
of the treas.ury’s investigative units,
a step the Fresident finally decided
might lead to a U. 8. copy of Gér-
many’s Gestapo or Russia's Ogpu.
PHILIPPINES:
Problem Child
Less than a decade has passed
since the U. 8. fought Philippine
independence demands, but tables
have a way of turning. Given con-
gressional assurance of early free-
dom, Philippine President Manuel
Quezon hardly had time to exult be-
fore Japan turned imperialistic,
swaggered into China and began
grabbing off every piece of unpro-
tected real estate within Asiatic
waters. Since Japs already hold a
strong commercial position in Ma-
nil, moreover since even a doublg-
strength U. 8. Pacific fleet might
not be able to hold the islands
against sudden attack, many Amer-
icans believe their nation should
leave the Philippines before getting
involved in war. Added impetus
sentment over concessions to Fili-
pino sugar.
Sensing that the U. S. was anxious
to pull stakes, Manuel Quezon last
year appealed to President Roose-
velt and won an administration-
sponsored proposal calling for polit-
ical independence in 1946, the 25
per cent tariff being increased by
5 per cent a year until wholly ef-
fective in 1961. Since President
Quezon will not be able to attend
hearings this year, the bill is being
tabled until next session. When he
does arrive, Mr. Quezon will be of-
fered an even stronger deal which
members of the Senate committee
on territories and insular posses-
mously, albeit secretly, The deal:
If Filipinos will cut political ties
with the U. S. in 1942, current 25 per
cent tariff rates will continue until
1946 as under the administration bill.
annually until the U. S. washes its
hands of the whole affair in 1953.
Still officially unannounced, the
substitute bill (suggested by Mary-
land's Sen. Millard E. Tydings) has
been hushed for fear Japan may
sail into Manila immediately, con-
fident the U. S. does not care to
defend the harbor Admiral Dewey
stormed so heroically in 1898,
BOLIVIA:
Democratic Dictator
Forbears of Bolivia's 35-year-old
President German Busch came from
the country which supplied his bap-
tismal name, but for two genera-
tions Busches have been loyal Bo-
livians. In 1935 German Busch
emerged from the Gran Chaco war
BOLIVIA AND BUSCH
His plan may work,
with Paraguay to find his country's
government in horrible shape.
Friendly to labor and business,
boasting strong Catholic support,
Youngster Busch became provision
al president in July, 1937, when Col.
David Toro's “socialistic’’ state was
toppled. Last May he was constitu-
tionally re-elected, beginning a task
from which lesser men might have
turned away.
Plagued by Naziism and Fascism,
bankrupt and facing possible revolu-
tion if Bolivia's three Chaco war
parties (Liberal, Republican, Social-
ist Republican) won the May legis-
lative election, President Busch sur-
prised the world by announcing a
new type political animal, dictator-
ship to prepare for “a real democ-
racy.”
Observers give German Busch a
good chance of succeeding. Having
canceled the election, dissolved his
congress and abolished constitution-
al guarantees on the plausible as-
sumption that restive Bolivia does
not deserve democracy at this mo-
ment, Colonel Busch is the world's
first dictator to (1) invite “patriotic”
criticism of his regime; (2) reject
his cabinet's resignation; (3) view
Fascism and Naziism “with pain,”
and (4) promise an election five to
eight months hence to let Bolivia
decide its own destiny.
PEOPLE:
Shortstop to Cardinal?
Named archbishop of New York
Hayes, Most Reverend Francis J.
Spellman, 49-year-old auxiliary bish-
op of Boston whose boyhood friends
at Whitman, Mass., remember him
as the town’s best baseball short.
stop and a better-than-average box-
er. Forecast: That Archbishop Speil-
man will also be named cardinal st
the June consistory in Rome.
@ Appointed to the securities and
exchange commission, liberal Leon
Henderson, 44-year-old former NIRA
board man and WPA economist,
€ Silenced by Scotland Yard, Mrs.
Franklin D. Roosevelt, from telling
reporters about White House living
quarters planned for King George
and Queen Elizabeth during their
June visit.
@ Ousted from Rome, Richard
Mowrer, correspondent for the Chi-
cago Daily News, for his “unfriend.
ly” dispatches. Last November 20
another Daily News man, Frank
Euless, was also invited to leave
WASHINGTON,—*1 am supreme-
ly confident of one thing—we are
making a dent in the job of getting
back some of our foreign trade
that was lost to other nations in the
| last few years. Nobody can be sure
| that we ever will get all of it back,
| but I am hopeful because this little
institution of ours here is showing
that it can function safely and sat-
isfactorily."”
That statement, perhaps, is the
best summary I can give of the
philosophy of Warren Lee Pierson,
the president—and pretty largely
the heart and soul—of the export-
import bank. Likewise, it rather de-
lineates the program of that little-
known federal agency; because Mr.
Pierson is determined to see-Amer-
ican products, farm or factory, mov-
ing as of old into the hands of users
and consumers in foreign lands.
Moreover, to analyze the outlook of
that he believes the way to restore
people to jobs in this country is to
It is curiously true that some of
| the federal agencies which are doing
important work and doing it ef-
ficiently are least known to the gen-
eral public. They have no staff of
press agents; they seldom “break
into print,” yet they
serving all of the people well.
have been showing how our exports
have declined through many
months. The records give one the
impression that the lines
are in a race to see which one can
dive faster or deeper.
nation of producers. Secretary
Hull's reciprocal trade treaties have
been getting exactly nowhere; and
Secretary Wallace's ideas for sell
ing our farm products have proved
to be nothing but dreams and, like
{ dreams, they vanished the next
| morning, except that perhaps the
next day Mr. Wallace's publicity
staff announced another plan.
Solution of Unemployment
Is to Encourage Industry
“What,” I asked Mr. Pierson, “is
the answer?”
His reply was quoted as the intro-
ductory paragraph. He seemed
{ fully to recognize all of the difficul-
| ties confronting the United States
at the moment. Further, there was
every evidence that Mr. Pierson is
one of the few officials of govern-
ment who are aware that the solu-
tion to our unemployment problem
{is to assist industry so that it can
| re-employ workers. Unless indus-
try can be encouraged, it appears
{ that the nation is going to continue
| with 10,000,000 unemployed as it has
| for the last few years. 1 found it
| refreshing, therefore, to hear Mr.
| Pierson talk about how a few dozen
large factories have been kept open
| and with relatively full payrolls be-
| cause the export-import bank was
{able to help foreign buyers who
{wanted American products but
i could not pay cash for them.
For reasons that I will mention
subsequently, however, 1 had some
misgivings about the operations of
the export-import bank. 1 doubted
that there would be repayment of
money advanced by the bank.
“Well, the default is a thing that
happens to a greater or less extent
wherever credit is extended,” Mr.
{ Pierson explained. “If there were
{never any defaults, there ‘would be
ino risk attached to banking busi-
ness. But, unfortunately, that ele-
{ ment must be taken into considera-
tion. The fact that there is credit
risk is why this export-import bank
was organized. Of course, there
| were other reasons, but the instabil-
{ity of some foreign governments,
| the lack of exchange and such con-
{ditions made it necessary for our
{government to step in and help
those who are trying to export
American-made goods.
Collateral Behind Notes
Is Guarantee of Payment
“It is to be remembered that
| goods for export go in larger quan-
{tities and that necessarily larger
sums of money are needed to han-
dle the transactions. In addition,
we have found that, in many in-
stances, the buyers were what can
be termed as good credit risks, but
they were unable to make payments
of such large sums at one time.
Nor were the American manufac-
turers able to wait for three or four
or five years. To do so would ex-
haust their resources. That is where
we come into the picture,
“Take a case like this: A South
American railroad company wanted
to buy some locomotives. Those
things cost money. They wanted
American engines. But they wanted
to pay the bill on an installment
basis. We agreed to take about
60 per cent of the notes. Com-
mercial banks with which the man-
ufacturer was dealing agreed to
take over the remainder on a short
term basis.”
I had some misgivings.
treasury during the World war. In
rather had been impressed upon me.
I told Mr. Pierson of my feelings.
“That cannot be so in our case,”
he explained. ‘““We have collateral,
We have ways of collecting. There
are guarantees behind the notes we
have received, for example, in the
locomotives. We have no fears at
all.”
The guarantees, the collateral,
about which Mr. Pierson spoke, I
learned, were in the shape of a bank
endorsement. That is to say, one
New York and other
large cities in the United States, has
added its promise to pay to, the
promissory notes given by the pur-
chaser. Mr. Pierson did not say
to me that, should the South Amer-
happened before, the export-impert
this
Mr. Pierson gave no inti-
South American deposits in
country.
tered his thoughts.
Concentrate on Financing
Exports to South America
At the moment, there seems to be
quite a concentration of effort to aid
in financing exports to South Amer-
Of course, there have been
credits arranged for several places
in Europe, too, and also in China.
Mr. Pierson is very optimistic about
future trade with China. But the
bulk of the loans have been in con-
nection with South American propo-
And the fact that the export
import bank is paying so much at-
tention to South America is impor-
tant in another way. The fascist
dictators, Mussolini and Hitler, are
in South America. Having the type
of government Germany and Italy
any kind of arrangements desired
by using whatever government re-
sources are necessary. It strikes
me, therefore, that if the export-
the opening sentence; if it is gaining
a toehold in South America against
the high-pressure methods employed
by the dictators, then it is perform-
able, indeed, that extension of cred-
its in the manner described might
possibly be the means by which
North and South America can be
as well as in peace.
There is another thing about the
export-import bank that impressed
me.
lapse. But thus far in its life, the
export-import
losses.
the interest charged its borrowers.
Export-Import Bank Stands
To Make Large Profit
foreseen developments, the export-
import bank stands to make a profit
of something like $5,000,000. That
ought to be good news to taxpayers
during an era when spending money
is the first thing to which attention
is given. I believe that fact will im-
press you as much as it impressed
me.
Mr. Pierson told me that the bank
has made commitments, now out.
standing, of slightly more than $229 -
000,000. That is to say, the bank
has agreed to help finance ex-
ports to that extent, provided the
terms are met, and it must not be
overlooked that the bank is rather
hard boiled. Mr. Pierson pointed
out that the export-import bank had
to be really as careful as any com-
mercial bank, but it can do scme-
thing the commercial banks cannot
do—make longer-term loans. Those
are the loans represented in the $229,.
000,000.
The figures showed that $67,000,000
actually has been paid out to bor-
rowers in financing foreign trade
and, of this amount, repayments
under the terms of the loans
have amounted to $38,000,000. Which
is to say that of the loans outstand-
ing, well over half have been liqui-
dated in orderly fashion.
Mr. Piers)n repeated that a dent
has hash Hinge With a comparative-
ly We nT ey: Union,
New Play Dress and
a Bolero Ensemble
fashion this one design (1857)
gives you. The backless, slim-
waisted play suit is perfect for
with it,
daytime
too, and
tie suit,
and you have a smart
dress. Add the bolero,
you have a charming lit-
Make this of linen, broad-
Bolero Ensemble With Bows.
The bolero dress with princess
ply must have, It's so useful for
1731
street and afternoon wear both,
and extremely becoming, with its
slim-waisted silhouette, wide re-
vers and bow trims. Flat crepe,
silk print, georgette and street cot-
tons are good choices for this.
The Patterns.
No. 1557 is designed for sizes 12,
14, 16, 18 and 20. Size 14 requires
5% yards of 35-inch material; 10
yards of ricrac braid to trim.
No. 1731 is designed for sizes
12, 14, 16, 18 and 20. Size 14 re-
quires 53% yards of 38-inch materi-
al; 2% vards of ribbon for bows.
New Spring-Summer Pattern Book
Send 15 cents for Barbara Bell's
Spring - Summer Pattern Book!
Make smart new frocks for street,
daytirne and afternoon, with these
simple, carefully planned designs!
t's chic, it's easy, it's economical,
to sew your own. Each pattern
includes a step-by-step sew chart
to guide beginn
Send your order to The Sewing
Circle Pattern Dept., 247 W.
Forty-third street, New York,
Price of patterns, 15 cents
(in coins) each.
© Bell Syndicate. ~WNU Service,
(saFeTY TALKS )
Driving Ability
{E National Safety council re-
ports that automobile drivers
ability after 20 years of age.
Recent studies, said the council,
indicate that drivers under 20
This rate decreases
increases sharply.
Conditions Due to Siuggish Bowels
u delighted,
Nrand the purchase
rice, That's fair,
Ba NAR Tablets today.
Prompt Prudence
Prudence is of no service unless
it be prompt.—Francis Bacon.