BUSINESS: W ar Babies low citizens or of the men, women and children who are living and dying in the midst of war in Europe.” this Presidential warning before the markets opened after a Labor day week-end. If pondering means for- getting, the nation did it well. Tick- ers ran three minutes behind as “war babies” zoomed 5 to 15 or more points. When it was over, York alone had upped some $3,000, 000,000. Next day the market straightened out. Grains were no exception, jump- ing to their pegged limits each day. So stagnated was the futures mar- ket that milling business practical- ly came to a stop when processors refused to sell flour without being the cash wheat they needed. Final- ly the Chicago board of trade dou- bled the daily price Meat followed the trend. Hogs soared from 50 to 75 cents as the market opened, jumping another $1 the next day. The net result soon sifted down to Mrs. Housewife, whose meat, but- ter, eggs and flour went skyrocket ing despite government-held sur- pluses of most commodities. went Attorney-General Frank Mur- phy, gunning for the well-remem- bered devil of World war days, “High Costa Living.” to his office with of outsmarting the speculators, but Frank Murphy's job was not easy. A search of his statutes would show the attorney-general he had Sm few laws to fall back on. : Hence the wiseacres thought Mr. Murphy would spend the next few weeks draft. ing legisla- tion which the President could offer : a special uh congression- + al session. MURPHY That would be smart politics, because Secretary of Agri- culture Henry A. Wallace is doing his best to keep farmers from specu- lating with larger crops next year. If the glove fits agriculture, it also fits business. Though ambitious profiteprs thought the President had left a loophole in neutrality by exempting Canada (which has not gone to war), Secre- tary of State Cordell Hull soon bashed this hope in the head. The YU, 8S. might sell arms to Canada for transhipment to the allies, ex- cept for one sentence in the neu- trality act: “It shall be unlawful to export . . . arms, ammunition or implements of war . . . to any neu- tral state for transhipment to, or for the use of, any . . . belligerent nation.” Next question: How can this ruling be enforced? THE WAR: Speculation As the War of 1939 got well under- way, censorship’s lid clamped itself over everything save the vague of- ficial communiques from London, Paris, Berlin and Warsaw. Con. versely, the propaganda mills ground faster than ever. By add. ing to communiques and subtract. ing from propaganda, observers could ascertain a few things. The gist: France, Britain and Poland were in a tough spot. The key to this problem lay some- where in Poland. Defending troops rushed back to the Vistula and Bug rivers (See Map) where they hoped FRANK « « « found no laws. to dig in permanently. Though Generalissimo Smigly-Rydz called the retreat ‘‘strategic,” there was every indication Poland's position was desperate. Off to London seek- ing aid went Foreign Minister Josef Beck, knowing full well there was i ASIDE FROM WAR While war and its repercussions held U. 8. interest 100 per cent, the following newsworthy events drew lit tle attention: IN BALTIMORE — Twenty-six- year-old Mrs. Harold Ickes, wife of the 65-year-old interior secre- tary, presented her husband with a baby boy. IN CLEVELAND Col. Roscoe Turner, veteran aviator, sped 282 miles per hour to win the Thomp- son trophy the third successive time, thus winning $16,000. Then he announced retirement from the air racing business. IN NEWARK — Elisha Water- man, executive vice president of the fountain pen company, was beaten by C. 1. O. pickets as he tried to enter the plant. IN NEW YORK — Willys-Over- land claimed it was dropping a “bombshell” into the automobile field with an unprecedented new low price car for 1940. PAN AMERICA: Solidarity Hemispherically, the i 1 | | | i | { scheme was obvious. POLAND'S WAR Heavy shaded area shows German ter ritory. Light shade shows territory Poles tula and Bug rivers, in strategic areas shown with dots, made no offensive on the western front, where British-French found the lightly manned Siegfried line a stone wall. war or peace. If he the combined armies of Britain and France will have tough against a Nazi juggernaut crazy Europe. But in peacetime the Old world’s rich nations dangle tempting trade offers before the tiny lands of Central and South America, wooing them away from the more logical north-and-south commercial channels. When war again engulfs Europe, the rich suitors forget their temporary New world friends, who invariably turn once more to the U. 8. for leadership. No exception to this rule is the War of 1639, which finds Argentina cut off from her German-Italian trade sources by a British blockade, and finds Mexico's expropriated oil program at a standstill because Germany can no longer cross the sea. Not unexpected, therefore, was the call which went forth from tiny Panama republic a few days after war was declarel, Would the 21 American nations attend a confer- ence to preserve western hemi sphere peace? Plainly visible behind scenes was the fast-moving hand of the U. S., which could use Pan-American sol- idarity to good advantage. Europe can no longer supply the needs of South America, nor can America supply the needs of Europe under neutrality restrictions. But every- one—including newly handcuffed American exporters—would be hap- PY to open up new markets in the other Americas and thus keep U. 8. production at normal. DOMESTIC: Un-Americanism ton’s election-bound investigation hoped to enjoy this summer. But early September brought one witness before Rep. Martin Dies’ un-Americanism com- abroad to win rage from promi- witness: Earl Browder, general S. Communist nerability. all needs. Having no military objectives there, having failed to declare war against Britain and France, mediate peace on the stipulation that Poland shall be incorporated into the Reich, Actuality Aside from Poland's retreat, aside from German apathy on the western front, the War of 1939 followed tra- dition. On the propaganda front, Berlin issued a “white book” reply- ing to Britain's “white paper,” re- counting pre-war Anglo-German re- lations and placing responsibility on England. Faced with continued merchant marine warfare, both France and Britain established im- port control systems to conserve foreign exchange and provide ship- ping space for war necessities. Most vital, however, was the time- tested plan whereby the United Kingdom hopes to starve Germany into submission. Thrown around western exits of the Baltic sea was the impregnable naval blockade which only Britain could muster. Meanwhile the unique ministry of economic warfare hoped to make British pounds, shillings and pence an equally potent weapon. Question Mark Most observers agree that Italy's current non-participation resulted not because Hitler waived his treaty, but from deliberate inten- tion. Though Rome declared its neutrality, removed air raid shel- ters and resumed oceanic shipping, there was method in this madness for both Hitler and Mussolini. For Hitler, Italy was not only a threat against democracies, but also a tent source of supplies should all other paths be cut off. For Musso. lini, it was smart to watch devel opments: Seeing in Der Fuehrer a potential threat to his Mediterran- ean domination, II Duce is willin ta join whichever side he thinks will win, Interesting to committeemen were the revelations that (1) Com- munist Browder has traveled the past two years on a false passport; (2) his assertion that conditions; (3) his apparently con- tradictory admission that if the present economic system worked ef- COMMUNIST BROWDER “I only indorsed his policies.” fectively there would be no piace for the Communist party. Biggest news, however, was some- thing which might—if substantiated ~make the Republican party blush. In 1936, said the witness, a man named ‘Davidson’ had approached him as representing seven wealthy Republicans who were willing to give the Communist party $250,000 to nominate President Roosevelt as its presidential candidate. When “Davidson” heard that information about the offer had been passed on to the Democratic national commit- tee, the offer was withdrawn and “Davidson’’ disappeared, If this embarrassed Republicans, their Democratic opponents were also reddened. Communist Brow- der denied he had endorsed Presi- dent Roosevelt in 1036. Then he explained why: “I carefully re. frained because I knew the Re- publicans wanted me to do it. | only indorsed his (Roosevelt's) policies."’ WASHINGTON.—In these when the menace of a world- destroying war hangs perilously overhead, it is heartening to read something or hear something that gives consideration to the problems of America and Americans, While international broadcasts were filling the air with facts and alleged facts and just plain propaganda the other night, it struck me as most signif- icant that an official of the treasury Undersecretary John W. Hanes, serving as secretary of the treasury because of the absence of speech. Certainly, most editors so regarded it, or else they thought that the European backyard fence with its mess of tomcats squalling at each other was more important. There can be no debate, of course, that the war situation requires the closest scrutiny and the calmest of nerves; but the point is that all of us hope our nation is going on over the horizon of the future, and atten- tion needs to be given—and must be given—to our internal affairs as well as our relations with those across the seas who insist upon quarreling over the line fence. So it was that, when Mr. Hanes made a statement concerning need for a general reallocation of taxes, a great many people felt it to be a very hopeful sign. it 1s always a healthy ernment looks facts in the face. in recent years. and valuable, how much more im- say about the present taxes. Mr. He said the in private, not in a public demon- stration where the had avoided taxes by taking advan- tage of the provisions of law, and how each of these was marked as an unpatriotic citizen. Many of the Taxes That Had Been Tried Failed Miserably If I read the speech by Mr. Hanes correctly, what he had to say was had been tried by the sputtering miserably. Of course, Mr. Hanes the same breath, he predicted the ery. had the courage to take a definite position for reallocation of taxes on an equitable basis—for I do not be- lieve anyone can justify the silly structure that now is used to keep the federal government going. It can be said, moreover, that Mr. nation in the way of revenue needs. None of us have heard very much how this $45,000,000,000 debt is ever may be, Leaders of the house of represen- tatives in the last session of con- gress recognized the general situa- tion. But they were only half-heart. ed about it, as politicians always are when taxation is before them. New taxes don't encourage votes anywhere. But the house leaders put through a resolution authorizing the ways and means committee to start a study of the general tax problem. A sub-committee, headed by Representative Cooper of Ten- nessee, was appointed to do the job. And here is where the treasury got into the situation, because Mr. Hanes suggested the treasury could be of help in making the study, Might Be Smart Politics To Undertake Tax Revision It is much too early for any one to hazard a guess as to what will be done. Next year is a year for general elections, from the Presi dent on down the line. It is rather unusual for a congress to undertake tax revision (especially upward) in advance of a campaign, but some. how I believe it might be pretty smart politics to do so next year, There is nothing to indicate that Mr, Hanes had any politics in his mind; 1 think the contrary is true, because Mr. Hanes has been a busi- ness man and it is unlikely that he is versed in politics. He told of the derstandable way, and when it is We have to have more tax receipts but on an equitable basis. It will re- main to be seen whether CONgres- sional leaders will have the guts to place the taxes on a sound basis, One can look over present tax laws and find so many instances where tax burdens break the back of one line of business and fail abso- lutely to touch another. The dema- gogues will tear their hair and moan about taxing the poor, and proceed to lay taxes that are hidden in a2 hundred articles that wage workers must have. And that is the menace of the present tax situation: hidden taxes. I wonder how many political leaders would be able to hold on to their jobs if they would tell the truth about the taxes they have con- cealed, The public administration clear- ing house, an institution designed to aid state governments by dissemi- nation of information regarding the various states, released a statement a few days ago that was quite il- luminating as to the steps being tax matters. It showed New Hampshire, Rhode nd and New York-—had enacted taxes on cigarettes in 1939. That-makes a total of 25 states now using this source of taxes. There are eight cities that have special taxes on cigarettes, in addition to state levies. Isl Now, I am not here to plead the cause of the cigarette. The tobacco industry and the tobacco farmer, I assume, are able to take care of their own problems. But how many tobacco pay a tax ranging from one cent to five cents on a pack of cig- areties, and that the federal govern- ment takes six cents a pack (of pop- reaches the retailer in your town! The political demagogue will harangue at length, slap his hips and wipe motion picture tears from eyes about a sales tax that “‘takes as much from the poor as from the rich,” and vote glibly for a tax on Nor does he mention that such a tax as the one just cited—and there are many oth- motes something akin to bootleg- ging. He will avoid saying that per- sons living near a state boundary will, and do, cross over into the next state and buy cigarettes and tobac- cos if that neighboring state does not have such a tax. He probably still talks about a tobacco tax being a tax on a "luxury’’ article, which makes a point of the statement by Mr. Hanes that “new conditions re- Not any one can, or ought, to say that tobacco ought to be free from 1 have seen no sign from bacco farmers making such a con- tention. Yet, from an unbiased Mr. Hanes, it seems to me there should be attention given to this type modities. that, for the most part, is concealed, Where Are We Going to Get Revenue to Pay Debis? tive is. Where are we, as a nation, going to get the revenue necessary to pay the interest on this gigantic public debt of nation, states and cities? The income tax is certain to con- tinue. It ought to continue, because those who have incomes must carry their share, or more. But I am quite sure that every one else ought to know that he is a part of the gov- ernment, too. It may be, therefore, that a general sales tax-—open and above board-—is the answer. Surely, it would be better than the present several hundred hidden taxes that are nothing more or less than sales taxes, and quite unevenly distribut- ed. It would have the effect of making every one conscious of his part, and it would cause quite a few folks to stop and think before they put pressure on their state legisla- tors or the members of congress for a new expenditure of public money. We are paying as much as thirty cents out of every dollar, now, for government. The debts are on our shoulders and must be paid, but why not have some honesty about how the money is taken away from us, We have heard much about plan. ning for the future, assuring secu- rity and honeyed words of that kind, and so it seems not improper to suggest that attention be given to 3 fener) prograte of taxation hat p in bringing about those jectives, TTT ewww wre wes ® A General Quis 4 1. Can you name the seven vipe ¢ The Questions 2. What British king was known 3. How many varieties of living creatures are there? 4. How is a large elected? 5. When using the phone, why is the wrong number never busy? 6. How often can United States coins be changed in design? congressman-at- The Answers 1. Faith, Hope, Pru- dence, Justice, Fortitude, Temper- ance. The first three are called “the holy virtues.” 2. George III, dress, tastes and 3. The first zoological dictiona- ry, just completed by sc ientists, contains the names of nearly 250 ,~ 000 living creatures. 4. By all the voters of the state. 5. If given the busy signal, how would you know it to be the wrong number? 8. Once in 25 years, according to law. Char ity, from his rustie manners. By burning 25% slower than the average of the 15 other of the largest-selling brands tested — slower than any of them— CAMELS give a smol- ing plus equal to EXTRA SMOKES tory tests of 16 of the largest- selling brands confirm Camel's long burning. Here is a quick summary of the report recently completed by a leading laboratory: CAMELS were found to contain MORE TOBACCO BY WEIGHT than the average for the 15 other of the largest-selling brands. CAMELS BURNED SLOWER THAN ANY OTHER BRAND TESTED -25% SLOWER THAN THE AVERAGE TIME OF THE 15 OTHER OF THE LARGEST-SELL- ING BRANDS! By buming 25% slower, on the average, Camels give smokers the equivalent of 5§ EXTRA SMOKES PER PACK! In the same tests, CAMELS HELD THEIR ASH FAR LONGER than the average time for all the other
Significant historical Pennsylvania newspapers