WEEKLY NEWS BY JOSEPH W. LaBINE Fear of Nazi Invasion Mounts TRADE & INDUSTRY Repeal of the U. S. arms embargo, comb at zones ‘cash and carry’ rights, home but also brought major reper- cussions in world diplomatic, and maritime circles. A sur the Northwestern National Life In- surance company showed luxury and semi-luxury goods began mov- ing swiftly in September, but Fed- mody spiked any boom h 500,000 of the can expect new There was cautious expansi U. 8S. industry, l awards for October totaled $49,910,- 000 agai nst $12.¢ opes: Only 9,000,000 unemployed JOOS. where 14,000 a year ment inte rference gency, were offer program by Jesse Jones, federal loan inistra- This plan, used first by the Boston and Maine line, calls for postponing debt pay- ments and reducing an MAX TRUITT nual interest “Completely sound.” charges through a refunding process to be financed by Reconstruction ior. IND, neutrality stifles others. Finance corporation. The government restricted foreign panded it in others. a new reciprocal Approved was trade pact with ‘“freezing’’ tariff sched- ules on exports of wheat flour, oat- meal, lard and lumber. In return, the U. 8. will reduce import taxes 50 per cent on Venezuelan crude petroleum. Meanwhile, an inter-administra- tion squabble flared over the U. 8S. maritime commission's transfer of more than 40 ships to foreign regis- try as a means of avoiding the ban on American shipping in belligerent of State C because because tegrity law. Ci secretary rdell ted, not the ¢ ) t would and at pletely sound xd.” Pres decided arour ly if tens eased. uni 000 U. S. seamen of work by the banning zones. (At w a on the President consulted A. F. of L.'s William Green and Means n es , } | vist were Shrown out prov net utrality from discussing the chances for labor peace.) bell and, Trade with Even Switzer! chartered two partment warned i mand cash from thei and the cash i rent- beca: 3 Britain’ nent rushed t rough a bil fund to carry on igerents zoomed. > State to parlian dollar the war. EUROPE: Cause Celebre? “This,” said Prime Min Chamberlain, “is not a state of war but a state of siege.” far wrong. downed one-third of a 27-plane Ger- man force over the western front. WILHELMINA AND LEOPOLD Their peace exploded. Ark Royal reportedly limped home with a captured vessel. But, as usual, the biggest war news was made far from the front. Some 20 Nazi divisions stationed on their frontiers worried Belgium's King Leopold and The Netherlands’ Queen Wilhelmina. Moreover, they heard rumors that Adolf Hitler would invade on November 15, claiming as an excuse that the allies would do likewise if Germany didn’t invade first. Though steadfastly denying any German “‘ultimatum’’ for a state- ment of their positions, the king and queen held all-night consultations with their foreign ministers. Re- sult: A peace appeal was dispatched to all combatants offering Belgian- Dutch mediation services. Britain rejected it politely. Fuehrer Hitler. was less polite. Not waiting to reply directly, he hastened to the beer hall at Munich where his notorious putsch took place in 1923. There, on Naziism’'s sixteenth birthday, he scorned peace: “There can be only one victor—that is we." Hardly had Hitler left the beer hall before a mysterious bl empty attic upstairs sent its ceiling crashing on the who had stayed behind. ast in the heavy Next day, and the British secret service as “instigators” of the plot, the Wil tors. While seers wondered if the Munich explosion might not prove another cause celebre like Sarajevo or , pro-Hit- began crystalizing Dead as a dodo was the Belgian-Dutch peace plea; in the Dutch opened their dykes defense following border led suspiciously like those before the Polish invasion. CONGRESS: Committee Time Home to the stamping grounds went most senators and congress- men when the special neutrality ses- sion adjourned. But between ses- sions is a fine time for committee hearings. Still in session is Martin Dies’ un-Americanism group, bally- hooing for another appropriation. Two other groups, working out legis- lative suggestions for next Janu- ary's term, are: House Tax Subcommittee. Open- ing its hearings under Tennessee's Rep. Jere Cooper, the committee talked about broadening income tax bases. But there was a disinclina- tion to offer concrete proposals. It was announced final determination of a program will await the opening of congress. Two official reasons: (1) The treasury is studying taxes, soliciting suggestions from business and industry; (2) National defense not yet known. Besides, the com- mittee is wondering about taxes on excess war profits, not knowing where to turn. Equally important, how would tax revision be received in an election year like 10407? (At Washington, Secretary of thé Treas ury Morgenthau told reporters any initia. tive for raising the U. S. debt limit above 000,000,000 must come from congress, not from himself or the White House. Present debt: A $41,000,000,000.) NLRB Investigating Committee, Deferring hearings until its Chair- man Howard Smith (Dem., Va.) gets well, the house labor commit. tee found new kindling for its cam- paign against the labor board in a new strike technique, the ‘‘slow- down.” Defined Ohio's Rep. Harry Routzohn: ‘The slowdown is al- most the same as the sitdown.”” Its origin, he said, could be traced to the northwest lumber sumps, thence to the recent Chrysler strike A: AGRICULT URE: Cotton and W heat Three items made news for cot- ton and wheat farmers as Novem- ber got underway: (1) With 10,100,000 bales of sur- plus cotton stored under govern- ment loan, and with an 11,845,000- bale crop (slightly less than 1938) forecast for this year, the agricul- ture department announced loans based at 8.3 cents a pound on seven- eighths inch middlings would be available to 1939 growers who plant- ed within their acreage allotments. A week earlier the loan program ton consumption thanks to the war. (2) The bureau of agricultural which would pro- 760,000,000 bushels of But next year’s yield will be under par un- less unusually favorable weather comes along. Reason: Drouth has already damaged much seeded win- ter wheat beyond recovery, (3) Closing its first year, the fed- eral crop insurance corporation was sad. Having taken 6,769,120 bush- els of wheat as premiums from 165,- 561 farmers, the corporation had claims from one-fourth its custo- mers. Indemnities paid, totaling 9,461,730 bushels, brought a loss of about $1,885,000. RUSSIA: Unhappy Birthday Twenty-two about years ago a revolution gave birth to the S. R. Only a month ago Premier Viacheslav Molotov sl} Russia's strapping maturity nouncing Pres: loose tervention in Finni scrap. When Moscow three-day anniversary ce Premier Molotov again slapped the HANS THOMSEN AND WIFE Most radiant of all. of certain as he case whisky } «4 -" sherbet in soda, green and sauce. ¥ : Charge d’'Affaires celebrate, B ’ Us appoir cak smothered es tod ra the & wa were the g nted. Supreme sen Absent were all justices, cabinet men and high ranking state department officials. Only China, Turkey and Ecuador sent their diplon 3. Only prominent New Dealers: NLRB's Edwin Smith, SEC's Leon Hender- son, and Mrs. Thurman Arnold, wife of the assistant attorney gen- eral. Most beaming visitors: Hans Thomsen, German charge iar and his pretty wife, accompanied by four staff members. Next day observers noticed Franklin Roose- velt had sent the U. 8. 8. R. no mes- sage of congratulations. POLITICS: No Ham, No Eggs The tumultuous 1930s have brought an unprecedented thirst for secur- ity taking form in unorthodox pen- sion schemes. Most schemes were born in California, like Townsendism and EPIC. In November's elections two more panaceas went down to de- feat, but there were signs many a politician might follow them. Ohio's Rev. Herbert S. Bigelow promised to “continue the fight” for his badly snowed-under plan to give all persons over 60 a pension of $50 a month via state in- come tax and a levy on real estate. In Califor- nia died “ham-and- eggs,” the scheme to give $30 ev- GOV. OLSON ery Thurs- Soothing words. day to everyone over 50. It even trailed in Los Angeles county, its birthplace. One reason: Gov, Culbert Olson had fought ham-and- eggs by promising ‘useful and pro- ductive employment” to all who wanted it, as a reward for defeating the plan. As pension leaders began a recall move against Mr. Olson, the governor soothed them: ‘“This defeat doesn’t mean that California is against the further development of sound social security . . .” Other results: In New York, voters ignored Mayor Fiorella LaGuardia's protest by legalizing pari-mutuel race betting. Tammany won most local elections, while Republicans won a single upstate congressional race. In Kentucky, New Dealer Keen Johnson succeeded Sen. A. B. Chandler to the governor's chair, In Pennsylvania, Boies Penrose II, a Republican, lost a congressional contest, atinre 1be I'S, AVI D Bruchart 8 Washington Digest Considerable Transition From To Domestic Concerns on Interest in European Affairs Part of Public Is Noted; WNU Service, WASHINGTON.—Observers, here to forecast the trend of public thought and interest. It is a meth- od that was developed solely from experience, Most of us who attempt to serve you, outside of Washing- ton, as eyes and ears have learned to watch the demand for speakers and subjects upon which public men are asked to talk. It is not an in- fallible method, but it is usually cor- rect. The only fly the ointment is that we must learn to distinguish between the propaganda preachers and the legitimate desires of groups to have government questions ex- plained to them, It is to be noted here, by way of review, that three months ago the bulk of the speeches by men from Washington had to do with war, our chances of getting involved, neu- trality, etc. There were inter- | spersed with these course, the usual truck of ‘gust from Secre- tary Wallace and other self- appointed spokesmen for agricul- ture, rinds and cracklings from Sec retary Ickes, and ut the quantity of mouthings from the perior “ar gre: atly ir in the gry in , we will ¥ rather easily. Comes an Aw dhming to The Problem of Taxation taxation-- city. interest in taxation lel interest in what government does with the taken from zens, interes now {0 a greater e tent than a time within recent months, and more inquiries are being ceived, more and nu requests for discussion of the subject reaching officials Washington. And if my information from outs sources be correct, there is a simi- lar interest being shown in the states and cities. In this period of changing inter- est, Secretary Morgenthau an- nounced that the United States treasury is prepared borrow | more money. In the next two | months, according to the Secretary, the treasury will borrow an addi- tional half a billion déllars. It will refund something like a billion and a quarter, also, but that process is simply trading new bonds or notes for old ones that fall due. The bor- rowing is ‘new’ money, in the sense that new bonds will be sold and the proceeds used by the treasury to meet expenses, and naturally the national debt will be increased by that amount. It is well to remem- ber that, as of November 1, the public debt was $41,139,971,217, and that there are several other billions of bonds issued by such agencies as the Reconstruction Finance cor- poration, the Home Owners Loan corporation and debts guaranteed by agencies like the Federal Hous- ing administration, for which the treasury is morally, if not actually, responsible. It is not curious, therefore, that folks are asking each other: where is this spending going to stop? or, how are we going to pay off that debt? or, what are our taxes going be in the future? Tax Receipts for Nation Astounding in Magnitude I am indebted to the federation of tax administration for some to- tals of tax receipts for the nation that are not only astounding in their magnitude but startling in the im- plications they give. The statistics disclose that the American people paid $14,811,000,000 in taxes in 1938. This money was collected by the federal, state, coun ty and city governments and some odds and ends of special taxing districts which levied taxes for es- pecial purposes. Of this amount, the federal government collected $6,034,000,000; state governments collected $3,857,000,000, and local governments took a toll of $4,020, 000,000. One of the new taxes—the tax on payrolls to maintain pensions and unemployment--yielded in excess of $1,500,000,000, or almost one-tenth of all of the money taken by the tax collector. Its total seems to give there is a woney his surely re are in side to substance to the complaint that this tax is a tremendous burden on any one who hires workers. The pay- roll tax, according to the adminis- trators’ analysis, was the third larg- est of single items of taxation—only the property tax and the income tax brought in more money for the spenders of federal, state or local governments. Property taxes, levies on every- thing you own, your house or farm or horses or automobile, paid a to- tal tribute of $4,745,000,000. If you are good at figures you will find that sum to be 32 per cent—almost one- third—of all of the taxes paid by the United States last year, Income taxes ranked second in the sums produced for government- al use. The income taxes laid by federal, state and city governments supplied $3,242,000,000, and that is 22 per cent of the revenue. The Concealed Levies 3ut there is another group of taxes—a long list of items that in- vief taxe seen i really is bear concealed and special ; taxes 8, ee ral amp about reached its it more will can begin cause add pri ce of liquor ing bec “the case the group, 3 il1 in all, the shows ten gene taxes will send where boot ] Such 1 t he other taxes in r them and like it Ie fmt acdministrator ral gro p- throughout the natior nteresting to note that ten major items is han one level of gov- is to the fed- rovernments will be taxes, states 3 ities will be found some of sales taxes, vith a similar tax by the national governn and some of the other taxes may be found em- ings of say, ent, or all three of the ment, Which levels of govern- brings us to a made by John W., Hanes, under-secretary of the treasury. Mr. Hanes arrived at a conclusion that only a general increase in business would provide enough income for all of the tax eaters. He suggested that there were few, if any, untapped sources of income, insofar as the federal government is concerned. And other students have talked frankly about the similarity of tax problems among the federal, state and local governments. recent Cut in Personal Exemptions Would Add Only 60 Millions The school of thought that has ad- vocated broadening the base of in- come taxes by the federal govern- ment, by rnducing the personal ex- emptions from $2500 for married couples and $1,000 for single per- sons, was shown by Mr. Hanes to be somewhat ignorant of facts. He pointed out that an exemption of $2,000 for married couples and $800 for single persons, instead of the | present limits, would add only | $60,000,000 a year to the national revenue, That is not a good drop in the bucket. If all of the present income tax amendments that have been mentioned were now in force, the total taxes they would yield would be only about $250,000,000, according to Mr. Hanes. Hence, Mr. Hanes said, with reference to the federal government: “You, the American public, have the final control. Demands from ‘back home’ upon the Congress for more and more federal expendi. tures, for less and less needed proj- ects, are at least a partial source of difficulties. “We have developed our country a $10,000,000,000 appetite with a $5,000,000,000 pocketbook. 1 think our problem is not so much when we balance our budget, as where. In other words, how much federal expenditure are you going to de- mand and how do you propose that the government raise the funds?" I am hoping that the apparent trend toward a public consciousness of the government's financial condi- tion—whether that government be national or state or local-will ex- pand and begin to roll like mountain flood waters, CLASSIFIED DEPARTMENT BABY CHICKS BRED FOR PRODUCTION: RAISED FOR PROFIT: BOLD BY QUALITY: Turkeys ETARTED CHICKS: Pullets MILFORD HATCHERY Jor kéuie Me. 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MOLASSES for DAIRY FEED 60% HOG RATIONS 40% POULTRY MASH onan meat ® Ask Your Desier @ UNION RENDERING CO., Mfr. 3301.50 me | HOUSEHOLD Se LX Care of Electric Cord.—Don’t twist tie the so-called AES Removing Odors. —0Od« an be removed from bottles by rinsing with cold water o which a little dry m seid od Coed. rs © ustara is dried in the ove through the make an soups 8 and stews. for nn s if st jar or tin * Topping for Pork Roast.—For a tasty topping for that pork loin roast: when the roast is nearly cooked, spread gen perously with applesauce mixed with brown sug- ar and a little cinnamon and clove, then brown until a slight crust is formed. * * * Restoring Leather Bindings.— Equal parts of milk and white of egg beaten together will freshen leather bindings. Rub on gently with old flannel. Polish with an old silk handkerchief. * » * House Plamt.—The phillodendron or devil's try is a fast grower and is a most satisfactory plant to grow in vases on a mantel. It may be grown in earth or water. Beware Cong from common _ That Hang On it brs Ths cause ae I gone Tight 10 phlegm, a A IS aan Ee Rida CE RE fra CREOMULSION
Significant historical Pennsylvania newspapers