Een OR
WEEKLY
AN
iy
HARRISON
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WHITE HOUSE:
Budget
Next spring the national debt will
reach its $45,000,000,000 legal limit.
To circumvent the issue or force an
increase through a hostile congress
during an election year will provide
such a test of political etiquette that
the New Deal will have little stom-
ach for a tax-boosting campaign. If
anything, it will be smart politics
to slash expenditures,
There were signs in late Novem-
ber that such attempts might be
made. One by one, administration
spokesmen purred for the press:
Said Mississippi's Pat Harrison,
chairman of the senate finance com-
mittee: ‘‘Receipts are showing up
fine. The way they are coming
in gladdens our hearts, If
we can cut down expenses some-
what, we may get along without a
tax bill.”
Said Utah's Sen. William King,
fresh from a White House confer-
ence: “The President
interest in a policy that would pre-
vent large deficits.”
Next came White House Secretary
teve Early, who has been reborn
KING
*. .. great interest , . .
~
lately as a ‘‘spokesman.” While
Budget Director Harold D. Smith
nodded his assent, Steve Early
| pointed out that the President is
| considering sharp economies next
{ year. Other leaders hoped to trim
the deficit to between $2,000,000,000
and $2,500,000,000. (Last fiscal
year's deficit: $3,500,000,000.)
Aside from all-important political
considerations, prevailing whether
the President sought a third term or
tried to name his successor, there
were some honestly promising fac-
tors in the picture. WPA rolis stood
at 1,830,463 against 3,360,000 a year
ago; business was better; tax in-
come, if the present rate of increase
is maintained, would be $1,000,000,-
000 higher next year.
But there was a less pleasant side
to the picture. National defense,
which last year cost $1,500,000,000,
may easily reach $3,000,000,000 this
year and would thus wipe out the
boost in tax receipts. Relief costs
are predicted at $1,000,000,000
against $1,400,000,000 this year, a
{| comparatively small cut. Summed
up, the budget will probably hit a
rough $9,000,000,000, which still fails
to reverse the spending trend.
EUROPE:
Mad War
Spies, parachutes and trade con-
actual warfare as Europe ended the
third month of its strange war. And
if any deduction could be
nobody wins.
threatened during his speech at Dan-
GEORG ELSER
A detective thriller,
parachuted from airplanes. Presum-
ably scores of these were dropped in
the English channel, the parachutes
dissolving. In one week they took a
toll of 25 allied and neutral ves-
sels, Britain retaliating by strength-
ening its blockade against the Reich.
This was not too smart, for London
soon had the wrath of Netherlands,
Belgium and Italy on her shoul-
ders.
5.
Senator Carter Glass of Vir-
ginia told reporters: ‘I know of
no man better qualified for the
presidency than John N. Garner
or Harry Byrd (his colleague
from Virginia).”
Wilhelm Hohenzollern, ex-Kai-
ser of Germany, narrowly missed
injury when a sudden windstorm
uprooted a tree one minute after
he had passed the spot.
Tom Pendergast, ex-Kansas
City boss now in Leavenworth
for evading income taxes, was
denied parole,
Mohandas Gandhi, Indian lead-
er, demanded freedom for his fol-
lowers before India will aid Brit-
ain in the war.
Louis Taber was re-elected
master of the National Grange as
its convention closed at Peoria.
Chief resolution: To force suspen.
gion of the U. 8. reciprocal trade
program,
The allies were more successful
in other branches of warfare. No
one knew how many French-British
planes had been lost, but 20 Nazi
airships were allegedly shot down
in two days’ warfare over the West-
{ ern front. At sea the French de-
| stroyer Siroco sank two German
submarines within three days.
While Berlin was genuinely wor-
ried by disorders in the Czech prov-
ince, where eight students had been
| purged, the Nazis were making the
| most of another disorder. Heinricl
{ Himmler, chief of the feared
| tapo, announced simultaneously ths
{ a German named Georg Elser and
Best and Captain Stevens, had been
arrested in connection with the Mu-
{ nich beer hall explosion which al-
| most cost Hitler's life,
charged with the crime, while the
Britishers were said to have
financed it. Direct leadership, say
the Nazis, came from exiled Otto
Strasser, pioneer Hitlerite who soon
became his bitter foe. Britain kept
its tongue in cheek throughout the
affair, for Germany was obviously
making the most of this detective
thriller. Biggest mystery: Why
should the British instigate a plot
that would martyrize Hitler?
German activity also had reper-
cussions in the Balkans. When Ru-
| mania’s cabinet rejected Nazi de-
monopoly on
Rumanian oil and raw materials,
Premier Constantin Argetoianu re-
signed. His successor, whose ap-
pointment was hailed as an allied
victory, is George Tatarescue, for-
mer premier and a strong Franco-
phile.
AGRICULTURE:
Farm Vote
In at least one man's opinion,
1940's presidential campaign will be
won or lost in the farm vote. Ad-
dressing the National Grange con-
vention in Peoria, Oregon's Repub-
lican Sen. Charles L. McNary (him-
self a potential candidate) outlined a
three - point
program on
which he
said the G.
0. P. could
win:
(1) Equal-
ize AAA ben-
efit pay-
ments. One
weakness in
the present
plan, he
maintained,
is its dis-
crimination
favoring a few commodities (wheat,
cotton, corn, tobacco, and rice).
Four other products ranking ahead
of these in production are dairy, live
stock, poultry and eggs and hogs.
(2) Repeal the reciprocal trade
pact, Said Senator McNary: “While
some industries may have profited
by these agreements, it has been
ut the expense of products of the
80 Pid
(3) Liberalize the public land pol-
fey to give the 14 land states a
greater share of revenues from sale
of forests and grazing on the pub-
lic domain.
SENATOR McNARY
He had points.
Know your news? One hundred is
perfect score; deduct 20 for each ques
tion you miss, Score of 60 or more is
1. The round object shown
above has been the principal
weapon in Europe's war, What
is it?
2. Choice: Toledo's school chil-
dren made news because they:
(a) refused to attend classes; (b)
were dismissed from classes un-
til January 1; (¢) were deprived
of books because the mayor
charged their texts contained un-
American propaganda.
3. Kermit Roosevelt is the son
of the late President Theodore
Roosevelt, Why has he renounced
his American citizenship?
4. Sammy Boy, a l6-year-old
California dog, is listed in a tele-
phone directory and has been
used for movies and advertising
illustrations, How did he make
news?
5. Owen D. Young and Gerald
Swope, board chairman and pres-
ident of General Electric compa-
ny, made what important an-
nouncement?
{ Answers at bottom of column.)
ASIA:
Mr. Welles Complains
Biggest actual news of Japan's
war in China came from a suddenly
developed front in southern Kwang-
si province (see map), where 40,000
Nipponese staged a
sever China's rail connections with
French Indo-China.
hoped to starve the Chi
ernment into submission, expecting
no protests or
France. Both these nations had their
hands full at home. Nar g, where
blitzkrieg to
either from Britain
ute was to be cut, held
out valiantly and hopelessly against
the invader.
Meanwhile Japan gloated over re-
ports that her puppet Chinese gov-
ernment, soon to be established un-
der former Chinese Premier Wang
Ching-wei, will be recognized by It-
A
so———_
C H
1 CHINA'S NEW
7
‘LIFE LINES’
FROM SOUTH
¥
SOUTHERN CAMPAIGN
The U. S. was harder to win.
aly and Germany. Even Britain,
trying to make friends in the Far
East, was rumored about to capitu-
late. But Jap Premier Nobuyuki Abe
realized Chinese resistance was not
easily broken. Threatened he: “Ja-
pan will keep troops there until Chi-
na is entirely free from the Com-
munist menace."
Another menace was the U, S. At
Washington, Undersecretary of State
told his press conference that Amer-
jcans in China-—especially at the
Tientsin British concession—are be-
ing molested by the Japs. He also
emphasized that the U. 8S. still in-
sists its citizens have every right
to pursue their commercial enter-
prises in China, regardless of Ja-
pan’s highly touted ‘‘new order."
This looked bad for U. S.-Jap
trade relations, which Tokyo hopes
can be smoothed over before the
present treaty is abrogated January
26. Although Premier Abe hoped
these relations ‘“‘could be adjusted’
before the deadline, it hardly looked
like Washington was in a mood to
talk business,
MISCELLANY :
Eighth Wonder
At Gillespie, Ill., labor's rival C.
1.0. and A. F. of L. staged an eighth
wonder of the world by co-operating
in a coal mine dispute.
dent:
ganization against the other , . .
Corn
d Also at Washington, Secretary of
Agriculture Henry Wallace an-
nounced corn loans at 57 cents a
bushel (70 per cent of estimated 82-
cent parity price ). Forecast: That
more than last year's 235,000,000
bushels will be placed under seal
through the new program,
y mine,
(B) is correct. were dis
missed until the first of the year be
cause the schools ran out of money,
3. To become a Britisher. Roosevelt
is a major in the British army.
4. He died,
5. % announced their retirement
January 1.
WASHINGTON .—Although our na-
tion is not mixed up in the European
any administration to drag us in, it
has been much
‘“‘phoney’’ war
strike’ of the
thus far
There
“gitdown
armies, because
the
enemy
do not propose to discuss that phase
of the situation. There are some
things which have happened and are
happening here at home, however,
that surely are worthy of considera-
tion.
When steel began to flash abroad,
thousands, if not mil-
lions, of Americans who believed
a conflict overseas would pull us out
of the depression. Visions of ex-
ports amounting to millions of tons
were seen by many of the unthink-
ing and misinformed persons. High-
er prices—it is hardly necessary to
recall how excited some folks got
about the prospects of higher prices
and all of that sort of thing.
was the usual effort
price hysteria has
in the speculation to which they
talk.
It is true that there are some in-
war. Some, but not very many.
Statistics are tiresome, but close ex-
mination of them
his instance, how thoroughly spotty
he anticipated war boom
is.
ation,
can
experts, 1 have come to the conclu-
sion that the war thus far has done
our American business—agriculture,
commerce and industry-—more dam-
age than it has done good.
to say, if it were
ance the increase
based all
obtain
on of the facts I
due to the
States would show an actual loss.
Airplane Manufacturers
And Rail Lines Benefited
ing a thriving business. They are
well.
show how the industries producing
airplane parts and equipment and
are
to a finished state.
The rail lines have benefited.
Through a stretch of six consecu-
tive weeks, car loadings-—an accu-
rate business barometer--have ex-
ceeded 800,000 cars for each seven
day period, and then dropped off.
In this case, car loadings have
shown a vast bulk movement but
one must examine the commodities
hauled to calculate what conditions
are. It is to be noted that there
were exceedingly heavy shipments
of stuff usable in war included in
the 800,000 total. A good deal of this
had been ordered previously. It
could not be sent out until the so-
called arms embargo was removed.
Experts appear to believe that a
large portion of the shipments may
not be repeated. At least, not in
such quantities. All of which is to
say that shipments of normally do-
mestic products, consumer goods,
must still be very much below par.
Respecting the market for so-
called consumer goods, mention
may be made of apples and what a
drug they are on the market these
days. This may not be the same in
all parts of the United States, but it
certainly is true in the great apple
growing sections of Virginia. One
large grower told me that he had
not sold a single apple for the Brit-
ish market where he usually is able
to ship several hundred carloads in
Imports of
The industrial conference board,
a private organization which is quite
accurate in its reports on business
conditions and trends, said lately
that our exports to Canada are due
to fall with a dull thud. In 1938,
Canada acquired 68 per cent of all
of the things she imported right
across the border in the United
States. It is to be remembered, too,
that about 40 per cent of all ex-
ports from the United States in nor-
mal years go to Canada.
What Has War Done to
American Merchant Marine?
But the situation is changing rap-
idly. Canada is going industrial as
rapidly as she can under the stress
and strain of war. Being a part of
the British empire, does sny one
think that the British war office is
going to seek supplies in the United
States that can be bought in Can.
ada? Obviously not. To show how
Canada has developed her capacity
to take care of empire require-
ments, I believe it is necessary only
to report that the Canadian indus-
trial capacity was 67 per cent
greater in 1937 than 20 years ear-
lier, or in the midst of the World
war. The World war started the
trend in Canada; the present Euro-
pean war has given it new impetus
and the indications are that exports
to Canada hereafter will continue
to get smaller,
And what has the war done to the
American merchant marine?
Our government has spent a good
many hundred millions in building
ships and in helping private ship-
ping companies to build ships. It
has been a policy of subsidy. But
about the same time our ships begin
to attract attention on the high seas
and in international trade, along
comes new war conditions and our
flag is forced to stay out of the trade
routes that produce the greatest
revenue because traffic is heaviest.
Of course, it is a policy of the ad-
ministration that has brought this
about. President Roosevelt has felt
that adoption of a system of selling
goods to belligerents upon the docks
of this country—come and get it,
pay cash and carry it away in your
own ships—is wise, Congress agreed
with him.
The same legislation provided that
may e
zones,
what is called combat
trade in our ships is
iter
So,
gaged in warfare. It happens, how-
exports are largely by rail) are the
Transfer of Ship Registry
The’ latest development with re-
effort of one of the great shipping
transfer the regis-
try of its ships to Panama-—to fly
the Panama flag. That action, of
course, is like changing your own
American citizenship and becoming
the subject of another nation. It can
be done under the law, but it has
because this course of action simply
circumvents the so-called cash-and-
carry law. Under the Panama flag,
those ships could sail into war zone
ports which they cannot do as long
as they fly the Stars and Stripes
from their masthead. It does not
I believe, ex-
cept it shows the influenc the
European war. (Incidentally, the
fuss about those ships recalls how
difficult it is to make a law that
will not have loopholes in it or
means of getting around it.)
The war in the Far East has
upset practically all trade relations
between the United States and
Japan and China. There is a quan-
tity of exports yet moving in that
direction, but I am told by persons
war is over, Japan will be without
any money and her purchases in
the United States will be next to
nothing for years to come.
Citation of example and trend and
opinion could go on quite at length
in this situation. Taken all together
it seems to be one of the really im-
portant things, next to our own un-
employment rolls, because it looks
from this date as though the United
States is face to face with the neces-
sity of a gigantic readjustment. It
seems to me the problem cannot be
dodged. Changes must come within
our own national economy. We will
have to learn just what to pro-
duce and how much, because I fear
that a large chunk of our export
market is gone forever.
Our Cotton Exports Are
Continuing to Decline
We have witnessed the spectacle
of our secretary of agriculture seek-
ing to get our cotton or some other
farm product into foreign markets
by use of various forms of cash pay-
ments to the producers. While he
has been passing out checks, our
exports have declined and are con-
tinuing to decline, and there is noth-
ing that can be done about it. Other
folks have learned to grow cotton
and they are not going to stop. We
cannot control them by a law saying
a farmer must plant only so much,
little pigs killed off,
gloomy predictions. Pollyanna stuff
is much more pleasant. On the
other hand, President Hoover tried
hard to get prosperity to come
around the corner, and he looked
rather ridiculous when she stayed
just around the corner through more
than nine years up to the present
time. Secretary Hopkins, of the de-
partment of commerce, is trying
now to induce the coy young woman
to come around the same corner.
His department has been issuing
statements about bulges in produc.
tion and in sales and in shipments.
But I could not read the figures the
same way the secretary read them.
(VSR I8 R83
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Ducks
Chicks
Hang New Curtains
In the Dining Room
By RUTH WYETH SPEARS
WITH the holidays almost at
hand everyone be
©r-
seems to
giving curtains a thought. An
2 Book
win-
thusiastic reader of Sewin
No. 3 writes se}
dow
always been a pi
kK
have
bien curtain,
tight now 1 would like to make
pinch pleated drapes of figured
iamask to hang from cranes to
floor, vould also like a
wes SC Hw DRAPERY]
gl FIXTURES TO
.
1X2,
window
The }
reveals the difficulty. The space
between the windows
and the top of 2 bay made it
he draperies
4
ITTY
a8 aqesired.
nai next to th
of the bay and extending 6 inche
over the walls at the sides
lustrated will
The cranes for th
may be screwed
and the rods fo
valance fastened
the glass curt:
} 44 A . }
be attached In the
of wood
solve the
rim
the tops of the windo
NOTE: Readers
using Sewing Books
will be happy to learn that No. 4
is ready for as well
the 10 cent editions N
3. Mrs. Spears
quilt block patterns
signs selected
Early America
have these patterns F
your order for four book
of books—10 cents each
Set of three quilt block
without books—10 cents. Send or-
ders to Mrs. Spears, Drawer 10,
Bedford Hills, New York.
fr:
from
OW pet et
og 8
to endure it first and cure it
afterward. The other way is to
avoid having it by getting at its
cause. 50 why not save yourself
those dull headachy days, plus
the inevitable trips to the medi-
cine chest, if you can do it by a
simple common-sense “ounce of
prevention”?
If your trouble, like that of
millions, is due to lack of “bulk™
in the diet, “the better way” is to
eat Kellogg's Ali-Bran. This
crunchy, toasted, ready-to-eat
cereal has just the “bulk” you
need. If you eat it every day-and
drink plenty of water-you can
not only gef regular but keep
regular, day after day and month
after month! All-Bran is made
by Kellogg's in Battle Creek. Sold
\ grocer, J
Helpful Friends
Trouble and sorrow are friends
in disguise.-~Martin Tupper.
That Naggin
Becharhe
May Warn of Disordered
Kidney Action
Modern life with Its hurry and erent
r habits, improper ew
ding le risk of exposure and
strain on work
your
ping dout 4 in
chair, with an open
ments in this paper every week. They
oan save you time, energy and money.