HHI EUROPE: Showdown Ahead Almost six months to the day after Germany and Russia shocked the world with their non-aggression pact, Berlin paused to hail a new phase of Nazi-Communist relations. Ratified with ceremony was a new and glistening trade treaty, which was but one part of a complex but vividly clear picture of what is hap- pening in Europe today. Inevitably, it is believed in most chancellories, a wedding of Russia and Germany, of Communism and Naziism, will stack these military juggernauts against the rest of Europe. Among the signs: Marxism. Writing in Der Angrif], Nazi Party Chieftain Dr. Robert Ley showed how leftism has grown in Germany by using the Marxian and (2) veto a bill to raise mail carriers’ salaries. Congress meanwhile began its sixth week with membars of the American Youth Congress hissing from the house gallery at every- thing in sight. Still unsolved were such major problems as economy, foreign relations and the reciprocal trade act, indicating another long session. But plenty of legislation was in the mill: Neutrality. Passed by the senale 49 to 27 was a bill to boost the Export-Import bank's working cap- ital by $100,000,000, paving the way for non-military loans to Finland and China. Interest on foreign pol- icy thus shifted to the house, where the G. O. P. expected to fight against loans to belligerents. Meanwhile the senate foreign relations committee kept postponing action on the pro- posed embargo against Japan. Con- gress watched with interest while Secretary of State Cordell Hull laid for a German threat to torpedo U. 8S. ships in the war zone. Reason: Britain has detained U. S. vessels and taken them to contraband ports in the war zone. Defense. Less than 24 hours after it had okaved a $966,772,878 navy supply bill (cut $111,700,000 under HITLER'S DR. LEX “Workers of the world, unite!” Communis world, war of labor ’ i Allies in Finland. ritain were act against Scandin let allied volunteers pas: Sweden and Norway en route to the Finnish frontier, ing attitude toward Russi: sion. Even more pointed was par- liament's decree over 27 to enter paign. Near East. Arrival ish colonial troops in coincided with an alar z of war talk. The Balkans Turkey, were forming mutual-defense Nazi-Russian frontiers of Turkey, tan and India were either for defense agai or for a lightning against Russi The Wars In the West, continued In the North. Fi troops re- treated on the Karelian ist s, but sia's gains were terril costly indiantine - y i" " indicating a stifien- . nit Sirs permitting the penetr Quiet, sea warfare. weeks, a United Press spondent found the Reds fered 50,000 casualties in the kaeranta sector alone. CONGRESS: Six Weeks Gone Either the President thought he had congress well in hand, or else he decided it was hopelessly rebel- lious. At any rate he left secretly on a 10-day fishing trip in Caribbean waters, his movements shrouded be- hind an army of secret service men, His last acts were to (1) okay the $252,000,000 emergency defense bill NAMES in the news . . . Pit- JOHN D. M, HAMILTON, G. O. P. national chairman, called his com- mittee to order in Washington to name a place and date for the 1040 convention. HERBERT HOOVER JR. helped discover a new method of detecting oil by analyzing surface earth. Meanwhile, HERBERT HOOVER SR. forecast that European war de- mands will soon eat up surplus U. 8. foodstuffs. GEORGE KIOSSEIVANOFF, Bul garian premier, resigned because one of his cabinet members favored closer relations with Soviet Russia. JOSEPH E. DAVIES, ex-ambas- sador to Russia and Belgium, now special state department assistant, was named America’s best dressed man, KING CHRISTIAN and the rest of Denmark’s royal family gave up hot baths because of a coal shortage, FRITZ THYSSEN, exiled and ex- German steel magnate whose multi billion«dollar fortune was confiscat- ed last December, also lost his cit- izenship. ARTIE SHAW, band leader, and Actress LANA TURNER were mar- ried at Las Vegas, Nev. actual funds must mn. Pri- marily concerned about the big sup- re- cut. Agriculture. The house aj NLRB tobe v This created a rumg ‘Missy’ in Trouble Several Roosevelt secretary peace k lepublican papers like th Tribune published The peace miss Velles hi 1f 4 11 i ico and outlined his 3 terms before y' Lel and, the rated more influence in the throne han anyone else.” “ ‘Missy’ “MISSY” A favorite in the throne room. idea and laid it before the President. Mr. Roosevelt, who was in a most receptive mood for a new peace drive, beamed and called in Mr. Welles and commissioned him on the spot to set out upon the great adventure.” Whatever the facts, the Presi dent's two ace diplomats showed up in Washington next day and were reportedly displeased. Up from Miami came Joe Kennedy, ambas- sador to Britain. Home from Paris came Bill Bullitt, ambassador to France. Why, they allegedly asked, did the President prefer Myr. Welles’ unseasoned opinions on Europe to their own painstaking studies? Apprised of the gossip, Secretary of State Cordell Hull and White House Secretary Steve Early took pains to deny any rift. Said Mr. Hull: “I do not think a more cap- able person could be sent upon the European mission.” While Sumner Welles sailed for Europe to visit chancellories in Lon. don, Berlin, Paris, Rome, etc., an- other presidential coup was com- ing home to roost. The Vatican, which holds no diplomatic status with the U, 8S. because of Protestant objections, nevertheless announced that Myron Taylor (whom the Pres- ident named his ‘“‘personal’ envoy to Pope Pius XII) would be given official status as ambassador from the U. 8. While Baptists fumed, the Vatican calmly pointed out that any agent must have diplomatic cre- dentials if he is to be recognized, BUSINESS: Insurance Quiz Under the temporary national economy committee's spotlight in Washington went U. S. insurance companies, When the examination was finished, this thriving enterprise had acquired a lot of unpleasant publicity. son, securities and exchange com- missioner, who charged that life in- surance companies hold a first mort- gage on U. S. business. He went on to prove it: SEC had studied 26 of the largest firms, find- ing (1) that they seem to be drift ing from their orig- inal object of writing life insur- ance to han- dling invest- ments, and (2) that their tremendous concen- HENDERSON First mortgage? bing business enterprise of funds. Facts were interesting. From 1929 to 1938, SEC found, 26 companies took in 42% billions. Of this, 10% into reserve, surplus and contingen- cy funds. Still more interesting was the fact that SEC's 26 subjects in- creased their assets by 63 per cent from 1929 to 1935, yet life insur- ance in force went up only 10 per cent. Next day John A. Stevenson, pres- ident of the Penn Mutual Life In- surance company, surprised TNEC and the nation by advocating a modernization of the 60-year-old mortality statistics, asserting that amounts collected for mortality have been too hig recent years. But, he added, it m 3 little difference in cost to the polic) ome is returned £ €X~ cess inc divi- dends. COURTS: 3 Decisions from im + {In excess in fuel tanks the gaso- other € It enjoined Arkansas a tax on gasol 8) carriec of interst: Th " Ses iAnree ju Black and Dougl is a matter for congressior While the farm y try- 0,000 for 1941 parity payn bent co gar 000 authorized (i age as rel power. the agriculture depar payments of 10 cents (857,100,000) a bushel bushel on corn, and 1.7 cents 000) a hundredweight on rice. AVIATION: Boom trality took effect, everyone knew the U. 8. aviation industry was in for boom times. After six months of war the boom had surpassed ex- pectations. alone there was a backlog of some £200,000,000 in orders for the U, 8, and foreign powers. But within 30 days, a survey indicated, mass de- livery will begin on thousands of ships. Already filled since the boom be- for 1,450 combat planes; completed are 7,700 more. foreign sales have been to France and Britain, ships. still un- by the U. S. army and navy. ships. four-motor bomber. at 300 m. p. h,, the ship will give any enemy a run for its money. MISCELLANY: Import From Poland «At Berlin, Field Marshal Hermann will be impo lines, protested, apparently with success, a proposed $15,000,000 personal ine come tax boost, also demanding re. duction in the pending $3986,700,000 budget. By WILLIAM BRUCKART WNU Service, National Press Bldg., Washington, D. C. WASHINGTON. — Congress soon have completed the second of the session is a situation contain- It is much too early to enter a Republicans—will come to grips. But a slip of even small caliber on section of the congressional mem- bership. That is exactly what some It is, conceivably, a thing which Mr. Roosevelt and the New Dealers hope will be avoided. The condition stems from Mr. Roosevelt's budget message. As I reported to you ear- ly in January, rn President's ' 1 i declarations sound- ed real. A good many folks suggest- ed, however, these President Roosevelt Economy-Minded Legislators Dominate Scene ecretary Wallace and his crew. Now all of this has been going on when the circle" Dealers still are clamoring for co tinuation of the fun they have bec having in spending taxpayers’ money. There that Mr. Roosevelt has changed over completely. Attention might be called in this connection to the fact that, in the national budget itself, Mr. Roosevelt Jeft numerous avenues of escape from what appeared to be a definite commitment towards retrenchment as stated in the budget message. Secretary Wallace touched off the match on one of these. Mr. Roose- veit said the agriculture appropria- tions had been squeezed down by the budget bureau to the very limit, If the funds were sufficient, accord- ing to the President, there had to be a continuation of good business. A good many of the folks in the de- partment of agriculture have been saying both publicly and privately that the volume of business is going to slide off during the late winter and spring. Thus, more money will be needed. Wallace Wants Share Of Government Spending In the complaints by Secretary Wallace is another tipoff. The sec- retary feels that there is no logic in cutting the total expenses of the gov- ernment completely out of his share of the swag. He fails to understand TT inner STAGE 18 SET While William Bruckart feels it is a bit too early to make a def- inite forecast that the President and congress will come to blows over governmental items like the budget, economy, waste, and spending, he feels that congress has set the stage for such a battle. Naturaily, the President doesn’t want such a battle but his oppo- nents don't mind, says Bruckest. why the cuts have not been made proportionately in amounts of esti- ment. I think he has his teeth in Bh SECRETARY WALLACE »: but why pass over that if and enthusiasm 1 be iN pened President Is Missing Economy ‘Sound Waves’ Undoubtedly, however, the Presi- | dent's advisors have failed to catcl the sound waves that are reaching | congress from “back home.” There | is a tremendously heavy mail on the subject of waste and spending and | debt, arriving in congressional of- | fices, This reaction is highly im- | portant. It reveals something more | than just a desire on the part of many voters to see the government spending brought within bounds. It discloses, 1 believe, quite a definite trend away from New Deal ideals, because somehow, there is a grow- ing conviction in many sections of the country that it is the reforms that are costing money. This word from home has resulle’ thus far in offsetting the great pri s- sure of various groups who are { vociferous in their demands for { more money. We had a flock of young voters—the American Youth Congress—around town ten days ago, and their leaders were unani- mous in their calls for more money. They were as well trained as any college cheering section that I ever have seen. Of course, they may win out yet, but at the moment they are not winning much support for added money. As of this time, then, congress surely has gone forward in a most determined fashion to cut off some of the excess spending. It has re- sisted pressure thus far. The battle lines are well formed--thus far, But, as I said at the beginning, one cannot predict with cons cerning the course of al temper when primaries are getting closer. The things to watch for are these: as time goes on and the days of the session become fewer, will there be a lot of messages from the Presi. dent, asking a few hundred thou sands here, a few millions for over there, a hundred-odd million for something else? Such as these were not included in the budget. 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Significant historical Pennsylvania newspapers