The Barnwell people-sentinel. (Barnwell, S.C.) 1925-current, February 15, 1934, Image 2
Events the
Devaluation of Dollar Brings Flood of Gold to America—
NRA and Steel Industry—Planning for
* More Foreign Loans.
By EDWARD W. PICKARD
r\ EVALUATION of thedollar, and the
^ purchase of gold at $35 a fine ounce
caused a turmoil In the world’s money
markets and an Immediate result was a
itw
Prof. Warren
great flow of gold bill*
lion from Europe' to
the United State*-
The pound stejrtTng
and the franc made
gains, but not big
enough to suit Presl-
dent Roosevelt and
his monetary advis
ers. Later both the
pound and franc de
clined again, and the
confusion was made
greater. The French
were alarmed by the drain on their
gold and expressed intense resentment
against the American policy, charging
that the administration was making de
liberate efforts to embarrass France.
For the time being the administra
tion was prevented from driving the
dollar down to Its projected parity
points in foreign exchanges by the ris
ing tide of American dollars flowing
back to this country. But most of
its financial experts were confident
that the 59.00 cents value would be
made to prevail after a 'reasonable
time to allow for the shakedown. As
for the $35 an ounce for gold, It Is
the opinion of Prof. George F. War
ren, chief .deviser of _ the experiment
that Sounder way, that the figure
must be raised If prices of commodi
ties are to be put up materially. Frank
E. Gannett, the Rochester newspaper
publisher, after a visit to the White
Ilouse and talking with both the
President and Professor Warren, said
in his Rochester Times-Union that he
had been convinced by those conver
sations “that we shall continue to
raise the price of gqtd” and that the
$35 figure probably would succeed
only In preventing prices from slip
ping and could hardly be expected to
raise them much. ——
By the President’s devaluation stroke
a treasury deficit of $ 1,990,000,000 -was
transformed overnight Into a surplus
of $973,716,937. The cut In gold con
tent of the dollar produced a dollar
profit of $2,805,512,000.87 as of Feb
ruary 1 and a record cash balance of
$4,434,713,155.18, pending deduction of
the $2,0d0,000,000 sjpblllzation fund.
The profit on the gold wa» paid Into
the general fund of the treasury, and
the new dollar value of the treasury'
gold ’supply was written into the books
at $7,018,263,925.70. The surplus did
not alter the official outlook for a
deficit of approximately that amount
at the close of the current fiscal year,
June 30, in view of the extraordinary
expenditures of the President’s recov
ery program.
Gen. Johnson
XTRA and the steel Industry came
^ Into sharp conflict, and the NRA
to a certain extent backed down. Ex
ecutives rif all the leading steel com
panies met and con
sidered the claim of
the national labor
board to authority
given by the Presi
dent to conduct elec
tions for employes
representatives when
a “substantial’’ num
ber request that ac
tion. To this >the
steel men took excep
tion. They Issued a
statement saying the
Industry intends “to resist all attacks”
upon company unions and that It holds
that the present plan of employee rep
resentation complies with the NRA.
The statement, however, declared the
steel Industry “Is co-operating whole
heartedly with the President in his ef
forts for national recovery and sub
scribes fully to the principle of collec
tive bargaining as provided in section
7 (a) of the national recovery act’’ ■ '
The NRA had given out a press
statement Implying that all company
unions are dominated by employers.
This drew sharp criticism, and the
statement was retracted. Administra
tor Johnson and NRA Counsel Don
ald Rlchberg upheld the right of the
labor board as stated above. They as
serted, however, that the executive or
der which said that representatives
elected by a majority of workers "have
been thereby- designated to represent
all the employees,” does not abridge
the rights of labor minorities to con
duct negotiations with employers.
It was Indicated unofficially that
this reference was made to prevent
either side from claiming an election
unrepresentative because Its adherents
stayed away from the polls. The NRA
statement said that while selection of
majority representatives does not re
strict legal rights of smaller groups
to deal separately with employees, “as
a practical proposition.” neither the
employer nor the labor board could
be expected to deal with “an Indefi
nite number of employee representa
tives expressing every possible variety
ot opinion.’* Z
S ENATOR BORAH of Idaho, carry
ing on his
NRA code. This report already has been
made to the President but It has not
been given to the public. The Borah
resolution also asked for a study of
increases in gasoline prices.
/"VNLY one representative voted
“no” when the house of repre
sentatives passed on the bill to ap
propriate $950,000,000 for continuation
of CWA and direct relief activities.
The lone opponent was Representative
George Jl. Terrill of Texas, Democrat
The money Is to be used by the fed
eral emergency relief administration
for keeping up the federal dole to the
Idle for another year and for continu
ing the Civil Works administration un
til the early part of May. About 500
millions Is to be used for the former
purpose, it was said, and about 450
for the CWA.
Sen. Hiram
TI7TTH little debate the senate
W passed the bill Introduced by Sen
ator Hiram Johnson of California
which Is designed to prevent the float
ing in America of pri
vate loans to coun
tries now defaulting
on past debts. Before
passing It, the sena
tors amended the
measure so that It
would not hamper the
P r e s 1 d e n t ’ s new
scheme to' grant to
foreign nations loans
with which th buy
American goods. A
proviso was written'
declaring that loan:
to foreign defaulters could still be
made by government owned corpora-
tions.
As It now stands, however, the bill
puts In the hand^ of the administra
tion Its most powerful weapon for
forcing payment of defaulted war
debts No defaulting nation may float
any private loan in this country, and
any American aiding in the Illegal
flotation of a private loan to a de
faulter would be liable to five years
In Jail and $10,000 In fines, . , —
According to Chairman Jesse Jones
of the RFC, the President’s plan calls
for the creation of a trading bank
which will partially underwrite ex
tension of credits to foreign purchas
ers of American goods. 'The bank
would be entirely owned by the govern
ment, so the arrangement would act
ually be a partial government guar
antee of payment to the American
producer. The bank would be a di
vision of the RFC. The scheme la
devised mainly to promote trade with
Russia and It is hoped the Soviet re
public will take much of our surplus
farm and industrial products.
T RADE reviews say that January rec-
orde of. retail distribution Indicate
that consumer buying was the largest
in three years. Industrial production
averaged about 25 per cent higher
than January, 1838. Automobile fac
eted plants and textile mills
were expanding their production
calling back their workers. In
many other industries the improve
ment was marked. Building, despite
the marked improvement over a year
ago, resulting chiefly from government
expenditures, has not yet stepped up
sufficiently to give producers of build-
lug mattnait Any pronounced
ulus. V.
Washington.—Increasingly since the
end of the World war, cabled dis-
R LOYALISTS, organizations of war
/ veterans, young patriots, and, of
course, the ever active Communists,
were doing their best to upset the gov-
Right or
Loft Wing
Edouard
Daladier
ernment ot Premier
Daladier in France,
and many ak_lh§m
were even hopeful ot
overthrowing the re
public — all resulting
from the Bayonne
bond scandal that
caused the downfall
of Chautemps. The
Immediate cause of
the turmoil was the
ousting of Jean Chi-
appe as prefect of
police of Paris. This
Corsican politician has many powerful
friends and they and the opponents of
Daladier held the premier was making
Chlappe the scapegoat in the Bayonne
affair. The latter’s enthusiastic friends
started a series of riotous demonstra
tions and the situation became so
threatening that heavy reinforcements
of troops were brought into the city
from nearby garrisons. It was feared
the police could not handle the mani
festations expected when Daladier
should present his new ministry to
parliament.
rope have., fold of
activities of 4he
“right” wing politi
cal parties, and of “blocs” and other
divisions of political opinion. The ex-
mae so common that
newspapers and other periodicals no
longer enclose tRe words “right” or
“left” tn quotation marks. In other
W. P.
McCracken
attack on abrogation of
the anti-trust laws by the NRA, won
the approval of the senate for a
lotion gflUfeg-for a report from
trade commission on price
by the steel companies under the
■ V '■ '
W ILLIAM P. M’CRACKEN, who
was assistant secretary of com
merce for aeronautics in the Hoover
administration, and three air line offi
cials got into a jam
with the senate com
mittee that is Investi
gating air mall con
tracts. All four of
them were cited to ap
pear before the senate
to show cause why
they should not be
punished for contempt
McCracken practices
law In Washington.
The others are L. H.
Brittln, vice president
of Northwest A 1 r -
ways; Harris M. Hanshue, president
of Western Air Express, and Gilbert
Glvvln, Hanshue’s secretary. Mc
Cracken has beencunder technical ar
rest but this was vacated.
Chairman Black’s report to the sen
ate showed that Brittln admitted that
he had Removed from McCracken’s of
fice and destroyed subpoenaed corre
spondence; and also that Glvvln, on
order from Hanshue. had removed.con-
fldentlal papers since recovered by the
committee.
Senator Black also-told the senate
that testimony before the committee
showed post office contracts had been
awarded “collusively and fraudulent
ly” and that former Postmaster Gen
eral Brown and McCracken par"
pated in a “secret meeting” held/in a
room adjacent to Brown’s Post Offlce
department'office at which tl>e coun
try was divlded lnto certain mall
routes and contracts were distributed
among “particular” • operating com
panies. / •"
The chairman declared that Brown
was a “heavy stockholder” in the
Pennsylvania railroad and other com
panies Interested in aviation, and
charged that the practice of distrib
uting contracts “In secret” was a viola
tion of the lay.
I N A unanimous opinion the Supreme
Court of the United States held
that all ^-persons accused of violating
national prohibition laws and
cases hati not been finally ed
ited by December 5 last, when
Eighteenth amendment ‘ was re
should be set free.' The opinion
Seld that repeal canceled the power of
prosecution.
According to the Department of Jus
tice, there were -9,576 prohibition
pending in federal courts.
J UST as the Soviet Russian govern-
mentnaTwayr dehW responsibility
for the doings of the Communist party
with which It is identical, so Chancel
lor Hitler disclaims responsibility,’for
himself and the government of Ger-
many,* for the Naxi-campaign-of-vio-
lence in Austria. In neither case is
le world deceived. But realization
of\the truth doesn’t help poor Austria,
ana\the big European powers do not
seem lnellned to Interfere. When the
German-Polish treaty was signed. Hit
ler surrendered the German claims to
the PolislXcorridor for at least ten
years. To compensate the Germans,
W appears determined to Incorporate
Austria in his National Socialist state.
If It comes to a matter of armed con
flict—and it well may—Austria will be
helpless. She has made an appeal to
the League of Nation^ but Germany
doesn’t recognize the\league any
longer.
Prince Ernst von Starhemberg, lead
er of the Austrian heimw&ir, the
armed home guard, and other patriotic
leaders are not wholly trustful of
Chanceilor Dollfuss’ ability to wf
stand the Nazi attacks? and perhai
they doubt his good faith. The helm-
wehr has virtually taken possession of
the Austrian Tyrol, where the Nazi
propagandists have been especially ac- i
five. The guard occupied Innsbruck
and a commission of helmwehr, peas
ant league and Catholic storm troop
leaders was formed to replace the
elected provincial government.
Foreign ministers of Greece, Ru- j
mania, Turkey and Jugoslavia com
pleted their negotiations in Belgrade
and initialed the much discussed Bal
kan treaty which Uk intended to guar
antee territorial security to its mem
bers for ten years. Bulgaria and Al
bania were not represented but both
may sign the pact later. The text o
the treaty was not made public imme
diately. \ // ■
—
O GDEN L. MILLS, who, whether or
not you like him, is one of the
most forceful leaders of the Repub
lican party, has often been spoken of
as a possible or even probable candi
date for the G. O. P. Presidential nom
ination in 1936. But the New Yorker
has now removed himself from that
category. While in California to see
"Herbert Hoover and others, Mr. Mills
told the press “I most certainly have
no intention of becoming “a candidate.
Nor will I mix in local or factional
politics.”
Saying he is not opposed to the NRA
and “all Its works.” Mills cited his op
position to “its extension far beyond
what I believe its original conception
was, or. at least, ought to have been.”
Warning against “political Control of
the treasury,” he said he felt Demo
cratic plans threatened impairment of
the federal reserve system.
words, those two terms have come to
be understood as ^meaning conserve-,
live or radical thought, respectively,
and with this change has come an aj^
plication for them to our own politi
cal set-up.
Lately, I have been inquirlhg of
many political leaders for their opln-
jlgns as to the direction President
Roosevelt may ba expected to bead In
his administration of affairs of our
nation. The real way to judge, it ap
pears, is by classification of his ad
visers. If they are of the left wing,
it is to be assumed that he is aligned
with the radical group, and If his ad
visers are to be catalogued as leaning
to the right, the conservative element
must be considered as dominant in the
< affalrs"of the nation.
All of us recognize that there are
certain of the President’s policies,
thus far developed, that are decidedly
radical, as measured by the course of
the nation In previous years. Yet, the
men and women with whom I have
consulted pojnt out that among Ills pol
icies ai , e those that have been foste.red
traditionally by those who call them
selves conservative.
I found the same results in .in
quiries about his advisers. Some of
them long have been known as rsflT-“
eflls; some of them have stood with
the conservatives, and with It all some
of his advisers heretofore have been
known as Republicans, some have been
found In the two major political par
ties at different times, and some are
old-time Democrats. It Is apparently
a new political party, but still under
the Democratic label.
• • •
When one takes a look at the Pres-
Ident’s policies, the things he has done
~~ ’ 7“ under" - the guise of
Let Bleading-the country
Manage /*•«//"Ut of the depres-
/ slon, an attempt to
analyze his leanings to the right or
the left becomes more difficult. For
example, th^ Democratic party long
has fought against trusts, big combi
nations, big business generally^ Yet.
it was President RoosevelfTwho pro
jected the NRA Into ouf economic
structure with an appended statutory
' provision that anti-trust laws shall not
operate against corporations and busl-
that agree to operate under the
es of NRA. The Democratic party
always has talked about protecting the
little man, a small business. But the
NRA has been attacked by such lib
erals or radicals as Senators Nye of
North Dakota, Norris of Nebraska, and
Borah of Idaho, 4s being a death sen
tence for the umn with a small busi
ness.
On the other hftad. I asked In a good
many places whether the principle of
NRA was revolutionary In the sense
of a general change tn our economic
life, and everywhere tne answer was
chines, electric Irons and other equip
ment for tbs household. Attention
also might be caitod in connection with
the TV A to the fact that it will per-
mlt little or no competition in the
areas where it operates, and if it falls
to make expenses the taxpayers of the
whole country share the burden.
Mrf RooaevelFs monetary plins, his
projected (devaluation of the dollar, its
radical, and yet they have had the sup
port of some of the conservatives, with
sharp criticism coming at the SStt
time from the ranks of radicals. For
example. Senator McAdoo, of Califor
nia. one of the chief supporters of the
Roosevelt candidacy and a man of rec
ognized radical leanings, was one of
the main critics against the Presi
dent’s program of seizing the gold
held by the federal reserve banks.
Senator McAdoo is a former secretary
alligator electrocuted
a» Am*** £"*
his life, threw the Santa Cruz island
barge repair station Into ^
mTrttrt off tto pow« by tronWtoff
current in a cable crossing
1 canal at Gamboa. A 0
found the big ’gator with It*
Jaws clamped over-the cat'
which its teeth had tom
tion, causing a short
electrocution.
Smooth OfjkOgly
^/^Haturo’s Way
Here is »n inexpensive,
way to skin beauty—a way that has
been tested and trusted oT women
for over a generation.
You can whiten, clear
and freshen yonroomo
freckles, coarseness in
mg
tonight.
aa seal
ing, "no rubbing. Naa-
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purging away tan and
freckles,, blackheads,
of^ the treasury, and stood solidly with
Senator Glass, a Virginia Democrat
and also former secretary.of the treas
ury. in fighting that provision of the
bill.
Then, we have seen the spectacle of |
Senator Arthur Robinson, an Indiana ,
Republican, who cannot be called con
servative by anybody. In the role of |
broadcasting a warning that Mr. j
Roosevelt wants to be a dictator like
Mussolini, of Italy, and Hitler, of Ger- :
many. The Indiana Robinson has as- (
sailed President’’Roosevelt in vicious :
fashion. During these same days
when the Indiana Robinson was polnf-
- Ing out how he could see the Presi
dent moving towards a dictatorship, |
-there-was Senntor-JoeTr Robinson of
Arkansas, an old-time, conservative
Democrat, serving valiantly as the
President’s'leader. In the senate. The
Arkansas Robinson his managed III
^nnaetaR.lanjnaaauxcxaan-tiw.aanata^
muddy sallow -color. Yon see day*
by-day improvement,, until your skin
is all you long for; creamy-whita,
satin-smooth, lovely. Get a lari
whether they led to the right or the
left. He has Jumped on the Indiana
Robinson for his attacks on the Pres
ident's plans that were held by ths
Indianan to be leading directly to dic
tatorship. and In the same breath has
avowed his eonservstlsm.
' And so It Is In the house of repre
sentqtlves. There Is Speaker Rainey
of Illinois', always knrtWn as a Demo-
erat of radical leanings.—Along aids
bo* of NADINOLA, only 50c. No
long waiting, no disappointments;
money-back guarantee.
Doctors Gre Creosote
V For Chest Colds
For many years onr best doctor*
have prescribed creosote In some
form for coughs, colds and bron
chitis, knowing how dangerous it is
to let them hang on.
Creomulsion with creosote and
six other highly Important medici
nal elements, quickly and effective
ly ~W5PS—coughs" and" colds that -
otherwise might lead to serious
trouble.
Creomulsion Is powerful in the
treatment of colds and coughs, yet
-11 is 'absolutely harmless and .1* -
pleasant and easy to take.
Your own druggist guarantee*-."
Creomulsion by refunding your
money if you are ^not relieved after
taking Creomulsion as directed.
Beware the cough or cold that
hangs on. Always keep CreomuV
slon on hand for Instant use. (adv.)
film ts working-Kepresenlatlve Byrns
of Tennessee, as Democratic lesder ln '
the house' Mr. Byrns has been cata- f
togued as conservative through his
long term of service. Among the honse
and senate committee chairmen, the [
same mixture may be seen.
One may cai
cabinet and find ranch the same cir-
. > cumstanoe, Secr-e-
At to the tary Wallace, ot ag-
Cabinet rlculture. a son of a
former Republican
la of the left
wing, but he cannot go along with the
radical Ideas of Inflation. He say*
that won’t solve the problems of the
fanner. There Is “Big Jim” Farley,
the postmaster general, a conservative
In training and in belief, and Cordell
Hull, secretary of state, who waa nev
er Inclined to any of the new untried
schemes or dreams of the left wing of
his party.
rv tokPA. of the -Interior do
partment, waa a campaigner for Theo
dore Roosevelt *s • ball moose candi
date. Hi* wife I* a Republican mem
ber of the'TIHnol* leglslat«re i Rut-de
spite hi* previously accepted left-lean
ing. Secretary Ickes ts regarded In
Washington as conservative In most
respects. So Is Secretary Perkins,
bead of the Labor department and the
only woman In the cabinet, although ,
on labor questions she has been more
to the left than to the right. Secre- 1
ry Morgenthau. now In the treasury,
not be catalogued otherwise than
a left winger. Mr. Morgenthan’s own
philosophy, however. Is quite subordl-
nated. alnce the President’s chief Inter
est In recent months has been on lines
of monetary revision and the treasury
’Splittinq" Headaches
VntU SSJSJl gSJ’V&S
, e’e Remedy). Now the feta
aloof fine with everybody. Th* mfe, — ‘
able, all-vegetable laxative brought 1 '
and quiet nerves because it cleared
of poisonous wastes—made bowel actio*
easy and regular. Thousands tike NR daily.
It s sodi a sure, pleasant corrective. Mild,
non-habit-fann
ing. No bad after
effects. At TOUT |
druggistV-aicZ
tums"
T HOSE who attempt to graft on the
Public Works administration are
going to have a hard time getting
away witlrtt, according to Secretary of
the Interior Ickes. Ad
dressing the conven
tion of the Associated
General Contractor*
of America In Wash
ington, the secretary
warned them that col
lusion on hid* for
contract* or m a t e-
rlals, skimping on ma
terials and doctoring
of specification* so a*
to eliminate competi- ...
tlon would be uncov- lc ”*
ered by the government agencies and
punished. He pointed to the Indict
ment of Lieut Got. Nels G. Krasche!
of Iowa and an associate as * sample
of what cheats may expect
Criminal prosecution* in six case*
involving complaints of graft in th*
Civil Works administration were or-
dered by the division of investlgatloa
of the Public Works administration.
business more power to ftianage It
self. This Is the attitude of General
Johnson, NRA bosa The codes, he
says, are for the purpose of navlng
business manage Itself by men of its
own choosing with only a* little gqv-
ernment supervision.
With the agricultural adjustment'
administration, the AAA. answers to
my queries were different Most ev
eryone views the AAA as being wholly
revolutionary, as compared with onr
traditional methods of dealing #tth
such problems It Is, Indeed, an out
right overturning of our established Vfl
principles Undel* the principle of j secretary Simply carries out orders
AAA. the federal government la lay- Going further among the President’s
Ing special taxssr on special classes advisers, we find I^wls Douglas dlree-
for the benefit of a special class, tor of the budget, an Arizona
Whether you-ag^ tlMl ihs nation^ In with
agriculture must he saved by that
manner or whether your conclusions
hold such metljpds of taxation to be
discriminatory, the fact remains that
the AAA Is based’on class taxation.
In supporting that legislation and In
giving Secretary Wallace' and Admln-
I Istrator Davis a free hand to develop
. the new scheme. Mr. Roosevelt Is re
garded by the political students as
having gone as far 4© the left as the
most radical could desire, short, only
of actual government management of
the Industry. It Is only necessaf^ to
think of crop control, government pur
chase of pigs to prevent surpluses on
the markets and the payment of bene
fits to farmers for sfgnlng crop reduc
tion agreements to realize the extent
to which’the Preatdent haa gone.
• "V *
The Tennessee Valley’ authority is
other agency that might be held
to he a long step to
the left by the Pres
ident That Is pure-
• ly government own-
government participation
It ts to be remembered
not only Is going to pro-
the farmers, but
ce electricity for
residents of towns
it Is going to en-
Ipment that nsea
CHAPPED
UPS
To quickly rotter*
ria mu* I— A al
CYMpping* rOVV^VIlBCHa
cracking, apply soothing,
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MEHTHOLATUM
7
...HO QUESTION
ABOUT RESULTS
when you use—
Gdick's ROSE Flour
jCABKK MajJMO. CO. QaAtpvitO. IN*
erahip and
in basin'
that the
due© ultra
Is going to
farmers and
and dtiea.
gage la selling
|,“Wall Street” as\New York’s finan
cial Interesta ^re termed, and Jesse
Jones, of Texas, chairman of the gi
gantic Reconstruction Finance corpor
ation, a banker, a big business man. a
conservative In almost every sense.
Then, when you get Into tfie list of
professors who have be^p Influential
in administration affairs. \6u x face a
flock of left-wing adherents. Profes
sor Tugwell. an assistant secretary of
agriculture, aetufjdly would remake
l Economic structure along his own pi
fessorial lines; Professor Warren.' who
has stood closer to the Presided! than
any other, although not in an offle!
post. Is credited,, with being responsi
ble for the monetary revision policy—
the 00-cent dollar, which is now upon
us, and Dr. William L Mirers, of Cor
nell, now head of farm credit adminis
tration, has been of the left wing for
years.
Balancing off these, there are dis
tinctly conservative men tn the cabi-
net like Secretary Swanson, of th*
navy. Secretary Dern of war, and soma
of their subordinates who, neverthe-.
exercise Important executlv*
functions. - „
All of which,, leads certainly to ons
conclusion, that there is tn tills New
Deal an adventure into new realms of
administration. Where it will lead only
history can record. • \ •
• by WMtoni NowaMPSypnlaa. \
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4