The Alamance Gleaner 1
VoL LXXI . GRAHAM, N. C., THURSDAY, APRIL 12, 1945 No. Id
WEEKLY NEWS ANALYSIS?
Allies in. "Big Heave" Seal Off
Ruhr Valley Production Center;
Clay to Riile Occupied Reich
Released by Western Newspaper Union.
(EDITOR'S NOTE: When opinions are expressed la these columns, they are these ef
Western Newspaper Union's news analysis and net necessarily el this newspaper.)
German dead litter, road as British Tommies diWre toward Berlin in
root of enemy forces on 21st army front.
EUROPE:
Last Great, Arsenal
The last great source ot Ger
many's supply of war materiel had
been sealed off as tanks of Lieu
tenant General Hodges' U. S. 1st
army swept before them all resist
ance in their spectacular dash to
wards Berlin. The British 2nd army,
pounding across the north German
plain, had steadily drawn closer and
closer to the 1st army. Ruhr valley
war production centers had been ef
fectively sealed off.
Typical of the magnitude of the
American forces was the one-day
bag of 14,000 Nazi prisoners taken
by General Patton's 3rd army in its
sensational drive eastward.
City after city had fallen into Al
lied han4s under Eisenhower's steam
roller.'Among the rich prizes were
Frankfurt - on - the - Main (546,
000), ranking ninth in the German
Reich, Mannheim (283,000) which
fell to Lieutenant General Patch's
7th army, and Essen which led all
Europe in the production of muni
tions.
Clearly the final doom of Nazi pow
er was sounding. Prime Minister
Churchill of Great Britain declared
he believed the "hour of success"
was at hand. Still some military
authorities pointed out that a final
Nazi stand might ^e made in moun
tainous southern Germany but
tressed by defenses in northern Italy
and the industrial resources of
Czechoslovakia.
Spring rains and fog had kept the
Italian front quiet, but observers
had expected Gen. Mark Clark's
armies to begin massive smashes
northward.
Relentless Reds
In the East, Russian armies had
* kept up their relentless pressure on
Berlin and elsewhere with ar
mored divisions sweeping over the
Austrian border from western Hun
gary and closing ever closer on
Vienna.
Marshall Rokossovsky's 2nd White
Russian army battered deeper into
Danzig.
Once unconditional surrender was
achieved, civil afTairs in Germany
would be under direction of Maj.
Gen. Lucius D. Clay, who had had
charge of materiel procurement for
the army service forces when War
Mobilization Director Byrnes bor
rowed him last December as his dep
uty in charge of the war program.
The appointment, the White House
said, was made by Gen. George
Marshall, army chief of staff. Clay
was appointed deputy to General
Eisenhower.
PACIFIC:
Worst to Come
Already feeling the rfh?j of heavy
TJ. S. aerial bombardment, Japanese
found no comfort in Gen. H. H.
("Hap") Arnold's announcement
that America would bring the full
weight of its tremendous air power
to bear upon the Nipponese once the
war in Europe ended.
As Arnold spoke, the strategic
Ryukyu islands stretching between
the Jap homeland and Formosa be
came the latest target for American
assaults, with carrier planes team
ing wflfl -warships in blasting the 500
miMang chain preparatory to
ground attack.
In declaring that the TJ. 8. planned
to use every plane against the Jap
anese after Germany's fall to has
ten their defeat. General Arnold
said that not only would Amer
ican air power^smast^the^enomy^
DEMOBILIZATION:
Small Scale
Though some combat troops in
the European theater of war will be
demobilized after Germany's fall, all
service, air force and naval person
nel will be retained to continue the
fight against the Japanese, officials
indicated.
Demobilization of some combat
troops will result from inability to
make full use of them in the Pacific
for geographic reasons, it was said,
but the exact extent of release will
depend upon conditions in Europe.
All members of the service branches
will be needed for the construction
of staging areas and bases in the
Pacific, and the air. force intends to
bring its full weight to bear against
the Japanese.
Because all approaches to'the Pa
cific theater of war are over water,
and because ships will have to bear
the bulk of supplies, all naval per
sonnel will be required to bring
about the Japanese's fall as quickly
as possible. Fleet Admiral King de
clared.
MANPOWER:
Buck Controls
Though the President made a
strong appeal for passage of the
compromise manpower control bill,
under which plants would be limited
in the number of persons they could
employ and workers and farmers
alike would be frozen to present
jobs, the measure encountered rough
going in the senate.
Despite the fact that the legisla
tion fell short of military leaders'
demands for a labor draft, the Presi
dent said, its terms assured contin
ued high production for the knockout
blow against Germany, and provid
ed for keeping workers on the job
after the Nazis' fall.
senators pointeo up uie great war
time production record of the U. S.
in opposing legislation tightening
control over both employers and em
ployees, and O'Mahoney (Wyo.) hit
arguments that passage of the bill
would convince G.I.s that the home
front was behind them. Rather, he
said, defeat of the measure would
assure them of retention at home of
the freedoms for which they are
fighting.
TARIFF:
Fight Renewed
Calling for authority to slash tar
iffs SO per cent under January, IMS,
levels in an extension of the recipro
cal trade agreements act for three
years. President Roosevelt touched
off a renewal of the historic tariff
fight in congress.
While the President said that
farther tariff eats weald offer
~ other countries the oppertmdty
to obtain fands for purchases
here, the RepahUeana argued
that a low of cheap goods Into
this country weald threaten
American prodaeers. And while
tho President declared that h
tressed imparts weald add to
the l^aMteaL'^le^tod'''^
program weald defeat the aa
aianiid goal of M.SSS.SM post
war jobs.
Passage of the President's propos
als would allow as much as a 79 per
cent tariff reduction under the
Smoot-Hawley rates of 1M0 on soma
items, it eras pointed out Under
the original reciprocal trada act of
ISM, reductions of SO per cent were
permitted, and since these cuts si
RATIONING:
Smaller Supplies
Already warned of a IS per cent
reduction in meat for the next three
months, civilians took the first big
hitch in their belts for the current
quarter with the announcement of an
increase in the point values of pork,
sausages and canned meat products.
While news of the tightening of J
these and other controls over fats
and oils occupied the home front, it \
was announced that all babies' ,
leather shoes would be rationed ,
after April. I
In raising the point values on ]
pork, sausages and canned meat <
products, OPA said that there would |
be 5 per cent less meat available (
during April, but the decrease in j
supplies would hit civilians harder |
in May and June. Coincident with ,
the new controls over the aforemen
tioned meats, it was announced that
point values also would be boosted
on lard, along with shortening, mar
garine, and salad and cooking oils.
Hit Shortages
Discussing the meat shortage,
the national livestock committee
of the American Farm bureau
charged that low price ceilings re
tarded increased production of beef,
and said assurances of miifimum re
turns would lead to greater pork out
put. *
xue comnuHee s report one even
as congress conducted hearings on
the tight meat situation, with rep
resentatives of all branches of the
industry calling for an upward re
vision in ceiling prices.
In establishing ceilings on grade
AA and A beef, the committee said,
OPA assumed that the last 200 or 300
pounds a steer gained in the feed
lot was mostly fat later wasted in
the kitchen. On the other hand, the
committee declared, fat of a steer
is distributed through its meat.
Speaking of pork, the committee
stated that farmers cut hog produc
tion at the government's request, and
would raise it again if guarantees
were forwarded against market
breaks.
ARGENTINA:
On Band-Wagon
With Germany's collapse immi
nent, Argentina was quick to iutnp
on the Allied bandwagon with.adec
laration of war against trie Ax's,
but in so doing, she carefully point
ed out that her policy was governed
by the desire to cooperate with
other inter-American countries and
participate in the United Nations'
peace parley in San Francisco.
By taking this action, Argentina
ended six years of hemispheric iso
lation, during which time the coun
Riting in Britain's house of com
mons, l-aborite Ivor Thomas asked For
eign Secretary Anthony Eden: "Would
it be the duty of a British soldier who
seeks Hitter to shoot him or try to bring
him back Oliver
Replied Eden: "/ am content to leave
that to the judgment of any British sol
dier.~
{
try professed a willingness to co
operate in inter-American affairs,
but maintained an independent
course in foreign relations.
Final determination to play a full
and important part befitting her po
sition in inter-American affairs led
to the decision to declare hostilities
against the Axis, with ardent na- .
tionalists and some army leaders,
however, resisting the move to the
last.
LABOR-MAN AGEMENT:
Postvcar Charter
Recognizing management's control
over its own business and labor's
right to organize and bargain. Presi
dents Eric Johnston of the U. S.
Chamber of Commerce, William
Green of the AFL, and Philip Mur
ray of the CIO signed' an agreement
looking toward good relations be
tween employer and employee in the
postwar world when lower produo
tion might lead to unrest.
In effect, the agreement proposes
the establishment of voluntary ma
wrnum Ones OHI), Ilk MaM (cas
ter) ul PUlMteliF caster m Uksr
chinery for the peaceful settlement
of disputea and continuance of pro
duction in the postwar period, to
take the place of present wartime
government controls regulating re- 1
lations. Toward this end, creation of ?
a special arbitration board ap
peared likely.
In reaching the agreement,- the
parties tended to relieve manage
ment's fear that an oversupply of
workers might be led into a violent
left-wing movement after the war,
end labor's apprehension that corn
iely bite sv
Vote* of on Innocent Byitonder:
When Lowell Mellett, former aide
to FDR, was asked why the Presi
lent is a great executive, Mellett
said: "Because he is never too busy
to work!" .. . Add towns you should
t>e glad you didn't name: Rising
Sun, Ind. . . . John JJ. Kennedy,
Jie news commentator, says now
hat the Nazi prisoners of war over |
lere got their own newspaper?the ,
text thing they'll probably demand
will be pensions!
Sodden Thawt: Sayt Could
the war department's request
tor Mr. Byrnes' eorfew be a
move to offset the war's inter
ference with the birth rate?
. . . When oae night elabman
griped about "his investments"
a newspaperman said: "This is
a total war?meaning total for
everyone and everything. This
is your part in the war?to saert
lee more than others. For some
people the war means to go
blind. Far others?to go broke.
Which would you rather?"
Congressman Dieksteia aimed a
well-deserved blast at TUmkin. The
chip on Congressman' Rankin's
shoulder?is a cinder in the public
eye. . . . The Allied War Crimes
commission announced that Hitler
and company would be tried for
their war crimes. It is about time!
To repeat a query: But what is
holding up the trial of Hess?
See'y of Cammeree H. Wallace
will be named "Man of the Year"
by the Churchman at its annual ban
quet. Willkie and Baruch were so
honored. ?
What we'd appreciate learning
from Justice Byrnes is what he
has done a bo at the defiant Wash
ington, D. C., stay-up-late Joint
which (at last reports) remains
open all night? . . . That Toledo
theatre manager who kept open
all night, too, what about him?
- Can't he ho drafted to help pick
up the wounded and dead?
General Fatten, so the story goes,
was holding a meeting with his
staff officers when the telephone
rang. . . . Thinking it was a friend,
the voice at the other end of the
wire inquired, "Hello, is that you?
you old sonovabee?"
Undisturbed, Patton looked around
the room and then spoke into the
phone. "Which sonovabee do you
want?" he inquired.
Strange Bedfellows: John L. Lew
is, Sewell Avery and Fiorello La
Guardia ? Americans who defied
their government during the war.
. . . One wag recently remarked:
"Now that the war dep't has stepped
into the curfew controversy, the
Little Flower of New York hasn't a
pot to bloom in." ... Telegram from
Miami Beach: "What those maga
zines (which rapped Miami Beach)
neglected to add was that since De
cember 7, 1041, Miami Beach grace
fully cooperated with a midnight
curfew. But it was your mayor who
was first to violate it. Have you any
comment to maks about that?"
Taking the words out of our may
or's mouth, he once confessed:
"When I make a mistake?it'r a
beaut I"
When General Elsenhower vis
ited Paris after its liberation, ha
sad several oUlcers inspected
the Eiffel Tower. ... At the
tap, Eisenhower leaned over the
rail and viewed the city. . . .
After a silence sf several mla
utes an aide said: "A penny
for year thoughts, general." ...
Eisenhower, visibly Impressed,
turned and said: "Isn't this a
wonderful ptaes to hang Adolf?"
The story in the gasettes that new
motor cars may be nameless (after
V-E Day) appeared here on July 10,
1944. Mr. bug is quoted as saying
"it is very poasible." . . . Draft
boards have been instructed to order
all "swishes" (now classified 4-F)
into defense factories as Ale clerks,
etc. Some Broadway musical shows
win suffer most.
Defers Us death A. Woolcott as
signed his royalties frotr< the sales
of his book, "As You Were," to care
for seamen throughout the world. To
date United Seamen's service re
ceived $10,771 from the late author's
royalties. . . . Lt Roland Hill (ha
was Archbishop Spellman's sec'y in
Algiers) is the first O.L to run for
public office. Has a good chance to
be elected mayor of Minneapolis,
pals report He went overseas as a
private, and General Eisenhower
promoted him with bars mads from
Bretton Woods Conference Laid Groundwork
For a Stable International Monetary System
?
U. S. Postwar Exports
Depend on Soundness
Of Foreign Finances
By WALiCR A. SHEAD
WMU lUf C?rrNfM<?Bl.
Stripped of ail technical ver
biage, the proposals agreed up
on by 44 United Nations at the
Bretton Woods conference and
which are considered an essen
tial part of the world peace plan
to be approved at San Francisco
April 25, are designed to?
1 Set up an International mone
tary fund with a working capital snb
scribed by 44 nations In gold and
member enrreneiei totaling M bil
lion dollars of which the United
States is to subscribe 3.75 billions.
This fund is expected to stabilise
and safeguard the valoe of foreign
currencies in terms of gold, remove
trade barriers in favor of open or
reciprocal trade agreements to jwo-.
vide tree and open trade among
member nations.
(.?Organise an international bank
for reconstruction and development
with a subscribed capital of M bil
lions of dollars of which the United
States is to furnish 3.175 billions.
Purpose of the bank Is primarily to
facilitate flotation ef foreign loans In
private capital markets by providing
international guarantees and to
make long-term capital loans direct
to member nations for specific proj
ects of reconstruction and develop
ment.
Why the need for these safe
guards? Following World War I
American investors took a beating,
and in the late 1920s were caught in
an epidemic of defaults by foreign
debtors. Under the Bretton Woods
proposals, these foreign loans would
be investigated by the bank and then
guaranteed as to principal and in
terest by the foreign government
and the bank. Risks then, of inter
national loans, would not fall on in
vestors themselves, nor even on
any one country, but upon. all of
the 44 member countries. Obvious
ly the objective of this guarantee of
loans is to encourage a substantial
volume of private international in
vestment which is essential to our
own'economic well being.
Great Need for Rebuilding.
France, Italy, Norway, Poland,
Finland, Czechoslovakia, a large
area of Russia, the Balkan nations,
large sections of England, China,
much of India and Burma, plus the
Axis nations of Germany and Ja
pan, have been laid waste by the
war, their productive facilities pros
trate, their currencies depreciated,
and many years will be required for
them to rebuild their export indus
tries. They will require foreign cap
ital to get under way.
In our own country we have a tre
mendously enlarged productive in
dustrial plant. Our agricultural pro
duction has reached a new high of
efficiency. After the war our eco
nomic policy will be aimed at full
employment and full utilization of
our agricultural and industrial facil
itidt. To rmliw thMp aimi new
outlet* tar the product* ol farm and
factory must be found and these
prostrate foreign countries provide
a ready Market providing that
American exports take the form at
American investments abroad?good
American dollar*?for if these na
tions are to buy a large volume of
our productive machinery, our in
dustrial and agricultural products in
the immediate postwar period,
American investor* will have to lend
part of the purchase money. Under
the functions of the .'international
i bank, these investors will have the
assurance that these investments
are sound and remunerative
Under the eptratien of the mone
tary tend, as distinguished tram the
bank, for the protection of our in
vestors, currencies In an these coun
tries most h# stabilised in terms sf
fold and at available rates of ex
ahaage. The Catted States holds ?
ear cent sf the world's gold supply.
Economists point out there must be
elimlaatiou of eachaage Saetasltais,
sf discriminatory exchange prac
tice*, af competitive currency depre
ciations, if the American dollar Is
to be protected.
For instance, how can the Amer
ican fanner be protected in the
: world market If a sizable wheat pro
ducing country Mich as Russia and
Argentina can resort to monetary
action which places the wheat pro
ducers at those countries in a pre
ferred pindflun with respect to Amer
ican wheat exporters? If the Amer
ican fanner la to oonttmie to export
wheat or any other commodity, and
world price of wheat or other com
modity in terms of our own dollars,
will not be seriously disturbed by
large fluctuations in the principal ex
porting and importing countries.
Stabilised Currencies.
So the purpose of the international
monetary fund is to stabilize and
promote a balanced growth of inter
national trade by stabilizing the
value of all currencies in terms of
each other; progressively remove
barriers against making payments
across boundary lines, such as high
tariffs or other trade restrictions;
and to provide a supplementary
source of foreign exchange to which
a member country may apply for
the assistance necessary to enable
It to maintain stable and unrestrict
ed exchange relationships with oth
er member countries.
For instance, in some countries
importers are not permitted to pur
chase dollars required to buy goods
in the United States. In other coun
tries, of which Germany was an ex
ample before the war, foreign trade
was disrupted by use of so-called
multiple currencies, or barter ar
rangements, and during the war
many new restrictions have been
devised because of military neces
sity.
The operation of the monetary fond
is intended to remove all these re
strictions and set np a standard and
uniform practice, currency value
and exchange rates so that Amer
ican business may have the greatest
possible freedom in international
trade in the postwar era. The same
freedom Is intended to be provided
for business in the other countries,
for freedom of business would be
meaningless unless these other coun
tries accorded an equal measure of
freedom to their own people.
There has been criticism aimed
at these proposals from some bank
ers en the grounds that they are
contrary to sound and established
banking practices. There has been
praise and approval from other
bankers.
As a matter of record, criticism
from bankers, at least some bank
ing groups, has been directed at any
departure from established custom,
that is, custom and practice estab
lished by the bankers themselves.
For instance, some banking groups
criticized bank deposit insurance.
Criticism eras aimed at government
guaranteed loans on homes and
farms; at 20-year loans on homes
when the custom had been 3 to 5
yeara; at 4 and 3 per cent interest
rates, when the practice bad been
? to 8 per cent and higher. These
practices today, however, are an ac
cepted part of our domestic econ
omy.
Criticism from the larger interna
tional bankers has been directed at
the Bretton Woods proposals, no
doubt because governments will con
trol fiscal and monetary policies on
an international seals, and also be
cause interest rates under these pro
posals will be lower.
0. 8. Benefits Most.
Another criticism has been direct
ed at the bank and the fund because
the United States is the largest sub
scriber. It is argued here, however,
that from any fair standard, this
country should be the largest sub
scriber because wa have more to
gain than any other country. We
have the money to lend, wo have
a large part of die world's gold and
ere have the facilities no other na
tion has to provide export goods in
the immediate postwar period. Last
One of the moat important group*
to give approval to Bretton Woods
proposals is the Committee tor Eco
nomic Development, headed by Pad)
G. Hoffman, president of the Attala
baker corporation. This group, made
up of bankers, economists and basi
nets leaders would even give the ba
te rnationsl bank further power to
make loans for long-term and short
term stabilization purposes, claim
ing that under the present refuta
tions, the bank does not have that
clear-cut power.
There have been some suggestions
favoring the establishment at the
bank, but suggesting that setting up
and operation of the monetary fund
be delayed until conditions abroad
settle down to normality. It is point
ed out, however, that the bask aad
the fund are closely related, both ha
concept and organization and that
membership in the bank is open only
to those who are members of this
fund. It is also pointed out that the
bank is, to a considerable extent,
dependent upon the fund tdt the res
son that the fund must first estab
lish values of the moneys to bs
loaned by the bank if there is ts
be a smooth long-range planning aad
investment program.
While most sound economists
agree there must be some system off
international control or agreement
after the war, the only alternativw
offered has been a system of bloc
agreements. These are regarded by
many as dangerous, since such bloe
agreements likely would lead to a
world divided politically and eco
nomically. Eventual conflict be
tween these groups would be likely.
Chance far Leadership.
Pointing to the leadership dm
United States has maintained during
the war, fiscal experts here declare
that never before has this nation oc
cupied such a key position or had
such an opportunity to take over
world leadership in the economic
field. Govemmantdl leaders, indod
ing Secretary of the Treasury Henry
Morgenthau, look upon the Brettow
Woods agreements as Just as essen
tial to world peace and security a*
the Dumbarton Oaks agreements.
Secretary Morgenthau maintains
they are inseparable. Hence his ??
gent appeal to the congress tor legis
lation which will insure this nation's
participation prior to the world par
ley at San Francisco April 23.
Acceptance by the congress at
these agreements before convening
of the delegates of United Natieais
at San Francisco, these leaders say,
would be taken as a happy augury at
this nation's sincerity. It would give
notice to all that the United States,
instead of choosing economic isola
tion, which would inevitably lead to
political Isolation, is already on rec
ord with a determination to do as
part toward the attainment of world
peace and security.
In a special message to the con
gress February 20, President Roose
velt, referring to the Bretton Woods
proposals, said: "It is time for the
United States to take the lead ie
establishing the principle of econom
ic cooperation aa the foundation foe
expanded world trade. We propose
to do this, not by setting up as
supergovemment, but by interna
tional negotiation and agreement. dU
rected to the improvement of the
monetary institutions of the world
and the laws that govern trade . . ,
the international fund and bank to
gether represent one of the mask
sound and useful proposals for to
teraational collaboration now Wars
?And that is what too Bmttm
Woottaprgooatowsdggoyeto^
During a lull hi the proceedings of the Brettoo Wood* iiriwi.
V. 8. Secretary of the Treasury Henry Morgentfcau (center) got lad*
Informal conversation with the Hon. J. L. Usey, minister of isaaeo hr
Canada and chairman ?f that nation's delegation (left), and M. S. Mope
nor, chairman of the Russian delegation. These chats helped te Iran end
many of the smaller problems.