P?#re Two
News Review
Events th
United States Goes Off the G
ward Inflation?Sec
Federal Contn
By EDWARD
"W^E ARE ofT the gold standard."
* * was the terse but momentous
announcement by Secretary of the
Treasury Woodln as he returned to
r his office from a
conference with President
Roosevelt; and
t # at the same time the
fctcr White House cave out
K*! ,m. *he news that the
V Chief Executive had
V _. -- p placed an embargo on
fjkjjL J 1 the further export of
j gold, permitting the
| dollar to depreciate
J In foreign exchange.
President ant* WRS reacJy to ask
D congress for authority
Roosevelt to put IMo a(,t|on h|s
policy of "controlled Inflation." Mr.
Roosevelt himself calls this policy a
program for control of commodity
price levels and says It Is designed
to raise prices but to keep them from
going too far up. He gave nssurance
that there would be no resort to
"printing press money."
Spnntnrs Thnn,nD nut.
? .v? niuuiag, lij 1 ucj uii<j t
ffian drafted the measure to carry out
th? rre6ident'8 plan, and it was
promptly Introduced in the senate as
n amendment to the pending farm
relief bill. It provides:
1. For expansion of credit up to J3.000,000,000
through purchase of gov
rnment obligations by the federal reserve
banks. (This means the purchase
In the open market of government
bonds and was tried In the Hoover administration.)
3. As an alternative, for the inflation
of the currency by Issuance of greenbacks
up to 33,000,000,000 under the act
of 1862, such currency to be legal tender
for all debts, public and private.
3. For use of such greenbacks to
meet maturing government obligations
and to purchase government obligations.
4. For retirement of such greenbacks
at the rate of 4 per cent a year.
6. For reduction of the gold content
?f the dollar not more than 50 per cent
for the purpose of protecting American
foreign trade from the effects of depreciated
foreign currencies and to enable
the President to negotiate an international
agreement stabilizing monetary
standards.
6. For acceptance of war debt payments
up to an aggregate of S100.000,000
in silver at a value of not more
than 50 cents an ounce.
7. For coinage of such silver and deposit
in the treasury for redemption of
sliver certificates issued against It. such
certificates to be used for paying obligations
of the United States.
Secretary Woodln drew up the order
concerning gold exportation. Un
uer 11 no gold is aiiowea to leave tne
country except that earmarked for
foreign account before April 15 and
such amounts as are required to save
American business men from loss on
commitments In foreign trade Incurred
prior to the proclamation of the new
policy.
The United States thus has placed
Itself on the same footing as Great
Britain and many other foreign nations.
Its money Is unstable In value
In International trade. It was pointed
out that Mr. Roosevelt could now with
greater propriety propose that all
nations go back to the gold standard
together.
Effects of our plunge Into the Inflation
pool were immediate. Prices on
the stock exchanges and especially in
the commodity markets went up with
a rush and trading was heavier than
for many months. Millions of dollars
were added to the farm value of all
grains, and cotton and sugar also
moved upward, as did provisions.
On the London and Paris exchanges
the dollar sank decidedly. Neither the
British nor the French were pleased
with thf> Presldpnt'n nrtfnn Tho T/m
don Daily Telegraph said: "Following
America's latest action a demand will
arise in every country for fresh depreciation
so that exporters may not
lose their power of competition In
world markets. The new task of the
statesmen is to prevent a chaotic process
of competitive depreciation of currencies."
RIGHT now the eyes of the world
nre turned on Washington, for
the series of talks between President
Roosevelt and representatives of many
other nations have begun, and If the
hopes of the Chief Executive are realized
they will result In the finding of
a way out of the world depression.
Prime Minister J. Ramsay MacDonald
was the first of the visitors
to arrive and the first to confer with
Mr. Roosevelt and Secretary of State
HulL Edouard Herriot, former premier
of France, was close on MacDonald's
heels, and the others are
scheduled to follow rapidly. No one
of the "conversationalists" is empowered
to really decide anything, but all
cf them are free to express the viewi
The Cherokee
?
of Current
ie World Over!
lold Standard and Moves Toretarv
Perkins Asks
ol of Industry.
V. PICKARD
of their respective governments on
economic matters. It was understood
that MacDonald would not talk touch
about the war debts, but Herriot was
authorized to state France's position
on that subject
The whole series of conversations In
Washington Is a preliminary to the
coming world economic conference,
and the hope of President Roosevelt
and Secretary Hull Is that the way
can be paved for rehabilitation of the
world by the lowering of trade barriers
and monetary stabilization. They
will gladly abandon America's traditional
high tariff policy if the other
nations are willing to co-operate and
reciprocate.
POLICIES of the Roosevelt administration
are being expanded and extended
so fast and so far that congress
and the country are scarcely
able to keep up with
the pace set. One
the broadest end most
? ?l>L loutuuuiiHry. in lis
'^*1 proposals was submlt
v I *e<* *? h?use conife
jk; / I mlttee on labor by
Kt j., M Secretary of Labor
^ ^ Jm ^ranro8 Perkins In
| the form of a draft
bill ofTered as a sub^
V stitute for Senator
Secretary Black ' SO h"urk wwk
. measure which was
crKins , . .
passed by the senate
| and for the almost Identical Connery
house hill. It is designed to give the
federal government full control not
only over the hours of labor but also
over Industrial production and prices.
The passage of this legislation and of
the pending farm marketing bill would
make Secretaries Perkins nnd Wallace
virtual dictators over the economic |
life of the nation.
The legal bnsis of the labor bill is
to be found in the interstate commerce
clause of the Constitution and in the
"unfair competition" section^ of the
federal trade act.
It is upon these legal powers that
the secretary of labor Is to depend
to exercise the following authority r
1. To prohibit from Interstate commerce
articles produced by any Industry
working Its labor more than 30
hours a week or more than six hours
In any one day. Milk and cream are
exempted; executives and managers are
exempted, and certain exemptions are
made In the cases of seasonal or other
emergencies. Boards are set up to
regulate such exemptions.
2. To limit and If neoeaaarr nro
hlblt from Interstate commerce the
production of any plant or Industrial
group which Is overproducing.
S. To Investigate wages through a
wage board, to flx and Impose minimum
fair wages; to publish the names
of employers failing to raise wages In
accordance with a direct order to do
so; and to prohibit from Interstate
commerce goods produced by any employer
refusing to comply with a
wage order.
MYRON C. TAYLOR, chairman of
the United States Steel corporation,
has added his voice to the chorus
of industrial executives who believe
the course of the depression
has turned.
At the annual meetIng
of stockholders in ~
Hoboken, Mr. Taylor, ^ ^
who Is noted in the Cjh V
financial district for Hp# ^ X
the cautiousness of
his utterances, de"Better
times are ^
And In support of M.C.Taylor
this belief he cited
the fact that the corporation was operating
at 21 per cent of capacity, the
first time that operations have reached
this level since Marcn, 1932.
MOSCOW'S famous trial of six British
engineers and eleven Russians
on charges of espionage, sabotage and
bribery ended In the conviction of five
of the Britons and ten of the Russians.
L. C. Thornton was sentenced
to three years In prison; W. 11. MacDonald.
who pleaded guilty, to two
years; Allan Monkhouse. John Cushny
and Charles Nordwall were ordered
deported; A. W. Gregory was acquitted.
The ten Russians were given
prison terms up to ten years. There
was nothing surprising In the outcome
unless it were the mildness of the penalties
Inflicted.
The British government, which had
been watching the case with intense
interest, struck back at the Soviet
union promptly. King George and the
privy council declared an 80 per cent
embargo on Russian imports and the
Metropolitan Vickers Electrical Equipment
company, employer of the con
Scout, Murphy, N. C., Fri
Tided men, ordered sn immediate appeal
In behalf of the two defendants
who were sent to prison.
/"MORA'S political disorders, murders
and bombings, of which much has '
been written in recent months, have
finally engaged the attention of the administration
in WashI
n g t o n. Kepresentative
Hamilton Fish of
\ New V < has been
*; I urging our govern- i
I K^ji | meet to employ diploy
ja ? j matic intervention to
|b A. J end the "reign of termsst^
m Tor>" an<* said he
would formally demand
that Secretary
. Hull take such a step
unless the adminisP'
Fl,h tration got busy very
speedily. For a time Mr. Hull seemed
averse to any interfeience. hut Mr.
Roosevelt started things by calling the
Cuban ambassador, Don Oscar B. Cintas,
to the White House for a discussion
of the situation. The ambassador 1
also conferred with Sumner Welles. *
assistant secretary of state, and then : t
Mr. Welles went to the White House J
for Instructions. t
Mr. Iloosevelt has no desire to or- ?
der military Intervention in the affairs
of Cuba, which he could do under the
Piatt amendment, holding that tnls 1
would cost us a lot of money and besides
would enrage President Machndo
end create an unpleasant diplomatic
situation. Therefore his present plan y
is to take steps to redeem the island's
financial situation, which is wretched. ;
and to relieve the unemployment and
uisconienc tnat ore at tne Doiiom 01
Cuba's difficulties. He and the State s
department wish to increase the sugar ]
imports from Cuba by granting sub- j
stantial reductions to the island on t
the sugar tariff. This, naturally, will ,
not please the domestic cane and beet
sugar industries, whose representatives f
are nervously watching developments, j
There is a genuine tear among some t
officials in Washington that opponents
to President Machado will. In their efI
forts to overthrow his regime, perpeI
trate some outrage against American
I interests In Cuba, thus raising a sit- <
j uation in which the United States 1
might be compelled to intervene.
REPUBLICAN postmasters who have
demonstrated their efficiency are '
to be permitted to complete their
terms. So announces Postmaster General
James A. Farley,
to the Joy of several ^ \
thousand G. O. P. of- I'
flee holders and the ' 1
corresponding dismay
of a great army of
Democrats who would M
like the Jobs. Mr. j ' jH
Farley says his party i j|B
has long stood for the k
system
of competitive exatnInation8
and "will not _
abandon that high J-A-F*r,?y
ground," so he gives out this message:
-4%o Incumbent whose term has not
yet expired and who has been render- j
lng loyal and efficient service to the
government need have the slightest
fear of removal. It will be the policy
of the Post Office department to allow j
every efficient postmaster to All out i
his term."
District attorneys, marshals and ,
collectors are not under civil service
and In time these places probably will S
be filled with deserving Democrats. I
Also there are hundreds of vacancies !
In the postmasterships to be filled I?n- 1
mediately, and these will be filled as
soon as Mr. Farley's department has
completed a study of examination !
methods.
The postmaster general makes the
welcome assertion that the United
States post office Is going to pay its
way hereafter. He alms to save $72,000.000
in the coming fiscal year, and
this, he believes, will suffice to balance
the postal budget.
JAPAN'S armies In China continued !
their advance south of the great
wall, drlvine before them iiicn.? ?-?
? ? ?.-vi f,aiu/.t;u
or traitoious Chinese troops. The
Japanese at latest reports had occupied
the entire triangle between the
wall and the Lwan river, with its base
on the gulf of Pohal. and were moving
onward toward Tientsin. They crossed
the river near Lwanchow and bombarded
that city and the surrounding
region. There was great alarm in
Tientsin, where some 400 Americans,
mostly business men and their families.
reside.
When the Japanese started their
push into the undisputed Chinese territory
south of the great wall the
Lwan river was set as the limit. But
the Japanese command now has announced
that they will continue the
pursuit as far as the Chinese con- ,
tinue to set up defenses. The Japanese
authorities deny, however, that
they Intend to occupy Peiping and
Tientsin. Their apparent plan is to
create a buffer area out of the triangle
to facilitate the consolidation of the
newly conquered province of JehoL j
They have gained control of all the important
passes through the great wall
on the southern border of Jehol and
the gates have been sealed and heavy
guards placed at them.
O. 193*. Western Newspaper Union.
?
day. April 28, 1933
CHANCELLOR HITLER
>
The forty-foarth birthday of Adolf
3itler. chancellor of Germany, was
elebrated wiih elaborate ceremony
hroughout that country, ihe National
Socialists making gifts that were dlsrlbuted
to all persons out of work
ind in need.
HOUSE PASSES ARMS
EMBARGO RESOLUTION
Zests Discretionary Power in
the President.
Washington.?The house of representatives
voted to give President
Roosevelt full discretionary authority
o prohibit the shipment of arms from
his country to nations engaged in
var.
By a vote of 2o2 to 100, the house
Iflniitr/I tln? nritiii n'ct rn f Inn 11 rmo oin.
>argo resolution and sent It to a dubl>us
fate In the senate. Considerable
>pposition to the proposal has been
shown in the higher body and the resoution
Is expected to provoke a heated
controversy before It Is finally dis>osed
of.
As it passed the house the resolu;ion
gives to the President full power
:o declare an embargo against the
shipment of munitions to foreign unions
engaged in or threatened with
war.
He would first secure the co-operation
of other neutral powers in cutling
off war supplies, and it was this
provision which led opponents of the
measure to brand it a back door entrance
to the League of Nations. It
was also charged that the President
would have authority under the resolution
to designate the aggressor in a
foreign conflict and to direct the embargo
against this so-called aggressor
nation alone.
The vote followed almost strictly I
party lines, although 22 Democrats <
deserted their party to vote with the I
Republicans, and nine minority mem- *
bers voted with the Democrats.
The embargo plan originated during ;
the Hoover administration, but was |
scuttled in the senate lust session fol- j
lowing approval by the bouse. The !
Roosevelt administration, however. Introduced
a similar resolution at the j
beginning of the extra session.
Beer Taxes Are Offset by
Other Revenue Declines
Washington.?Beer taxes, although !
tney are bringing in millions, are being
offset by declines in other sources
of government revenue. The net re- j
ouil is b very sraaii increase In the J
total Income, treasury reports showed |
Dally collections. Including the beer
taxes, are running about on a par
with those in February and other pre
banking holiday months, the records I
show. Beer income, therefore, is thus !
far filling up a hole left by failure of 1
old taxes.
Jimmy Walker and
Betty Compton Marry
Cannes. France.?Former Mayor .
James J. Walker and Betty Compton, ;
American actress, were married here. '
The couple entered the city hall by
the back door to avoid the curious |
persons.
They were married by Mayor
Gazagnaire of Cannes. Witnesses for
Walker were his lawyer. Alfred I
Sharon, and he proprietor of his ho- !
tel. M \TnrtlnoT T%- -r ? -
l>i. .lusepn r isner. '
Walker's physician, was witness for j
Miss Compton.
Summertll Charges Unfounded j
Charleston. S. C. ? Charges made
against Gen. Charles P. Sumraerall,
president of The Citadel, on the senate
floor, were called "unfounded In fact"
in a formal statement Issued by the
board of visitors, after an investigation.
Senator Edgar A. Brown asserted
that two cadets had been "railroaded"
to trial for alleged offenses.
Hylan Will Run Again
New York.?Former Mayor John F.
Hylan announced he would be an Independent
candidate for mayor in the
election next November.
ROOSEVELT ASKS |
OUTPUT CONTROL I
Secretary Perkins' Plan to I
Regulate Industry. H
Washington. ? Tiie ml ministration K
has submitted to congress a specific I
plan for a national board ti? regulate I
industrial production. H
Secietury of Labor Perkins, acting I
on behalf of President Roosevelt, has H
laid the proposal before the house U* Q
bor committee as an amendment to I
the pending 30-hour week bill. I
The administration thus proposes to B
broaden the measure into a revolt
Uonary venture in national economic B
planning and social reconstruction? B
spreading out employment through the |
shorter work week to open up Jobs for B
millions of the 13.000,000 or more now E
Idle and then attempting to stabilise E
that employment and earning power by I
controlling production. B
The goal !s to keep factories and R
mines operating at an even pace with HE
output closely adjusted to market de- Ira
mands. instead of overproducing for a K
period, glutting the market with a I
surplus that forces prices down, and H
having to lay off workers. |j|
Miss Perkins asked thnt regulation ffi|
of production be placed in the baDds
of a new board of which she would H
be u member. It is not suggested that H
the board Uike over any industries, bat II]
it would oe designed to have ample f|j
influence t** obtain adjustment of pro* lp
duction to a more stah'.e basis. It is H
contended this not only would go far H
toward ending unemployment, bat H
would help Industry turn present H|
losses into profits. jfi||
A9 a further means of bringing
about even distribution of work and g
wages Miss Perkins has recommended B
establishment of other boards to su* fl
per vise wage scales and working ? B
hours. ffi
Instead of the flat six-hour day. fire* n
day week limitation set in the Black H
bill passed by the senate, she would H
set a maximum of 40 hours a week E
and empower a board to make flwriHU
adjustment* below that figure as tfce
needs of various industries demanded.
Similarly, no specific minimum wage
would be fixed, but a board would at*
tempt to maintain wages at a just
scale and settle controversies. It was
feared that any attempt to prescribe
a definite minimum wage might be declared
unconstitutional. The whole
bill is certain to face a court test, and
It was believed a specific wage provision
would make it especially vulnerable.
Prison for Two Britons
in Soviet Sabotage Case
Moscow.?Two of the six British
electrical engineers tried on charts
of espionage, bribery, and sabotage
were given prison sentences, while
three were ordered deported and the
other war acquitted.
Ten of their Russian co-defendants
were sentenced to prison terms up to
ten years. One was acquitted.
W. H. MacDonald. the only one of
the British employees of the Metropolitan-Vickers
electrical firm to plead !
guilty, received a two-year prison sentence.
L. C Thornton, the company's chief
construction engineer In Russia, who
was described as a military spy by
Prosecutor Andrey Vishinsky. was sentenced
to a three-year term.
Allan Monkhouse. the MetropolitanVickers
director In Russia : John Cushny.
an engineer, and Charles Nordwall
were ordered deported within
three days. They will not be allowed
to return to Soviet Russia within five
years.
A. W. Gregory, charges against
whom were tyilhdrawn by the prosecutor.
was acquitted.
Three Sentenced for
Kentucky Cult Murder
Inez, Ky.?Overruling a motion for
a new trial. Circuit Judge J F. Bailey
sentenced John H. Mills to life imprisonment
and Ballard Mills and
Blaine McGinnis to 21 fears' imprisonment
each in connection with the Mills
"human sacrifice" case.
The three were among the nine original
defendants accused of murder
and accessory to murder in connection
with the slaying of Mrs. Lncinda Mill's
sixty-seven, mother of John H. Mill*
during a weird cult ritual last February.
Fire Wreck# Home; Two
Children Die; Others Hurt
Detroit.?Burns suffered when their
home was destroyed by fire cnnsed the
death of George Day. seven, and bis
aister, Irene, five. Their father. FT*'
ser Day, thirty-two, and a sist^'
Marion, nine, are in a serious condition.
The mother, Mrs. Olive Day. ha?
carried a one-year-old child to safety
when firemen arrived to find the two*
atory flat bollding a mass of flames.