THE ALAMANCE GLEANER
? Vo1 IiXV v GRAHAM, N. C., THURSDAY, MAY 4, 1939 No. 13
WEEKLY NEWS ANALYSIS BY JOSEPH W. LaBINE
Europe Veers Away From War
After Der Fuehrer's Speech;
New Peace Overtures Possible
(EDITOK'8 NOTE?When opinions are expressed in these columns, they
are those of the news analyst and aot necessarily sf thia newspaper.)
Cosrrlfkt, IMS i
FEKMl KCMITY MENCT
SNUSMftjtari
Eeptoymwl Smrks (fro*ub~ 0^1.)
OffiCI Of Education {fro* jatertor D?pt.)
Pibflc Health Sanrtca(fro?Tr*as.D?pr.)
IWM Yonth AtaMttiAon^ ^ ^
CMfan ConsanritiM Car*
FEDERAL LOAI AQEH6Y
Reconstruction Finance Corporation
Electric Horn and Fani Authority
H? OwmtV Lnn Cuptntn
FuM Hum Lou takBori
Frinl Hottslnf AdukttnBui
Export-Import Bank
(Pom Credit Adn*d*traNon, Federal
Farai Mortgage Cor per at to* and Com
modity Credit Corporate to be traae
. , - j i
i*rree to ejnwiure uettM'
FEDEML WOIKS MERCY
lartM Ot Mfc MlfrcaA?.hfU
(fro* TrHMr Dopt.)
Ilraa Notional Port lorrin)
II. 1 Horatai Authority
PuUk Wgrtu UnMitfitlH
(to bocooaWorb FrolochAdshktroHool
TO THE rKESIDENCY
Blldftf Bra (froa Trionry Dopt.)
(to b? oMobinod with Bed pot Boroov)
(to bo PrMUwfi planning ?pity)
Ifroa Comaorco Dopt., to bo coaol
ldatod wUfeNat'lRMOMrcoi Coaaittoo)
GOVERNMENTAL REORGANIZATION (SEE WHITE HOUSE)
"To make democracy work ...to ensure ... free government .. "
EUROPE:
Prelude, Song, Pqstlude
Democracy was adamant one
week before Der Fuehrer gave
Reichstag and the world his an
swer to President Roosevelt's peace
appeal. By four days before speech
time Hitler had become adajnant.
Britain showed appeasement in
clinations by rushing her previous
ly recalled ambassador, pro-Nazi Sir
Nevile Henderson, back to Berlin.
Next day, as Nazi Foreign Minister
Joachim von Ribbentrop delighted
ly kept Sir Nevile waiting outside
his door, Britain indignantly inaug
urated her first peacetime conscrip
tion and presented parliament with
a $6,213,000,000 budget (of which 47
per cent will go for arms). In the
U. S., Secretary of State Cordell
Hull warned Hitler to eschew more
conquests in favor of "peace before
war" via negotiation.
Poland prepared to defend her
borders at all cost. With Rome and
Paris waiting in strange silence, the
world finished its quavering prelude
to the most vital speech Adolf Hit
ler will ever make:
Song. Never a brief speaker, Der
Fuehrer took more than an hour to
lay foundation for a point-by-point
rejection of Mr. Roosevelt's peace
plea, a rebuttal he interlarded with
fine sarcasm. Biggest revelations:
(1) Germany considers the Anglo
French-Polish non-aggression pact
unfriendly, therefore denounces its
10-year friendship pact with Poland.
SIR NEVn.F. HENDERSON
Hwt Ml Rihbemtrop hud fun.
But Poland can still have the treaty
Germany secretly proposed several
months ago, a 25-year friendship
pact contingent upon return of Dan
zig to the Reich and designation of
a pathway from Germany to Eait
Prussia through the Polish corridor.
(t) Treaty or no, Danzig must be
returned to Germany.
(S) Hitler denounces the Anglo
German naval limitations treaty,
but will gladly discuss the problem.
Highlight of the rebuttal was that
Germany will give non-aggression
promises to earn of the nations al
legedly "threatened," but that each
guarantee win be made individually
upon petition and on a basis of ab
solute reciprocity. Greatest rebut
tal sarcasm concerned such "threat
ened" nations as Ireland and Pal
estine, which?according to Hitler
have more to fear from English sup
pression than German aggression.
?
Point-by-point rebuttal:
(1) Mr. Roosevelt pointed to three
European and one African nation
whose independence has been ter
minated since 1936. Answer: What
is "independence," anyway? Alba
nia, Austria and Czecho-Slovakia
really had their "independence" ter
minated after the World war. As
for Africa, Mussolini's Ethiopian
conquest merely followed the prec
edent established by democracies.
(2) Has Germany been aggres
sive? Answer: No, Germany has
kept peace since 1918, compared
with repeated U. S. intervention.
(1) Has any nation the right to
wage war except in self defense?
Answer: No, and certainly the U. S.
did not enter the World war in self
defense, which gives Mr. Roosevelt
little right to speak of such matters.
(6) Can world problems be solved
via conference? Answer: Yes, the
oretically; no, practically. Exam
ple is the League of Nations which
the XJ. S. shunned, thereby admit
ting the failure of peace by confer
ence. Hence Germany fallowed U.
S. example and left the League.
For U. S. citizens, biggest news
of the speech was (1) a promise that
Germany intended no invasion, *(2)
a supplication that President Roose
velt take the lead in world peace
efforts. For British, biggest news
was a very obvious bid for good
wiQ despite naval pact denunciation.
Postlnde. Best opinion held the
two-hour harangue a conciliatory re
fusal of Mr. Roosevelt's appeal. Said
Kansas' Sen. Arthur Capper: "After
listening to Hitler, I still hope Eu
rope's troubles can be settled by
peaceful methods." Informed ob
servers left their loud speakers ex
pecting both the V. S. aftd Britain
to make new overtures, confident
that war had been averted for the
nonce, but certain above all else
that Adolf Hitler positively holds the
European whip hand.
WHITE HOUSE:
Reorganization
"Dictator" criticism notwithstand
ing, U. S. governmental reorganiza
tion is substantially a sound idea if
it promotes economy and efficiency
by lumping miscellaneous, isolated
and similarly functioning offices un
der a single administrator. Last
year's reorganization bill stumbled
partly because it might have given
an unscrupulous future President
too much power. Modified and
passed this session, it allows the
President six administrative assist
ants and permits him to draft re
organization plans which congress
must accept entirely or reject with
in 60 days.
Already submitted is the major
portion of Mr. Roosevelt's plan (u?
chart above) designed "to make de
mocracy work?to strengthen the
arms of democracy in peace or war
and ensure the solid blessings of
free government . . ." Three new
agencies (public works, social se
curity, loans) will be managed by
thrdf of the six new $12,000-a-year
administrative assistants, each of
which will have a $9,000-a-year aide.
Two more reorganization plans to
come will (1) shift bureaus from one
department to another, thus secur
ing more logical classifications, and
(2) reorganize intra-departmental
machinery. Biggest contemplated
objective in the latter plan, since
dropped, was consolidation of all six
of the treasury's investigative units,
a step the President finally decided
might lead to a U. 8. copy of Ger
many's Gestapo or Russia's Ogpu.
^
PHILIPPINES:
Problem Child
Less than a decade has passed
since the U. S. fought Philippine
independence demands, but tables
have a way of turning. Giveji con
gressional assurance of early free
dom, Philippine President Manuel
Quezon hardly had time to exult be
fore Japan turned imperialistic,
swaggered into China and began
grabbing off every piece of. unpro
tected real estate within Asiatic
waters. Since Japs already hold a
strong commercial position in Ma
nila, moreover since even a double
strength U. S. Pacific fleet might
not be able to hold the islands
against sudden attack, many Amer
icans believe their nation should
leave the Philippines before getting
involved in war. Added impetus
is given by U. S. agriculture's re
sentment over concessions to Fili
pino sugar.
Sensing that the U. S. was anxious
to pull stakes, Manuel Quezon last
year appealed to President Roose
velt and won an administration
sponsored proposal calling for polit
ical independence in 1946, the 25
per cent tariff being increased by
5 per cent a year until wholly ef
fective in 1961. Since President j
Quezon will not be able to attend
hearings this year, the bill is being
tabled until next session. When he
does arrive, Mr. Quezon will be of
fered an even stronger deal which
members of the Senate committee
on territories and insular posses
sions have already accepted unani
mously, albeit secretly. The deal:
If Filipinos will cut political ties
with the U. S. in 1942, current 25 per
cent tariff rates will continue until
1946 as under the administration bill.
Then rate*"will jump 10 per cent
annually until the U. S. washes its
hands of the whole affair in 1953.
Still officially unannounced, the
substitute bill (suggested by Mary
land's Sen. Millard E. Tydings) has
been hushed for fear Japan may
sail into Manila immediately.
BOLIVIA:
Democratic Dictator
Forbears of Bolivia's 35-year-old
President German Busch came from
the country which supplied his bap
tismal name, but for two genera
tions Busches have been loyal Bo
livians. In 1935 German Busch
emerged from the Gran Chaco war
I fcara i?iiiaa??
BOLIVIA AND BUSCH
flu plan mar work.
with Paraguay to find his country's
government in horrible shape.
Friendly to labor and business,
boasting strong Catholic support.
Youngster Busch became provision
al president in July, 1937, when Col
David Toro's "socialistic" state was
toppled. Last May he was constitu- |
tionally re-elected, beginning a task
from which lesser men might have
turned away.
Plagued by Nazi ism and Fascism,
bankrupt and facing possible revolu
tion if Bolivia's three Chaco war
parties (Liberal, Republican, Social
ist Republican) won the May legis
lative election. President Busch sur
prised the world by announcing a
new type political animal, dictator
ship to prepare for "a real democ
racy."
Observers give German Busch a
good chance of succeeding. Having
canceled the election, dissolved his
congress and abolished constitution
al guarantees on the plausible as
sumption that restive Bolivia does J
not deserve democracy at this mo
ment. Colonel Busch is the world's
first dictator to (1) invite "patriotic"
criticism of his regime; (2) reject
his cabinet's resignation; (3) view
Fascism and Naziism "with pain,"
and (4) promise an election five to
eight months hence to let Bolivia
decide its own destiny.
PEOPLE:
Shortstop to Cardinal?
Named archbishop of New York
to succeed the late Patrick Cardinal
Hayes, Mast Reverend Francis 1.
Spellmaa, 49-year-old auxiliary bish
op of Boston whose boyhood friends
at Whitman, Mass., remember him
as the town's best baseball short
stop and a better-than-average box
er. Forecast; That Archbishop Spell
man will also be named cardinal at
the June consistory in Rome.
C Appointed to the securities and
exchange commission, liberal Lean
Panders?, 44-year-old former NIRA
board man and WPA economist
Brucharfa Washington Digest
Restore Jobs by Helping in Sale
Of Products of Farm and Factory
That Is Philosophy of Head of Export-Import Bank Which
Is Doing Good Work in Financing Trade With Sonth
America; Outstanding Commitments 229 Millions.
By WILLIAM BRUCKART
WNTJ. Serrice, National Preaa BldfWasUnfton, D. C.
WASHINGTON.?"I am supreme
ly confident of one thing?we are
making a dent in the job of getting
back some of our foreign trade
that was lost to other nations in the
last few years. Nobody can be sure
that we ever will get all of it back,
but I am hopeful because this little
institution of ours here is showing
that it can function safely and sat
isfactorily."
That statement, perhaps, is the
best summary I can give of the
philosophy of Warren pee Pierson,
the president?and pretty largely
the heart and soul?of the export
import bank. Likewise, it rather de
lineates the program of that little
known federal agency; because Mr.
Pierson is determined to 'see Amer
ican products, farm or factory, mov
ing as of old into the hands of users
and consumers in foreign lands.
Moreover, to analyze the outlook of
the man is to reach a conclusion
that he believes the way to restore
people to jobs in this country is to
assist American farms and factories
in the sale of their products.
It is curiously true that some of
the federal agencies which are doing
important work and doing it ef
ficiently are least known to the gen
eral public. They have no staff of
press agents; they seldom "break
into print," yet they seem to be
serving all of the people well.
Department of commerce reports
have been showing how our exports
have declined through many
months. The records give one the
impression that the lines on the
chart, showing totals each month,
are in a race to see which one can
dive faster or deeper. I have won
dered where we were headed, as a
nation of producers. Secretary
Hull's reciprocal trade treaties have
been getting exactly nowhere; and
have done so at enormous speed.
Secretary Wallace's ideas for sell
ing our farm products have proved
to be nothing but dreams and, like
dreams, they vanished the next
morning, except that perhaps the
next day Mr. Wallace's publicity
staff announced another plan.
Solution of Unemployment
la to Encourage Industry
"What," I asked Mr. Pierson, "is
the answer?"
His reply was quoted as the intro
ductory paragraph. He seemed
fully to recognize all of the difficul
ties confronting the United States
at the moment. Further, there was
every evidence that Mr. Pierson is
one of the few officials of govern
ment who are aware that the solu
tion to our unemployment problem
is to assist industry so that it can
re-employ workers. Unless indus
try can be encouraged, it appears
that the nation is going to continue
with 10,000,000 unemployed as it has
for the last few years. I found it
refreshing, therefore, to hear Mr.
Pierson talk about bow a few dozen
large factories have been kept open
and with relatively full payrolls be
cause the export-import bank was
able to help foreign buyers who
wanted American products but
could not pay cash for them.
For reasons that I will mention
subsequently, however, I had some
misgivings about the operations of
the export-import bank. I doubted
that there would be repayment of
money advanced by the bank.
"Well, the default is a tiling that
happens to a greater or less extent
wherever credit is extended," Mr.
Pierson explained. "If there were
never any defaults, there would be
no risk attached to banking busi
ness. But, unfortunately, that ele
ment must be taken into considera
tion. The fact that there is credit
risk is why this export-impart bank
was organized. Of course, there
were other reasons, but the instabil
ity of some foreign governments,
the lack of exchange and such con
ditions mads it necessary for our
government to step in and help
those who are trying to export
American-made goods.
Collateral Behind Note*
la Guarantee of Payment
"It is to. be remembered that
goods tor export go in larger quan
tities and that necessarily larger
sums of money are needed to han
dle the transactions. In addition,
we have found that, in many in
stances, the buyers were what can
be termed as good credit risks, but
they were unable to make payments
of such large sums at one time.
Nor were the American manufac
turars able to wait for three or four
or five years. To do ao would ex
haust their resource*. That is where
we oome into the picture.
"Take a ease Kke this: A South
American railroad oompany wanted
to buy some locomotives. Those
things cost money. Ttiey wanted
American engines. But they wanted
to pey the bill on an installment
basis. We agreed to tabs about
60 per cent of the notes. Com
mercial banks with which the man
ufacturer was dealing agreed to
take over the remainder on a short
term basis."
All of which sounded very well.
But having watched the negotiations
with foreign governments over re
payment of the loans mads by the
United States during the World war,
I had some misgivings. It seemed
that here was another agency doing
exactly what Mr. William Gibbs Mc
Adoo had done as secretary of the
treasury during the World war. In
other words, the futility of ever ex
pecting a payment on foreign loans
rather had been impressed upon me.
I told Mr. Pierson of my feelings.
"That cannot be so in our case,"
he explained. "We have collateral.
We have ways of collecting. There
are guarantees behind the notes we
have received, for example, in the
locomotives. We have no fears at
all."
The guarantees, the collateral,
about which Mr. Pierson spoke, I
learned, were in the shape of a bank
endorsement. That is to say, one
of the South American banks, with
deposits in New York and other
large cities in the United States, has
added its promise to pay to the
promissory notes given by the pur
chaser.
Concentrate on Financing
Export? to South America
At the moment, there seems to be
quite a concentration of effort to aid
in financing exports to South Amer
ica. Of course, there hare been
credits arranged for several places
in Europe, too, and also in China.
Mr. Pierson is very optimistic about
future trade with China. But the
bulk of the loans have been in con
nection with South American propo
sitions.
And the fact that the export
import bank is paying so much at
tention to South America is impor
tant in another way. The fascist
dictators, Mussolini and Hitler, are
driving hard to gain trade footholds
in South America. Having the type i
of government Germany and Italy i
have, it is easy for them to make i
any kind of arrangements desired |
by using whatever government re
sources are necessary. It strikes
me, therefore, that if the export
import bank is making that dent
about which I quoted Mr. Pierson in
the opening sentence; if it is gaining
a toehold in South America against
the high-pressure methods employed
by the dictators, then it is perform
ing a great service for the citizens
of the United States. It is conceiv
able, indeed, that extension of cred
its in the manner described might
possibly be the means by which
North and South America can be
tightly bound to each other in war
as well as in peace.
There is another thing about the
export-import bank that impressed
me. It is operating on borrowed
money, of course; and the taxpayers 1
will have to make up any losses be
cause the federal government ob
viously is morally bound to pay off
the bank's bonds if it were to col
lapse. But thus far in its life, the
export-import bank has had no 1
losses. Thus far, it has been able I
to pay all of its own expenses out of
the interest charged its borrowers.
Export-Import Bank Standi
To Mako Large Profit
And important alao is tba fact that
in the current year, barring un
foreseen developments, the export
import bank stands to make a profit
of something like W,000,000.
Mr. Pieraoo told me that the bank
has made commitments, now out
standing, of slightly more than $229,
000,000. That is to say, the bank
has agreed to help finance ex
ports to that extent, provided the
terms are met, and it must not be
overlooked that the bank is rather
hard boiled. Mr. Pierson pointed
out that the export-import bank had
to be really as careful as any com
mercial bank, but it can do some
thing the commercial banks cannot
do?make longer-term loans.
? Wi|Hn> Newspaper Union.
Speaking of Sports
Dempsey Picks
Budidy Baer to
Vanquish Louis
By ROBERT McSHANE
HILE the seemingly useless
search for a white hope goes
on in heavyweight ranks, former
champion Jack Dempsey amazed
flatic circles recently with the an
nouncement that Buddy Baer is Just
the lad to remove Joe Louis' crown.
It was unexpected because Baddy
hasn't set the world on Are. It
served as quite a boost for the
younger of the Baer tribe, however,
and should get him a few important
ights. And right now he needs them.
Buddy's defeat by Gunnar Bar
lund hurt him in more ways than
one. He lasted only seven rounds,
giving up the fight before being
knocked out Since then his courage
has been questioned. It should be
said to his credit that he knocked
out rough-and-ready Abe Simon aft
THE BBOTHEB8 BAEE
er Abe save bim a merciless slug
ging for two rounds. Buddy was
badly battered, and when the third
round came along Simon figured it
time for a knockout. Instead Baer
came out fighting, defeating Simon
in a whirlwind third-round finish.
It would be hard to imagine a bet
ter fighting build than Buddy's. He
weighs 240 pounds, and every pound
is in the right place. He has a tre
mendous wallop that spells curtains
when it lands. All in all, he looks
like a champion. But so did another
Baer?Maxie
Granted that Buddy has size,
punch and a fighting heart. He
lacks one essential?quick mental
reaction. .
Set-up for Louis
Baddy, like aim Oct any fighter,
can spot an opening. Bat before
be deeidea whet to do a boat it the
opening hat dlaappeared. That kind
of a fighter would Sad the going all
too tough against the Brown Bomb
er. Loots Is controlled lightning. Be
thinks and hits fast and hard enough
to blast any opponent, regardleaa of
sise.
Maybe Dempsey was right Buddy
may be the logical throne occupant
to succeed Louis. At least it's hard
to point at any other contender and
say "there's the man." Look over
the balance of the Held and try to
pick one. Most fans have a pet fight
er, but they only hope in him, and
in their hearts know that the brown
boy from down Alabama way is
Just too good for the object of their
fistic affections.
A few short months ago Max Baer
was in the ring with Joe Louis. The
ending of the fight was, to say the
least. Inglorious. Mas was counted
out while resting on one knee.
That fact hurt Maxie a great deal
more than the actual loss of the
fight. He has a long way to come
back to regain the confidence fans
once had in him.
Old Jack Roper was thrown into
the ring against Louis with no more
chance than the last chop in a
boarding house. At least he gave
West coast residents a chance to
see the champ in action.
It weald be useless to reeeaat the
fights Leais has had. There's beaa
something the matter with every op
ponent. Jim Braddoek was net eaty
washed op, he was also a victim of
arthritis. Tommy Parr, reminiscent
of Pbainting PhD Scett. stayed U
rounds when the champ had aa off
night Max SehmeHag was little
more than a shell. John Heavy Lew
Is was half blind and wholly seared.
And didn't
Joe Louis will be dethroned some
day, but age will have more to do
with his finish than the present crop
of leather pushers. All champions
?often in time, even the mightieet.
Old Man Time is the best looking
candidate in the field, and he needs
a few more years to remove the ex
plosive force from the-Brawn Bomb
er.
_
Revamped Par
IT RED CORCORAN, tournament
manager of the Professional Cott
ers' association, believes that par,
as it is now computed, is a com
pletely outmoded standard.
Logic, duffers to the contrary, is
on his side. During the winter's
P. G. A. tour the winners were S
and 10 shots under par in almost
every 72-hole tournament. Golfing
topnotchers can do it every time
when they're really playing in form.
Golf, with those men, ie a pro
fession and business. They wash at
it all day leag, practicing endlessly,
ft has been said Out when Jug Me
Speden shot a phenomenal practice
round of St in Texas, he went tan
mediately te the practise toe and
worked there far two boars. Par
ean't hold down men like that.
Corcoran has doped out a solution.
And he believes it will be accepted
in the near future. His plan:
He comperes two holes, one is HI
yards, the ether US. On toe present
yardage basis par for each is fsnr.
The SSfl-yard hole ia straightaway,
there are M traps to spetto at and
as out-of-bounds bordering toe fair
way. The US ranter's green la
guarded by e pond, It Is ksevfly
trapped and has out-of-bosads to the
left ef the fairway and beyand too
green.
According to Cereoraa's system
the 350-yard hols would be gives a
value of four. With that as a basis,
the second hole would be rated at
fear and foor-tenths. Than, by total
ing figures for each hole, per weald
be set.
The idea certainly has merit. It
is much more flexible than la the
present method, and its adoption
would save Old Man Ppr from the
severe beatings he has taken in re
cent years.
Shining Road
f>NE of the reasons baseball is
a shining road to tboftshnds of
American youngsters is shown hi
the national treasury's ?""*!??' sal
ary report. The road should shine
?if a paved with gold.
Bank Greenberg of the Detroit TV
gers is the highest paid player ha
baseball today, aad
with the lone excep
tion at Babe Bath,
the highest paid of
all time.
In 1B3T the Detroit
Base Ball company
paid Green berg $38,
500. Income tax re
turns tor 1838 have
not been checked as
yet, but it is taken
for granted that
Hank's salary was
not reduced last
year, and that his
last year's record gave him so its
Mickey Cochrane received $45,000,
that amount representing three sal
aries, one as player, oae as man
ager and the other as club vies
president.
The New Tort Tasks paid Lea
Gehrig SM.MS ia 1*7, advertising
him as the highest paid ball player
st today. Internal revenue depart
ment dgares established the fact
that Greeaberg led by IZJdO.
Bill Dickey?regarded by many as
baseball's best catcher?received
$18,000 from the Yanks. Gabby
Hartnett. DluiDC maotftr of the
Chicago Cubs, received $17,835. BiQy
Herman, second baseman, $1T,000.
Dick Bartell, former shortstop
srith the New York Giants, now with
the Cubs, received $17,000. Mel Ott,
Giant outfielder, $17,500.
Babe Bath la still the hsldsc sf
the high salary record in ?"n'-nr
The Tanks paid htm $70,NO ta each
of three yeara?1*7, 1$M and IMP.
Ia 1$M and im ha was paid MM,
and la 1*2, $75,M0.
? ' 3 _ - il
Sport Shorts
IN HIS early baseball days. Bill
1 Terry waa once eold to the Kaen
ville club tor $790. He thought that
was too cheap, so be didn't report
... Dr. John Bain ("Jock") Sutb
erland, former Pittsburgh university
football coach, recently accepted an
appointment as chairman at tiui
Pennsylvania state board of oral hy
giene He will organise and co
ordinate dental clinics . . . Jim
Braddock, former
heavyweight dens
pion, received ftl,
983 from the Brad
dock - Gould enter
prises in 1937 . . .
Marquette and Uni
versity of Detroit
will renew athletic
relations next yeer
after a lapse of five
years . . . There
were 1> pitchers hi
the major leagues,
11 in the American
and S in the National, who Woo 15
gamoa or mora last season ... Paul
Wanor has won the National lsaguo
batting championship three times...
w -a T~N<%+-?? ai 4>? ,, . ?
rreo nutcninson, ucuuii s young
$50,000 pitcher, is still a mystery:
man. His control has been lacking so
far this season and ha probably nssda
Jim Braddad