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THE NEWS RECORD, MARSHALL, N. O, JULY 19, 1934 News Review of Current Events the World Over "Second Revolution" Smashed by Hitler and Its Leaders Put to Death Roosevelt Names Five Boards and Sails Away. By EDWARD W. PICKARD by Western Newspaper Union. Chancellor Hitler FOREWARNED of a radical plot within the National Socialist party to bring about a second revolution In Germany, Chancellor Adolf Hitler struck with swiftness and ruthlessness that completely smashed the revolt on the eve of the planned coup d'etat and left the malcontents, chiefly members of the Storm troopers, dazed and terrified. The Chan cellor himself exhibit ed resolution and per sonal bravery with which the world had not credited him. Flying from Berlin to Munich In the night. Hitler with only two bodyguards went direct to the summer home of Capt. Ernst Roehm, commander of the brown shirts and long his personal friend. Koehm and certain of his as soclates were found in situations that confirmed the often heard stories of their moral perversion, and as Hitler was certain also of their complicity In the revolutionary plot, he personally arrested Roehm, tore off his insignia and offered him a chance to commit suicide. This Koehm refused, so on Hitler's order he was shot to death, aa were the others taken with him. Meanwhile, Gen. Hermann Wilhelm Goering, premier of Prussia, directed a series of raids throughout the coun try that resulted In the deaths of nu merous prominent members of the con spiracy and the arrest of scores. Chief among those shot down was Gen. Kurt von Schleicher, Hitler's predecessor as chancellor and reputed head of the revolutionary plot His wife stepped In the way of the policemen's bullets and also died. Well-known Storm troop leaders In Munich and elsewhere were put to death summarily, and so was Heinrich Klausener, head of the Catholic Action party Vice Chancellor Franz vod Papen, who had recently attacked the radical tendencies of the Nazis, was put under heavy guard, and forbidden to leave his home, and two of his adjutants killed themselves. Von Papen offered to resign from the cabinet, but President Von Hinden- berg, his close friend, refused to ac cept the resignation, and the cabinet urged him to remain as minister with out portfolio to supervise activities In the Saar. Von Papen, however, will take a protracted leave of absence. Viktor Lutze was appointed to suc ceed Roehm as chief of staff of all the reichswehr units. In cluding the Storm troops among whom the disaffection bad existed and the regu lar army, which was declared to be entire ly loyal to Hitler. President Von Hln den burg all this time was at his estate at Neudeck, East Prus sia, and there wprp reports of his serious viktor Lutze illness, which were flatly denied. Two days after the chancellor's drastic ac tion the aged president telegraphed Hitler and Goering his approval of their course, congratulated them on their victory and thanked them in the name of the nation. Undoubt edly, Hitler's personal position was strengthened for the time being, and the leftist elements in the Nazi party were weakened and divided. Goering and Hitler professed pit; for the "mis led" Storm troopers, but the latter are bow out . of their uniforms tem porarily and may never be as Impor tant as they have been in the past They had become something like a pretorlan guard that threatened Hit ler's supremacy. In various European capitals there were predictions f further outbreaks in Germany and the return of the Hohenzollerns. Hitler's "violent" methods were crit Iclzed by Engelbert Dollfuss, Aus tria's dictator, who said: "Does not the light at last dawn upon as that one cannot soake a peogle happy with violent metnoas? ran interpreted tne affair as a victory for conservatives and as open ing the possibility for a return of the Hoheazollerns. The violence. It was claimed, revealed a breakdown In the unity, of the Hitler movement In tendon the view was taken that Hitler had solidified his position. Some ' papers accused him of employing the methods of gangsters and called the slaving of storm-troop leaders "brutal murders." -. .-. : .. ... ;. ..... the nominal value of all coupons on these loans held by British subjects on June 15, when the moratorium was disclosed. JAPAN'S cabinet resigned as a result - of a financial scandal involving a vice minister, and the emperor called on Prince Sahonji, last of the elder statesmen, for advice la selecting a new premier. The prince recommend' ed Admiral Keisuke Okada for the place and the emperor made the ap pointment, which was generally con- sidered very wise. Okada asked Kokl Hirota to remain as foreign minister. and the minister of war and navy also were reappointed. The new govern ment is expected to follow the genera) lines of policy laid down by Saito, re tiring premier. One of its chief alms will be to clean up graft. Japanese naval circles are con vinced that Okada is the only man capable of safely piloting the nation through the naval conference next year. They feel that Salonjl selected Okada because he realized that the conference will be of the utmost Im portance to Japan's future. r V?' J. M. tandis TRADE war between Great Britain and Germany was averted by the signing of an agreement protecting British Interests during the releh's six months foreign obligations morato rium, ordered la effect July L." ' " -Under the accord, Germany agrees to pay Young and Dawes plan obliga tions -when due In October, Novem ber and December, en presentation of coupons on bonds by the Bank of Eng land. 'V . for six months, beginning July J, the German government Is to pro vide sterling fuads to the Bank of England for the purchase in full at PRESIDENT ROOSEVELT departed on his cruise to the Caribbean and Hawaii aboard the Houston, accompa nied by his two younger sons. Frank lin, Jr., and John; Rudolph Forster of the White House sec retarial staff; Com mander Ross T. Mcln tire, naval physician ; Gus Gennerlch, per sonal bodyguard; Richard Jervls, secret service man, and Pharmacist's Mate George Fox. On ac companying destroy ers are two secret service men and three representatives of three big press associations. Before sailing the President per formed these seven Important acts: Approved the Frazier-Lemke farm mortgage moratorium bill. Approved the railroad unemploy ment and pension act involving ad ditional burdens of millions of dol lars on rbe carriers. Appointed Joseph Kennedy, wealthy New York stock operator as chairman of the new securities exchange com mission for a five-year term, and George C. Mathews, James M. La rid Is, Robert E. Healy and Ferdinand Pecora as members for terms ranging from four years downward. Named Eugene O. Sykes, Thad H. Brown, Paul Walker, Norman Case, Irvlo Stuart, George Henry Payne and Hampson Gary members of the new communications commission for terms ranging from seven years downward Set np the new national labor re lations board wtth Lloyd Garrison, dean of the University of Wisconsin law school, chairman, and Prof. Henry Alvin Mills, head of the economics de partment at the University of Chicago. and Edward S. Smith of Massachu setts, labor relations specialist as the other members. Named James A. Moffett, former vice president of the Standard Oil Company of New Jersey and a mem ber of the planning and co-ordinating committee of the oil conservation board, as administrator of the new $1,000,000,000 housing program. Appointed five members of a com mission to study federal aviation and air mall affairs and make recommend ations to the next congress Clark Howell, Atlanta, Ga publisher; Je rome Clarke Hunsaker, JNew lork; Edward P. Warner, Washington, D. C.: Franklin K. Lane, Jr., California, and Albert J. Berres, California. MR. ROOSEVELT went ashore for the first time on bis cruise at Cape Haltien, Haiti, where be was met by President Stenlo Vincent and other officials of the Island republic. At the Union club he made an address, partly In French, In which he announced the forthcoming withdrawal of the ma rines, adding that he hoped they would be remembered as' friends 'who had tried to help Haiti Marine detach moots have been on duty In Haiti, whose population Is 90 per cent col ored, since 1915. PRIME MINISTER RAMSAT MAO DONALD of Great Britain, who is In Scotland on a vacation, was bitterly assailed in the house of lords by, Vis count Snowden, former chancellor of exchequer and once close personal friend of the premier. Snowden de nounced MacDonald as a traitor to his colleagues in the Labor party and to the country. "The cabinet found the prime minis ter such aa amenable Instrument of Tory policy," Snowden declared, "that It has come to the conclusion that there are no professions which he made, no pledges which he gave the country which he will not repudiate, no humiliation to which be will not submit If they only allow blm still to be called prime minister. "The Tories have no use for Mac- Donald except for exhibiting him on their platform in chains as the one time Socialist who has seen the error of his ways and found salvation In the spiritual home of the Tory party. "He will be used for the same pur poses as the reformed drunkard at temperance meetings." SENATOR BORAH of Idaho, Inde pendent Republican, opened his one-man campaign against the New Deal In a radio address attacking es pecially bureaucracy and monopoly. Al though his criticism was directed primari ly against what he conceives to be these elements In the New Deal, he summarily indicted the national leadership of the Re publican party on the ground that it "seems wholly unwllline to Senator Borah toucn tnls vjtai issue" namely, the monopolistic trend. The senator said the Roosevelt regime was establishing not Nazism, not Fascism, not Communism, but simply that meddlesome, irritating, confusing, undermining, destructive thing called bureaucracy." And bureau cracy he defined as "that form of gov ernment which steals away man 8 rights In tlie name of the public in terest and taxes him to death In the name of recovery." Bureaucracy, the Idaho senator asserted, "has destroyed every civilization upon which it has fastened Its lecherous grip." It is the common man who will be the chief victim of our new bureaucrat ic form of government, the Idahoan as serted. The influential and powerful have demonstrated that they "can gen erally obtain all the rights and privi leges they desire under any form of government." But the "freedom and political rights" of the tollers are be ing more and more limited, whether under European dictatorships or the American bureaucracy. BRISBANE THIS WEEK First Break in Germany The Kaiser's Praise What Next in Germany? Vatican Resentment The dictatorial path of Chancellor Hitler Is not as smooth as with hie colleagues, Mussolini, Kemal Pasha and Stalin. A few killings, suicides and arrests will not put an end to such violent dis satisfaction, and the world wonders what will happen next Old President Hlndenburg congratu lates all the survivors. Some of the dead may be better off than the living. According to Universal Service, Roehm, who had fought at the side of Hitler since the beginning, did, not commit suicide. Left with a loaded revolver in his prison cell, be refused to kill himself and, after being given ten minutes more," was shot down by a firing squad. National Topics Interpreted by William Bruckaft The former kaiser expresses amaze ment at Hitler's energy and strength. He says Hitler is "stronger than ever. It Is clear the chancellor does not lack strength of will or swiftness o( execution. Before he had seized com plete power he predicted "heads will roll." They are rolling, and Hitler's head man, Goebbels, predicts that "more heads will roll." That the Hitler collapse Is to be followed by horrible violence Is only too probable. What would come after ward T Would extreme "red radicalism" come to the front to take control? Would there be that union of Russia and Germany that many Germans ad vocated immediately after the sign ing of the Versailles treaty? XX MB. MARIE CURIE, co-discoverer vJ with, her bus band of radium and rated asvone of the world's greatest women, passed away at Passy la (he Tench Alps at the age of sixty-six years. Her physicians said that bar inability to recover from aa attack of peraicloas anemia wa-probably-da to the fact that her bone structure was weakened by years of exposure to radium and X-rays,.;; - The Netherlands was thrown Into mourning by the death of Prince Con. sort Henry. He was married to Queen Wllbeimlna In 1901 and the Dutch peo ple? bad learned to love him deeply. ATTEMPTS to open the port of Saa .Francisco, closed for soma time by the dock workers' strike, resulted la bloody riots la which several mea were killed and many Injured. Gov. Frank Merriman called out 2,000 Na tional Guardsmen.'1 WINDING up its fiscal year, the federal government found that, counting emergency expenses. It had spent about $4,000,000,000 more than it had collected. Balancing receipts against ordinary expenditures, the government figured It was $28,000,000 "in the black" for the year. President Roosevelt has estimated nearly $5,000,000,000 would be added to the national debt by emergency ex penses during the next 12 months. This was predicated on recovery that would make Industrial production av erage 98 per cent of the 1923-25 level In July, 1935, the President hopes to start the payoff for the recovery program. By that time, he has said, the budget should be balanced. According to the federal reserve board's index, the Industrial produc tion figure for the year just ended was slightly above the 81 per cent av erage on which the President based his hopes. The pope's government In the Vati can resents, bitterly, and naturally, the statement that Heinrich Klausener, head of the Catholic Action party In Berlin, has committed suicide. An official of the Vatican recalls that "only recently Klausener made a noble speech to Berlin Catholics, which was read with deepest satisfaction by the Vatican." The Vatican official, quoted by International News Service, adds: "We must strongly protest against the attempt to camouflage murder as suicide, since the Catholic religion for bids suicide, Militants, like Klausener, would not dream of taking their own lives." The same official said further: "It Is deplorable that not content with killing their adversary, the brown shirts threw mud at his noble figure." TWO events In recent days have em- X phaslzed the friendship that exlsta between the United States and Can ada. The first was the dedication of the new International bridge span nlng the St Lawrence between Roose veltowu, N. I., and CornwelL Canada. Secretary of War Dern represented President Roosevelt at the ceremony, and the earl of Bessborough, governor general, was there for the Dominion ' The second event on July 4, was the return to the Canadian government of the mace of the parliament of up per Canada that was taken during the War of 1812, at the battle of York, and had been In the Naval academy at Annapolis ever since. 4 On recom mendation of President Roosevelt congress authorised the restitution of the mace. Rear Admiral William D Leahy, chief of the bureau of naviga tion, accompanied by his aid, Lieut Com. Ernest B. von Helmburg, made the presentation at" Toronto and at tended the unveiling of a moo u meat erected by the United States' Daugh ters of 1812. to the memory of General Pike and others of the United States' forces killed during that war. Rudyard Kipling, not as young as he was, but persistently British and patriotic, writes a new poem which says Non Nobis Domlne, meaning "Not Unto Us, O IiOrd," should the praise be given. This new "Recessional" poem was written for a magnificent pageant celebrating England's mar velous recovery from the big war and depression and dragging In the defeat of the armada. Kipling might have written, hut did not write: "Non Nobis Domlne Give the praise to our gooselike friend Uncle Sam, for with out him sending us billions of dollars, and quietly accepting our default we should not be so well off." This great nation, as mild as a sick white mouse concerning the gigantic defaulted debts of France and Eng land, is roaring like a first-class lion at Germany's default It must be a great comfort to find some one to whom you dare speak plainly. Senator McAdoo, praising President Roosevelt, says, "Rugged individual ism is dying." If that were true, It would be a sad thing for the country, because some necessary things white rabbits cannot do. If rugged Individualists had died earlier, there would be no tunnels from New Tork to New Jersey, under the North river. McAdoo cut them there, and It was a rugged job. And If there were no rugged Indi vidualism left, there would be no President Roosevelt Any man able to make congress eat out of his hand. and Jump through new era hoops, Is rugged. Many old men will read this with sympathy: Fred Sehlundt Inhaled gas and killed himself In a Uttle furnished room. In his pocket were 6 cents and this note: "Don't try to revive me. I want to be dead. I am over seventy-four." THERE was a general scattering of administration chieftains following the departure of President Roosevelt Secretary Roper went to Alaska and Secretary Morgenthau to a Montana ranch. Secretary Dern sailed for thi Canal Zona, and Secretary 8wansoa andttorneyjBeaeral Coamings were down on the lower Potomac on yachts Secretary Hull took motor rides In the Virginia mountains. . Secretary Parley was la New York, and Secretary Wal lace went to Chantauqua. Secretaries Ickes and Perkins remained at their Job. General Johnsoa went to Sara toga Springs for a rest, Harry Hop kins sailed for. Europe and Professor Tugwell went to the Far West: Lesser lights also left Washington, MEXICO elected a new eonatlta tJenal president Gen. Laxare Cardenas and It was the quietest electlos in the country's history. " President Roosevelt is said to have told hfa subordinates, high and lew. old style and new "brain trust" style, not to talk politics while he Is away en bis trip to the Virgin Islands and Hawaii. The President's order Is wise, If all the different brains recently and sud denly injected Into politics began ar guing all together soma of them might contradict each other. . .,- Before leaving, the President estab lishes a "steel labor board," consisting of three men, well chosen. This board will deal with the steal strike as "tne national longshoremen's board" will deal with the strike of dock laborers en the Pacific coast' Employers and employees are said to have requested the accepted arbitration by presiden tial boards, but Mr. Green, head of the American' Federation of Labor, has not spoken enthusiastically or definitely on the subject e S3 rtr smiu n WAV I Washington. Congress took a for mal adjournment a few weeks ago, but I found In roam Tax Inquiry ing about the Capl- Significant to1 and senate and house office build ings the other day, that there are no less than eleven of Its committees con tinuing in session, and that no less than eleven of them are conducting investigations. It Is true that only a few members of each of the commit tees remain In attendance the others are out campaigning for re-election but even so, it appears there is going to be an extraordinary amount of searching after truth, or mudsllnglng. through the heat of the summer and the cool of the autumn. While I am not infallible in my judgment and conclusions, I must con fess that I can see a valid reason for only one. Just a single one, of those eleven investigations. The ways and means committee of the house has started ont to do some surveying of the federal taxation structure, and ev erywhere I have asked I have fonnd approval of the Idea. There can be no doubt of a need for that survey, provided the politicians will accept the results of those who examined the facts, because the American taxation system, both national and state, surely is of the hit-or-mlss type. But there is another significance to the tax inquiry. I reported to you re cently that it was going to cost tax payers a total of almost $1,150,000,000 a year in Interest on the public debt of the national government when that debt reaches the $31,000,000,000 which President Roosevelt has announced It will reach. Since that information was given you, further Inquiries con vince me the debt easily may reach $35,000,000,000 by the winter of 1935- 36, and the Interest alone will be cor respondingly more. This is Just the Interest, mind you, and makes no pro vision for retirement of any of the debt, which would have to take extra tax dollars. Since the national debt is so high, and going higher and the house ways and means committee is making such an intensive study of the tax system, one can not fail to link the two to gether. The obvious question Is: Is the administration becoming concerned over the sources of funds to pay the huge total of debt Incurred In spend ing our way out of the depression? Concurrently with tbe house com: mittee's study, Secretary Morgenthau of the treasury, announced the ap pointment of another brain-trust group to study tax questions for him. Mr. Morgenthau holds that our tax system Is full of holes, which undoubtedly it is, and he feels that the general meth od should be revamped so that the flow of revenue will not be so depend ent upon prosperous economic condi tions. To that end, the secretary sent part of the number of professors and tax experts selected by him over to England for a study of British tax ation methods. British taxes appar ently are much higher than ours, and Mr. Morgenthau is deslrpus of finding out how the British government gets away with It So, one hears around Washington a great deal of discussion of what the future holds In the way of tax levies upon the rank and file. Mr. Roosevelt said In his latest radio speech to the country, it will be remembered, that relief was his first consideration, that vast sums had been expended for relief and that further vast sums will be expended. .All of which leads back to the observation I made above, namely, that one cannot help Unking these sev eral studies together with an under current of fear that, perhaps, we are spending too much money. While discussing the tax Investiga tion, however. It would be ' unfair to omit reference to Double one feature of the Taxation Evil hou committee In vestigation that I am told Jby . real tax .authorities, can be of much value. The house committee was Instructed to look into the double taxation evil that besets the country, It Is known to everyone, of course, that there are places and things upon which the federal government levies high taxes and that these taxes fall on top of similar, and sometimes greater, levies' by the states. Conse quently, the committee inquiry may bring to light how often, and where. this sort of thing Is happening. For example of double taxation, two or three common Illustrations" will serve to Indicate how severely the' burden obtains. Take the tax on gas oline as one. . The federal government laid a tax on gasoline two years ago, and that tax although It was small bad to be paid by users of "gas" In addi tion to the state levies which run as high In some states as 7 or 8 cents a gallon, making the tax. "borne "by that commodity aggregate as much as 10 or 11 cents a gallon In some places. The tax en cigarettes Is another example, but this commodity was taxed first by the federal government and then the states put their levies on. The re sult Is that In many states the tax on cigarettes amounts to more than the selling price of the package would be If no tax were laid. ;f , Twenty-nine states now collect taxes en Incomes of Individuals or corpor ations, and twenty -six of them collect a tax from both. These taxes, of course, are aside from tbe Ugh rates Imposed by congress under federal In come tax laws. These matters naturally constitute subjects for serious Investigation. It Is the only way by which congress can Inform Itself and determine a policy. Such, however, unfortunately cannot be said about most of the other inves tigations that are running through the summer and fall. There Is the so called munitions investigation. Thus far, my searches have yielded little Information showing that this investi gation can produce anything construc tive. It and several of the other In vestigations, in my opinion, amount to little more than fishing expeditions, a hope that something will be uncovered so that some members of congress can be "amazed" or duly "dumbfounded" by business practices of firms that have been In business half a century or more. I guess the senators and representatives have to have some thing to be "amazed" about every so often, but it does occur to me that If congress really wants to economize. It could limit its investigations which roughly will cost close to half a million dollars this summer and fail. Policies of the last several adminis trations in Washington have presented ' many puzzling things. U. S., Greafesfand some of them Landlord move one to lni"lre where it ail will end. For example, the Farm Credit admin istration the FCA of the alphabetical soup released a statement to the press the other day to the effect that the twelve federal land banks now own outright 22,078 farms and almost own thousands of others on which the loans are In virtual default. I think it can be said, therefore, that Uncle Sam has become the greatest landlord in the world. While the Information Is more or less startling that the federal govern ment, through one of Its multifarious agencies, now owns so much farm land, the fact gives only an inkling of what has happened in others of the various agencies through which It acts. As I said, one can hardly help Inquir ing where it all will end. I make no attempt to controvert the policy of federal loans on farm lands or homes; I only can pause and wonder what the future holds if the course is contin ued. The farm loan banks have a total or $82,939,000 tied up In those farms which they hold. The only way that money can be withdrawn is by sale of the lands. If they are sold, the chances- are new mortgages in varying amounts will have to be placed on them be cause most buyers are not in a po sition to pay the whole sum in cash. Some of them again will default, and tbe government agency again will own the land. All of which Is by way of saying that the Idealist who wails and gnashes his teeth about the terrible brute who forecloses has not yet solved the problem of saving homes that were bought on a margin of cash that was too narrow, or a home that was bought by an Individual who ran Into hard luck. The point of It is that the federal government is dabbling Into every-, thing. It is going beyond what gov ernment ought to do. , When one. examines the whole pic ture respecting government and its scope these days. It Astounding Is rather astounding. Picture For ln8tance- the Re construction Fi nance corporation anounced the other day that it was willing to help the Baltimore & Ohio railroad refinance its maturing bonds. I do not know what the outcome will be, but It seems to me that refinancing of a railroad by use of government credit Is hardly a function of government The Reconstruction Finance corpor ation is making loans continually. It has loaned money to, or has bought stock in nearly 4,500 banks. Propo nents of this policy contend vbnadly 5 enough that unless those loans bad been made, the banks which obtained them would1 have gone on the rocks and the depositors would have suf fered. But I am still wondering If It Is the proper function of govern ment to protect private activities to the extent of guaranteeing out of the public funds that I shall get my money back on any old Investment or what not Into which I have put It Soma . way, I am Inclined to feel that govern ment as such, ought not be dabbling Into things where It Is required to In sure that people will not be foolish or crooked. - And there are going to be more loans made. The last congress en acted a law providing for loans to In dustry, the so-called small Industries loan legislation, it was called. Business leaders and bankers tell , me that the government Is going to find Itself own ing a lot of business wrecks through those loans. - The bankers say that If a business has a chance to survive, . which means It can pay expenses. It can get money at ordinary banking' bouses. If the government Is going to make loans only to those nnable to get bank loans, tbe conVctlos I bear most often expressed Is that the government - bad better set up another agency from which It, can aend supervisors or. gen- ; eral managers all over the country to run the property It eventually will V Weatera Wnrepejer Uaiaa.
The News-Record (Marshall, N.C.)
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July 19, 1934, edition 1
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