Evening Star Newspaper, April 29, 1923, Page 41

EDITORIAL SECTION The Sy Star. Part 2—20 Pages 7 WASHINGTON, D. C., SUNDAY MORNING, APRIL 29, 1923. SENATE COMMITTEELINE-UP Raaction to President’s Court Argument BILLION GOLD DOLLARS EDITORIAL PAGE ' NATIONAL PROBLEMS SPECIAL ARTICLES Society News VITAL TO WORLD COURT President’s Definite Stand on Issue Rouses Interest in Changes to Be Made in December. BY G. GOULD LINCOLN. The firm declaration by President Tlarding that he will continue to seek the adherence of the United States to the Permanent Court of Interna- tional Justice has roused Interest again in the probable make-up of the Senate foreign relations commit- tee which must handle the proctocol transmitted to the Senate by the President before the last session closed. Tt will be recalled that the democrats charged the committee was “stacked against” the league of na- tions when the league was an issue. The Senate does business largely through its standing committees— though probably less so than in the case of the House. But when a stand- ing committee has gone on record in favor of a proposition, It gives that proposition strong standing when it comes into the Senate itself for action. Senate committees are over- ridden at times, it is true, but in the main they aro sustained. A hostile committee can bottle up a measure for months, and even for years, on the other hand. Many Vacancles Exist. When the new Congress opens, the committee assignments must be made. The Senate committees are really con- tinulng committees, since the Senate ftself is a continuing body, only one- third of its membership coming up for clection every two years. But the elections last fail tore many holes in the membership and vacancles must be filled. The senlority rule governs almost tnvariably In making Senate com- mittee assignments. It is expected 1o pravail in the next Congress. Sen- ator McCormick of Illinois, repub- lican in a letter to Senator Lodge months ago, proposed to get away from this rule, and that the commit- tee assignments be made on merit, willingness to work, etc. There are seiiators who would like to see such a change, but they are not expected to go to the mat for it. They as- sert that as the committees are now -onstituted, probably four or five .nembers do the great bulk of the wark of each committee, and the test follow along. Occasionally a “Grone” is promoted through the senlority rule to a committee chalr- nanship. They would like to avold this, but the senators see no sub- stitute for the senfority rule that would not cause ructions and heart- burnings at the outset of the Con- gress that might delay and endanger important legislation. G. 0. P. Majority Cut. When the last Congress came into being the republicans had a much larger majority than they will have in the next Congress. In consequence when the committee assignments are made the democrats will have a larg- er representation on the committees than at present. It is the practice of tha republicans and the democrats alike, however, to hold a “good work- inn majority” on several of the ma- jo* committees—the foreign relations anmmittee. the commerce committee, the interstate commerce committee and the appropriations committee, for example, and the republicans will in- slst upon doing 0 in the next Con- gress. The last electlons “shot to pieces” the forelgn relations ocommittee. Thres republicans, McCumber, New and Kellogg, failed of re-election. Two democrats, Hitchcock and Pom- ercne, were defeated, and Senator Willlams of Mississippl declined to be a candidate to succeed himself. The republican members of this fm- portant committee who will be in the next Congress, in their order of standing, are Senator Lodge, chair- man, and Senators Borah, Idaho; Brandegee, Connecticut; Johnson, Cal- ifornia; Moses, New Hampshire; Mc- Cormick, Iilinols, and Wadsworth, New York. Practically all of these aro regarded as bitter foes of the league, and some of them have an- nounced their strong opposition to the entrance of the United States into the world court as now constituted. New Members Important, Much will depend, therefore, upon the senators selected to fill the va- cancies. It has been reported that Senator Pepper of Pennsylvania is to get one vacancy. The others will be eagerly sought. There will be a struggle between the old irreconcil- Cecil Sees Saving able group and the so-called mild reservations group for places on the committee. Senator McNary of Ore- gon, Senator Sterling of South | Dakota and Senator Lenroot of Wis- ' consin, all of whom believe that the' United States should go into the world court, and would like to see the United States enter the league with proper reservations, may be can- didates. On the democratic side four sena- |tors are mentioned for the three vacancies. They are Senators Under- wood of Alabama, Robinson of Ar- kansas, Walsh of Montana and Har- rison of Mississippi. Senator Robin- son is to be democratic leader of the Senate and if there is much rivalry for these places among the others it is not unlikely he well stand aside and the other three will be designat- ed. Senator Underwood was the democratic member of the American delagation to the Washington con- ference on limitation of armaments. Senator Robinson sailed for Europe last week and it is expected he will study conditions abroad. Senator Borah, now that former Senate McCumber is out of the Sen- ate, ranks next to Senator Lodge. chalrman, one the forelgn relations committee. The Idaho senator not only is a dyed-in-the-wool irrecon- cilable when it comes to the league of nations question, but he has very strong opinions In regard to the recognition of Russia by this country and the calling of an economic con- ference favoring both those pro- posals. Others to Be Changed. Other important committees on which a number of changes are to be made are the interstate commerce committee, the committee on naval affairs, the post office and post roads committee, finance and banking and currency. For example, there are four republicans leaving the inter- state commerce committee—Town- send of Michigan, Poindexter of Washington, Kellogg of Minnesota and Frelinghuysen of New Jersey. Two democrats, Pomerene of Ohio e2nd Myers of Montana, members of this committee, will not be in the next Senate. The interstate commerce commit- tee will have to wrestle with one of the blg fssues—transportation—at the next session. Senator Cummins, one of the authors of the Esch- Cummins transportation act, under which the railroads were returned to the owners following the war, will remain as chalrman of the com- mittee. Many Remedies Advance: All kinds of remedies to meet the rallroad problem have _been ad- vaunced, extensive hearings have been beld and this committee is expected to bring out some legislation soon after Congress meets in December. Senator Cummins recently announced he would propose legislation to bring sbout consolidation of many of the systems for more efficient and eco- nomical operation. Senator La Fol- lette, a bitter enemy of the Esch- Cummins act, ranks second to Mr. Cummins on the committee. Senator Frederick Hale of Maine is expected to succeed to the chair- manship of the naval affairs com- mittee, made vacant by the retire- ment of Senator Carroll S. Page of Vermont. On the republican side of this committee Senator Lodge stands next to the chairman and then Poin- dexter of Washington. But Senator Lodge will retain the chalrmanship of the foreign relations committee and cannot have two chairmanships, and Polndexter is now ambassador to Peru. Senator Hale comes next on the list. His father before him was chairman of the Senate naval affairs committee and Senator Hale will reallze one of his great ambi- ons when he mow becomes naval chairman. Mrs. Hale, mother of the present senator, has the unusual dis- tinction of being the daughter of a senator (Senator Chandler), the widow of a senator and the mother of a senator. The same, however, may be sald of Mrs. Elkins, mother of Senator Davis Elkins of West Vir- ginla, the daughter of Henry Gassa- way Davis. Sterling to Get Post. The chairmanship of the committee on post offices and post roads will go (Continued on Third Page.) of Austria League’s Proud Achievement BY FREDERIC WILLIAM WILE. “What is the oltstanding achieve-, nt of the league of nations to date?” the question commonly leveled { Lord Robert Cecll in Washington. “Undoubtedly, the rehabilitation of ustria,” was the British statésman’s nfalling reply. Fragmentary accounts of what the cague has done for Austria have eached America, but the average an or woman has no comprehensive otion of it. Even Lord Robert Cecll, n his publio addresses, only hinted at t, assuming the story was well known. It is here set down in its jmost important aspects. Whether [Americans be for or against the lcague, they will be bound to admit that the Austrian achlevement is an extraordinary one. Tt is wholly with- out historical parallel. It ever a nation hovered on the hrink of collapse and was rescued at he last minute, that nation is the 'onoe proud empire of the Hapsburgs. it 18 reduced "to a.mere physical | shadow of its former self. Instead of its area today |1s 30.700; its population, once B1,- 000,000, 1= now 6,131,000. It is hardly: bigger in sise or number of inhablit- ants than Vermont, New Hampshire, Massachusetts and Connecticut com- bined. | 116,000 square mile; Seeraed Early Doomed. As recently as the fall of 1922, Aus. tria seemed doomed. European finan- clers sald that a country of such nar- row dimensions, burdened with a cap- ital far beyond ita capacity, and hedged in on all sides by unfriendly states could not survive. Austrian finances were in topsy-turvy condi- tion. A dollar bought more crowns than an able-bodied person could carry. How to balance the national budget was the imediate necessity. The éur- rency had to be stabilized. Except for larger fofeign credits, this was out of the question. Before these ocould be obtained, Austria’s late en- omies had .to.relinquish their liens Held to Be Favorable Throughout: Natlon [ BY N. 0. MF.GSEI\(-ER. EACTION of pubbc sentiment to President Harding’s address on the Permanent International Court of Justice, at the Associated Press luncheon in New York, is classed by non- partisan observers to be favorable, “by a large majority,” to the administration’s recommendation for adhesion of the United States to the court. Dissenting opinion, however, makes up in spiritedness and ag- gressiveness what it lacks in volume. Several men who attended the luncheon to observe critically its effect upon the pub- lishers and editors present concur in the statement that the plan, as explained and analyzed by the President made a favorable impression on the gathering. Editorial com- ment in much more than the major part in the past few days has supported the admin- istration’s plan. * k k¥ More than this it is ascertained in a can- vass by senators that the proposition bids fair to be accepted by the Senate at the next session of Congress. It has been found that some senators who, when the subject was first broached to the Senate by President Harding, looked down the nose at it, are now disposed to find it acceptable, in view of the explanations of the President, Secre- tary Hughes, Elihu Root and others, and upon critical study of the reservations to be proposed to the instrument of acceptance. * % ¥ % There remain, then, if this favorable fore- cast is fulfilled, the political effects upon the republican party to be considered. From some quarters come direful prophecies of a split in the party, which have increased in gloom though not appreciably in the number of prophets since the address. To these have been added the aggressive attacks upon the plan by Senator Borah and Senator La Follette, the former calling the proposi- tion political cowardice on the part of the republican party, and the latter impugning to the plan the support of sinister influ- ences. Another republican ~ senator, Mr. Watson of Indiana, gave the administra- tion’s policy a back-handed wallop by stress- ing the importance of domestic issues and harping strongly on the necessity of keeping out of entangling foreign alliances. * %k %k ¥ Much of the prophecy of evil to befall the republican party by attacks upon the world court plan from republican sources is based upon the assumption that these attacks will fced the flame of dissension and eventually cause a split. John T. Adams, chairman of the republican national committee, does not agree with this line of argument. “There is no serious division in the republican party upon fundamentals,” he says. “Freedom of discussion within the party has always been good republican practice. Nothing but strength for the party and good for the country can come from a free exchange of opinion on all public questions.” Well, all signs point to plenty of free'ex- changes of opinion on this question. An expectant public is awaiting the return from rope of Senator Hiram Johnson and Sen- ator Moses, to add to the discussion which Senator Borah and Senator La Follette have started. * %k %k % The belief of Senate leaders that the court plan will be ratified is based, it is said, upon the expectation that enough democratic sen- ators will be found supporting it to furnish the requisite vote, added to the administra- tion republicans and to a number of repub- licans whp, while they would not have ad- vised bringing the question up now, are good administration supporters and will accept the assurance of the President and Secretary of State that the plan does not contravene the pollcv of the party since 1920. * % % ¥ In the campaign of education which will be conducted by the proponents of the world court, one feature upon which great stress will be laid, and which will require, it is realized, patient drilling into the minds of the people, is the scope and limitations of the court. Elihu Root has ponted out that the court is not to deal with policies or agreements, but to decide questions of fact and law in cases brought before it. As ex- plained by this eminent authority on inter- national law, the obligation of a judge of the court “is not to represent his own country or any country; not to execute the orders of any foreign office; not to reflect the policy of any government, but upon his own con- science to hear and decide upon the evidence and the law in accordance with his own per- sonal judgment.” * ¥ % % Secretary Hughes has answered the ques- tion naturally to be propounded. What is the necessity for a Permanent International Court of Justice? He replies that there are controversies between nations which should he decided by a court. “There are interna- tional contracts or treaties, now more numerous than ever, to be interpreted. Recognizing the difference between questions of a legal nature and questions of policy, there has emerged from the discussions of jurists an agreement defining justiciable dis- putes as those which relate to the interpre- tation of a treaty, to any question of inter- national law, to the existence of facts which would constitute a breach of an international obligation or to the reparation to be made ior such breaches.” “Other questions may be submitted for decision,” Secretary Hughes continues, “but questions of the sort above described are manifestly of the same character as those which in all civilized countries are recognized as matters for determination by judicial tribunals whose impartial judgment affords the nearest human approach to absolute justice.” * %k * Mr. Root, in his definition of the neces- sity for a court, has pointed out that war cannot be outlawed by resolution or by mere , agreement, but only “by arraying the moral foree of the civilized world in support of definite rules of conduct which exclude war,” and by giving to that force institutions through which it may be applied. One of these is a court by whose judgment the great multitude who desire the pecace of justice may known what is just.” on her assets under guarantees that | Austria would proceed to pull her- self together. America gave the nec- | essary lead In that direction. When Congress passed the required legislation the allied powers followed suit, and intervention by the league of nations was then in order. _ Need of Budget. It was calculated that 650i000,000 | sold crowns (roughly $130,000,000) | would be necessary to balanze the | budget within two years. Thersupon France, Italy, Csechoslovakié and Great Britain undertook to guarantee four-fifths of the sum. Since: then Belgian, Dutch, Swiss and Swedish | capital has come into the consoftium. | The guaranteeing powers were %o be | represented by a committee o trol, which has the right to b formed about administration of revenues assigned by Austrig security, and is privileged to suggest | methods of Increasing them. :The committee of control is to meet geri- odically at Geneva. The memberina- tions entered into a remarkable gelf- denial agreement, whereby they pledge themselves to respect -the territorial and political independence of Austria and to seek no special ezo- nomic privileges. Nothing savoring of a “money-lender’s control” is pto- vided for or contemplated. Austria on her part was to select a commissioner general, approved by | the league, and to work out a pro- gram of reforms designed to put the country financlally on its feet by the end of 1924. This writer is inform¢d that Austria’s first choice for coni- missioner general was an American of International renown — perhaps Herbert Hoover—but because of our | abstention from the league, another foreign national was selected. Thd choice fell upon Dr. Zimmerman, fors mer burgomaster of Rotterdam and an administrator of rare experiencé and skill. Bank Issue Required. Austria was finally required ‘to es-: tablish a bank of issue and to cease the manufacture of “printing-press money” uncovered by a gold reserve. Then came a requirement for an issue of treasury bills secured by the to- bacco monopoly and customs-receipts to cover the budget deficit to the end of 1923. | decide whether or not 'POINCARE STANDING ON POLITICAL BRINK ‘Both Ruhr and Lausanne Issues Must Be Explained Successfully to French Chamber. BY OLIVER OWEN KUHN. 1 HE flood tides of French politics | are beating about the feet of | Poincare. Swiftly but surely the angry waters are eating | away the sands upon which he stands. | The next ten or fifteen days will the present government will maintain its power. Lausanne and the Ruhr will be the issues upon which the premier will stand or fall. They are the issues being used by his enemlies to bring about his relegation. Just as Briand was relegated at a moment when it was thought France's Interests might be sacrificed. On May 8 the chamber. of deputies, | which has been mercurial in its re- actions to various French govern- mental enterprises, is to reassemble. Certainly there will be directed at Poincare questions which will force analyzation of Ruhr and near eastern policles as they have never been ex- | ploited publicly before. The French people are in mood for enlightment. No longer will they permit them- selves to sit still and permit the premier go on, giving permission to remain silent until policies have crystallized further. Poincare soon will be forced to make some defense of his present efforts in the international field and upon developments in the Ruhr, the confounding his schemes through political cleverness will his immedi- ate political future rest. Sees Procrastination. Poincare was swept into the premiership upon his own cry for ex- treme force against Germany. trangely as it may seem, the French eople lead by Tardieu. Locheur and An amazingly good beginning has been made. Since October, 1922, the budget deficit has been reduced by $200,000,000. Austrian capital is not fleeing to foreign parts. Capital se- questered abroad has been recalled. Americans returning from Vienna re- port that the cost of living is getting back to normal, while the cessation, of inflation has given remarkable stability to Austrian exchange. Em- ployment is steadily on the up grade. The danger of bolshevism has evapo- | rated. Popular confidence in a better | day has come. One of the league's requirements was that the Austrian parliagient should be adjourned sine dle foR at least two years. The ob- ject' was that the commissioner gen- eral and the Austrian government might work in peace and quiet on the problem of regeneration. Presi- dent Harding has learned, through his recent experiences with Congress, the blessings of that sort of system. Austria was burdened with a gigan- tic army of civil servants. Dr. Zim- merman is slashing it, right and left. He dismissed 30,000 in January and was preparing to get rid of another 100,000 before June 1. Customs re- celpts increased by gigantic figures. The crisis in the Ruhr resulted in valuable steel and iron orders for Austrian works. Austria has. been saved, - (Copurigut, 1928 other clever younger politicians, be- lleve that Poincare has procrastinated in his show of force, and that ihrough delays in applying pressure o the “Nth” degree, the Germans: Bave been able to organize and per- Petuate their resistance to French &nd Belglan purposes; that the enemy Yas been permitted to undermine Erench standing in nations long sely allied, and that if further de- red pressure is applied there may céme reactions not in the interests of France. Should the Germans sue for peace in the Ruhr in the next few days and agree to adjust the many prob- leins there more in line with the French and Belgian viewpoint, then Pcincare's stock will ascend un- doubtedly. But the Lausanne issue, an exiremely knotty one, yet is to be solved, and there 1s fear in the rank and file of France that French inter- ests are to be sacrificed by the Poin- care policy of temporizing with the Turks and making ridiculous French diplomacy by an attempt to barter whan show of force should be mad Reacts to Crittelsm. Poincare has been quick to react to the criticisms directed against him egard to the Turks, and veiled threats now are being made toward the:Turks. Anomolous as the situa- tion, appears, it nevertheless s & fact thak-in -the :wm w ROpetuate she | Turkey, French monopoly over the Turkish tobacco industry. estimated worth $500,000.000 francs. and her { effort to peaceably maintain conces- | sions granted to French financlers in the development of Turkey, the French government has temporized from the very first. England says this has been to undermine British in- fluence in”the near east and promote | French interests to the disadvantage | France even went so far | of British. during the hours of peril at Chanak as to withdraw her troops. 8o &s not | to be placed in an embarrassing po- sition in case the firm British de- mands upon the Turks led to warfare. The French already had withdrawn | trom Cilicla and reduced her holding in Smyrna in effort to perpetuat: favor at Angora and obtain a lion share of concessions in undeveloped concessions which she had every right to expect, because of the infiltration of French commercial and financial interests throughout the near east. Whether or not the Turks took the French position as one of weakness is a moot point, but his- tory has shown %he Turks' far-reach- ing lack of respect for the French viewpoint. As the second Lausanne conference opens it sees the British, who have won. through force, having gained everything desired, i near east and upon his own grace in | While French interests are flouted. Wey Goes to Syria. As a result of the situation, which must be embarrassing in the extreme to French pride and political pur- poses, Poincare had dispatched Gen. ‘Weygand to Syrla, there to supplant Gen. Gerraud. Weygand and Mar- shal Foch are the fountainheads of the militaristic plans for French ex- pansion in all sections of Europe. If the -dispatch of Weygand to Syria were not enough threat against the i\ Turks, Gen. Foch, it is declared, will jgo to Warsaw, Bucharest and Bel- grade, there to solidify the sympathey and support of little entente countries for the French cause In event of war with the Turks. Foch. it is declared, will endeavor to align Rumania, Poland and Serbia against the Turks and mi even g0 so far as to approach Greece with the idea of throwing the Turks from Thrace. At any rate, @ potential threat from the region of the Balkans may cause Ismet Pasha to scratch his head at Lausanne and send some speedy messages to Angora. French propaganda forces have been extremely busy during the past week and have disseminated stories throughout the world that the Turk- ish forces have assembled large armies along the Syrian frontier. These dispatches may be true in de- tail, but if they are it would indicate that the Turks are ready for a test of strength with France in the near east. On the other hand, the action of the Turks may be purely bluff to hide the real weakness of their own military, financial and governmental situation, reported from allied qua: ters as extremely grave at the moment. Whatever the situation in. Turkey to be| lpmpur. it s known that the Turkish | concessions to Admiral Chester and | his American syndicate have aroused | France to the extreme, inasmuch as | it has been made to appear that these { concessions violate French rights and previously granted concessions. French Stock Goes Down. French stock in Turkey has gone | down to one-tenth of one per cent of par and France is openly being blamed by the Turks for their pres- ent troubles. In fact., the Turks de- clare that France has revealed her- | self as a nation not so much inter- ested In the salvation of Turkey a expressed when Poincare's emissaries were seeking a favored nation agree- ment with Angora, but is really most | interested in French exploitation of Turkey to France’s own ends. As a consequence the Turks claim the French thesls is one to be resisted to | the end. The Turks at Lausanne have frank- ly stated that the Chester concession none of France's business. And that's that. It remains to be seen, | however, how much of the Turkish talk is mere braggadocio. French military pressure with threatened warfare may force the Turks to take a broader attitude and compromise with the French just as the British forced compromises in regard to the straits and Gallipoll. It Poincare can obtain satisfactory ‘concessions from the Turks with show of strength, his position will be further strengthened when he goes before the chamber with his cata- logue of things accomplished during the recess. If, on the other hand, the Turks persist in resisting the French there is every indication that Poin- care, even though he may siide through to safety on the question of | the Ruhr, will be tripped and & new | cabinet more in sympathy with Pres- | 1dent Millerand's: beliefs installed. in position of | |Free Seeds Still Grow In Nation’s Backyard In facetious verse, in hackneyed jokes and in some serious wails we find the public press intermittently referring to the fact that no longer will our broad agricultural acres and back-yard garden plots bloom and vegetablize from Uncle Sam's free seeds. But 'tis not so. For there will be flowers and vegetables this summer and fall, lasting over into next win- ter from these much derided “free seed The trouble is that folks—espe- cially some nit wit joke writers— jumped to the conclusion that the flow of free seeds stopped instanter. The free seed appropriation was cut oft for the fiscal year starting July 1 next, for distribution the follow- ing spring. The appropriation for free seeds made more than a year ago has provided for seeds—flower, grass and vegetable—for this year's plant- ing. These “free seeds”—the last fres seeds, unless Congress again changes its mind—are now being distributed, and millions of dollars worth of corn, beets, carrots, turnip, lettuce, rad- ishes, etc., will be grown this year same as usual. Cheaper Helium. Laboratory experiments have re sulted in the discovery of a simpler and cheaper method of extracting helium from natural gas. The United States government has already stored more th€n 3,000,000 cubic feet of hellum and is producing about 15,000 feet a day In the large hellum plant at Fort Worth, 3 < It, Chance of BY SHELDON S. CLINE. BILLION dollars in gold consti- tutes today a serious potential menace to the continuance of American prosperity. In the view of many high officlals of the government and leading bankers, it is at present the most ominous cloud on the financial horizon. Paradoxical as it may seem, while we would be better off if we did not have this billlon dollars in gold, it is because we are in danger of losing it that its possession becomes a menace. Probably never before in the history of the world did any na- tion ever have anything like such a hoard of gold which it was at one and the same time anxious to be rid of and afraid of losing. Because of the uniqueness of this billion gold dollars it is interesting to know how we acquired them, what we are do- ing and may do with them, and why we are in danger of losing them. H Came in Last Two Years. ' Contrary to a natural suppesition, the gold that is now troubling us is I,not part of the billions that flowed across the Atlantic to help pay for war materials purchased in this coun- jtry. When the war was over we had a good deal more than our share of the world's gold, and even then many authorities believed we had more than was good for us. But since then. during the last two vears, in fact, we have drawn in another billion— this particularly: troublesome and treakish billion. Tt has come to us from all parts of the world in settle- ! nient of trade balances and its inflow | was so even and constant that it did not attract any particular attention ! until sudden awakening came with the passing of the billion mark. Our stock of gold today amounts. in round figures, approximately to $3.- 100,000,000, whereas the legal re- quirements to cover currency and credits is only about $1.600,000,000. Even a 60 per cent reserve, higher than any nation ever before dreamed of maintaining, calls for only $2.400.- 000,000. Treasury officials and other students of finance are agreed that a reserve of $2,000,000,000 is suffictent for all present purposes, with a mar- gin adequate to cover all expansion that 15 either necessary or desirable. Gold Looking for Work. If this extra billion dollars could be left inictive in our bank vaults it would do no particular harm and would be rather a pleasant thing to have around, though it would be much better, even from our own standpoint, to have it at work in other parts of the world where it is | sorely needed. that gold is a restless metal and frets at inactivity. It wants to work and in some way, good, bad or indif- ferent, manages to find employment. | Just now, with the country seemingly { entered upon an era of prosperity and ! business men everywhere bitten by the bug of expansion, this extra bil- lion gold dollars is straining at its leash, anxious to get into the fray. Unless it can be held in check, the very dickens is likely to be to pay. But the difficulty is | {Overexpansion and inflation, with skyrocketing prices for both goods and labor, will be the inevitable re- sult. With $2,000,000,000 in gold suf- fictent for all the expansion of credit it is healthful for the country to have, possession of more than $3,000,- 000,000 n gold is seen to furnish not only a basis but an almost irresistible temptation for disastrous overexpan- sion. Might Find It Missing. Overexpansion and inflation. with their attendant train of ills, would | be bad enough, but that isn't the only, or even the greatest, danger in Ithe present situation. Supposing, after we had gone ahead and used this extra billion in gold as the basis for expanded currency and credits, we would wake up some morning and find we no longer had tie billion dol- lars in gold? That not only is a possibility, but it is a very substantial probability. It is probable that we will lose the billion dollars even without overex- pansion and inflation, but we will lose MENACE TO PROSPERITY Would Be Better Off if We Didn’t Have But Gravest Danger Is in Losing It. it gradually and without seriously harmful results. With overexpan- sion and inflation to the extent of the billion, its loss not only would be certain, but it would be speedy and disastrous. Secretary Hoover of the Depart ment of Commerce foresaw this dan ger as long ago as last September and gave warning of it in his annual re- port. Since thon developments not only have justified the warning he gave at that time, but have disclosed the situation as more menacing even than he pictured it. Diminishing Trade Bal The gold we are talking about came to us in part payment for mer- chandise we sold abroad In excess of what we bought, the rest of the bal- ance in our favor being taken care of through credits. But because rising prices in this count and the inability of Europe to buy, the bal- ance of trade in our favor is a rapid! diminishing one. For the six month~ period ended December 1920, t monthly balance averaged $275,000,000 Each half-year period since then ha shown a lower monthly average, that for the period ended last 31st of Do cember being only $55.000.000. At the rate of decline which has occurred during the last two yvears, the day near when not only will the inflow of gold be stopped but export of gold will become necessary in order tu settle trade balances against us. With some revival in the purchas- ing power of Europe and with pros pective payments on account t allied debt, export of gold on a 1 scale be avoided and we keep the menacing billion, provided it is not permitted to be made the basis of overexpansion and inflation. But overexpansion and inflation, with their soaring prices, would operate two ways to make large and ear gold exports certain. Because of tha high prices, the American market would become an even more attrac- tive one in which to sell, and the same high prices would make it an even more undesirable one in which to buy, with the resuit that a balance of trade against us would pile up with almost geometrical progress. ce. Not a Pretty Picture. Then, some fine day we would awake to find that our balloon had burst. Before the inevitable crash came, not only our surplus billion but a lot of other gold would be gone: we would have an expanded currency and credit not adequatelv safeguarded; our dollar would have lost its proud eminence in the world, and our foreign markets simply would not exist. And our friends across the water would pretend sor- row while they felt joy at our un- doing. Now this is not an alarmist cr:. for it hasn't happened vet. The point is that it must not be permitted to happen. What officlals of the gov- ernment want—the very highest of them—is that both the lenders and borrowers of money should be their guard against overexpansion Asked to Sit Tight. They want every banker, every mer chant and every manufacturer to think not only twice, but many times before lending or borrowing mon to enlarge stocks or increase pla capacity. They point out that t nation’s plant as a whole now has capacity to produce more goods than the railroads have capacity to trans- port and that there can be no increase in the whole of national prosperity by enlarging plant capacity beyond the capacity of transportation. And as it is with expansion, so it is with inflation. A rising scale of prices is beneficial up to the point at which maximum production is attained. Be vond that point high prices becom inflation, adding nothing to the home market and destroying the market abroad. So they are sending out & nation-wide gppeal to sit tight and keep this menacing billion in mind It is not doing us any particular g00d, but It can do us a lot of harm If we permit it to tempt us into folly. Seeing Washington Is Matter Of Long and Intense Study The hurrying tourist with only a| quick glance here and there does not | * really see the National Capital. Nor do many others who live here, carry- ing out the purpose for which thlsl city was built, hélping Uncle Sam carry on the nation’s business. The | reason that they do not see the real; ‘Washington is because this city, its institutions, its buildings, their deco-; ration and statuary, are all allegori- | cal, having a hidden meaning and preachment.. Only the close student gets this—those who stay here to worship at the nation’s shrine. Take as a single illustration the House wing of the Capitol building, statuary of the pediment of the the finishing touch on the most state- 1y capitol buflding in the world, which has become the model for’ capitol bulldings everywhere. And yet here is what this great worle of the American sculptor, Paul Bartistt, is and what the student's eye finds In it: An allegorical group of two figures, “Peace protecting Geniu: fills the center of the pediment. “Peace,” an armed “Peace,” stands erect, draped in a mantle, which almost completely hides her breastplate and coat of mail; her left arm rests on her buckler, her right side; in the background the ‘olive tree of peace.” Her right arm s extended in a g ture of protection over the youlh; and winged figure of “Genius,” who nestles confidingly at her feet ahd holds in his right hand the torch [..r “Immortality.” The composition is composed of d other groups, symbolizing and typif: - ing the two great fundamental living |powers of labor, the two great sourécs of wealth—Agriculture and Industr:. The most modest of our farmprs and laborers can find in these groups the symbol of his own self and of his endeavors, The printer. the iron worker, the founder, can do the same, and enjoy the same profound eatisfaction. The tolling factory girl, weaver or spinner of textiles, will observe that she has not been forgotten, and those who are devoted to the sea can discover a group, which will remind them of the joys of their vocation. The purpose of this comment on the finlshing statuary pediment on the Capitol is to arouse visitors and resi- dents to a reallzation that in “seeing Washington” they should make their brains and imagination accompany thelr shifting eyes, or they will miss which is supported by the altar at.the best there s to see, -