Evening Star Newspaper, June 10, 1923, Page 41

- -EDITORIAL SECTION e Sundy St WASHINGTON, D. C, EDITORIAL PAGE NATIONAL PROBLEMS SPECIAL ARTICLES . Society News Part 2—16 Pages — EDUCTION OF TAX BURDEN TASK FOR NEW CONGRESS SUNDAY MORNING, JUNE 10, 1923. President and National Chairman Adams In Amicable World Court Disagreement BY N. 0. MESSENGER. RESIDENT HARDING and Chairman Adams of the republican national com- STABILIZING OF DOLLAR NEXT CONGRESS ISSUE Pleas Being Made for Market Basket Dollar Instead of Symbol of Grains of Gold. Two Forces Lini " ng Up for Fight Against Present System—Have Widely Different Viewpoints. -~ Presi-lent Harding and Chairman Adams of the republican national committee are in accord on granting representation to women Another prophesied effect of repeal of the enforcement law by New York promptly materialized. It was predicted that New BY Then Senator Borah of Idaho said Fecently, addressing an audience In ‘Manchester, N. H., “No people ever curried the tax burden which our peo- Plc are carrying now,” he summed up in « sentence a condition which must be dealt with in the next Congress, a condition that is bound to force itself %o the fore. From various official sources the Word has gone forth that the time isf .imn for a reduction—of some kind— V4n the federal taxes. President Hard- §ng has let it be known that he Is heartily in favor of some measure of relief. Prominent republican mem- bers of the Senate and House have in- a ted that the tax question is to be taken up without fail next winter. Two forces are lining up for the tax, L t. however, and each is putting! forth suggestions for amendment of e tax On the one side are those who demand that the taxes be| G. GOULD LINCOLN. i laws, { ment. | tures win weeks a number of other large and important investigations by the com- sion will be announced, following the approval of the President. The work | of the commission is being followed with the keenest interest. In the next few months the commission, say some members of Congress, will have demonstrated its real worth and the wisdom of the flexible tariff provis-| ions of the law, or the American peo- ple will have suffered a disappoint- The expenditures of the govern- ment are in the neighborhood of $4,000,000,000 a year—a very large part of this sum being needed to pay | off the war debts. There seems little probability of a reduction for years to come in these expenditures, though efforts are bing made to cut down wherever possible, and undoubtedly) economies in government expendi- aid materially. But this vast sum, for the most part, must be raised from the taxpavers annually. mittee are understood to b ly disagreement over the world court plan, and from now on each will That is to say, the President will not recede from his advocacy of the policy of the United States adhering to the world court, but the republican na- “gang his ain gait.” tional committee will not urge it of the republican party. tack by the committee. be committee as being against the d icy of the party. * ok k% The President is said to have been embar- rassed recently by misapprehen attitude toward the world court part of some of his callers, who afterward gave out a mistaken construction of his at- However, neither will it single out the President’s plan for at- The entry of the United States into the league of nations will consistently opposed by thc national e in friend- President’s be taken as an evidenc direction. Chairman communication with re mitteemen and secure as a policy state. Then, meets in December to posed recommending grant full representati national committee. * ok eclared pol- Aftermath of New prohibition enforcement law furnishes de- sion of his plan on the had announced in his on the national committee. representation can be authorized only by the national convention, but meanwhile steps can pointment of women in an advisory capacity on the committee, one woman from each when the national committee convention of 1924, a resolution will be pro- velopments and discussions in many quarters. In New York city the expected happened when police participation in enforcement was withdrawn, although Gov. Alfred E. Smith Full and official wet states laws. e of good faith in that Adams is to get into publican national com- authority for the ap- the narrow peal of the issue the call for the that the convention ion to women on the York’s example would be followed by other in repealing their enforcement Wisconsin was the first to come to bat in an effort to this end, which has not yet been accomplished, however. passed the lower house of the legislature by A bill has margin of 48 to 43, proposing re- state enforcement law, and now is in the senate, which is reported to be dry. Press dispatches announce that Senator La Follettee, the greatest political power in the state, is against repeal, considering it not a good political asset for his party. * k k X Gov. Alired E. Smith of New York con- * ok York’s repeal of its memorandum accom- tinues to be the recipient of bouquets and a target for brickbats for his action in sign- ing the repeal bill. He is in high favor with Tammany and the democratic party in New York and with wet and near-wet democrats in other states. himself, should he contemplate being a can- didate for the presidential nomination, many powerful interests and influential democratic But he is arraying against BY WILL P. KENNEDY. TABILIZE the dollar. Make it a retall-goods dollar, a mar- ket-basket dollar, instead of a symbol of so many grains of gold. That is the plea that is going to be made to the incoming Congress, for correction of the inflation and de- pression cycles that have been keep- ing the people of this country worried and taking the dollars from the pock- ets of the many and placing them in the coffers of a few. Congress is asked to do this be- cause of the power vested in Congress “to regulate the value of money.” The plea is put forward on the ground that the money question is at the base of all the big natlonal problems —transportation, agricultural, coal, rents, etc.—and it bears on the big- gest of international questions, such as forelgn debts and reparations, can then decide the proposal on its merits and see whether it really ix propagands e# sound common sense and econowmy, Bofled down the proposal is stabilize the dollar through control of bank credit in such a manner that the volume of currency and credit circulating varies in accordance with the varying volume of business. Then it 1s claimed we will have a dollar of uniform working eficiency. It pointed out that the law of supply and demand seems to be rapidly g!v- ing way to the law of maximum pro fits. Attempt has been made to curb or correct all the recent or present {lls of the body politic through temporary expedients, such as all sorts of credit extensions. All of these, the sup- porters of dollar stabilization insis trend only to another period of in flation to be Inevitably followed by depression worse than what we ha just passed through. It is merel: Up in Last Comgres. The last Congress gave some con- sideration to two supplemental meas- iurel for stabilization—the bill of Representative T. Alan Goldsborough titude. This fact was responsible for his making public the other day his letter to Bishop Gailor on the subject. In that com- munication he recalled that he had told his panying the signing of the repeal bill that repeal would not relieve the police from ri sponsibility in upholding the federal proh bition law. lifted on business and on wealth so that more money will readily find its Wway into investments, increasing the industry of the country. On the other postponing the day of settlement and piling up the costs leaders. Some church organizations are al- ready aligning in opposition to him. The most bitter attack thus far against the governor and his supporters was issued In addition to the federal taxes, the { American people have to bear heavy | state and municipal taxes, The ad- justment of the tax burden has be- G. 0. P. Committee Active. hand are those who believe that the taxes should primarily be lifted off the man of moderate, and very mod- krate, means, that the tax should be removed as far as possible from con- sumption. Taxes on consumption, it s fizured, fall heavily upon all the <itizens and more heavily in propor- tion on those least able to bear the burden. come a vital matter, therefore, and much will depend, it is said, upon how this problem is handled by the Congress. Budget Working. The budget system has been set up and is working to advantage. But the responsibility. in the end les upon Congress, as was demonstrated calters that no man “could confront the re- sponsibility of a President of States and yet adhere to the idea that it was possible for our country to maintain an attitude of isolation and aloofness in the world.” He went on to say that the world court plan occupi ground between some who would not go Within a few days of that statement the corporation counsel of the city rendered an opinion_in which he declared that the city was under no responsibility to enforce the law. Immediately the police commissioner announced that the special squads of police- men assigned to enforcement would be with- drawn. Tt is said that this action will take the United he believed ied middle by Clarence True Wilson, general secretary of the board of temperance, prohibition and public morals of the Methodist Episcopal Church, who has written a letter to Metho- dists everywhere. pose of havi fend and enforce the Constitution and admin- ister the laws for the good of the people. The letter says the pur- ing Presidents “is to protect, de- | bill fathered by Representative Louls {man of the House banking and cur- of Maryland to stabilize the purchas- ing power of United States money.on which a comprehensive statement was made by Dr. Frank A. Wolff, physicist, n the Bureau of Standards, and the T. McFadden of Pernsylvanta, chair- rency committee, which provided for It has been called to the attention of Congress that the republican na- tional committee had subcommittees at work on the big problems of the campalgn. One of these was on cu:- rency and banking, of which Franl A. Vanderlip was ohalrman,.and an- other on the high cost of living, of which Helen Rogers Reed was chair- man. Both of these reported that the chief cause for the ri€e in prices war inflation—"first and foremost a 30 pe: cent depreciation in the purchasing power of the dollar, due to a gross expansion of our currency and cred 1t.” and the republican platform st ed this very conclusion. | Dr. Wolff in his argument ha | stressed that in regard to its impo:- tant power “to coin money, regul value thereof, and of foreig: jan international conference to in- | vestigate the international exchange | {problem and to determine the best | way to stabilize exchange, on which | testimony was given by Dr. H. N I’Lawne a noted economist. At the time these hearings were {held Congress was in the mldst of | farm credit legislation, and this money stabilization proposal was looked upon in the nature of propaganda by |at the last session when the old “pork barrel” methods came into con- | filct with the budget bureau. It is much to be regretted that the budget | bureau came out second best in this confiict. The specific trouble arose i over the appropriations for river and harbor improvements. Every one ad- mits, except perhaps the2rafiroad men, that water way transportation should be improved and increased. But the 20,000 New York city policemen from active duty of enforcement, while there are not more than 200 federal agents ih the state. President Harding is reported as planning a conference with federal prohibition en- forcement officers before he leaves for his trip. The Secretary of the Navy and thc Secretary of War both have declared against the feasibility of employing Navy and Army that far and others who would go much farther, and that adherence to the Perma- nent Court of International Justice would end aloofness and yet not imperil our inde- pendence. Smith is purely a nullificationist. We are not in politics, but we serve notice that we will not stand for Brother Smith for President.” The letter goes on to say: “Those who talk of Gov. Smith as a presidential candidate only brand themselves with the infamy that is inside of them and that they ought to conceal.” Sales Tax Proposed. ' the one hand it is proposed that the surtaxes be reduced or abolished and that a sales tax be substituted for many of the taxes now levied. On the other hand, it is proposed that excess profits taxes, lifted by the | last Congress, be re-enacted; that a constitutional amendment be sub- * ¥ % X Women bid fair to win their fight for representation on the republican national committee, which the republican national SR mitted to the states putting an end to further fssues of tax-exempt se- curitles either by the states or the federal government: that the law be chapged to make it possible to tax undistributed corporate surpluses and prevent the distribution—tax free— of stock dividends: that a tax on &ifts which are made for the pur- yos: of avelding the federal inheri- tance tax be enacted, and that pos ®ibly the estate taxes be increased. i Progressives Active. ! These are some of the suggestions | which are belng put forth on both sldes—the idea having gained ground that something Is going to be done in regard to the taxes. The! progressives in Congress make the| claim that wealth has already begun | a to shift further the burden ©f taxation from wealth to property| which cannot escape and to the little feilows. This drive, they say, is only & follow-up of the successful effort Curing the last Congress which re- moved the excess profits taxes and yeduced the surtaxes. Of course, there are those who at- tac the tarift duties, and these in- lude some of the progressive re- yublicans as well as virtually all of #lie democrats. The argument is ad- wanced that these duties are so high that they add materially to the in-} ¥rease in the cost of living. Right| her it may be pointed out that |\n(; ® few of the republicans who believe 1 protective tariff. but who alsoi pposed to tariff duties so high as| 10 zive special privileges to great in- | grests and industries that are not In | “meed of such protectlon, are looking hopefully to the flexible tariff provis- ; fons of the Fordney-McCumber tar- s Those are the provisions wwhich authorize the President to Jower or raise the dutles within a radius of 50 per cent of the rates es- gablished by law, following investl- gation and report by the United States Tariff Commission on any par- article and the duty drive now ne Begun. The Degun f investigations in L wemard the duties now levied— aritf ¢ ission has already a nu to jbudget bureau, budget bureau had estimated that all the Congress should allot to river and harbor work during the present fiscal year was $27,000,000. But Con- gress, after much criticism of the raised the limit to $59.000,000. The budget system will be a great aid to Congress, provided that body really is anxious for economy. But Congress must help itself: it must be willing to limit expenditures no mat- ter whether they are for rivers and harbors, for public buildings or for other governmental affairs, or the an- nual expenditures will be ever on the increase instead of the decrease. The budget system is not able to stand alone, as long as it is possible for committees of Congress and even in- dividual members to obtain increases in the amounts proposed by the bud- I get bureau. Stopped in Se e, In the last Congress efforts were made to put an end to the issue of further tax-free securities. A pro- posed constitutional amendment was introduced and was put through the House by the necessary two-thirds majority. But it was allowed to sleep in the Senate committee until March 4 had rolled around. It has been est!- mated that in recent years $30,00 000,000 worth of property has been re- lieved of taxes through its investment in tax-exempt securities, efther fed-! eral or state and municipal. The ar- gument is made that if the surtaxes on big incomes are lowered or wiped out, there will not be the incentive for wealth to seek out but it will be invested in industry. But before the surtaxes came into ex- istence, there were large investments in tax-free scurities, and there is con- siderable reason to believe that such Investments will continue no matter what is done with the surtaxes. According to New York reports last fall, within a month thirty-eight huge corporations declared stock dividends totaling $1,108,000,000, the second big distribution since the close of the war. These corporate surpluses so distrib- uted avoided the federal taxes. Un- der the decision of the Supreme Court they could not be taxed. Here is a matter which will be brought forward mmong them the duty sugar—and #t is understood that within a few U. S. Can Produce Own Sugar At Low Pri HARDEN COLFAX., With the increase in sugar prices | apparently stopped for the present at Tey vhat lower than the peak, nent agencies investigating of the rise and preventives for the future are looking into the possi nility of our raising sufficient sugar in the United States and its island possessions to make this country in- dependent of the Cuban supply. It can be done, in the opinion of Sec- petary of Agriculture Wallace, who mome time ago made an informal sur- wey of the situation the result of which he embodied In a letter ad- dressed to a United States senator from a western state. Mr. Wallace esserts that “there is no question that we have in the United States an abundance of sugar bect land which, alons with the cane sugar land can be made to produce all of the sugar nceded to meet our home require- ments.” uy Cuban Sugar Used. At present more than half of the American sugar supply comes from ,Cubda. Tt is that part of supply that 1ed In the recent rise and established #he market prices. Cuban sugsr, gov- ¢rnment Investigators assert, sets the with vigor, it is said~when Congress assembles. ce, Say Experts price for all sugar bought and sold in this country. With an appreciable in- crease in domestic supply there ap- ! pears little doubt that a runaway market could be prevented hereafter. Tn his letter, Secretary Wallace say: “Our beet sugar production has been increasing at the rate of about 40,000 short tons per year. During the five-year period, 1917-1921, the continental United States produced annually 872,424 short tons of beet sugar, and 231,326 short tons of cane sugar. During the same period we recieved from Hawali, Porto Rico and the Philippines average yearly ship- ments of 1,079,846 short tons. Thus our total home and island production equals 2,183,506 short tons annually, or nearly 45 per cent of 'our total consumption. At this rate of produc- tion, therefore, we need about 2,66.- 885 short tons in addition to our home production of cane and beet sugar. “In 1921 our sugar beet acreage was about 814,988. It {s estimated that there are 200,000,000 additional acres of exoellent sugar beet land In the states of the nortitwest and about 45,000,00 acres in states not now pro- duoing sugar beets, all of which, un« der favorable oonditions, osa be these securities. | convention failed to provide in men on the national committee. test from republican women. | ! brought into satisfactory production. It seems reasonable - to say. there 3 that we can add 245.000,000 acres to our sugar beet acreage. Much Cane Sugar Land. “Most of the cane sugar in the TUnited States is produced in Louisi- ana. 226,366 acres of sugar cane hav- | ing been harvested in that state for [sugar productfon in 1921. This was | less than one-sixth of the present till- | able area in those parishes in which | | sugar cane is grown, and less than| j one-tenth of a possible tillable area i in those parishes, having in mind the area which is capable of drainage. A conservative statement, therefore, would be that it should be possible to produce a million tons of cane sugar in Louisiana. “The foregoing gives the basis in answering your question as to wheth- er or not it is possible for the United States and her insular possessions to produce sufficient sugar to meet our needs. Under conditions which have | prevailed during the past twenty-five | vears there has been a gradual in- crease in our sugar production. This lincrease can. of course. be acceler- | ated by favorable economic condi- | tions. This all involves a matter of | public policy and. should have full constderation in connection with the formulation of a national agricultural policy for the United States. “In considering thls matter the { character of the beet crop and its re- lation to soil fertility, as well as the effect upon the land of the sort of cultivation given, and the value of ibeet tops, beet pulp and beet molasses for live stock feeding purposes should. ! of cours~, be given dua weight |Cross-Country Mail JService Plans Heard | | The fundamental purpose of the air mall service as defined for Presi- dent Harding by the national advis- ory committee on aeronautics, charg- ed by Congress with the supervision and direction of the scientific study of the problems of flight with a view to their practical solution and de- termination of problems which should be experimentally attacked, their in- vestigation and application to prac- tical questions of aeronautics, is ‘as follows: To demonstrate the safety, relia- bility and practicability of air_trans- portation of mails, and incidentally of air transportation in general. In particular the advisory committee has told the President the air mail service should— Develop a reliable thirty-six-hour service between New York and San Francisco and make that service self- | supporting by creating the necessary: demand for it and charging a rate’ between ordinary postage rates andi night letter telegraph rates. Keep strict records of the cost of, the service and strive in every way | to reduce such costs, thereby demon-| strating the value of air transporta- | tion from an economic point of view, and in particular making it possible for private enterprise eventually to contract for the carrying of the mails by airplane at a rate which not only would not exceed the income from such a service, but would permit the Post Office Department. to .provide other postal to meet the de- mands of th:‘”"‘mh for the more rapid transportation of the mail democrats were more far-sighted—or should it be said less “hard-boiled"—for it gave dem- ocratic women equal representation with the trast has been exploited recently by the dem- ocratic leaders, taking advantage of a pro- 1920. The forces on enforcement This con- question in debate. the funds available for civilian employes for such work are not adequate for the magni- tude of the undertaking. Congress next December will have to be called upon for increased appropriations, and this is expected to open up the whole liquor work, and meanwhile It follows that himself to amendment BONUS REGARDED SURE OF PASSAGE OVER VETO Can Be Enacted Over Presidential Veto With New Personnel Changes, Is View of Measure’s Friends. HE passage by Congress of an adjusted compensation bill for the men who served in the world war by the next Con §ress seems today as certain as death and taxes. Already old members of Congress are preparing again the bills which they introduced at the last Congress or are writing new bills and newly elected members are preparing new bills. With an election—a national elec- tion—looming on the horizon for the fall of 1824; with the American Le- gion and other soldier and organizations clamoring for the bonus, there does not seem the slight- est chance of the measures failing to get through. with or without the ap- proval of the President. It will be remembered that the adjusted com- pensation bill passed both houses of Congress in 1922 and was vetoed by the President and that the House passed the bill over the President's veto by a very considerable vote, | while the Senate by a narrow mar- | traordinary gin sustained the vote. But in the next Congress the situ- ation is going to be changed. In the Senate, according to the latest esti- mates, there will be at a minimum seventy senators who will vote for the bonus bill, even over a presi- dential veto—more than the neces- sary two-thirds to pass a bill not- withstanding the veto of the chief executive. In the House it is esti- mated that the vote for the bonus bill will be seven or eight to one and that it would be passed by a very large vote over a presidential veto. sailor | : this vote on the bonus bill. have been | sounded out by the proponents of the | measure and for the most part have | been found to be solidly in favor of | the bonus. So unless there would be a change ©of heart on_ the part of the veterans themselves—and there is no present indication of that—or unless there should be radical changes on the part of senators. the passage of a soldiers’ bonus or adjusted compensation may be regarded as a certainty. In his message vetoing the bonus bill President Harding said that he regretted to sound a note of dis- appointment to the many ex-service men “who have the impression that it is as simple a matter for the gov- ernment to bestow billloris In peace as it did billions in war.” And fur- ther along in his message: “The sim- ple truth of the matter is that this bill proposes a government obliga- | tion of more than $4,000,000,000 with- out a provision of funds for the ex- expenditure, which the | executive branch of the government " must finance in face of difficult finan- cial problems and the complete de- feat of our commitment to effect economies.” Conditions Better. About a month ago the Secretary of the Treasury, Mr. Mellon, estimated that the surplus in the Treasury at the close of the fiscal year, June 30, 11923, would be in the neighborhood of $126,000,000. - It is possible that these figures will have to be revised somewhat. But the report of the im- I proved condition of the Treasury im- The impression is gaining strength in some democratic quarters that Gov. Smith may soon clarify the situation by renouncing any presidential aspirations and devoting lines suggested in his statement which ac- companied the signing of the repeal bill. bill | In the last House only seventy-four | mediately gave rise to suggestions members opposed the veto out of athat & "“d“““"’" €5 (B ‘ax Luxden fon the American peopie would follow jas soon as Congress could get on ithe job next fall. . But if the soldiers’ adjusted com- pensation bill is to be enacted the {outlook for a reduction of taxes does not appear so bright. If the ex- | service men are to receive their ad- Justed compensation as proposed, with an estimated obligation of $4,000,000,- 000 on the Treasury, the surplus of $126,000,000 now expected will be of small avall. The argument is made by supporters of the bonus that the first year will take a comparatively small amount and that the payments will be distributed over a long period. But, as a matter of fact, this is largely a matter of guesswork. The American Leglon, which has been most active in the campaign for the passage of adjustment compensa- tion legislation, is to hold its annual convention in San Francisco. At that time, it is expected, the question of adjusted compensation will come to the fore again and that the legion ‘will go on record unanimously for the enactment of the propesed legislation. membership of 435. and nineteen of those men who opposed the veto were not returned by the voters at the polls. Many of the senators who voted to sustain the President’s veto of the bonus bill also fell by the wayside in the elections of 1922. Among them ‘were du Point of Delaware, Calder of New York, France of Maryland, New of Indfana and Frelinghuysen of New Jersey. Others who have retired are Myers of Montana and Willlams of 'Ml!lllllpv'. who were not candidates to succeed themselves, and Newberry of Michigan, who resigned months ago. Vote Was 44 to 28. The vote in the Senate by which | the President’'s veto wi sustained was 44 to 28, with 24 not voting, but most of the senators paired for and against the measure. The President’s ‘weto was sent to Congress under date of Beptember 18, 1923, and was acted upon by the House and Senate with little delay. The new senators, men elected sinee| furthering the movement for of the Volstead act along the | Tt may be that at the same time the |legfon will recommend the form of legislation, but twhether the same form as that which failed in the last Congress or some new form is vet to be determined. At the convention held in New Orleans last vear the legion twice voted unanimously for adjusted compensation leglslation. There are approximately 11,000 posts of the American Legion throughout the country Each post elects its delegates to the state conventions id at the state conventions dele- gates to the national convention are elected. The delegates undoubtedly will be instructed on the subject of the adjusted compensation legislation at the time of their election. President Harding and Secretary Mellon have in the past strenuously opposed soldier bonus legislation on the ground that the federal Treasury could not stand it; that the govern- ment was pledged to economy in all expenditures in the hope that even- tually it would be possible to lighten [ the tax burden upon the people. This tax burden has been lifted and shift- ed to a certain extent, but it is still | heavy. President Feels Same. No official pronouncement has come from either the President or Secre- tary Mellon in recent months in re- gard to the proposed adjusted com- pensation for the ex-service men. It has been intimated at the White House, however, that the President has not changed his attitude in re- gard to the matter. That there will be tremendous pressure brought to | bear upon the Chief Executive, both for and against the bonus measure ! when It is next brought up in Con- gess goes without saying. The democrats have chided the republi- cans with breaking faith with the ex- service men in the past, and un- doubtedly they will continue such criticisms. There will be many in the republican ranks who, fearing the effect of continued opposition to the bonus.on the part of the head of the republican party, as the President is and undoubtedly will be in the next campaign, will urge the President imot again to interpose a veto, if the bill passes Congress. In fact, they will urge that with the make up of the new Congress. a veto woyld be idle. The President, however, has shown great firmness in the past in | dealing with the soldier bonus ques- ition, a question undeniably charged jwith unlimited political dynamite, and he may be expected to do so in the future, unless there should be changed conditions in the finances of the country which would, in his opin- fon, warrant the grant of the bonus within the next year. The appropriations made by Con- gess hitherto for the disabled ex- service men have run into the hun- dreds of millions and thousands of millions. That these appropriations for men disabled as a result of the war will continue to grow from year to year seems inevitable. There should -be no hesitancy to provide amply for the disabled soldiers and sallors and none 1s expected. But the proposed adjusted compen- sation for the men who are not dis- abled is going to meet with strong opposition, even though in the end it seems certain to command suf- ofent votes to get {hrough. { | | | theorists. While Congress has been at home, however, the members have been surprised to find how great a general interest in this proposed solution has developed. To briefly illustrate: Abuse of Credit. In the report of Hoover's unemploy- ment committee. which has just been published. there ts a chapter by Thomas Sewell Adams of Yale Uni- versity, who {s the financial adviser to the United States Treasury, which leads off: “The distinctive evil of the business cycle is due to abuse or mis- use of credit” Those who advocate stabllizing the dollar say it must come through control of bank credit. Dr. Adams deals at some length with “proposals to stabilize,the dollar” as essentlal to the welfare of this country. Another illustration: The National Monetary Assoclation had its annual meeting in New York last Thursday, with the general theme, “How can we conserve prosperity?” The program participated in by greatest financial and economic authorities discussed as immediate steps: (1) To urge the earliest possible establishment of the world's currencies on the basis of free conversion into gold at such parities as may be practicable; (2) to defend our currency system against all attempts at political or class control or Interferences; and, (3) to urge such control of currency and bank credit in the United States as will most effectively minimize unemploy- ment and fluctuations in business ac- tivity, stabilize the general price level | and the purchasing power of money, provide loans on sound securitles at all times and prevent favoritism and discrimination with respect to any | business or financlal interest or class. | Still another—and very important | {llustration—the United States budget | bureau is now definitely interested in | the proposal for stabilization as es- | sentfal to fulfilling the purposes o the federal budget system. Propaganda Talk. The suspicion of some committee members in Congress that this is all propaganda for selfish Interests is brushed aside by the plea of the public for appointment by Congress of a commission which will go| thoroughly into the question, which | i | | | fixea Congress has practically lim- ited itself as far as “regulating the value” {s concerned, to fixing the weight and fineness of composition of coins. It has not, he says, seemed to realize that this merely fixed the value of such coins in terms of the number or grains of gold in the dol- lar, which is not an expression of r value—value in terms of o commodities. Principal Victims, He argues for the various hither: inarticulate groups of our population Wwho have been the prinelpal victims of the Instability of purchasing pow- er-—the sclentific and professional men, the teachers, the clergy, the un- organized workers, those who receiy salaries or wages, including those whose savings yield fixed in- comes. Dr. Wolff raised the question. whether inflation and deflation mude possible through the non-exercise of the powers vested in Congress to regulate the value of money have tended to fulfill the principles set forth in the preamble to the Consti- tution. Baruch Gives Warning. Barney Baruch, &s chairman of thc War industries board, after paying his respects to the open sales organ izations, gave this warning: “Theer combinations are capable also—and very easily capable—of carving ou purposes of greatest public disad vantage. Thev can so subtly ir fluence production as to keep it al | ways just short of current deman: and thus keep prices over high and going higher. They can encourage a common understanding -on prices and without great difficulty can hold price-levels at adnormal positions They can influence the favoring of one type of buyer over another. Trad~ associations with real power can, in respect to most of the staples, so in | fluence production as to keep the margin of shortage at a point mos! favorable to high prices and rapid turn-overs. The recent problems with reg: to sugar gouging and coal famine an the question of railroad valuation all hinge on the question of giving # stable purchasing value to the dol- lar. Hold ‘Foreign Markets Won At Great Cost, U. S. Warned Hold your foreign markets! That's| the warning that the United States | bureau of forefgn and domestic com- | attempts to gain export trade found merce is taking every occasion to impress upon American manufac- | turers and exporters. The necessity for holding foreign trade, even though the domestic market may | temporarily absorb the domestic pro- duction, 1s emphasized, especially | now, when many important concerns | in the United States are literally shandoning markets abroad which were won at great cost and commer- cial strategy. Henry H. Morse, chief of the spe- clalties division of the federal bu- reau, in explaining the situation as he sees it, says that “specialty manu- facturers, even more, perhaps, than producers of staples, should realize the absolute necessity of holding and developing their overseas trade, not- withstanding the present wave of do- mestic prosperity. The foreign mar- kets in which they sell their goods were won, not by any whirlwind at- tack, but through slow, painstaking selling and merchandising effort, ex- tending in many cases over a term of years. To withdraw from a foreign mar- ket 15 easy; to wet back again is ‘very difficult, particularly in the face of the {llwind engendered by sucl withdrawal. ed on any such “scuttle” policy ruf his own ultimate chances and perils the success of his brother ¢ porters. Another “danger signal” is flash. by M. H. Hoepli, acting chief of {i automotive division, who says: “Our best selling argument is ‘low price. combined with quality and service.! The government representa- tives in foreign countries are con stantly on the watch that those standards which the American manu- facturers 1ive up to in the home mar kets are also maintained by their agents abroad. Whenever American officials abroad express the belief that in a forelgn market prices of some cars are out of line with thos. of competing makes, that in some in stances stocks of spare parts are i adequate and that high serv charges are causing dissatisfaction- as in South Africa, Japan and the United Kingdom—the individual manufacturers should investigate ‘whether heand hisagents are among those who offer our European com- petitors an opportunity to deprectate the high reputation of American su- tomotive merchandtsing and serviee”