Evening Star Newspaper, June 19, 1929, Page 7

THE EVENING STAR, WASHINGTON, D. C. WEDNESDAY. 'JUNE 19, 1929. PROVIDES PUZILE | tary McAdoo in Floating Bonds to Pay | Application to Soda Clerks, Mothers, Barbers and | 'WAR FINANCING IS DECLARED HEALING ARTLAW the public had to complain about. A | brief money panic in 1907 caused more | trouble and taught us that the national PARENT OF RESERVE SYSTEM e o toe i neess'of usiness | Jay Cooke's Methods Followed by Secre-| Expenses in Conflict of 1917-18. 1 times. ia From this experience grew the Fed- | eral reserve act, the essence of which lies in making the actual resources of the country. agricultural, mineral and | manufactured products, the basis for bank credits and in turn for currency | support. Betwsen 1907 and the start ! of the World War we also adopted the income tax amendment to the Consti- tution. When we entered the greatest conflict of all time, the Treasury had | Fiance, Tty and other nation. aclay: | TWQ TO RECEIVE MERIT ing and postponing the evil hrough long and serious periods of | alling money values, climaxed at last | by accepting a deteriorated currency as | permanent condition and readjust- ing their treasuries to a new basis. Ger- many could never rally to meet her overwhelming debt situation, and was forced finally to wipe off the books her | entire domestic obiigation, reorganize | her currency, and start paying her foreign debt. While much of the result | must be attributed to the longer period | of costly warfare suffered by other na- | tions, the fact remains that by start- ing to save and to pay, the United | CERTIFICATES FOR VALOR Red Cross Chapter Will Recognize; Rescuers at Ceremony Friday Morning. Albert F. Sinyard and Edward F. Betts will receive certificates for first aid and Captain John R. Graves of the department Rescue Squad No 1, District of Columbia Fire Department, | will receive a certificate of merit (orl\ lifesaving outside the line of duty, A New Kind of Hot-Weather Suit . | these two useful weapons at hand for | voria | < Others Studied. | BY FREDERIC J. HASKIN. | salesman of Government bonds. Jay |money-Faising and currency stabllizing. S e L tors finanea, na | from Gen. George Bamnetf, chairman 4 | : Ao Cooke of Philadclpha. A private | - T : of the District of Columbia chapter, | A | VII—Financing Wars. banker with all of the instincts of a | McAtos and Mellon. R eomip the world's greatest credior | s orican Red Cross, at 821 16th street, 0 uSIness en Whether a clerk at a soda fountain must be licensed to practice the heal- ing arts before he may sell a custom 4 “pick-me-up” for the “morning after feeling, or j¢hether a barber must be When Abraham Lincoln called Con- gress into special session in 1861 1o handle the situation arising through the secession of the Southern States, he licensod before he can sprinkle tonics| asked for $400,000.000 to support sn great promoter. he organized the sale of bonds until his agents were right be- hind the Army, selling to the soldiers on pay day. Some (ales said that Ccoke's agents broke through the lincs and sold bonds to_ the Confederates. Political partisans still like to argue | who is the greater man, Secretary Mc- Adoo, who financed the war, or Secre- | tary Mellon, who has financed the peace. Some will summarize the dispute by | asking whether it is more difficult te | borrow money or to pay it back. Such PLANS TO PERMANENTLY at 11 o'clock Priday morning. 1 ‘The awards will be given to Sinyard | and Betts for reviving through arti-| ficial respiration James Harrod, colored, who had fallen into the B & O Canal | November 19, 1928. Capt. will receive the certificate of merit ! Graves | LOCATE WORLD EXHIBIT on masculine hair, or a méther before | army of 400,000 in a “short and She may annoint her bruised child With | Sz vr' That sum was five times | Vertising and promotion methods. but | disputes are rather futlle, except for ¥ for rescuing E. A. Brown, 30, of 630 arnica, without violating the new med- | {fe - Revolutionary War . debt, but the | they bought his bonds. These were, in- | PATLY purposes. e McAdoo plan of Interdependence Illustration, on| Pennsylvania avenue, from the bottom | ‘war finance and its successful direction ical practice act— these are some of | Nation was eight times larger. Almost | deed. ‘more often called Jay Cooke's . : of the Potomac River at Chapel Point, o s S by President Wilson's wartime Secre- | View at Geneva, May Be Brough | » 4 the problems that are causing the mem- | half of the Nation. however, had left | bonds than L‘qu;n:d"s‘m? (hamz_;rim ‘l.hxfi‘}: Dy . eseat y g! Md and then reviving Mim by the bers of the Commission on Licensure to | e tside the scope Practios the Healing Arts to-scatch | i and was: oufaide the scop their respective heads in puzzlement.| " geavy taxation, large loans, increased 10t c0urse, & law is o la%. and the |import tariffs were resorted to. The aw seems to insist that they should.| gecretary of the Treasury, Salmon P. but if the commission undertakes to|cChase, strove to keep the public credit enforce the law literally in such cases|jntact. calling for rigid integrity in ex- those cited above, nothing but woe | penditure as a means of maintaining and grief are expected to result. | public faith in the ability of the Nation the trouble is caused by the figure “43" inserted in section 2 of the law. Section 2 says that no person shall practice the healing art in the District of Columbia who is not licensed to do so, or who is “duly registered” | if exempted from licensure under sec- Greenbacks Issued. Nation had stood the strain. badly inflaied and it remained to be 33 00 . v v ‘e wi " y inft Elizabeth C_Watson of New York : tions 42 or 43 of the act. Section 42| ieasury motes in smanl denomina- | [STRE GO0t WS ©f CoRISe TIREE O | soen whether the Federal Reserve Sys- | exhibit director, sails for Europe to- 88 e Cash holds that the sections of the act for- bidding the practice without a license | shall not apply to surgeons of the Arm: Navy, Public Health Service, or oth: similar officers. But section 43 says | that the sections of the act shall be | construed to apply to the treatment of | astual ecases of emergency (for instance, | the arnica application referred to above), or the practice of massage. dietetics, or | hygienic measures (such as the selling of a cake of facial soap) or to the use of ordinary hygienic. or dietetic, or domestic remedies, The persons ex- empted from licensure under this sec- tion, apparently therefore are required | to be registered before practicing any | of the healing arts. And registrations | costs §1 ! The definition of “healing arts” is so broad that it would include any of the | tpe war between the States involved |3 sume.” Mellon’s way to pay was to start simple actions mentioned. Part of it |manya political battle. }"’sell fl;“lts people and make money out | aying, | nd ially th: reads, “Preventing. relieving, correcting of nothing. ~The free and .unlimited | ™3{"ic worth noting that among the a espectally jor the or curing, or attempting to prevent, re- | ¢q "paper money being issued even for : llied war powers, England was the . eve, correct, or cure. any disease.” And | nurio e of small change. Meanwhile | Of SUVer, (0 one of gold was the panfesa | st to adopt the 'same plan, that of “settled wo man’— the word disease itseif is legally defined | jt" was necessary to sell bonds. The | BrORaset ov, AT S GOan, 1 g (0 | starting to pay, however hard it seemed e e, teavaer, isease or | Dational bank act, sponsored by Secre; | man silver bill of 1890 and previous | T so often forgotten A s ary Chase and passe 2 | schemes to enhance silver values by law . injury to the human body or mind. |the war, was designed both to create a | peing its basis. The country. after a PALM BEACH and by many ad-writers. It will be seen, therefore, that a drug store clerk, who sells a customer a cake of toilet soap desgined to correct facial blemishes, or a cdugh drop to cure a disorder of his throat, without being registered, violates the letter of the law. The commission is expected to hand down some interpretation of these am- biguous rules soon, and will probably ask Congress to clarify them at its next session. BEALL GIVEN 5 YEARS | IN CORRECTION HOUSE | Takoma Park Fireman Sentenced 3 on Conviction of Charge of Arson. | SIS LA | Bpecial Dispatch to The Star. | ROCKVILLE, Md.. June 18.—Arthur | 8. Beall, 19-year-old member of the | Takoma Park Volunteer Fire Depart- ment, found guilty in the Circuit Court here last_week of kettifig fire'oh the | night of February 11 te'an unoccupied | house at the corner of Maple and Tulip | avenues, Takoma Park. belonging to | George L. McCarty of Washington, was today sentenced to five years in the Maryland House of Correction. | A new trial was asked on the ground that the verdict of the jury was against the weight of the evidence and because of newly discovered evidence. The court held, however, the new ‘evidence was not material and that it was in| the possession of the defendant at the | time of the trial. A suggestion by Attorney Welsh that the boy’s mental development had been | retarded prompted the court to hear testimony of his mother and another | relative. They told the court that while | the young man probably knew right from wrong his mentality had been re- tarded and cited some incidents to sub- HEN W SHOPPING ARE v to finance the struggle. Neverthele as the hope for a short and dec © conflict faded before added years of 'n- | tensive warfare, the credit of the Na- tion trembled and faltered. tions were issued in great volume, the celebrated greenbacks. Few Americans realize that these notes were, and still are, nothing more than a promise of the United States Government to pay to the bearer the value marked on the notes In our time they have always been per- fectly good, and hence as money, the same During the Civil War their value fell to below 50 cents on the dollar, and for vears after the conflict they remained below par. A national political party grew up, based on a plan to redeem the greenbacks below par. - In our present prosperous era it seems incredible that the United States of America should consider rating its cwn money at less than full value. To maintain that full value even in theory for 20 years after ve think of them | as gold coin. | they were. portrait hangs in the Treasury De- partment at Washington, the oniy pri- vate citizen thus honored, alongside our | Secretaries of the Treasury. Secretary | William G. McAdoo, in the World War, took a few leaves from the notebook of Jay Cooke when he launched the Lib- | erty bond drives. When the North triumphed in 1865, the national debt reached $2,800,000.000. The actual debt, considering inflated currency, was much greater. Lincoln’s original estimate of the war cost had been muitiplied many times, but_the The Con- became but souvenirs. Months before | the end of the war Gen. Mosby, giving a $1.000 Confederate bill for a chicken, had said “Damn th change.” That money went the wi of German marks after the World War. Integrity in Finance. All sorts of schemes were proposed to | reinstate the currency after the war, but increased prosperjty, larger revenues | and a plain, solid return to a gold basis | with payment of all debts in full was | the method adopted, the true American | method of absolute integrity of the | finances of our Government. By 1883 | two-thirds of the debts had been paid. | The hard times of the early nineties ‘I’e\'h‘?d the ideas that by some fancy | scheme the Government could enrich in payment | Gold and silver practically disappear- | cainage of silver at a ratio of 16 ounces market for Government bonds and to | yast educational campaign in behalf of inerease the circulating medim and |, single gold standard, repudiated the stabilize commercial credits. National gjlver dream. banks could buy Government bonds and | ° The short Spanish War placed no issue bank notes on the security of these | strain on the Treasury, as it came at bonds. Thus the basic resources of the banks became available to the Govern- ment, and the currency, while indirectly inflated, became a combined bank and government currency with added local strength back of it. Today there remain in circulation some $450,000,000 in greenbacks, while the national bank act remains in force and some $750,000,000 in national bank notes are part of our currency. The war developed our first supe: FREQUENT BUS DEPARTURES TO RICHMCND $3.50 (Round Trip $6.00) Gepgon (Formerly Richmond-Washington Motor Coach Company) Convenient service day and night to— Alexandria $ .25; Accotink $.50; Wood- ridge$ .75; Dumfries$1.00; Stafford $1.50; Fredericksburg $1.75; Ladysmith $2.50; Golansville $2.50; Ashland $3.00; Solo- mon $3.25; Richmond $3.50. Modern, comfortable buses. 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Th= Federal Reserve System stood the test. It could and did deflate fictitious | values without destroying production and industry. Secretary Mellon. taking | the helm in 1921, began his drive for economy. tax reduction, reduction of the It was strong medicine. An | easier method seemed to many people to offer itself, a postponement of debt reduction, passing more and more of the obligations along for future vears and | future generations. Perhaps Mr. Mellon | recalled the words of President Haves | 2bout resuming gold payments after the | Civil War, “The way to resume is to re- OHAIR TROUSERS $4.65, 85.65 To match your Odd Coats EISEMAN'S, 7th & F | as beautiful a paint, all colors, and priced modestly. " and you'll not accept a sub- Arwar respiration method, on August 18, 1928 | Capt. Graves holds the senior Red Cross life saving certificate and an exhibit, which will b schown in |advanced first aid certificate for first | Geneva from July 21 to August 27,|aid courses given by the Red Cross. during the congress of the World Fed- | = eration of Education _Associations, | probably will be permanently estab- | lished on its return to this country | to Washington. The Andrae World Interdependence You can purchase a new either in Washington or in New York, | by its founder, Mrs. F, Terry Andrae of Milwaukee, it is announced today. The exhibit shows the interdependence | of nations in art, industry, finance, health, transportation, etc. morrow to take charge of the Geneva | showing. Nine Washingtonians are | members of the exhibit committee, They are: Dr. Charles L. Carhart, | William Carr, Mrs Alvin Dodd, Mrs, Gordon Dunthorne, Miss Adelaide | Hasse, Mrs. J. Borden Harriman, | | Duncan Phillips, J. David Thompson | and Mrs. Florence Brewer Boeckel. 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