Evening Star Newspaper, June 25, 1931, Page 4

A4 ww MELLON IN PARIS FOR DEBT PARLEY Secretary Stimson Announc- es He Will Sail for Europe Saturday. ‘(Continued From First Page.) gratefully and unconditionally. Great Britain approved it in spirit as ‘well as in letter. Italy indorsed it cordially and com- pletely without “political reservations.” Austria approved unconditionally. Bulgaria expressed appreciation. France submitted the counter propo= sition. Rumania, Czechoslovakla, Jugoslavi Poland and Belgium are “sympathetic but have made no official response. ‘Watson Sees Mreemnl.‘h“ ‘Th neral optimism here an -xree:ne‘:t will be reafhed soon so as to improve Germany's economic condition was expressed by Senator Watson, Re- publican Senate leader, after a talk with the President. He sald: “It looks as though, after some detalls have been workretd out, that success will attend the effort.” Secretary son also optimistic,” ;ddrc&!e"dh ‘would bea e if anything happened.” Nevertheless, the general opinjon was that the French proposal would be un- acceptable unless it could be so Xn.me.d as not to conflict with the President’s er. Stimson sald yesterday the “broad outlin of the President’s statemens will “not be departed from.” Meanwhile Federal Reserve Board and Treasury officials continued an effort to improve Germany’s economic situation through a credit arrangement. They insisted any such arrangement would be entirely apart from the proposed moratorium. MELLON STIRS PARIS. Secretary Will Lunch With Premier Laval Tomorrow. PARIS, June 25 (P)—Andrew W. Mellon, American Secretal of the whose visit to has aroused much interest because of the Hoover prggonh. will have lunch to- morrow Wi Prer?ler Laval at the min- istry of the interior. Trkym permier's secretary said the luncheon was not classified as ‘“of- ficial,” and no formal announcement of it would be given out. 1t was expected several cabinet mem- bers, including Foreign Minister Bri- and and Finance Flandin would be present. Ambassador Edge will accompany Mr. Mellon to the luncheon. Invitation Sent to Curtius. Franco-German conversations similar to the recent discussions at Chequers between Prime Minister MacDonald of Great Britain and German officials probably will take place in Paris within the next few weeks, Foreign Minister Briand of France today was reported to have sent word to Foreign Minister Curtius of Ger- many through Ambassador Von Hoesch a5 e veah government would wel- come an mcauate conversation with the | German chancellor and foreign min- st Tha invitation was said to have been discussed at yesterday’s council of min- isters, and Briand was charged with the issuance of the invitation. With France's answer to President ‘Hoover's proposal for a war debt and reparations suspension delivered to the American Government, interest cen- :e(rfld today on the visit of Secretary ellon. Will Delay Riviera Visit. ‘The United States embassy will be Mr. Mellon’s headquarters during his stay. His departure for the French Riviera will be postponed if circum- stances require. This presumably de- pends on the reaction at Washington to the French proposal. The substance of the” Government's note, insisting that the Young plan be strictly observed through the con- tinuance of Germany’s unconditional payments, generally gave satisfaction to all parties, and the consensus in the lobbles was that Premier Laval would be upheld in debate on the sub- ject in the Chamber of Deputies to- morrow. ‘The effect of the proposed compro- mise in Washington was awaited eagerly in all quarters. The impression among Le Matin and other well informed pa- pers was that President Hoover would not abruptly reject the suggestions, but would take time to review them. Berenger Cites Views. Commenting on President Hoover's proposal, Victor Henry Berenger, for- mer Ambassador to Washington, who negotiated the Franco-American debt settlement, recommended as the first step the summoning of a meeting of a committee of the Bank for Interna- tional Settlements to examine the ac- tual situation:. If Germany is found to be in as desperate a situationi as reported, Beren- ger declared France certainly would not refuse to collaborate with the United States and Europe in restora- tion of the country. In an article prepared for publica- tion throughout France the former Am- bassador remarked that in proposing to Europe a one-year suspension of debts annuity the United States of- fered a right which Europe already possessed. He pointed out that all debt arrangements extended the right of sus- pension for at least two years and in the case of France three years. “Any temporary changes in the Ger- man payments must come within the framework of the Young plan,” he said. ;Anytmng else would destroy confi-| ence.” PLAN REICHSBANK LOAN. Consider Credit of $100,000,000 to Tide ; It Over End of Month, | By the Associated Press. BERLIN, June 25.—Negotiations are under way among the Bank of Englend, the Bank of France, the Federal :te serve Bank and the Bank for Interna- tional Settlements to grant a short-term credit loan of $100,000,000 to the: Reichsbank to tide it over the end of the month, -it was learned today. } The reason why such credit is needed | is that, while the menacing flight of capital has been reversed and gold is flowing in instead of out, the process is not likely to be rapid enough to equalize ! before June 30 the loss of approximate- { ly a billion marks of the Reichsbank’s | Teserves. It was emphasized, however, this temporary assistance over a tech- nical Mcul:{ does not depend on the Hoover war debt plan. Reports to the effect that the loan already has been granted are premature. Gold Cover at 40.4 Per Cent. The pfecarious situation into which the finances of the Reich had drifted was graphically illustrated in today’s Reichsbank report which covered the week ended last Saturday—in other words up to the point when President Hoover stepped in. ‘The Reichsbank’s gold cover for bank note circulation Sa y stood at 40.4 {:er cent which was 0.4 per cent above he minimum prescribed by law. How serious this was is evidenced by the fact that only a month ago the| ld reserve was 68.4 per cent. The| ichbank is confident that in a month it will be back at least to about 68 per cent coverage, thanks to the Hoover Pproposal. Press Sees Hoover Wilting. wis ok ehared by the. f‘.fig H press, prof that | 4 i His {umchuu became moment tangl / THE EVENING STAR, WASHINGTON, D. C, THURSDAY, JUNE 25 1931. WHAT MORATORIUM WOULD COST CREDITOR NATIGNS IN INCOME DURING 1931 AND 1932 UNITED GREAT STATES BRITAIN FRANCE ITALY $4/,000,000 | £4,000,000 BELGIUM, YUGOSLAVIA AND OTHERS HART shows amounts the proposed one-year moratorium on war debts would cost various creditor nations in income during the fiscal year beginning July 1, and how much Germany would be richer for the year. The figures are approximate. EUROPE STIRRED BY HOOVER PLAN Diplomatic and Political Ac- tivity Intense—Mellon Arrives in Paris. By Cable to The Star. PARIS, France, June 25.—Diplomatic and political activity in Europe has be- come suddenly intense following Pres- ident Hoover's sensational war debt and reparations proposals. Secretary of the Treasury Andrew W. Mellon, after a sojourn of some days in London, arrived in Paris ay. France has just granted a loan to the young. Spanish republic, whose purpose is sald to be partly to stabilize the pe- seta and partly to repay American cred- its gbulned by the previous govern- ment. The Belgian Legislature has finally voted credits for the defense of the frontlers, discussion of which caused the fall of the previous government. Most of the money will be spent on fortifying the actual line of the Ger- man-Belgian frontier and rebuilding the Meuse forts. This action can be inter- preted as a swing back toward France on Belgium's part. Discuss Bid to Bruening. Conversations are continuing between Prench Foreign Minister Aristide Briand and Dr. Leopold von Hoesch, German Ambassador to Paris, regarding eventual invitation to Chancellor Hein- rich Bruening and Foreign Minister Julius Curtius of Germany to come to Paris to discuss the possibility of better Franco-German relations. ‘The German-Russian treaty of 1926 has just been formally renewed by signatures exchanged in Moscow. A German - Rumanian commercial treaty has been drafted and will, it is said, be signed in Berlin within a few days. Under this treaty Germany would buy Rumania’s grain surplus at a preferential rate in return for ad- vantages given by Rumania to Germgn industry. A big debate on the Hoover plan will be held in the French Chamber of Deputies tomorrow. The attitude of the French press is still nervous and ill- tempered. It is realized, however, that France is isolated and that the French hand must be played with the greatest caution., Boom Method Proposed. ‘The most interesting comment in the French press today is an article by the well known economist Lucien Romier, in Le Petit Parisien. There are two ways, says M. Romier, to save a firm about to fail. One is to reorganize its administration and advance new money against guaranties. The other is to provoke a speculative boom under cover of which the holdings of the firm can be liquidated without too much loss. The first method was being applied, M. Romier continues, by Europeans to the Central European problem, but President Hoover, representing Ameri- can creditors, has used the second. ‘The boom method, M. Romier fears, will not, however, bring a permanent solution of Germany's difficulties and consequently, sooner or later there will have to a return to the slower method of reorganization and new credits with accompanying guaranties, (Copyright, 1931.) VISITATION NUN DIES |Sister Mary Joseph Waring Once Mother Superior. Sister Mary Joseph Waring, mem- ber of the Visitation Convent, died at the Monastery of the Visitation, Dales Helghts, Parkersburg, W. Va,, on Tues- day. She at one time held the office of_mother superior in that order. Sister Mary Joseph was educated at the Convent of the Visitation, in Georgetown, where two paternal aunts were members of that institution in its earlier days. She was a granddaughter of Henry and Millicent Hill Brooke ‘Waring of Georgetown and the daugh- ter of the late Henry Basil and Rachel ‘Waring of Norway, Mon ery Coun- ty, Md., and a sister of . Edmund Leavenworth of Norway. KANSAS PILOT KILLED WILSONVILLE, Nebr., June 25 (#).— T. G. Stone, 41 years old, of Wichita, Kans,, was killed here late yesterday when his plane crashed after a nose ve. : Stone was piloting for Vie Gavin, 43, also of Wichita, who was injured slightly when he jumped as the plane faltered at approximately 2.&‘:’0“’ feet. en- ed in wing struts of the plane. Samarian Is Speaker. Speciad e B, " Enoury, pecial) —Ha . ke preacher fom Samaria, Palestine, who was born near Jacob’s well, spoke on the customs of his native land at a meeting in the Methodist Church South here last night. H. W. dy lead the meeting. President I:Ioove'r_-wllung under ?x; French counter-proposals. The newspaper Nacht Ausgabe 1t- h:ntblnnetumlmdeneond‘mnd Nation Swindled.” ITALY LAYS PLANS 10 SUSPEND DEBT Mussolini Charges Grandi, Mosconi and Governor of Bank With Work. By the Associated Press. ROME, June 25.—Active preparations for full and unconditional execution of President Hoover's moratorium pro- posal began here today. Without wait- ing for a general declaration that the plans had become effective, Italy began taking up many of the details necessary for the accepted suspension of war debts and reparations payments July 1. Premier Mussolini, after a conference yesterday with Foreign Minister Grandi and Finance Minister Mosconi, charged them and the governor of the Bank of Italy with this work. These officials met this morning at Grandi's office. The premier’s message yesterday con- stituted formal acceptance of President Hoover’s plan without conditions. The observations which the message said might be made would refer only to possible suggestions for getting the best results for facilitating the techmical work. Participation Complete. So far as the moratorium is con- cerned, however, Italian participation will be complete. Italy’s favorable margin this year would have been more than $13,000,000, and this and the political situation in Europe naturally have received consider-; ation. The attitude of the premier and his advisers, it was learned authori- tatively, was that these Itallan matters or any European problems should not be allowed to intrude on President Hoo- ver's “vastly magnificent and generous plan” -Italian problems, such as the loss of use of the large sum of money which would have come to Italy, it is held, may properly be discussed at home, but must rot hamper in any way acceptance of the relief plans. Premier Mussolini’s acceptance was described as being all the more heart- felt, as he has long favored an inter- national policy of easing war burdens. Accept Without Discussion. Ttaly’s acceptance was made without discussion with other foreign offices. After premier's message was sent to Washington the only other com- muniéations were to notify London and Berlin of the action and to inform American Ambassador Garrett. This morning’s meeting in Foreign Minister Grandi’s office lald down for the technical work and the following communique was issued: “In conformity with the directions of the chief of government a meeting took place in the Chigi Palace between the minister of Iol;?n affairs _and finance and the goverror of the Bank of Italy for the purpose of easing what- ever is necessary so that the proposal of President Hm'?;u l&n' the .aspemlon of debt payments and reparations can from Jury‘ 1 be ready and executed intégrally.” SINGER UPHELD IN SUIT Lily Pons Wins in Action on Man- agerial Contract. NEW YORK, June 25 (#)—Lilly TAX DECREASE SEEN N HOOVER PLAN Economist Says Move May Be Return to Moderation in Public Finance. ' This is the second of several a by rorinént. ‘SooRamizte" ARG omie {m- Yy St . e e r & war debt morstorium. BY FRED ROGERS FAIRCHILD Political Economy, Yale (Professor of Political X (Copyright, 1931, by the Associated Press.) NEW HAVEN, Conn., June 25.—At a. time when the whole world is passing through a period unprecedented in- dustrial depression accompanied by tax burden unprecedented except in time of war ‘a year's respite from repara- tion and interally debt payments oposed by President Hoover un- y will have a favorable effett, d what may be meas- actual money tions as doul harassed financiers Imstrasse, ling with a re- calcitrant budget that refuses to bal- ance while lndunr{mhuuhhu. will take courage from hope of relief. jportant than this in my opinion is the ‘rromlu held out to the industrial world that our governments may perhaps be on the point of rec- ognizing the flighting effect of swollen tax burdens. If the President's move may be taken as the harbinger of re- turning moderation in public finance, then it may well furnish a real im- petus toward the restoration of eco- nomic prosperity. Open Eyes to Real Meaning. In this same connection I think it well that the American public have its eyes open to the real meaning of President Hoover's proposed mora- torlum. The two countries to be chiefly affected are Germary and the United R about as mucl in - creditor. Similarly we may no_arrangemen any substantial net loss. Cancell actions and reactions we have in net effect assistance from America to Germany. Wlthufn doubt here is where assist- ance at the moment is most needed, but the American public should recognize that Germany's financial relief can be no greater than America’s financial sacrifice. This is a hard lessson to learn. There will be many who will hail the President's move as & happy gesture bringing joy and relief to Ger- man industry while cost! nobody anything. It is in the fleld of public finance that the joyful delusion of having our cake and eating it, too, dies hardest. Struggle With Tax Increases. ‘The United States rlso are involved in industrial deprcc 51 and the Amer- ican people are ;iing to cope with reduced incomes ci the one hand and ever growing burdens of taxation on the other. . Industrial depression has been with us, the occasion not of moderation in the demands of government, but the reverse. Federal, State and local exac- tions are increasing, in many cases to the breaking point. Our Federal Gov- ernment spent more in 1930 than in 1929 by 140 million dollars. The net expenditures of 1931 will be still great- er by 350 millions. Instead of comfortable surpluses, each year the Treasury is facing huge deficits. The reduction of our public debt, which has been progressing at $0 fayorable a rate, already is being retarded by some 300 millions a year. Relinquishment of the yments due from our former war allles will mean just so much more to be imposed soon- er or later upon the shoulders of the American taxpayers. I say in no spirit of criticism eof the mor- atorium, which I welcome. My purpose is to suggest that the American public in approving the President’s suggestion, as I hope it will, do so with its eyes open to the cost. ‘The act of generosity to our former enemy will be s0 much the more gra- clous if granted with intelligence and sober judgment and may we perhaps be bold enough to hope that the next move may be consideration of m ures to promote ity by lighten- ing rather than further increasing the tax burdens of the American people. AUSTRALIA ACCEPTS DEBT MORATORIUM House Hears Snowden’s Offer to Extend Plan to Dominions. By the Associated Pre: CANBERRA, Australia, June 25.— Premier Scullin read in the House of Representatives today Chancellor Philip Snowden’s offer to extends the war debt moratorium’ to the Dominions and announced the government ac- cepted his proposal. “We appreciate Great Britain’s in- T restor the gen- eral economic position of ‘world.” His remarks were applauded. Pons, French operatic soprano, was up- held by the Appellate division of Supreme Court yesterday in her right to employ whomsoever she pleases as manager. The singer and her husband, Auguste Mesritz, were sued by Maria Gay Zon- atello and the latter’s husband, Gio- vanni « Zonatello, opera coaches, who clajmed that Mile. Pons and her hus- band contracted about two years ago to employ the Zonatellos as managers for ten years, but illegally discharged them after attaining success in this country. JORDANS %en ESENT * * . DRAFT BELGIAN REPLY Ministers Expected to Give Debt Plan Views Tomorrow. BRUSSELS, June 25 (P).—Prime Fore! =y Minister Hymans T over dnnlgg of the Belgian reply to the Hoover moratorium plan. Aul itive quarters sald it unlikely the note would be drafted fore tomorrow. was be- Clerk Retires MRS, BOPP ENDS LONG CAREER. STIMSON STILL HOLDS HOPES FOR DEBT PLAN APPROVAL BY FRENCH __(Continued From Pirst Page) bring before both Houses any changes NAVY BULDING TOTALS SI0000 Department Making Ready to Let Contracts to Raise Sum Above $200,000,000. 28 8.5 553 28i) ! e Yo work unt Seven Cruisers Being Built. gun cruisers at°$17,000,~ in_various of con- ,000 air- as well as a $19, craft carrier and three submarines, at the last it contemplates in connection with the | constru Young plan. Cabinet Fears Overthrow. It is said that after a careful can- vassing the Laval cabinet came to the conclusion that it would be overthrown if it asked Parliament to vote for a complete suspension of all German pay- ments. Consequently the cabinet de- cided to propose to President Hoover that only the conditional payments should be suspended, while it would be understood that the unconditional slice which ‘Germany has to pay into the Bank for International Seltlzmng ing | Would be reloaned to that country. this manner, the French government thinks, the spirit of the law would be preserved, the Young plan would re- main in the eyes of the French law- makers unaltered. and Germany would derive the full benefits of the Hoover proposal. ‘The French note was received by the State Department yesterday afternoon. tents and because Becretary of State Henry L. Stimson believes that by dip- | delpl lomatic negotiations France may still be brought into line and agree. finall: to some arrangement along t! suggested by President Hoover, the note will remain strictly confidential. ‘The fact that the State Department re- to make the note public should interpreted that the President p) ‘which simpi luuiln';th postponing for one year the burden of intergovern- mental debts. Success Seen In Secrecy. France's note is being kept from the press and the public because the Sec- retary of State believes that somewha P negotiations between all the interested nations are bound to fol- low, and like most diplomats, he is convinced that the darker these ne- gotiations are kept, the more likely it is that they will be successful. It is believed that negotiations be- tween the Reich and France have al- ready started. The French government has to understand very clearly that dent Hoover does not intend to have this country drawn into a political ar- gument. His proposal was based ex- clusively on economic facts and he is determined to keep it in that domain. po'lll'i:’:“l"rench. hovevcr,'er:&hulu the consequences of O] and do not believe that a flaclm} gument can be avoided. the; it, the reaction in this country and probably all over the world would be detrimental to their interests. Conse- quently if any political discussion is ‘.&mfi:deg’unpfl;e.umuumm- The first step in that direction was made Tuesday night by Chancellor Helnrich Bruening, who going to Paris to discuss the itical angle of the situation. (Copyright, 1931). o POSTAL FORCE BOOSTED The Post Office Department an- nounced today that additional clerks would be added to the force at the Philadelphia it office, effective July 1. It was indicated that increased busi- ness necessitated the extra help. ‘begun Presi- A private yacht under 80 feet in len{'.h costs to build about $1,000 per foot. Over that length the cost runs up to approximately $4,000 per foot. nd a Gift The Original Baltimore Rose PRICES REDUCED 2 6Tea Spoons 34,.5.0 ‘Two-Piece Steak Set the | of world industry in motion, he said, and in New England. The Dolphin, due for completion in August, 1932, and the Cachalot, due about a year later, are at the Portsmouth, N. H., Navy Yard. The ccntract for the Cuttlefish was let only a few days ago to the Elec- tric Boat Co. of Groton, Conn. No New Battleships. ‘The United States is bullding no new battleships as it already has the 15 al- lowed under the London naval treaty. But $30,000,000 worth of is to be done on three of them—the Mississippl, New Mexico and Idaho. Congress, last session riated $10,000,000 for starting this, and all of the ships have been to east coast yards. The Mississippi is at Nor- faolk, the New Mexico at Philadelphia and the Idaho soon will leave Pacific waters to go on the ways at Norfolk. ‘To conform to the London treaty, the battleship Florida, a veteran of the World War, will be scrapped at Phila- hia before January 1. At Norfolk, being demilif the Wyoming into a.training ship and this has already been done. WOULD EXTEND DEBT HOLIDAY TWO YEARS Pittman Describes Hoover Plan as Step Toward Recovery From Depression. By the Assoclated Press. SHANGHAL June 25.—Senator Pitt- man, Democrat, of Nevada today de- scribed lPreildem Hoo:“er‘s :::ngflum proposal as an encouraging step toward recovery from world-wide depression, but said it should extend for two years instead of one, and that international government debts of all kinds be_included. Heré to study the problem of de- pressed silver prices, the Nevada Sena- tor said the statement was a recognition that the “world depression is chiefly due to the unnatural monetary situation.” He said any proposal which seeks so- lution of only the gold problem would be “only a half solution,” urged that the President call an international conference to relieve the silver crisis concurrently with “adjustment of the gold situation. “It must wot be forgotten,” Pittman sald, “that over half the people in the world have silver money only with which to pay their debts. “The whole monetary problem, which is the problem of gold and silver, should be solved as quickly as le. that world depression, unempl ent and the threat of war and Bolshevism be terminated.” CITY NEWS IN BRIEF. TODAY. Card party, St. John's Episcopal Church, Thirty-fourth street and Mount Rainier avenue, 8 pm. Communion preparatory service, West- minster Presbyterian Church, 8 p.m. " . 3 R KAHN INC....39 Years at the Same Addr Silver -- - makes such an impressive one, as well, It delights not only today or tomorrow . . . but thmu%the years. now obtainable at NEW Lawn party, benefit St. Michael’s Church, WDC of Mrs. Coughlan, 8818 Georgia avenue, 8 p.m. practical gift ... and a thyilling It is W PRICES. 6 Dessert Spoons .. ~$12.oo 310.50 812.00 6 Salad 37'5;0 36." 6 Medium Knives ., 6 Medium Ferks ... 6 Butter Spreaders .. tolin Germany) at stake. ‘shoul | Willingness to agree in principle with it. German Shipment of Gold to America MORE LEGISLATORS 0. K. DEBT PLAN Additional Replies to Request for Opinions Are Received. Congress to President Hoover's request for, a statement on his war debt pro- posal ‘are reported by the Associated P Senator Hosker L. s ‘asl Odd of Nevada—1t will et e loskert miecss rovide the necessary lubricant until Swy’hnve had time to -gain, their o ety 3 resentative ford, iblican, Virginia—Have noted with interest your proposal relative to postponement for one year all intergovernmental debts. Thoroughly approve your foresight and fiflo:lfiwm support you heartily in Senator William E. Chal of the Senate Foreicn Afiars o tee: President’s proposal will be of great benefit to Europe and to the world at large if Europe follows With a program of adjusting her own affairs. “Nothing we can do will save Europe from economic distress if continues her program of build- ing vast fighting machines and in ;e!lgam( down her people with arma- Senator Hiram Johnson, Republican, of California: “Ostensibly, the mora- torium is to aid Germany, but the beneficiaries who profit most will be the American financlers with more than a billion doliars (in investments Any one wi the slightest knowledge of {he - ganda of the last year for the cancel- lation of foreign debts, knows this moratorium means cancellation. * * * Let Congress meet light BT and turm on the JAPAN SEEN FAVORING HOOVER DEBT PROPOSAL Statement Expected After Cabinet Meeting—Sacrifice Is $3,250,000. By the Associated Press. ‘TOKIO, June 25.—1It is expected that Japan will express a favorable attitude toward President Hoover's debt delay proposal tomorrow after a cabinet meet- ing. It is understood a statement will then be issued expressing whole-hearted | As the government has not yet re- | celved formal notice regarding the pro- | posed plan, Japan’s answer will take the form of an official statment and not that of an actual reply. If both conditional and unconditional payments by Germany are waived, it is estimated Japan's sacrifice will be 6,500,000 yeni [$ t $3,250,000) annually. What TWO-YEAR DEBT 1 DELAY GONSIDERED U. S. Changed Plan in View of Indications of Difficulty in France. BY DAVID LAWRENCE. It became known today that the United States Government was ready to propose a two-year moratorium and that this was changed in view of the indications that such & course would be more difficult to get through the French Parliament than a one-year suspension of payments. It reveals, however, the extent to which America has been willing to in the interests of a better economie sit« uation throughout the world. Incidentally, those critics who are raying the American taxpayers will have to pay $245,000,000 mcre in tazes are being reminded by officials here that since the President’s announcement the appreciation in the stock of one of the largest American corporations alone has * more than the total amount of the suspended payment by the United States. This means that if values should continue to increase, the state of American business will be such that ‘| the tax receipts will multiply accord= ingly. For if the American people are toda7, through the securities they hold, richer by many times the $245,000,000 of sus- pended payments, the resulting effect on business will increase the direct and indirect taxes all along the line. Few Discordant Notes, Few discordant notes have been sounded to the President’s program, ‘The politicians are by no means clear as to what is ahead for them, but the Democrats are supporting the President whole-heartedly. They are far more interested in_better business than in their own political fortunes. And be- sides they have the prohibition issue up their sleeves just as soon as the eco- ‘nomic issue has less potency. It is_spparent, too, that the Hoover group has been stimulated by the re- sponse of the world to the moratorium . Some of the enthusiastic ones are already pre Mr. Hoover's re- election, but this is only another way of saying that everybody in politics has recognized how difficult it would be for the President to win again if the present unemployment were to continue, An upward curve in the business chart has been looked upon by both Democrats and Republicans alike as the key to the presidential race of 1932. Example of Leadership. Far more important than the ultimate political effect of the newest develop= ments has been the probable influence that the President’s triumph may have on his own psychology. Until now he has been hesitant, timid and at times so indecisive as to disappoint some of his own followers. In New York, for in- stance, the Hoover stock has been vi o low indeed for many months, largely be- cause of the accusation that the Presi- dent was not a forceful leader. The moratorium proposal is an example of what business men call courageous lead- i xece r. Hoover, see! the which his bold stroke has I’!c:lvepd':wig now to feel more independent of the many influences that have beset him and if he is to go ahead on domestic as v‘;ent ;s foreign q;xuuom with a sure-footed program of a non-partisan character, he will .uwmmp' en- hance his own political prestige. As for the country, it is apathetic about politics and personalities whenever busi- ness is good and captious and irritable ;‘bo:t d‘.u public officials when business 2 The United States Government is planning to follow up its initiative on world debts with a re-examination at the proper time of the problem of funding war debts. In this 0~ operation of Frarice is the vital factor. :;la all t‘l‘on‘ t;le nna’henmt:xere is an cipation " of a force administration. e (Copyr! Another, Semi-Annual -5 - could be Clearance Group more timely than this group of 163 Tro i ical - Worsted Suits o $19.75 The regular asking prices for these suits have been $25, $27.50 & $30 You couldn’t ask for a finer lot... greys, tans, browns and blues . . . and they're tailored in the usual GROSNER manner , . . ALL SIZES. - $7.50 Genuine Panama Hats A special group in Optimo and Alpine shapes. $4.95 CIROSNERY 1325 F STREET