Evening Star Newspaper, January 3, 1932, Page 22

2 THE EVENING STA ‘With Sunday Morning Edition. WASHINGTON, D. C. BUNDAY. January 3, 1932 THEODORE W. NOYES. ...Editor The Evening Star Newspaper Company Business Office and Pennsylvania Ave fice. 110 East 42nd St Lake Michigan Building. 4 Rpgem .. London, gland. Chicago Of Europesn O! e tce: 1 En Rate by Carrier Within the City. Frenine Biar . .45¢ per month vening and Bunday Star when 4 & ) 60c per month 65¢ per month Sund; Star 8¢ per copy llection made at the end of each month Orders may be sent in by mail or telephone NAtional 5000 | Rate by Mail—Payable in Advance. Maryland and Virginia. | £10.00: 1 mo.. 8¢ | $6.00: 1 mo. S0 1 $400: 1 mo . 40c By ar Binday "only All Other States and Canada. fly and Bunday.. 1yr.$1200:1mo..§1 Iy oniy 1yr. $8.00: 1mo. 7t inday only 5 00 | sc | 1yr. $5.00; 1 mo.. 50c | Ds g‘ —_— Member of the Associated Press. The Assoctated Press 15 excl o' the Us ublication of ted in this paper and also the loca published herein. All richts of publi special dispatches herein are ulso reserved S History of Fiscal Relations. Elsewhere in today’s Star appears the first of a series of articles discussing the history of the fiscal relationship be- tween the Federal Government and the Washington community since the found- ing of the Capital. A proper under-| standing of this background is essential | to an intelligent conception of the real nature of the ,unique partnership be- tween the local community and the ex- clustvely controlling National Govern- ment in the joint undertaking of main- taining and developing the American Capital. Brief references occur in . today's tion of | | which he quit public office. {a seat in his cabinet one who betrayed on which appears to be timely and of country. 7 R |cused him of forgery. He has a right|is housed of rejoinder. Indeed, -he may sue for libel notwithstanding his present pre- dicament. If this is simple press agentry, to evoke a public interest in the book about to be published, it is undeniably effective. But was such an astonish- ing advance notice necessary to elicit attention? While there have been numerous publications since his death regarding the career of President Hard- ing, many of them are of a slanderous| and even salacious nature and the pub- | lic has been surfeited with them. A book by the former Attorney General, known to be the President’s closest in- timate, his political adviser, his trusted friend, is certain to gain a wide read- ing regardless of the circumstances in | | The melancholy story of Mr. Harding will perhaps never be told in full. In- deed, the question is whether it needs | to be told. Enough is known to present | him to history as 8 man whose greatest | misfortune was his trust in men, whose | high qualities of mind and heart were | handicapped by his affections and his faith in undependable advisers. It it is true, as Mr. Daugherty now avers, that he was led by a forgery to name to the trust reposed in him, he was indeed the victim of his own confiding good nature. ——e— Foreign Bonds. The Senate Pinance Committee is ventilating the subject of American in- vestments in forelgn securities, light value to the investing public in this It has been well understood that huge holdings of foreign bonds existed in this country. Indeed, the Department of Commerce estimated them at the end of June, 1930, at a total of §7,836,000,000. American money, it is clear, has been used to | Tuesdays, THE SUNDAY STAR, WASHINGTON, Dae, JANUARY 3, 19¢ 22—PART TWO. D — buildings,” erected during the war in | Potomac Park. This business of moving the bureaus | about to make the Best use of avail- able space while the construction oper- ations are under way is complex. With each new structure added to the per- manent equipment the shifts become fewer and less difficult to manage. Dur- ing the past few years the changes of office quarters have been so numerous and frequent as to affect seriously the efficiency of the Federal establishments. In some branches of the Government the employes have been shunted back and forth four and five times in the | course of as many years. A “grand and glorlous feeling” will pervade the Gov- ernment service when the moving davs are over and everybody is placed, pre- sumably for all time. r———— It is getting so that the Einstein is disproved on Mondays, Wed- nesdays and Fridays and confirmed on Thursdays and Saturdays. On Sundays the originator tinkers with it a little himself. ) A suspicion prevails that Tyrone Power will be remembered when the names of some of the present outstand- ing leading men mean nothing to any one except their direct descendarits. B “Ski-jumper” once was just a slang phrase for a Scandinavian “kitchen mechanic.” Now, like as not, it may refer to & society belle. — All regard 1732 as a good year for one particular reason. May 1932 be viewed as fondly, and for many of them. e e An Austrian ex-diplomat says that the United States is not a democracy. It can scarcely be called a republicancy just now, either. ——— in one of the "mum'.lum] A Happy New Year BY THE RIGHT REV. JAMES E. FREEMAN, D, D, LL. D, Bishop of Washington. Text: “Look therefore carefully how ye walk, not as unwise, but as wise, re- | deeming the time."—Ephesians, v.15-16. | In the King James version the apostle | speaks of “walking circumspectly,” which literally means walking looking about. It is suggestive of the old ad- monition, “Walk with your eyes about | you.” The whole passage might very | properly be rendered, “See then that ve walk looking about you, not as fools, but as wise, buying up the opportunity, because the days are evil.” It is an admirable admonition as we enter upon the unknown and untried days of the new year. We are moving out upon strange paths, new experi- ences and fresh adventures. If we arg to enter upon them wisely, we shall do so by observing carefully and reflec- tively the circumstances and experi- ences that befall us; we shall have the capacity to rightly evaluate in the light of past heppenings everything that comes to ui. There is & popular phrase today heard on every hand, “Watch your step!” It is designed to make us careful, and in aoing so to safeguard us against mishaps &nd misfortunes. Reckless living, no matter how it may express itself, is perilous. To live with- out any proper understanding of the relation we bear to the world about us, or without a reasonable consciousness of life's purpose and objective, leads ultimately to tragic days of disillusion- ment and disappointment. No matter how lowly or exalted our lot in life may be, we may make a contribution pecu- liarly our own to the world through which we pass. Failing to do so, we do not fulfill our destiny. There is a fine | sentence which some one struck off in which he said, “I shall pass through | this world but once; any kind act that | 1 may perform or any kind deed that | I may do, let me do it now, let me not | defer it or neglect it, for I shall not pass | this way again.” If all of us could begin | the new year with a determination to fulfill this precept, it would change the | whole critical situation in which we now find ourselves, restore the world’s order | |in the interests of their fellows and we and usher in a new day of happiness | and prosperity. If we are to walk looking about us, and doing so with kindly and under- | standing sympathy for those with whom | we have to do, we shall bring about a situation that will lift from the backs of those now overburdened the cares that distract and destroy them. It may be a counsel of perfection, but at least it is worth trying The second admonition contained in the text has to do with so recognizing the circumstances and events that at- tend our way that we shall sce in them new opportunities for service. The writer likens the world to a great mar. ket place in which is displayed certain wares that constitute opportunities. To | have the capacity not only to see and | admire them, but to buy them up, that by our use of them we may enrich others, m=ans to lend to life both profit | and privilege. Most of us have a fairly keen sense of material values, but we employ it largely for self-interssts. We | rarely buy up opportunitics for the good | of others. The artist, the poet and the musician who caercises his talents does 50 that he may contribute to the hap- piness and refinement of life. Many of those who have been the great bene- factors through the exercise of their genius have known little of emolument and less of praise in their lifetime. Without them the world would be im- poverished. They bought up the oppor- tunity, gave themselves selflessly to it record their names among those Wwho | have benefited mankind No one is 50 poor that he cannot con- tribute to the betterment and enrich- ment, of his fellows. The great Master said that even a cup of cold water given in His name to one who is thirsty has its definite reward. He did not magnify the size of the gift, but rather the spirit of the giver. The fine lines of Sir Launfal suggest what we have in mind: “Who gives himself with his gift feeds t Himself, me.” ree— his hungering neighbor and Capital Sidelights BY WILL P. KENNEDY. Review of some of the national politi- cal conventions in Chicago, where the Republicans, and probably the Demo- crats also, are going again this year, made in this column several weeks ago seem to have caught the popular fancy, since many requests have been made for thumb-nail sketches of other national ccnventions. * ok k% The national Democratic convention in Chicago, starting August 30, 1864, was largely attended. Political excite- ment was more intense than at any previous period of the war, for there were two factions in the Democratic party—a peace faction and a war fac- tion. The contest, therefore, was over the declaration of principle rather than on candidates, for it was very generally conceded long in advance that Gen. Mc- Clellan would be the nominee of the convention. In fact, there was no other candidate named in the convention, though former Gov. Powell of Kentueky sought to name one, but withdrew. Pendleton of Ohio was nominated for Vice President on the first ballot, When McClellan had been put in nomination the more extreme, or peace men, de- nounced him very bitterly, B. G. Harris of Maryland, then a member of Con- gress, took the floor and assailed Me- Clellan as a tyrant and despot and charged him with being no better than the Republican candidate from this standpoint. His grievance was Me- Clellan’s conduct early in the war in arresting the members of the Maryland Legislature who had assembled at Fred- erick to pass an ordinance of secession. During the excitement Harris was knocked down by Editor Storey of the Chicago Times and for a while it looked as if the convention would break up in a free-for-all fight. Mr. Harris and his supporters soon became reconciled to the ticket, as the platform declared the war a failure and pronounced for a national convention to take steps to bring it to an end. Mr. Vallandigham, who had just re- turned from running the blockade from the Southern lines whither he had been sent by Gen. Burnside's orders, was one of the heroes of the hour and the peace platform was due largely to his efforts. The inconsistency shown in placing a soldier candidate on a peace BY FREDERI ‘Washington, Capital City of the Na- tion from the point of view of Govern- ment, also has become the book capital of the Western World. It possesses some 200 libraries available to the public in varying degrees and on their 100 miles of shelves are to be found more than 19,000,000 volumes. | them all, ranking, indeed, as the third Jargest library in the entire world, de- spite its youth in comparison with the European collections. First of all li- braries in the world ranks the Biblio- theque Nationale at Paris, with its amazing store of 4,400,000 volumes and additional thousands upon thousands of priceless manuseripts and scrolls. Many of the latter date back to the days be- fore Gutenberg invented the printing press. Although the British Museum ranks | second as a library in the world list, it | actually possesses fewer books than ihe | Library of Congress at Washinc on. Au- thorities state that the Britich Museum contains 3,200,000 volumes, whereas the Library of Congress has 3,800,000, How- ever, the British Museum has a larger collection of manuscripts and other library material of great value and rarity. The Library of Congress has, espe- clally in recent years, been building up its special sections. The manuscript division annually has accessions of tre- | mendous historic value. Most of this is | Americana, but there are many invalu- | able manuseripts in the collection from all parts of thz world. The music sec- tion is one of special interest. Here are | to be found priceless manuscripts of | sheet music. Much attention has been | given to the map division. In some respects this division has an_interest above that of the great European libraries. From the days of Columbus | the New World was a source of much | speculation in Europe and cartogra-| phers, with or without sound data, made elaborate and often fanciful maps of | Amerjca. Many examples are in the | Library at Washington. Great Special Libraries. The Library of Congress 1s & general public library and is visited by thou- The Library of Congress presides over | Libraries in Nation’s Capital C J. HASKIN. | to agriculture, husbandry in all its | branches, agronomy, and egricultural | economics. Bome 200,000 volumes -are on its shelves. In the field of business one finds the Department of Commerce Library. Al- though next to the newest executive department of the Government, this | branch already has collected a library of more than 100,000 volumes. These deal with foreign traae in all its aspects, shipping, production, merchan- dising at home and abroad, and every other subject which comes under the general heading of eommerce. Another library reputed to excel any other of its type in the world is the special library of the United States Geological Survey. More than 200,000 volumes are found in this collection. They are practically all of a scientific and technical nature. Valuable Reference Libraries. Th> Department of Labor has a library of 115,000 volumes. The union labor movement developed more rapidly in this country than probably anywhere | else. Particularly in the last quarter of a century there has been an outpour- ing of books on labor subjects and these | are all to be found in this Government collection. There is a world of romance to be dug out of the archives treasured in the State Department Library. White papers, books of early diplomatic cor- respondence, together with vital his- torfes bearing on State Department business, can be found there. The Navy Department, in connection with its historical section, has amassed a substantial library on naval affairs dealing largely with American naval history. In the various other governmental establishments are to be found libraries ranging up to 100,000 volumes. These may be consulted by the public with the permission of officials in charge. ‘There is no regular borrowing system as at the Public Library, originally the gift of Andrew Carnegie, but books may be consulted for reference. ‘Washington is the headquarters of many private organizations, The Bu- reau of Railway Economics, for example, an organization supported by the rail- roads, has a library of 125,000 volumes. build great public works and industries platform in about the darkest days of | Gnis daily. Some of the special| These books all bear on the railway ine article, and in those that are to follow, to the presentation of the history of fiscal relations in the Mapes Committee report. In several instances the Mapes Committee's brief outline of preceding events chooses to ignore facts of much greater significance than those selected for emphasis. This is particularly true with reference to the Mapes Teport's allusions to the report of Senator Southard, as chairman of the Commit- tee on the District of Columbia, made in 1835. Attention of readers of today's article is invited to the comparison be- tween the brief excerpts from the Southard report as they appear in the Mapes report and the meaning of those excerpts when read in connection with the context It is a fact, supported by plenty of evidence, that much of the endless and | tiresome dispute over the obligation of the Nation to Capital development arises from & misconception of the plan of the founders when they set about | establishing and building a Capital in the heart of the wilderness. The pres- ent controversy is merely one of a long line of disagreements that have a com- mon source in such misconceptions. And it is peculiarly unfortunate that mis- conception of the fiscal relations issue can result as much from prejudice as from a lack of knowledge of the facts. “In the investigation of the subject committed to them, and of the relief proposed, the eommittee has been un- able to separats the interests of the Distriet from the interests of the United States. They regard it as the child of the Union—as the creation of the Union for its own purposes,” the Southard report declared. No better basis for approaching the problem of fiscal relations with a view to equitable adjustment has ever been, or can ever be, laid down than that. If such & basis can be agreed upon, and protagonists should always be able to regard it as common ground, a good deal of futile conjecture over why the United ! States should do this or that in regard to Washington could be eliminated at the outset If the Federal Government were not here, there would be no Washington. It is the one city in America whose only reason for being is the Federal Government. It is the only city that was carved from virgin territory by the Federal Government, which took it for its exclusive use. It is the one city over which the Federal Govern- ment exercises exclusive jurisdiction, whose Tesidents are denied the power and privilege to govern and to tax themselves And a study of the points developed | in today’s article, and those to follow, will show that it has been the failure to recognize these facts, or, reeogmzmgi them, a failure willingly to assume the great responsibility thereby imposed upon the Federal Government, that lies behind past as well as present con- troversies over support of the Capital. b Even non-bridge players now owe & debt of gratitude to the great tourna- ment, for has it not given us the elegant epithet, “Big hunk of beef-| steak”"? A Appointment Through Forgery? PFormer Attorney General Harry M. | Daugherty, in & book about to be pub- lished, makes an amazing charge against Albert B. Fall, his colleague in the cabinet of President Harding. Ac- cording to an advance statement re- garding the forthcoming volume, Mr. | Daugherty, who was forced out of of- fice in 1924, at about the same time| that Mr, Fall left the cabinet under | Executive pressure, avers that the New | Mexican geined his appointment as Secretary of the Interior through a forged telegram to the President-elect. His statement follows A. B. Fall and I could never have been chums in any political enterprise. 1 think at the last moment President Harding began to feel the unspoken antagonism between us and hesitated to make the appointment, Fall met the crisis in his usual buli-headed fashion. He sent Harding an urgent telgram his immediate appointment and signed my name to it without phoning me, wiring me or in any way hinting his purpese. Which men;f he boldly charged to A, B. Fall e appoint- ment was made and & mine laid for an explosion about to shake the Nation. This is decidedly plain speaking. And it calls for more plain speaking, to tell of Mr. Daugherty's discovery of the improper use of his name; to tell of the relations between the two men during abroad. cumstances, deavored to ascertain how these for- eign securities have been floated here, and with what profits to the so-called profits or losses to the investing Amer- ican public. houses, floated in the United States about $3,- profit to the banking houses has been | reaus that are now transferred will have Isolation of this country from the rest of the world, under these cir- seems an impossibility, whether desirable or not. The Senate committee has en- international benkers and with what It has developed the fact that three great American banking since the World War, have 958,188,000, or about half of all the foreign bonds outstanding here. The profits of these houses in the flotations in the handling of which they partici- pated have been large. Outside of the net profit to various intermediaries and agencies which took some part in the transactions. The business of the international bankers in this country is not to buy and hold foreign bonds. It is to sell them to the investing American public. The consequence is that these foreign bonds have been widely distributed. They are held by American corpora- tions and by American banks, as well as by the individual investors. Whether the international banking group has acted in the best interest of the coun- try by its flotation of foreign bonds on huge scales in the United States is a question to which various answers prob- ably will be made. The great wealth in this country has sought, and will continue to seek, fertile fields of in- vestment. Money always does. Doubt- less there are many investors in Amer-‘ ica today who wish that they had kept their money in this country. On the other hand, the list of American se- curities which have tumbled in market value since the depression set in two years ago is long and impressive. It is not a good thing for a banking group to dominate the foreign policy of this country. There is too much at stake to allow any group, which may be guided by self-interest, to dominate the policy of this Government toward other peoples of the world. The criticism is frequently raised today that interna- tional banking interests, wielding great power because of the huge sums of money and the large number of in- vestors whom they represent, have too much to do with the foreign policy of | this country. These criticisms are un- fair to the administration of the Gov- ernment, whether they were made dur- ing the Wilson administration or during that of President Hoover. This Gov- ernment faces a situation, not a theory as can readily be understood when the evidence now presented before the Sen- ate committee is digested. The Govern- ment has never undertaken to say to its citizens where they can or cannot invest their moneys, here or abroad. Nor is it likely to do so. But it is the duty of the Government not to let the investment of American funds abroad influence its policies to the detriment of the entire people. e In Sumatra monkeys are trained to climb trees for coconuts. In South Africa, it is said, baboons are trained to work in the fields of the Boer farm- ers. It may be noted also that there is little unemployment among gorillas in the U. 8. A —_——— The Government Chess Board. An immediate consequence of the removal of the bureaus of the Depart- ment of Commerce into its newly com- pleted building is a general shifting about of Government offices, as spaces vacated by the Commerce Department's various branches are at once to be filled by offices that have heretofore been inadequately housed, mostly in rented quarters. These moves are made nccording to a carefully planned sched- ule, with & view to a maximum use of the released spaces. In time these bu- their own establishments as the Gov- ernment’s building program is carried out to completion. One of the oddities of this shifting incident to the occupancy of the new Commerce Building is the transfer of a portion of the War Department from the so-calld State, War and Navy Bullding to the structure that has just been vacated by the Commerce De- partment itself, this to give more space to the State Department, which even- tually will oceupy the whole of that structure, the exterior of which is soon to be remodeled to approximate the the three years that elapsed before the explosion. Perhaps there is more, in- deed, on this subject in the book itself. Certainly Mr. Fall, despite the fact that he is now confined in prison, will say formerly occupied the eastern portion of his to make America pay for the that ft be produc appearance of the Treasury Depart- ment. The War Department, in turn, |laughing and enjoying themselves they Far too many District motorists ap- pear to be of the opinion that “right of way” applies to a raliroad track and nothing more, —_— e Some would like to read about | tug-of-war between teams Tepresenting the Heflin election contest witnesses and the Ella Wendel heirs. ——— “When in doubt,” levy a new tax,” seems likely to be 1932's outstanding slogan. e Add similes: As instinctively as one circles a plump panhandler. It is & curious coincidence how often impetuosity is followed by impecuniosity. —_— et SHOOTING STARS. BY PHILANDER JOHNSON. A Planet With Speed. When Shakespeare made the statement that this world is all a stage He pictured what we must regard as quite & different age; An age when men gave study to the roles they undertook And forms and courtesies prevailed which none might overlook. The merry villagers came forth in song upon the green; The aristocracy with easy grace ob- served the scene. There was in truth a deal of superficial show, And the action of the drama, though intense, was often slow. At present we are going at & swiftly modern pace; There's real ginger in the troop they call The Human Race. The aeroplanes are buzzing and the lights are all ablaze. And we do in twenty minutes work that formerly took days. We take our pleasures swiftly and our griefs are soon forgot; No permanent emotion animates our earthly lot, And we're forced to the conclusion that the days of long ago Have vanished and the world is now a moving picture show. The Purpose. “You don't remember what was in | el your party platform?” “Not exactly,” replied Senator Bor- ghum. “A party platform is made to be listened to, not remembered.” Reporting Progress. “How are you getting on in society?” “First rate,” replied Mr. Cumrox. “I observe that we are inviting an entirely different set of people from those who came to our first party. And instead of American Business Is Demanding a State-Credit System to Remedy Ills BY WILLIAM HARD, ‘ American business opens the new year | apparently quite unable to manufacture | its own red corpuscles and loudly call- ing upon the Government at Washing- | ton for a blood transfusion. That is what all the pleas now di- rected to the Federal authorities leave| behind them as their residuum when the fire water of oratory is boiled out.| These pleas come from bankers, farm- ers, radicals, reactionaries, the poor and | the rich. All alike want the Govern- ment to transfuse its resources into the bloodstream of private enterprise. The | year 1932 bids fair to take the Ameri- can private-profit system and add to it a State-credit system. 3 The policy of the administration is to pump enough credit into the body of business to enable it to survive with a minimum of bankruptcies among finan- cial and industrial and transporta- tional institutions. This is in a con-| siderable degree a reversal of the prac- | tice prevailing in previous depressions. Then there was more governmental in- | clination to let “nature” produce all the | bankrupteies she could and to let her| “take her own course” toward & revival thereafter of business health. * * | The advantage claimed for ‘“nature” was that she eliminated a large num- ber of feeble institutions, cleansed others of their excesses of bonds and other debts, and ultimately gave us once more & business society purified of its weaklings, lightened of its capital bur- dens and gble again thereupon to stand | and run. The defenders and advocates of “na- ture” still exist and are sometimes heard in Washington, speaking to the authorities of the Government in mel- choly tones on the theme of the fine old depressions of the past, which, as they say, did endless good by sweating useless and dangerous elements out of the business y and by restoring it thus to & new abounding athletic vigor Indeed, these protagonists of a bygone era often earnestly declare that the| artificial expedients, as they call them,| of the present moment will collapse and | that we shall yet find ourselves seeking the promised land via the anclent es- tablished receiver route. | Such anal, and such prophecies constitute, however, only a minor dis- cordant note in the chorus of demands for Federal governmental intervention. This past week in Washington there have been many national meetings of learned doctors of business. These doc- tors call themselves economists and are members of distinguished academic so- but many of them are in the employ of large corporations and are paid large salaries for the supposed or actual commercial value of their stu- diousness and of their advice. It has been very noticeable that most of the advice they have given here to the Fed- eral Government has been to the effect that the various Federal governmental boards and bureaus have not yet inter- vened in our business catastrophe enough. Several of them declared in this writer's hearing that they did not at all fear the word “inflation.” They, in fact, desire the Government to “inflate.” * stand around awhile and then say, ‘Good night. We've had a charming evening.' " A Seasonable Confession. We sing about the Wintry snow And vow its joys are many, But just the same—oh, whisper Jow— ‘We're glad there isn't any. Slightly Monetonous. “I suppose you are happy now,” said the slightly envious friend. “You have everything absclutely your own wa: “Yes,” replied the suoccessful man, “but having everything absolutely your own way is something like turning the game of life into solitaire and stacking the deck.” Reflections in a Restaurant. Oh the oysters are not so inviting And the soup and the fish aren’t much. The chef seems inclined to be slighting Each dish that he chances to touch. The roast isn't what you expected And the service is marked by delays. But cheer up! You've not been neg- lected— How sweetly the orchestra plays! The strains of & beautiful ballad ‘With keenest enjoyment are heard, S0 who shall find fault with the salad Or speak with disdain of the bird? Mere food is not worth admiration, ‘While art is a thing to adore. Don’t eat, but observe with elation ‘The dancers trip out on the floor! “I can't help noticin’,” said Uncle Eben, “dat Santy Claus an’ his sleigh goes out o’ business mighty quick, while de ambulance driver keeps comin’ Kaiser Was Right. Prom the Fort Worth Star-Telegram. If BUI Hohenzollern of Doorn were will eventually have its own home, just as will the Navy Department, which | 8Pring a huge “I told inclined to be otistical, h ht ¥ you so” omn world. Remember that elaborate plan something. Mr. Daugherty has ac- of the tri-department building, but now war? Well, aren't we? They desire the Government to use all | feasible means to swell the amount of credit available to the business enter- priser. They assail the Federal Reserve sys- | tem for not buying more Government bonds in the market and for not thus| increasing the amount of money in the pockets of individuals and in the bal- ances of banks. They want the Federal Reserve system to buy so many Govern- | ment bonds and to put so much money thus into the balance of banks that | those balances will become “excess bal- ances” and the banks will search eagflly‘ for borrowers to take the money away. | The Federal Reserve system tends to | reply that the trouble is not with the amount of money available, but with | the willingness of the banks to loan it | and with the ability of prospective bor- | rowers to commend their projects to| bank officials, The Federal Reserve banks stand ready, it is observed, to| rediscount the loans made by member banks to worthy borrowers, but worthy borrowers—worthy in the eyes of bank officials—do not sufficlently ceme for- | ward. The existing difficulty, as the ' Federal Reserve system apparently views it, is not lack of courage on its own part, but lack of confidence on the part of the people at large. : % A legitimate deduction might be that such devices as the recently erected National Credit Corporation under pri- vate auspices with governmental inspi ration and such devices also as the pro. spective Reconstruction PFinance Cor- poration under direct governmental | ownership and management would avail | us little as long as confidence on the part of the peogle at large had not re- turned. Nevertheless that deduction is not generally drawn. The Federal Re- serve authorities themselves were largely | instrumental in many fnstances in sug- gesting the existence of the National | Credit Corporation and are now in ' many instances lnrge]y instrumental -ann in bringing the Reconstruction | nance Corporation into prospective being. To that extent the Federal Re- | serve system itsel’ is bent upon what is called “inflation” by ‘old-fashioned | crities. * % x % It can thereupon be fairly reasonably maintained that almost all of Washing- | ton is today, in one way or another, | “infiationist.” Senator Shipstead of Minnesota, most heroic of all Washing- tonlans in Ris “inflationism,” demm&s ed through deltberate expansions of the currency. He is for | by an equal disregard for a gold back- |to be called derisively outrightly printing more of it. If the British have improved their situation through pound notes no longer tainted in international commerce by & gold background, Senator Shipstead is will- ing to improve the American situation ground here. This advocacy by him of what used “fiat money” awakens objections now but no great number of laughs. Almost any idea has become respectable here now in the midst of the obvious present failure of all economic philosophies hitherto called “sound.” In fact, the tendency here toward flirtations with theories hitherto denounced as ‘‘unsound” is glaringly and sensationally obvious in even the highest and most cautlous quarters. PR A day or two ago this writer heard one of the most eminent' of Federal financial authorities discourse among friends, as follows: “The gold standard is a rule for the maintaining of international economic health, It is a rule applicable to a condition of health. When a condi- tion of health does not exist, the ex- istence of the gold ctandard may be- come an error. A sound man needs one sort of way of life. A sick man may need another. I think it might have been advantageous to us last Summer if international circumstances had forced us to abandon the gold standard. We ought not to seem'to abandon it of our own motion. If, however, we could seem to be nushed off it, we might experience not an economic loss but’an econdgmic gain.” X x % When such sentiments can be uttered amid the pillars of contemporary eco- nomic soclety, it is not surprising that | Senator Shipstead's defense of gold-less money is regarded as no great exploit in_incendiarism. The rock-bottom base of Senator Shipstead's contention is simply that “inflation” by more curreney is neces- sary because inflation by mare borro in and by more credit is evidently fail- ing. The credit “inflationists” main- tain on the other hand that they have not yet really begun to put their philos- ophy into action o When the President’s new home loan banks have issued half a billion of dol- lars of debentures, when the Presiden new Reconstruction Finance Corpora- tion has issued two billions of them, when Secretary of the Treasury Mellon has issued two or three more billions of dollars of Federal securities for the meeting of the deficit and when Senator La Follette has secured (if he does se- cure) the issuing of five billion dollars of Federal bonds for the construction of public works, then, and only then, we shall see, it is claimed, what credit can really do. The rejoinder of the unconvinced is that in their view the depression was caused by excesses of private bonds and other private debts and that they defi- nitely do not believe that the remedy can be found ‘in supplementing private debts by new loads of public debts. The retort to them Is that they are academic and theoretical Certainly they do not seem likely to have their way. The pressure of circumstances is against them and the prospect holds that during the next 12 months we shall see American business individ- ualism deeply penetrated by American credit statism. (Copyright, 1832.) - Forced-Labor Goods Banned From Import | BY HARDEN CDLFAX: The Bureau of Customs in the| Treasury took over & new job. Satur- day, the effective date of provisions of the tariff act which bar the entry into the United States of s, wares and merchandise produced by forced or indentured labor. That is not all of the story: Hence- forth the bureau must serve as judge and jury and technical surveyor of the country’s needs of any commodity which by any chance reaches Ameri- can shores from lands Wwherein it is suspected that forced or indentured labor is used. Such is necessary be- cause Congress prescribed in the law that these products, though produced by forced or indentured labor, are ad- missible if American supplies are in- sufficient to meet American demands. Thus Commissioner Eble of the Cus- toms Bureau foresees plenty of trouble. He says the task is certain to be bur- densome and difficult, but he adds that the Customs Service és acquainted with extraordinary jobs and is hopeful that it will measure up again. i vy rovisions lfimghgo:: an American policy denouncing of forced mdps?mentured labor are just now going into effect, the policy was decided uron by Congress and enacted as part of the tariff act of 1930, when that measure became law in June, 1930. It coupled the ban on this type of product with that produced by con- victs, which long has been refused ad- mission and which itself has kept bu- reau officials awake at night on nu- merous_occasions Mr. Eble explains that it is not the matter of determining Wwhere or when forced or indentured labor is used that constitutes the great worry for the bureau, but the new duties of de- termining whether American produc- tion is sufficient to supply the coun- try’s demands. There 1§ so much pos- sgmy of doing injustice that any con- sclentious public official is likely to get Although the pi the war proved to be a blunder that drove thousands of Democrats into the Republican party and swelled the flood- tide of its victories for years to come. The day the convention met the gold premium touched the highest point and the fact was placarded along the principal streets. This convention was also held in the old “Wigwam.” * k% % In this holiday season it is inter- esting to note that a native resident of Bethlehem is serving in the National Congress—Representative and Maj. Wil- liam R. Coyle of Bethlehem, Pa. Coyle not only had a distinguished World War record, but his family have a distinguished record in the U. 8. governmental affairs, and he himself is a very sincere friend of the National Capital. One of his ancestors moved with the Government from Philadelphia to Washington. His grandfather, Ran- dolph Coyle, was city engineer for the District of Columbia and laid out many of the important thoroughfares of to- day and established the grade of prac- tically all the streets most in use to- day. His father—also a Randolph Coyle—was senior assistant United States attorney and had charge of the preparation and prosecution of Guiteau, the assassin of President Garfield. Representative Coyle served in the U. 8. Marines from 1900 to 1806. He was captain of the 4th Regiment, Na- tional Guard of Pennsylvania, in 1913, | and again served in the U. S. Marines in 1918. He is ready to put on his fighting togs again any time to help the disen- franchised people of the National Capital, who he feels are being treated like stepchildren, but with all the possibilities of a Oinderella future. 1999 Settlement Year. From the Worcester Daily Telegram. If things keep on at their present | speed, we probably can have a joint celebration of the settlements of the Manchurian problem. the war-debt problem and the prohibition problem in February, 1999. - relatively, in their immediate flelds. libraries have as great an importance, | dustry and constitute the most com= For | plete collection of the sort in the world. Eavesdroppers on Phones. From the Topeka Daily Capital Kansas is reported to be second among the States in number of rural telephones, but it is safe to clalm that Kansas doesn't take second place to any State in the amount of rural tele- phone eavesdropping. ——— Fiction Beaten at Polls. From the Daston Daily News. Edgar Wallace, a detective story writer, was defeated for election in England. It seems voters prefer their fiction in party platforms. furrowed brows from that phase alone, not to mention the flarebacks that may result when the decision steps on com- mercial toes. * % X ( happen under the provision: Growers of long-leaf wrapper tobacco, a high- grade product, several months ago asked the bureau to bar admission of Sumatra tobacco. There has been no particular question that Sumatra plan- tations were not using forced or inden- tured labor, so the fact was easily de- termined. But the American growers maintained they could supply Ameri- can requirements and that was some- thing else to be decided. The bureau had to study the q‘uel- tion thoroughly. It had to learn from the tobacco manufacturers what quan- tities they used annually and from the producers how much they produced each year. In addition, it had to sat- isfy itself that the American product was commercially the equivalent of the Sumatra product. Eventuadly, the bureau was gble to rule and it held that Sumatra tobacco could continue to enter the United States because the Americans were not able to meet the market demand. X % % % An attempt has been made by the bureau to soften its job somewhat by drafting regulations carrying out the provisions of the statute. It may be said, however, that At best they are mere generalizations and cannot re- move the millstone from the neck of the bureau. The language of the law is, such, also, as to complicate the work and it serves as an open letter inviting almost anybody to come in and complain. The statute says, respecting determination of the question whether forced or indentured labor is being used, that the commissioner may in- vestigate of his own volition, or he may make the investigation upon com- plaint of American manufacturers, pro- ducers, wholesalers or importers, rep- resentatives of American labor organi- zations “or other interested parties.” When the provisions were being de- bated in the House and Senate various American interests whose source of supply lies abroad were on hand to make sure they were not cut off. Among these were the Importers of rubber and coffee. Congress recog- nized the possibilities and included me limitation of authority that has re- sulted in making a market surveyor of the bureau. Otherwise, there might be only a small amount of coffee and less rubber imported, for there is much use of the objectionable labor system in the native habitats of those com- modities. * k% Commissioner Eble says it is a little early to know just how many com- modities and how many countries are going to be adversely affected by the provisions. Bureau officials have ideas that many of them will have to be watched and they are proceeding to look up the facts. In the meantime, however, there is no disposition to prejudice any country or commodity or n&mdlvid\ul case by stating bureau opinion. (Copyright, 1832.) Here is an example of what can|q¢ p; example, there is the Army Medical Library. It is doubtful whether it is sur ied as a special library anywhere nan certainly the largest in the world. | Aside from the number of volumes, itl has a special importance in possessing | 2,000,000 card entries bearing references | to 600,000 medical publications. It was | the Army Medical Library which in-| vented the index medicus, a system of cataloguing medical data which is the | standard for the world. | The Army seems to have had a spe- cial bent toward book collecting. In ad- | dition to the Medical, it has the Army War College Library. This is a collec- | tion of 250,000 volumes dealing with the history of war, especially from the tac- tical and strategic viewpoint. The War | College is a school for Army officers, a | post-graduate school where the higher niysteries of tactics are taught staff offi- cers. The Department of Agriculture has gone far ahead of most other countries in its fleld. It probably now has the! world's largest special library devoted The Pan-American Union has a col- lection of 50,000 books on Pan-Amer-~ icana and there are the llbraries of Georgetown and George Washington Universities, both substantial. One of the finest collections of books on the subject of Preemasonr?' in the world is to be found in the Library cf the Scottish Rite at Washington. Here are some 100,000 volumes dealing with the history and the mysteries of this ancient order. In this library will be found an outstanding collection of tha writings of Robert Burns; as well as books written about him. Altogether, thers are 200 libraries, in- cluding the large and the small, and, in addition, 60 statistical agencies. It is said that if a man of normal life-span spent 12 hours a day, from the time he learned to read, in an at- tempt to devour all the volumes in the | Library of the Sorbonne at Paris, he would die before he had finished those in the first alcove. He would be dis- couraged before he started on the 10, 000,000 volumes in Washington. Fifty Years Agof In The Star National attention was centered upon the trial of Guiteau 50 years ago and the extraor- | Judge Cox's Conduct ginary con- Of Guiteau's Trial. duct of the 3 prisoner i n| the court room gave rise to unjust | criticism of the presiding judge for | permitting his outbursts and harangues | and interruptions, which in fact he was | powerless to prevent. The Star of De- ! cember 27, 1881, thus comments upon | the matter: | “Much of the abuse heaped upon Judge Cox by home and foreign news- pers is unjust, as all appreciate in ‘ashington who know him. His up- right character and fine legal abilities and judicial mind eaused his selection for the position on the District bench to-be universally regarded by our com- munity as a most worthy one. His course upon the bench up to the pres- ent trial has tended to confirm this be- lief in his fitness for the place. In dealing with Guiteau he has had a task of exceptional difficulty, and it is not easy to see exactly how he ceuld have managed to keep the colossal egotism of the detested criminal in entire check. It is conceded now that how- ever great the provocation to abate the nuisance by gagging him or removing him from the court room, such pro- cedure would probably have vitiated the trial and given Guiteau a chance to escape the gallows. Judge Cox has doubtless acted uj his best judg- ment, fortified perhaps by the advice is associates upon the bench, in so conducting the trial that there shall be no opening of this sort for upsetting its results. While his general policy on this line is probably sound, there is a fear expressed, and amongst those who have a high regard for his char- acter and attainments, that the extent to which he carries his tolerance of the prisoner’s offensive conduct in the court room may tend to impress the jury with the idea that the judge be- lieves him to be irresponsibly and irre- pressibly insane, and therefore beyond the control of the court. Many of Guiteau's interpolations and interrup- tions are made with such lightning-like swiftness that the court could hardly intercept them before they are de- livered; but he frequently proceeds at considerable length to villify the wit. nesses and counsgel for the Govern- ment. This is gross contempt of court, as well as an outrageous violation of the rights of counsel and witnesses, and can only be tolerated upon the assumption that the prisoner is insane and therefore beyond the ordinary rules of tne court room. The judge should, therefore, interpose a prompt and per- emptory command of halt to the pris- oner when he indulges in these offen- sive tirades, both for the protection of the court and for the benefit of the Jui Even if he should fail to effec- tually silence the prisoner the decided (effort in that direction would have a v/\llltq!exome effect in the way pointed * * % The day following this publication Guiteau’s “conduct became so Violent R n the course of the Guiteau Put proceedings th aé Judge Cox orderes In the Dock. ;in*iaced in the The Star’s report of December 28, 1881, says: “Judge Cox said that it was hardly necessary to say that the conduct of the prisoner had been one of resist- ance and deflance. The only meas- ures that could have been adopted at the outset were such as would infringe his constitutional right. Until Satur- day no other measure had been sug- gested. ‘Then the question was sug- gested in the form of a motion that the grisoner be removed to the dock. It ad been the opinion of both the court and the counsel that the prisoner | should be allowed some liberty, as his own actions in court would be & cri- terion of his mental condition. It was through the expressed desire of the dis- triet attorney that he was allowed such Iatityde in order to furnish oprur- tunities for observation to expert wit- hesses who wished to diagnose the case. At this stage of the trial, the object having been accomplished, the aspect of affairs was changed. ‘It does seem to me that it is in- ;umbvnz on met tr;:}!v.' l;aor::lnu:d udge Cox, ‘to gran! e application to forcs such festraint upon fige prisoner Europe Anxious as to Results of Meetings BY A. G. GARDINER. LONDON, January 2—The most critical New Year since the World War has dawned over a Europe breathless with anxiety. ‘The gravest fact now apparent to all the world is that Germany is on the brink of an economic collapse. The latest figure of the unemployed ap- proaches 5,500,000, and it is antici« pated that this will be more than 6,000,000 before the Winter is over. Of this total, 4,500,000 are receiving in- surance or welfare benefits of some sort and nearly 1,000,000 are entirely un_grovided for. he impoverishment of the le equals anything exkperienced in the darkest days of the war and movi descriptions are given by observers ol the desperate extremities to which people are being driven to keep body and soul together. A certain wild levity | still marks the night life of Berlin, though the disappearance of foreign visitors has led to the closing of some of the most famous cafes. * .8 | It is in the country where distress is most naked. In the Ruhr, hundreds of | the poor and unemployed are seen with | soap boxes on wheels, raking in the | mire round the mountains of coal for | lumps which have iallen by the | way, and in the countryside scratching the harvested fields for any potatoes | that might have been left behind. | With the issuance of the Basel ex- Tts' report, the hopelessness of an- | ticipating the resumption of Germany's | payments finally has been demonstrated | and the problem facing the coming dip- lomatie conference at Lausanne ta that | extent is clear. The British position in regard to a solution of the problem has | been indicated in the exchange of hotes | with Paris. The question is not what can be extracted from Germany, but what measures are necessary to prevent default and an economic and political | ¢rash, which would shake Europe to its | foundations. | s, e The Reichsbank cover is nearly ex- hausted and its financial fabric rests on & vast volume of short-term foreign credits frozen by the “standstill” agree- ment till next month. Unless the agree- | ment is renewed voluntarily, open de- fault is inevitable. In the British view, the restoration of German credit is vital to the recovery of Europe and the world. Mere exten- sion of the moratorium for two, three or ven five years is insufficient to achieve this end and a drastic sweep of war debts and reparations is necessary to restore the credit of the country and | the confidence of foreign leaders in its | ability to honor future loans. * ks e As the London Times remarks, “a mere moratorium which left Germany's ultimate liabilities untouched would simply prolong the agony and lead to a further and still more dangerous crisis. | That is why the British government in | its recent note pressed strongly for & permanent solution of this question, which has vexed Europe and the world for more than a decade.” What in the face of this desperate situation will be the action of the con- ference® France has been difficult, but undoubtedly the debates in the Ameri- can Congress have modified her atti- tude and the Paris press pretty gener- ally insists that in view of the position cf the United States in regard to the debt problem, it is more than ever necessary that Prance and Britain shoud pursue an agreed policy at the conference. But if so, France must | accept the British vlew that reparations be cut with war debts. * % % * How far Franco-British rapproche- ment is possible is only a matter of speculation. However, the conversations between the French and British treas- uries are proceeding and it is that a measure of common policy will be reached for submission to the Lau- unq:lfi:!onfinn::. Rumor suggests the possil of a bargain covering repara- tions and disarmaments, but this at the present is pure speculation. It is ex- pected that both Premiers Laval and MacDonald will attend the conference, at all events for the critical discussions. The decision of Was in re to u:e conference is awaited with in- terest. (Copyright, 1932.) consideration I thifik I will direct the marshal to remove him to the dock.” ‘When the trial was resumed the next day Guiteau was given a seat in the 85 s necessary to preserve order. Upon dock between and ained in {55t position. to the end of the GiAL