Evening Star Newspaper, April 3, 1932, Page 2

SMOOT. APPEALS FOR TAX SUPPORT Extensive New Levies Are Wecessary, Senator Tells “Little Congress.” ‘The welfare of the Nation depends on balancing the budget, and “we must tighten up our belts and face the issue,” Senator Reed Smoot of Utah declared last night at the annual din- ner of the “Little Congress” in the Shoreham Hotel. To achieve this end, he sald, it 1s necessary to levy “extensive new taxes,” and then “we must forbid any new and unusual expenditures, such as pay- ment in full of the so-called veterans’ bonus, which is not due until 1945.” The proceedings of the banquet, which included speeches by Representa- tive Joseph Crail of California, Repre- sentative Paul Kvale of Minnesota, Carlton Mobley, 25-year-old Repre- sentative from Georgia, and Kenneth Romney of Montana, sergeant-at-arms of the House, were broadcast over a nation-wide hook-up of the Columbia Broadcasting System. Senator Smoot urged citizens to sup- port the stiff tax program of Congress. Must Face Issue Squarely. “We must face the issue of retrench- ment squarely,” he declared. ‘“‘We must put the Government’s house in order before we can e?ect private business and industry to do likewise.” The “Little Congress” is composed of secretaries to Senators and Represent- atives. They meet every Tuesday night in the House caucus room to argue public questions. Representative Mobley is a recent graduate of this forum. Last night ttl:e lauded the ex- perience he gained there. Representative Crail said all issues today, even that of balancing the bud- get, are subordinate to the question of unemployment. Work Paramount Issue. “A balanced budget, the soldiers’ bonus, Phlippine independence, restric- tion of immigration, preparedness for national defense, organized crime and world peace are demanding immediate attention,” Representative Crail de- clared, “but the paramount issue is a job for every citizen who wants work and is able to work.” Representative Kvale praised secre- taries of Senators and Representatives for their assistance in enabling members of Congress to have time to devote to the essentials of Government. Hugh G. Grant of Alabama, speaker of the “little Congress,” presented the master o fceremonies, Peter F. Snyder, Assistant Secretary of Labor. ‘The committee in charge of the af- fair consisted of George R. Stewart of i i _Mrs. Frances Arkansas; Robert Davis, Tennessee; J. R. Barker, Illinois, and Marvin Cox, Georgia. Mrtxeir. the speeches the evening was devoted to dancing. g WALL STREET OPENS CAMPAIGN AGAINST STOCK TRANSFERS TAX (Continued From First Page.) fled or tricken from the bill. There is doubt in some quarters, however, that ‘Wall Street will yeceive much- sym- hony, in view of the fact that many s hold the Street responsible for a good measure of the business de- pression. Wall Street, in turn, its leading bankers, has blamed legislative branch of, the Government for much of the confusion now existing. in the world, notably through the en- actment of the Smoot-Hawley tariff bill in 1930, which has lead to the imposi- tion of retaliatory tariffs against tbe United States throughout the world. Denounce Measures. ‘The leading partners of commission and brokerage houses are not nearly so Teticent concerning the measure, de- nouncing it as discriminatory, defla- tionary and confiscatory. John W. Prentiss of Hornblower & Weeks has been frankest in his discussion of the measures. It is & long time since Wall Street an attack of nerves like the present one. Threats are heard on all sides that offices will be closed perma- nently if the tax provision goes through, the members retiring from business or seeking other flelds of enterprise. ‘Through the Reconstruction Finance Corporation it is conceded Congress did something to help Wall Street in its extremity. It is beginning to be sus- pected, however, that any aid given by Congress to the banking system was not for the purpose of helping Wall Street, but solely for the purpose of pre- venting further losses to constituents through bank failures. ‘What the attitude of the Senate will be toward Wall Street’s protests on the La Guardia tax provision is doubtful. It 35 remembered that last year, despite strenuous protests, both Houses passed the soldier’ bonus legislation, and it is remarked that agitation has again be- in Congress for a payment of $2,- 0,000,000 additional in war bonuses. ‘While the voting of bonuses is not re- arded as a direct slap et Wall Street, 'cause many veterans and their or- izations are actively asking for nuses, 8 revenue measure such as that proposed on stock transfers is thought of as a frontal attack on the Inflation THE SUNDAY and Soldiers’ Bonus Terms, in This Case, Are Synonymous—Properly *““Controlled” Inflation Might Help, but the Problem Is How to Control It. BY JOHN CLINE. HE proposed soldiers' bonus bill is a deliberate attempt to inflate the currency of this country to the extent of about $2,000,000,- Its supporters—and they are numer- ous—are in no mood for quibbling. They state openly that the measure is an_inflationary step and they say that unless the currency is inflated the eco- nomic depression in this country will be prolonged indefinitely. This country, they say, is suffering now from the most severe currency de- flation in many years. They mean that the value of any given commodity, as measured in terms of money, has shrunk to an abnormally low level. Take the case of cotton. In 1920 1 pound of cotton had a money value of 40 cents. Today, however, the planter finds that his product is selling for 5 cents a pound and that 8 pounds now have the same money value that 1 pound had 12 years ago. This, it is argued, is & consequence of a gradual deflation of the currency. The remedy, they say, consists of in- fiating the currency back to its 1920 standard. Every citizen is vaguely aware that his individual business affairs are in some way related to and affected by the operations of the monetary system in | his country. Generally speaking. how- ever, he has no clear concepticn of the meanings of deflation and inflation, no understanding of the economic factors underlying these conditions, and no in- sight into the probable consequences either. Authorities at Variance. It 1s a problem concerning which eminent authorities conscientlously dif- fer. There are, however, certain basic principles that may be readily under- stood. The so-called soldiers’ bonus bill, as proposed by Representative Wright Pat- man of Texas, would provide for the immediate payment by the Government to World War veterans of about $2,000,- 000,000. The Treasury Department is authorized to print this money and it is made full legal tender. This fs inflation in simple form. Paper money of this character is noth- ing more than the Government's prom- issory note, secured by a certain amount of gold in the Treasury. There- fore, this measure would increase the total outstanding volume of the Gov- ernment’s promissory notes by $2,000.- 000,000 without a corresponding increase in the amount of security behind the notes. Inflation such as this would be utterly ruinous if carried too far. The question now, however, is whether it can be beneficial if Properly controlled. Concerning inflation generally, one authority has had this to say: “Currency inflation is perhaps the most fatal disease from which a na- tion can suffer. It destroys wealth and redistributes what is left in an arbi- trary and inequitable fashion. It makes extravagance a virtue and thrift a vice. It will ruin one man and en- rich his neighbor, and neither can stop-it. It is born of government ex- travagance and fosters that extrava- gance as it grows. Profits and wages ook princely, but in real worth, sink to penury.” But, says Representative John E. Rankin, of Mississippi, an ardent sup- porter of the bonus bill, a properly con- trolled inflation, with conditions as they now exist in this country, is the only thing that can lead us back to good times. While unlimited inflation would prove harmful, the same policy, properly ‘comtrolled and applied, can only prove beneficial. “Inflation - Now Beneficial.” $2,000,000,000 inflation at this time,” he says, “would prove beneficial to the numerically dominant debtor class. He (the poor man) would be able to purchase more commodities, thereby raising commodity prices in general. If the dollar value as meas- ured 'in commodities were restored by inflation, the farmer who borrowed $1,000 when wheat was selling for $1 A bushel would be able to repay the loan with 1,000 bushels of wheat, in- stead of 2,000 bushels as would be the case if wheat were selling for only 50 cents & bushel. It would wipe out the unfair and inequitable advantage which the so-called creditor class has gained by the abnormal rise in the value of money.” Senator Elmer Thomas of Oklahoma, another supporter of the bonus bill, recently said to his colleagues in the Senate: “Additional money added to circula- tion makes money more plentiful; to the extent that money becomes more | plentiful it becomes cheaper, and as money becomes cheaper commodity prices go up. 1 assert that as a prin- ciple, and I challenge any one any- where to deny it.” In advocating a reduction in the buy- ing power of the dollar, or inflation, Senator Thomas pointed out that this country now has a total amount of debts (public and private) of over $150,- 000,000,000. These debts, for the most part, were created years ago. when the dollar would buy about one-third as much as it will today. In other words, when the farmer was paid as much for one bushel of wheat as he now gets for three. Debt Grows $450,000,000,000. ‘This means, he pointed out, that based on the present purchasing power of the dollar, our debt has grown to mechanism of the capital market as it afi‘ today. DEMOCRATS HEAR HOOVER ASSAILED AT JEFFERSON DINNER (Continued From Pirst Page) that if they failed to achieve party harmony they might lose “the power to legislate.” “We must be willing to give and take, and to adjust opinions on matters of party policy, so that we may have a united party with a definite party pro- gram 'and a party responsibility the country can safely rely upon,” he said. “We know too well the danger of failure in this respect,” he continued. *We know there are many special mi- mority interests, some of them organized for purposes entirely credtable in them- selves, but each of them determined to press some one special idea or policy to the exclusion of other matters per- taining to the public welfare “If we fail in party organization and the party responsibility we may lose the power to legislate, and that power may be assured by a legislative majority made up by chance alliances between minority blocs whizl might unite upon some combination of unrelated nostrums and raids upon the Treasury.” The other speakers were Virginius R. Schackelford, president of the Virginia Bar Association and great grandson of ‘Thomas Jefferson; William H. Hicken, president of the club, and Mrs, Ed- ward Porter Humphrey, lawyer of Am;'nxm" read from Goy. R. 8. Was om . . Sterling of Texas, who, like all the ted s Democratic vic- in November. the prominent Democratic leaders all parts of the country who were present were Senator Burton . Wheeler of Montana, Senator Elmer omas of Oklahoma and Senator Kenneth D. McKellar of Tennessee. Preud’s work, from 1880 to the present time, has outiined an approach to psy- chology radically different from that of any peychological system, either ancient A a4 $450,000,000,000. Stated otherwise—if the debt were paid today in commodi- ties, three times as much wheat, corn, cotton, etc., would be required as would have been the case if the debt had been retired immediately after it was con- tracted. Selecting_cotton 8s a means of fl- lustrating his point, Senator Thomas declared “In 1920 cotton was selling for 40 cents a pound, or $200 for a 500-pound bale. The national debt then was $26.000,000,000. In 1920 we could have paid the entire national 130,000,000 bales of cotton “Today, with cotton bringing § cents a pound, 680,000,000 bales would be required for that purpose, although the national debt has been reduced to $17,000,000,000. “Obviously, therefore, if by putting more money into circulation something can be done to bring money down and increase commodity prices and bring cotton back to just 10 cents a pound, it would decrease the national debt, meas- ured by cotton, just one-half. “I am arguing in favor of doing some- thing to bring down the high-priced buying power of the dollar, and I make the assertion that inflation is the only relief possible. Restore the price of commodities, country will of the debts. Senator Thomas quoted Gov. Har- rison of the New York Federal Reserve Bank as having sald recently that the gold reserves of the country would per- mit an expansion of some $3,500,000,000 in reserve bank credit before reducing the reserve percentage below the legal minimum. able to pay their share “Could Not Boost Taxes.” He also contended that. if infiation were carried out as proposed in the bonus bill, it could not increase taxes or have any important effect on balanc- ing the budget. “During the past six weeks." he de- clared, “some $200,000,000 of actual money, the kind with which we buy our railroad tickets and spend among strangers, has been taken from the ple and retired into the vaults of the ‘easury. “There it will lie, as useless as though }t had been sent to the bottom of the sea, until some bank goes to the Fed- ral Reserve system, borrows that debt with | d the producers of the | money and replaces it in circulation.” ‘These tactics, he said, have the single | result of promoting deflation and in- creasing the buying power of the dollar. | Senator Thomas was asked how much additional money would have to be placed in circulation to restore com- modity prices to a reasonable level. “I cannot say how much monevy would be required,” he replied. “We | could only tell by trying, and by in- | creasing the eirculation by a billion or perhaps two billion. |, | “This will restore commodity prices, and they must be restored. This de- flation has lasted for 12 years and de- flation means depression. As a result of the depression we see the farmers unable to pay their interest and unable | to pay their taxes; and because the | farmers cannot pay, the residents of thf cities cannot pay their obligations. “I am only demanding that the dol- | Jar be reduced in buying power to the value of the dollar borrowed or long overdue. In this way, and in this way only, can the debts be paid.” Senator Thomas said he was in no sense in favor of putting so much money in circulation that the dollar would go the route of the franc in Prance, the lira in Italy, the ruble in Russia or the mark in Germany. The Dangers of Inflation. Opposition to the bonus measure | Is based on objections to this particular bill more than on fear of inflation. Generaly speaking, all of those op- posed to the bonus bill concede that some form of limited and properly controlled inflation might prove bene- ficial at this time. The big danger is, they say, that inflation once started might run wild. Even if controlled, they contend, the public fear of further inflation might produce psychological consequences g‘tou than offsetting any materal bene- As one of the Government’s money experts puts it: “I am afraid that we, as a Nation, are inoculated against inflation. The experiment just wouldn't take. Infla- tlons never work in times of depression and an attempt might start a panic and result in still further depressed conditions.” ‘The fear that inflation, once started, can't be controlled, is based entirely on human experience. Obviously, there is no physical rea- son why the Congress should not deter- mine in advance a definite limit of inflation and then refuse to go bevond |it, even though the expected benefits | fail to materialize. But inflation is the |easy way out. It booms prices and places no immediate noticeable burden on_the citizen. But there is a limit to the price rise | that can come from any given amount of inflation. Prices may begin to drop again. Then the temptation to inflate | a little more, to give d times a lit- |tle stronger boost, omes strong. Human nature being what it is, govern- ments in the past have followed this primrose path to the end, and invarla- bly the result has been financial dis- aster. The immediate effect of inflation is to increase the buying power of a na- tion. This increase, however, is brought about artificially. Might Prove Stimulus. Still, when it is considered that more than $1,000,000,000 is now in hoarding | through lack of confidence in the finan- | cial future and that credit business is greatly curtailed, it can readily be seen | that moderate inflation might prove to be the stimulus needed to set the machinery of commerce in full motion again, if there is possible such a thing as “moderate inflation.” Assume, for example, that the $2.000,- 000,000 of bonus money should be used in makng the down payment on auto< mobiles and other commodities. This, counting the credit balance which would stimulating business to the extemt of approximately $8,000,000,000 and might prove to be the })ush needed to restore normal business® conditions. The demand for new automobiles and other commodities would create a de- mand for all the raw materfals going into the finished products. More sal- aries would be paid and more commod- ities sold. The purchasing power of the people would be increased. The price of commodities would rise and | the value of the dollar in terms of commodities would decrease. It is a beautiful theory. But it is only & theory, and nobody knows how it would work or what would be the Tesult. One official took the view that the proposed bonus bill is wrong in two fundamentals. The first is, he said, that it does not call into play the proper machinery for inflation. | _“The measure,” he said, “puts the Government in the currency busireds and complicates it. The effect on the Federal Reserve system would be bad, for as the new money eventually found it way back into the treasury vaults, the credit of the system would be re- tarded. This much new money, put oui in this fashion, would make it impos- | sible properly to control the banking system.” The second objection. he said, is that the new money. under the terms of the bonus bill, would not be properly put into circulation. “I see no good reason why the vet- erans, as a class, should be given this money. It would be much better if the Government should borrow the money and spend it on public works. ‘Then we could be sure that, in the first instance at least, the money would be expended to the best advantage. Might Ge Hoarded. “If given outright to any one class a large portion might be wasted or hoarded, either of which would nullify the desired effect of inflation.” It was pointed out that in the broad sense there is now about $55,000,000,000 of money in this country. Of this sum, $50,000,000,000 is in bank credits and about $5,000,000,000 in currency. The effect of inflating the currency by the relatively small amount of $2,000,- 000,000 might be beneficial, if the money was properly spent. In this latter connection, however, the experts explain that the “velocity” of money circulation is as important as volume, as far as prices are concerned. In other words, an increase in the volume of money will have no effect on prices unless the money passes from one person to another with reasonable rapidity. We might inflate our currency by | $2,000,000,000 and fix that as a limit beyond which we must not go, some experts believe. But in foreign coun- tries, such a move would possibly be interpreted as the first step toward un- limited inflation. In such an event | gold on deposit here would be hastily withdrawn, and we would have an- other case of a successful operation at a cost of the patient’s life. The fear that inflation might force this country off the gold standard has |often been expressed. In informed circles, however, this fear is discounted. In view of the United States' large gold reserve and its dominant position as a creditor nation, it is sald, the chance of its abandoning the gold standard is so remote as to be negligible. : Statement by Expert. One of the Government's outstand- {ing authorities on currency, had this say: “I am not opposed to moderate in- flation at this time in theory. The fact remains, however, that I do not know of any instance in which a coun- try has permanently benefited by infla- tion. This experiment has always failed because it cannot be controlled. I do not believe it will work now.” Despite these widely divergent views, . i be created, immediately would result in, STAR, WASHINGTON, D. C, APRIL 3, 1932 |ANDERSON LOSES FIGHT IN VIRGINIA Crupper Is Virtually Certain!10,000 Diggers May Return; of Election as G. 0. P. Committeeman. By the Associated Press. ROANOKE, Va., April 2—Col. Henry W. Anderson's supporters tonight lost their effort to have the Virginia Repub- ilcan Convention instruct seven dele- gates at large to the National Conven- tion to vote for Col. Anderson as na- tional committeeman, thus virtually as- suring the election to the post of Jo- seph L. Crupper of Falls Church, Mr. Crupper, a Republican leader in Virginia fof many years, had the sup- port of C. Bascom Slemp, who is re- tiring as national committeeman. He is at present collector of customs at Nor- folk. ‘The vote on the motion to instruct, the ace card of the Anderson support- ers, failed, 695'¢ to 8773, just before the convention adjourned with the in- dorsement of a number of resolutions as the throng was seeking to leave the auditorium. The Hoover administration, praised by Secretary of Labor William N. Doak in the keynote address, was indorsed and renomination and re-election of President Hoover called for. Seven Delegates Named. The seven delegates at large named to the national convention were: Col. Anderson, Robert H. Angell, State chair- man, Roanoke; Mrs. M. M. Caldwell, national committeewoman, Roanoke; Menalcus Lankford, member of Con- gress from Norfolk; 8. Floyd Landreth of Galax; Secretary of Labor Willlam N. Doak and Mr. Slemp. Alternates named were: A. 5. Witt of Big Stone Gap: R. S. Burruss of Lynchburg, C. C. Middleton, Mrs. Mur- ray Boocock of Keswick, Mrs. M. J. Dewitt of Richmond, R. G. Dyson of Emporia and Mrs. W. T. Hopkins of Newport News. Lewis A. MacMahon of Arlington and Jaquelin Taylor of Richmond were named electors at large in Virginia. The following were chosen members at large of the State Executive Com- mittee: J. 8. Adams of the ninth dis- trict; Mrs. H. E. Page, second; R. O. Crockett, ninth; Curtls M. Dozier, third; R. A. Fulwiler, tenth; Charles A Ham- mer, seventh; J. W. McGavock, ninth; S. P. Powell, fifth; J. E. B. Smith, sixth, and John B. Phillips, eighth. ‘The uninstructed delegation-at-large was regarded by Republican leaders as a victory for Mr. Slemp as well as for Mr. Crupper, both veteran leaders of the “old guard” wing of the party. Promises Co-operation. Col. Anderson, who had resisted ef- forts to leave the resolution of instruc- tion on the table by asking for a “fair and free vote” of the delegates, in & short address after the vote was an- nounced said that if the delegates to the national convention elected Mr. Crupper, the Republican party could count on every co-operation from him. Mr. Crupper immediately responded by thanking Col. Anderson for his ex- pression. Resolutions adopted by unanimous vote indorsed the Republican adminis- tration and President Hoover's leader- ship, denounced the Virginia election laws and the failure of the Legislature to take action on suggested election re- forms, and called for a reduction in State and local taxes in Virginia. The convention was in session ap- proximately seven hours. When the Nominations Committee made its report, it was announced that the committee had made the recom- mendations for the delegates at large with the understanding that a resolu- tion to instruct them for Col. Anderson would be submitted. Robert H. Wood, of Giles, immediately offered the reso- lution and Robert B. English of Ale andria, offered a motion to lay the Wood motion on the table. Parsons Supports Crupper. H. P. Burnett of Grayson supported the Wood resolution, asserting the Re- publicans needed to go down in the ranks and build up a party. English called u the delegates to show their appreciation of the loyaity of Mr. Crupper over 30 years declining the resolution and leaving the selection to the free choice of the delegates at the Natlonal Convention. Callom B. Jones of Richmond, said Col. Anderson had given such valuable service to the party that he was known throughout the Nation and was “too worthy and too able to be cast aside.” Lester Parsons of Norfolk ended the discussion with a vigorous speech in support of Crupper. Doak Outlines Hoover's Work. Becretary Doak, keynoter and tem- porary chairman of the convention, outlined in considerable detail in his hour and a half address the work of President Hoover in seeking to erect barriers against a world-wide economic disturbance, and asserted his belief that the people are beginning to realize “the greatness of the work and the magni- tude of the achievements.” Subsequet speakers indorsed the work of the Président, and their speeches, like that of the Secretary of Labor, drew prolonged applause. Large Hoo- ver posters were placed around the con- vention hall and on the curtain back of the speakers’ stand. Col. Anderson, Lankford and Jacob A. Garber of Harrisonburg, former member of Congress, delivered addresses during the three-hour wait on the g«;nmntlom and Resolutions Commit- DETECTIVE BUREAU’S ‘GRAND OLD MAN’ DIES Thomas L. English, Too Kind for Policeman Job, Retires in July as Clerk. ‘Thomas L. English, the “Grand Old Man” of the Detective Bureau, died yesterday. He wore a policeman’s uniform 37 years, but he wasn't & policeman at heart—they made him a station clerk at the bureau 20 years ago “because he was too and not quite tough enough.” ‘The gray-haired, kindly veteran died suddenly from a heart attack at his home, 28 Bryant street. He was 70 years old and was retired from the force last July. ‘Thomas L. English was the Detec- tive Bureau's diplomat. For 20 years he stood behind the Police Headquar- ters' arrest ledger and gave advice to prisoners whose names he wrote next to_varied charges. His Tecord is without a blemish. He was cited by the District Commission- ers and several en for assist- ing in welfare work of the Board of Guardians. His record shows nothing ted to the worked in six pre- cincts before he became station clerk at_the Detective Bureau. {‘{e ‘S.fin;x;&.d by his widow, a son and a . Funeral a en. have not been completed. Aty the question of currency inflation, un- less all signs fail, is one that must be dh::;ed olmla the near future. on one t all parties are agreed—the wfi‘x‘“mm of this itry may well be measured by the skill and intelligence the answer, ! assistants, one interne ha added beca: STRIKING MINERS EXPECT PART WORK in Bituminous Field Trouble. By the Associated Press, CHICAGO, April 2—The week end held hopes of a partial resumption of work in unionized Illinois coal fields, idle since operators and United Mine Workers were unable to reach a new Wwage agreement to supplant the one terminated March 31. Negotiations under way today would put, if completed, some 10,000 diggers back in shaft and strip mines within the next two weeks under the old wage scale of $6.10 per day. From an authoritative source it was |learned the United Electric Co., oper- ating one of the largest strip workings, was seeking renewal of operations under agreement with District Miners' Union officials until wage differences between the men and operators are settled in conference. Other mines in the Peoria field and at Herrin were reported re- questing temporary eements. The negotiations of the Joint Sub- committee of operators and union rep- Tesentatives seeking a compromise con- tract adjourned its sessions until April 13. Both sides expressed opinions that deliberations of the body whose failure to attain a new contract before March 31 led to suspension of work, would be in better mood for compromise after the Tecess. Both groups were insistent the closing was neither a strike nor a lockout, but John H. Walker, district union presi- dent, in a statement said: ‘“‘Responsi- bility for closing of the mines of Illi- nois rests squarely on the shoulders of the coal operators, and not on us.” Approximately 75,000 union members in Illinols are jobless, 45,000 as a re- sult of the suspension and the rest, un- employed for months, from the lessened demand for coal caused by the increas- ing Invasion from Eastern fields, where lower wage scales prevail. M. P. FOUND SHOT IN SUSSEX HOME Edward Marjoribanks, Author and Politician, Son of Former Tennessee Girl, By the Assoctated Press. LONDON, April 2—Edward Marjori- banks. brilliant young Conurvznve member of Parliament—{rom the East- bourne division of East Sussex, was found shot to ceath tonight in the home of his stepfather, Lord Hailsham, near Hailsham, Sussex. He had been ill and suffering from insomnia. News of the death of the young author and politiclan, who was one of the tallest and best looking young men in the House of Commons, caused & sensation in social and political circles. It was reported that a gun was found beside the body in the billiard room of Lord Halisham's home. The young man had been working very hard of late, and among other things he was writing a life of Lord Carson. Marjoribanks was 32 years old, the son of Archibald John Marjoribanks and the former Myssie Brown of Nash- ville, Tenn. Mrs. Marjoribanks later married Douglas McGarel Hogg, who | subsequently pecame Lord Hallsham. Young Marjoribanks was educated at | Eton and Christ Church, Oxford, where he attained many high scholastic honors, and was called to the bar in 1924. He was elected® to Parliament in 1929, and was returned in the general election of last year with a majority of 26.000 votes. Marjoribanks had published a life of Sir Edward Marshall-Hall and a volume of poems. CLINIC IS SET UP AT CAPITOL AS STRAIN TELLS ON LEGISLATORS (Continued From Pirst Page.) and Means Committee so showed the terrific strain of steering a much-buf- feted tax bill that he was ordered to Atlantic City by the House physician for a week’s rest. That resort on the Jersey shore also | harbored Representative Ruth Bryan { suaded by the House physician to take a few days' complete rest. suffered an attack of the prevailing spite of it. Representative Beck of Pennsylvania, who has made many recent speeches, particularly ‘on the prohibition ques- tion, has been compelled to take a brief respite. Three Il With Grippe. Friday's tax bill roll call found Rep- resentatives Cable of Okio, Curry of California and Cochran of Pennsyl- vania at thefr Washington homes ill with grippe. Cochran, however, was able to be at his office yesterday Representative Abernethy of North at_his hotel here. Representative Strong of Pennsyl- vania is ill with acute bronchitis at his Brookville, Pa., home. Representative Reld has been suffering from influenza for some time at his home, in Aurora, 1. Representative Tucker of Virginia is_convalescing at Atlantic City. Representative Chapman of Kentucky is in a hospital at Versailles, Ky., re- covering from an automobile accident. Representative De Priest. Illinois colored Representative, is taking treat- ment from a throat specialist in Chi- cago. Chairman Collier of the House Ways and Means Committee, who broke under the pace set by the Democratic leaders early in the session, has almost recovered, but the doctor has not yet given him permission to go back on the floor. Representative Freeman of Connec- ticut, who has been ill for several weeks, is convalescing. Physician More Cheerful. Many of those mentioned were at work last Saturday when Dr. Calver issued written warning to Floor Leader Rainey that unless some system of ob- taining more rest were devised many would break under the strain. He ad- vised Saturday recesses. Yesterday, as he directed, the in- stallation of his hospital in the first floor room, formerly occupied by Repre- sentative Tilson as a private office, Dr Calver was a bit more cheerful. He was hopeful that, having tried one Saturday recess, the busy House would try it again. “And with the tax bill done, some of the nerve strain has to slacken,” he added. Calver Has Three Aides. “It seems impossible to make the country realize how arduously and earnestly their Representatives are ‘working for them. In all my experience as a physician, I have never seen 8 group so high-keyed and unable to relax.” ‘The hospital room, which will be ready for any patients who may need it by tomorrow, is divided by inner partitions to provide four small private rooms, each with a hospital bed. Its general equipment includes ultra-violet ray lamps and other instruments useful She had | grippe, but had continued to work in |be corrected in the Senate and th | charges, !$1,241.000,000 needed to balance the ! that there is a gap of something over Carolina is under the care of nurses | °ridged- PART ONE. Flees From Tax Debates Mythical Hoosier Feels Poorer After Hearing House Members, Takes Look at New Ford to L] This is the second of q series of articles written from Washington by Elmer Davis, in which Mr. Davis sets down the observations and refiec- tions of the mythical Godfrey G. Gloom. BY ELMER DAVIS. ODFREY G. Gloom, the veteran Hoosler Democrat, was found by & reporter yesterday after- noon peering through a window on Pennsylvania avenue at the new Ford. “Just wanted a little variety” ex- plained the old Jeflersonian. “I was | up in the House gallery a while yester- day, but every time Mr.’ Crisp rose up to say anything he took another piece out of my income, so0 I thought I bet- ter leave while I still had the illu- sion of a little /. pants’ pocket. Sees Way to Save Money. “I see the Lon- don Times has been talking about the ‘vast and still large- 1y unexplored tax- able capacity of the United States, " Gloom. “Wish I knew where it was. La Guardia would know it too, and they'd be out exploring it before I could get _there. “Looks to me as if the only way & man can live this coming year is to get some job where he can deduct his traveling expenses in his tax return. Then he can get abgard one of these transatlantic liners “that have just slashed their fares, and spend the year travelin’ back and forth between New York and Europe & lot cheaper than if he stayed home, and paid rent, and bought things at the store.” “What did you think of the debate on the stock transfer tax?” asked the reporter. “Depends on whether you consider the result or the intention” Mr. Gloom “I may be wrong, but I can't see that anybody who wants to buy a stock. and has got the money to buy it within these times, is going to be stopped by any tax of one-fourth of 1 per cent. Maybe it will decrease | turnover a little, but so does every tax | they're voting up there. In short, I don't think this is going to ruin the stock exchange, but there’s no doubt a Iot of people voted for it hoping it would ruin the stock exchange, or at any rate hoping their constituents back home would think it was going to ruin the stock exchange. Reminded of Hangover. “Reminds me of a man that's got good and drunk and he wakes up with a hangover and sees the hottle he got drunk out of, and he flings that bottle down on something hard end smashes lit. That's what these fe'lows were do- | ing today—smashing an empty b-ttle. “Might be some sense in smashing if you can't keep from meking a hog of yourself on the stuff that's in it.” observed Mr. Gloom, “and three years ago this would have been a smart tax. It would have brcught maybe it might the runaway. But nobody wanted to ruin the Stock Ex- change then, and nobody wanted to put a brake on sales either. “Mr. Blantcn says today that we've got to take something out of the pot » money left in my| P continued Mr.| But I suppose if I knew, Crisp and | & bottle that's full, have slowed down | Revive Optimism. for the kitty, the Government being the kitty. But back in 1929 every fellow sitting in the game thought he was go- ing to win and he wanted all the pot for himself. And I bet you that if we ever have another bull market, a lot of these fellows that would like to ruin the Stock Exchange now will be right back in it along with Bishop Cannon.” “But,” said the reporter, “Mr. | Guardia hcopes that tax will be re- | tained, even in good times." Feels House Opinions. “Yes, he thinks of it as a revenue | measure,” said Mr. Gloom. “But when | he talked for it today he knew how the House was feeling and he talked ac- cordingly. He calls brckers parasites, |and then a gentleman from Arkansas | says a lot of people want to abolish the | Stock_ Exchange. And Mr. Black of | New York reminds him that a lot of people would like to abclish Arkansas. But nobody talked about abolishing the desire to get something for nothing.” “You couldn't abolish such a deep- rooted human impulse,” said the re- rter. “No,”" continued Mr. Gloom, thought- fuly, “but you might pass a constitu- tional amendment prohibiting it, and then collect a lot of protection money out of the men that help you gratify the impulse. Maybe that was one of the unexplored possibilities the wondon | Times was talking about.” | “But the Government would not get | the protection money,” the reporter protested. “Oh. they could find ways and means,” sald Mr. Gloom. *For instance, I see where Mr. Free of California has been complaining about floating gambling hells anchored off the coast of that golden State, just beyond the, 12-mile 1mit. ‘It is hell on earth in that local- ity he says, thus confirming what a lot of pecple have sometimes thought about California. It seems people lose their all at the roulette table and then come ashore and rob filling sta- i tions, and I must | say California is better off than most Pplaces if their filling stations are worth robbing. | Favors Capone’s Release. | “But, anyway, how do they prapose | to take the hell out of California?" said | Mr. Gloom. “Why, by making the fer- | ries that take people out to thess gam- | bling ships have licenses. A license | means a fee, and thus the Government | takes something out of that pot for the | kitty, and you can't blame them. “The underworld is about the only industry that seems to be doing good business right now,” the veteran Hoo- sier added. “I have an idea Mr. Capone has learned his lesson. If they let him out of jail and let him go to work to make money for the Government to tax | him on, it would be a lot easier to | balance this budget.” | (Copyright. 1932. by the North American | Newspaper Alliance, Inc.) EX-APPRAISER GUILTY Convicted of Attempting Bribe in ‘ Voting Machine Award. HARRISBURG, Pa., April 2 (#).— | George O'Brien, former appraiser of the | Port of Philadelphia, was convicted of | a charge of attempted bribery by a | jury in Dauphin County Court today. | voting machines for Philadelphia. O’Brien was accused of having offered a bribe of $20,00 to Richard J. Beam- | ish, secretary of the commonwealth, to have the contract awarded to the Shoup | Voting Machine Co. The Shoup Co. | denied O'Brien was a representative of |the concern and stated it had no knowledge of the alleged attempt to ! influence the State official. Bl - PARTISAN DRIVE FOR BILLION DOLLAR BILL IS MOBILIZING (Continued From First Page.) | Owen of Florida, who was finally per- | say is that the estimates represent our very best judgment. “The bill contains serious defects and discriminations. I trust that these will at the changes will ultimately be con- curred in by the House. Will Raise $1,030,000,000. “The Treasury estimates that the bill, during the fiscal year 1932-33, will raise approximately $1,030,000,000 of new revenue, including increased postal as against an estimated budget, exclusive of the sinking fund requirements. It is apparent, therefore, $200,000,000 which remains to be “This the Ways and Means Commit- tee and the House evidently plan to bring about by means of reduced ex- penditures. There never was any dif- ference between the Ways and Means Committee and the Treasury Depart- ment as to the imperative need of re- ducing the cost of Government, but in my letter to Chairman Crisp I pointed out the extreme danger of attempting to balance the budget except on the basis of either ascertained facts or of prospects sufficiently substantial as to Jjustify a confident expectation of their realization. Unfortunately, neither the Ways and Means Committee nor the House had before them in preparing their estimates of needed revenue a concrete program for definite reduction in expenditures. They were obliged to rely on more or less vague estimates. “It is now clear that if we are to have a balanced budget, the preparation and realization of such a concrete program in_emergency treatment and diagnosis. Dr. =cr:'lver staff now includes three tly of the unpre- cenf use - cedented amount of work to be dane. - is imperatively necessary. Further Savings Unlikely. “This means that there must be sub- stantial modifications of existing law affecting the duties and obligations of the departments and independent establishments of the Government. view of the drastic cuts already made in the 1933 budget as presented to the Congress, amounting to $370,000,000, there is but little further room for large econcmies through administrative | changes alcne. To accomplish a real reduction In cost, there must be an| elimination of duplication of effort | through consolidation, the curtailment of unnecessary functions and the sus- pension of certain activities during the period of emergency. To attain this goal will require not only legislation, but close co-operation between the legislative and the executive branches of the Government in carrying out such & program. “There is no saving in mere tem, postponement of an appropriatien. In the discussion of savings such emphasis has been placed on the reduction in the estimates of appropriations made by the Committee on Appropriations of the | House. The claim has been made that they represent an actual saving of as much as $113,000,000. As a matter of fact, only $27,000,000 of reductions can fairly be said to represent actual sav- ings. The balance, in all human pm%’, mu’e\l,i rtpruent.:h:etmcdb appropriations. instance, the largest n&gh item of reduction is eome of n| certificate fund. The committee reduced an_estimate of $150,000,000 to $100,~ 000,000—to use its own language—‘upon the assurance of Gen. Hines that an | appropriation of $100,000,000 will take care of the obligations until the next | session of Congress, when a deficiency | appropriation can be made if neeled.’ | In other words, the $50,000,000 of sup- | posed savings is to be appropriated next | December—in the middle of the very fiscal year for which we are budgeting, | and will have to be paid for out of taxes collected during that fiscal year. “This {llustrates one of the causes of confusion. When the Treasury Depart- | ment talks of a balanced budget. it | means a balanced budget—not one bal- nced on paper. When it talks of re- duced expenditures, it means an actual | reduction in the cost of Government— | not a postponement of an appropria- | tion for a few months. “There can be no question as to the willingness of the Treasury Department, and other departments of the Govern- | ment to co-operate with the Congress |in the development of a mon-partisan basis of a real program looking to gen- | ulne reductions in the cost of Govern- | ment. As a matter of fact, the depart- |ments and independent establishments have already submitted suggestions to the appropriate committees for effect- ing substantial reductions.” Chairman Jones of the Senate Ap- propriations Committee yesterday called a meeting for tomorrow to begin re- writing the appropriation bills for the Interior, State, Justice, Commerce and Labor Departments to comply with the Senate’s order for 10 per cent cuts in these funds. Jones observed gloomily “we can | make the 10 per cent cuts all right, | but I am beginning to wonder whether | more damage will be done than jis ac- | complished in savings.” | He expressed grave doubt that Con- gress would be able to pare down next | year's appropriations by much more than $100,000,000. Rome-China Hop Planned. WILLIAMSPORT, Pa., April 2 (#)— Col. Mario de Bernardi, Italian aviator Who won the Schneider Cup in 1926, and who is in this city to test new ap- pliances of simplified airplane control, stated today that he will attempt a non-stop flight from Rome to China next Fall. "BALANCING THE BUDGET" A TIMELY SERIES ON GOVERNMENT EX- PENSES AND REVENUES By David Lawrence IS NOW APPEARING DAILY IN i The Star READ TOMORROW ABOUT La| LOST PLANE FOUND, FLYER IS HUNTED Tracks Leave Army Craft Wrecked in Rockies by Storm. By the Associated Press. ASH MOUNTAIN, Sequoia National Park, Calif, April 2—The demolished Army piane in which Lieut. Edward D. Hoffman vanished while flying in a storm February 1 was found today by two of the many searchers who have been scanning the country for weeks. There was no sign of Hoffman or his body. The plane had crashed against the side of a mountain about 5000 feet above sea level Footprints led from the plane for a distance of 4 miles toward Meadow King road. These were taken to be Hoffman's. John Washburn and Gordon Garland, both of Wood Lake, Calif, found the wreckage 1'; miles south of Oriole Lodge yesterday and reported their dis- covery to park headquarters here to- day. ‘The scene is within 2 miles of the point where Hoffman's companion, Lieut. Willlam A. Cocke, jr., jumped from the plane with his parachute. Cocke “bailed out" in the hope that Hoffman would be able to bring the plane to a landing. None of the wreckage was burned. The ignition switch was turned off. Lieut. E. L. Foote of Crissy Fleld, San Prancisco, who has been directing the search in behalf of the Army, left for the scene immediately. It is in an in- accessible district. The searchers said they found & pair of moccasins not far from the wreck- age and signs indicating that some one may have attempted to build a fire nearby. They said the footprints, if they were Hoflman’s, indicated he had hiked to within 4 miles of the Meadow King road, which probably would have led him to safety. ‘The snow still is about 4 feet deep in the vicinity. FEDERATION FIGHTS FOUR MAPES BILLS ENACTED IN HOUSE (Continued From Pirst Page.) people in the District evade this in- tangible property tax. Year after year they pay the assessor's assessment and penalty rather than come in under oath and file their own return. This meas- ure has brought in regularly about $2,- 500,000. It is expected that the in- come tax would produce about $3.- 250,000 revenue. The claim at this time that revenue from an income tax would be uncertain and variable is not sound because the matter has not been properly studied.” Carruthers Is Upheld. Chairman Carruthers took exception to these remarks. “The committee has made the best possib'e study of these matters,” he said. “If our work is not satisfactory, |1 am willing to resign, but do not re- submit these questions to the commit- tee. If the federation is to be effec- tive in this matter, it must act at once.” | The federation upheld Mr. Carruthers, approving the committee report by a in a lot of money| The charge wes made in connection | large majority. at 1929 prices, and | with the awarding of a contract for | The recommendation with regard to | the bill prescribing that registration fees | be based upon the weight of vehicles | was adop! with little discussion. | "'In debate on the proposed estate tax, it was contended residents of the Dis- | trict were entitled to the same con- | sideration given residents of the vari- ous States by the Federal Government. | Chairman Carruthers explained that he had drafted an amendment of the present Feceral legislation on this matter which would give Dis- trict citizens the advantage enjoyed in the States by citizens whose State estate taxes were confined to the 80 per cent Federal credit. He said legislation in the States in this connection had been 20 drafted that the citizens did not pay in excess of this 80 per cent. | The committee in its report pointed out that in levying a motor vehicle fuel | tax on a community the need of funds for highway purposes should be con- sidered. “To compare the District of Colum- | bia, which is a city only, with a State with much less density of population and greater mileage of roads is il- | logical and unfair,” the report said. “The revenues from this source should be used for highway purposes only and in the States a very large percentage of the revenues is used for rural roads and a comparatively small amount goes to cities. The city of Washington is, at the present time, receiving a larger amount per capita from this source than any other city. Oppose Higher Rate. “We do not belleve that all costs of highwey maintenance and construc- | tion should be borne dircctly or in- | directly by the automcbile. We bo- !lieve the present rate of tax is ade- quate end oppose the proposed in- crease from 2 to 4 cents per gallon.” The federation took a strong stand in advocating that in filling vacancies in the Municipal Government prefer- ence be given to residents of the Dis- trict. The following report from the Committee on Law and Legislation was approved: p“p'l'he committee believes that some- thing should be done. and as soon as possible, to put an end to the grow- ing tendenty to fill important civil positions in the District Government with retired Asmy officers, who are thereby enjoying a double salary while other worthy persons are being de- prived of the office. “Your committee also feels that some- thing should be done at cnce to give a preferential consideration to District citizens i the filling of positions in municipal affairs, it being believed that Congress will so require when the pres- ent inequitable conditions in that re- gard are brought to their attention. ‘The committee declined to indorse a request from one association that it oppose the selection of one of the three District Commissioners from the Armv Engineer Corps. “Washington Avenue” Favored. A resolution from the Sociely of Ne- tives that the name of Washington strect be changed was approve’. The committee in charge recommen-ed that in honor of Gearge Washingt n the name of the present Washington street be changed and that B street, from Second street southeast, to Fourtesnth street northwest, be renamed to "bear the name of “Washington avenue. A request from the Takoma Park Citi- zens' Association that the federation go on record as requesting Congress to pass a bill nullifying the recent action of the Public Utilities Commission in requiring meters on zone cabs, was ap- proved. In an effort to curb real estate bond frauds, the federation adopted a report calling for the amendment of a pend- ing bill directing the recorder of deed to mark real estate notes atteched tC deeds when the latter are recorded so that he may be able to identify them in the future. This amendment, it was I “Wkere the Federal Money Comes From” $50,000,000 for the adjusted service said, would make it impossible for trust to released before notes protected by it had been paid. Another recommendation adopted was that the redemption period on tax deeds be extended from two to three years.