Evening Star Newspaper, April 21, 1932, Page 12

A—12 HYDE DENOUNCES ROOSEVELT ATTACK Cites Hoover’s Aid to Little Feilow in Address for Radio Forum. The recent criticism Gov. Roose- | velt of New York that President Hoo- vers relief program did not take the “little fellow” into account, last night| was the target of Secretary of Agricul- ure Hyde Speating in the National Radio arranged by The Star .and T a_coast-to-coast network ing Co., Hyde ; aligned himself with Alired in_criticism of Roosevelt, Smith, he did not men- K Gov! tion rnor by name THE EVENING STAR, WASHINGTON up his mind which) and at once dart back to the white pine trees to do their deadly work. ‘The bud of the currant bushes’ said the Senator, ‘or the sap of the currant seems to | strengthen_their boring qualities, and they bore through the pine a little bit I do not know to what extent they “ e may bore into the pine trees. “I showed this esoteric bit of natural history to a scientist in the Department of Agriculture. He was aghast at the extent and novelty of the Senator’s revelations in the field of biology. After he had recovered sufficiently he told me the Senator's statement was accu- rate except for such minor details as these: White-pine blister Tust is not a bug, moth or fiy; it is a fungus disease. ¥1 does not bore into the pine tree, but acts on a tree just like a germ discase does on a man. As much as we all ad- mire the Senator and his uncanny ability to confuse insects with diseases, 1 bushes with trees and facts with fancies, we in the department suspect that the mirror he has held up to us is cracked. Love Life of a Bullfrog. “Another hot one which originated on the floor of the Senate and has spread from New York to the Golden Gate is that merry gibe at the Depart- | | ment of Agricul about ‘the love Cites Smith Criticism. *“I am not the habit of taking arching ord from Democrat es, but nere, at last, is a poir upon which I can line up with Al Smith,” said Hyde, after quoting the latter's promise to take off his coat and vest against the candidate for the pres- idency who persists in making dema gogic appeals, quotation universally @ccepted as directed at Roosevelt Hyde early in his address picked up the words “little fellow” from the Roosevelt address and stressed them again and again in laying down the for his assertion t President Hoover's program of aid to ban rail- roads and big corpc ad as ils primary purpose “to releas: the strangle hold which fear and panic have had upon the credit and the job of the “little fellow “Already (as a result of the Recon- struction Finance Corporation’s func- tioning) the failure of banks has largely ceased,” said Secretary Hyde, “and this | cause for alarm has been withdrawn. If the flow of credit to business is| resumed, ‘the little fellow' will regain on the way up that which he lost on the way down.” Shows Close Relations. ‘The Secretary explained in detail the interlocking effect of financial distress of banks, railroads and corporations and pointed out how it strikes directly at the income and savings of the small man and how in turn the latter should benefit by the salvation of the big economic units above. “If we permit our banks to fail, credit | will dry up and business will stop. If we permit our railroads to fail, farms will also fail. This is so perfectly obvious that even slight reflection will demonstrate the President’s program to | be primarily for ‘the little fellow’ and &n answer to his needs,” he said. Secretary Quotes Burns. Secretary Hyde spoke as follows: | * ‘O wad some power the giftie gie us ‘To see oursels as ithers see us. | It wad frae many a blunder free us And foolish notion.” “Ever since Bobbie Burns penned those lines it has been good medicine to see ourselves as others see us. It is usually bitter stuff, but most medi- cines are beneficial in direct ratio to their bitterness. Mere introspection 1s | valuable, but usually biased. Looking into a mirror held by the other fellow is free from any favorable bias and reduces bumptiousness. All of which leads to the observation that most of us in Washington have been looking with mingled pain and profit into mir- rors held before us by a lot of people. “Sometimes, however, we _suspect that the mirror ample: Not long ago, a distinguished Senator, his appetite keen for econ- omy in all States except his own, leaped greedily upon the efforts of the De- partment of Agriculture to eradicate white pine blister rust, a disease which threatens to destroy $420,000,000 worth of white pine timber and to eradicate which the department is spending about one-tenth of 1 per cent of that| amount annually. “The Senator was attempting to ex- plain what white pine blister rust is. He said: ‘White pine blister rust is a little insect that first forms on the bark of the white pine tree as a little worm, develops into a moth or fiy and then flies to a currant bush.’ “Here the Senator became somewhat | muds but he seemed to feel, rather| k, that this determined moth | peril is twisted. For ex-| next lays eggs on the currant bush, the eggs become worms, then change | to flies or moths (I wish he'd make | life of & bullfrog’ It is such & ‘rip rarin’’ good one that it is a pity to spoil it. The cold facts, however, are: “1. No bulletin of that name was ever issued by any governmental department “2, No bulletin dealing with frogs. their lives, legs or loves has ever been | published by the Department of Agri- culture. “3. In spite of the fact that the origi- nal gag isn't true, there is & ‘good one’ in the yarn which I must let you in on. “(a) The gag was originated by Demo- crats to show how silly the Republicans are. *(b) The only basis for it isa bulletin entitled “Frogs,” which was published in 1919 by the then Democratic ad- ministration of the Department of Commerce. “(c) The Democrats not only paid the expense of printing and circulating the bulletin, but they paid a Cornell pro- fessor $1,700 for writing the manuscript. “All of which shows once more the| desirability of examining the mirror before you ask the other fellow to look into it. Another mirror into which we, in the Department of Agriculture, are contin- ually gazing is a chart with which an ominous and altitudinous curve shows that the expenditures of the depart- |ment have jumped from $30,000,000 in 1917 to $300,000,000 in 1931. No expla- nation accompanies the chart. Conse- quently, two conclusions are immedi- ately drawn. One, that in fourteen years the low-browed bureau chiefs of the department have expanded their baleful activities by 10; two, that from the work of these bureaucrats no bene- fits whatever have resulted. One genial editor, in a recent speech, charged us with being racketeers. This criticism would have been passed over as mild and reasonable, except for the fact that | the editor resides in Chicago and spoke with that authority. T enter no defense for governmental exiravagance. _Projects which take money may be highly desirable in pros- serity and highly undesirable at other times. Consequently, I connived with the President to lop off from the ap- propriations for the Agricultural De- partment all that could be lopped off and still carry on the duties with which we are charged under the law. Con- gress can take more, because by so doing they will relieve us of our obli- gations under the law. They have our blessing. They can take more if they choose. There will be no yelp from me. Our duties are whatever Congress makes them and, be our appropriations littie or still less, we of the department will elick our heels and obey orders. But before the department, the chief officers and myself are held up to the country as having expanded our opera- tions 10 times, let us analyze that chart a little. One hundred and seventy-four mil- lion dollars of that $300,000,000 was spent for Federal highways in 1931; none in 1918. It served to furnish em- ployment, for thousands of people. Do you want to cut that off? Fifty million dollars went to farmers | in the form of drought relief ians. Fourteen million dollars went direct to the several States for experiment sta- tions, extension services and forest fire prevention. ‘These three items aggregate $238.- 000,000 of the $296,000,000 charged to us in 1931. The funds were not appro- priated because heavy-jawed bureau chiefs demanded them. The States wanted roads and crop productien loans and experiment stations, and Congress provided the money. We were merely the channel through which the mone; | flowed from the Federal Treasury to the States. | One Dollar Out of Five. Thus, it is clear that only one dollar out of five appropriated to the Depart- ment of Agriculture goes for our own expenditures—and of this dollar nearly | 60 cents goes for public health services |ana conservation. The remaining 40 | cents may be said to be purely agri- | cultural. | Consequently, when the mirror of in- | creasing expenditures is held before the Department of ‘Agriculture, we see not so much the work of bureaucracy as the demands of the States and of the people | These statements are made not to minimize the need for economy, nor to | belittle any effort to cut down govern- | mental expenditures, but to point out some of the difficulties in the way of achieving those desirable ends. Beyond a doubt there exists in the vast and complicated machinery of Government some of that sinister scheming and reaching for larger powers which is by the general term “bureau- y." Nevertheless, it is not bureau- cracy which has built the machine and added millions to our tax burdens. The real culprit is the demand which has come from the people, from organiza- tions of class or special interests to relieve local burdens or selfish interests from the Federal Treasury. To this demand Congress, which ~derives its mandates and its votes from the people, has lent an all too willing ear until we have built up a set of needs and a mnchine against which Congress is it- self largely powerless. Local self-gov | ernment has avoided its responsibilities and abdtcated its powers. We have built our own Frankenstein Not the least of our difficulties is the fact that, by yielding to local and special demands, we have built up an ever-growing appetite for larger de- mands. I know of no better example of this than the so-called crop produc- tion loans which the Department of Agriculture is making to farmers The genesis of crop loans les in the action of President Wilson when, in answer to an emergency war need, he loaned small amounts in the North- | western States to buy wheat for seed This action, proper as it was, immediately became a precedent which has been expanded in peace time far | beyond its original intent The purpases of such loans have been | expanded to include not only seed but feed for work animals, fertilizer, oil |and gasoline for tractors and repair of irrigation ditches. In 1931 the pur- | poses were further expanded to include drought relief, feed for live stock, agri- cultural rehabilitation in all respects affecting crops—and in 1932 to include logns wherever farmers are otherwise unable to obtain loans for crop purposes. In my own three years at this post I have seen the amounts expand from six million dollars in 1930 to sixty-seven | million dollars in 1931 and two hundred { millions in 1932 A few weeks ago I protested against | such loans and the enormous expansion of the original innocent precedent. Immediately I found myself in the | headlines. ~ Also, I found myself the | target of some of the gentlemen who imagined that some benefit would ac- | crue to them or to their constituents | from the la | One Sen charged me_with being | unsympathetic to farmers. I hope I am not lacking in sympathy with the Ameri- can farmer. He is my client. His suc- | cess is my job In opposiug such loans I am mot thinking of the burden such huge sums | cast upon the taxpayers of this coun- | try (among them the farmer himself), but T am thinking of the welfare of the American farm family 1 assert that you can't save American Arthritis! 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It will be burdened with an accumulated debt which will require years to pay off. Seed loans may be justifiable and de- sirable when a visitation of nature,| such as a storm, flood or drought, has devastated whole counties or States and bears unequally as between individuals or groups of farmers. But when the exigency is economic and affects every one of us alike, the experience in- herited by the farmer from his pioneer ancestors teaches him that the man who | lives on what he has and borrows least | will come through best. Loan Vices Manyfold. The vice of Government loans is| manyfold. The Government cannot| make discriminations between the needs | and the merits of individual citizens. We must loan not only to the worthy and the industrious, but to the unworthy and the shiftless provided only they come within the scant limitations of a general act of Congress. Such loans defy the inexorable economic law. They perpetuate in the competitive picture submarginal farmers and submarginal farms to the detriment of those who but for the competition thus created might succeed. They delay recovery. When the money is going out, all is well. But when the attempt is made to collect it back, pandemonium breaks loose. Local interests want to collect the proceeds of the crop themselves. Political interests wheel into action de- manding cancellation of the debt, or & moratorium, or at least an extension of time. To the everlasting credit of the farmer be it said that he does very little of the howling. Also be it said that his own views are so much sounder than those of his representatives that| during the very time that his repre- sentatives were dinning it into our ears that he could not pay. the farmer went ahead and paid over 60 per cent of our 31 loans 1g’l'hP farmer needs many things much more than he needs loans. He needs rellef from the excessive burden of tax- ation which he bears. He knows that, | because he is & consumer, much of the burden of taxes which is ostensibly loaded upon industry comes back to| him in the price of what he buys. He needs a consuming population which possesses a high buying power,[ not population burdened with taxation. The primary needs of the farmer is not loans, but a market where he can sell his products at a fair price. To| obtain this market, he needs an_ or-| ganization which will represent him.| To obtain such an organization, the| Government can help and is helping through the Farm Board. To hold such a market, he needs the protection of a tariff high enough to give him undis- puted possession of the home demand. To reap full benefits of such & market. he needs to control his production to such volume as will balance with de- mand. Governmental funds will be more wisely employed in relieving the domestic market from the burden of existing surpluses than in stimulating by means of loans a larger production and an increased surplus. The statement is frequently made that the President's program for re- provides ample assistance for , railroads and corporations, but none for “the little fellow.” Such statements are utterly unfounded. It is true that Reconstruction Finance Corporation makes its loans to such institutions, but its primary purpose is to release the strangle hold which fear and panic have had upon the credit and the job of “the little fellow.” | The extent to which our difficulties | are due to unreasoning fear and panic | DONT PUT THIS O Your car needs complete |such institutions are required to put , D. C., THURSDAY, is hard to measure. APRIL 21, 1932. —_——— e === Some indication | up adequate security and pay 5!; to may be had from the fact that although | 6 per cent interest, and second, that our foreign trade has declined (in dol- | we are living, not in & state of nature lars, not volume) less than 5 per cent but in an organized society in which of our productive capacity, our produc- |such institutions render a vital service tion has declined somewhere around 30 per cent. Yet the consumptive power| of our people is just as large as it was at the heyday of consumption. Some part of the difference between 5 per cent and 30 per cent of our productive capacity is pure scare. ‘The distress of “the to every can g any in_Africa cca get all you want cost you little or e of us. To illustrate as fertile as o be had in this country land of it. nothing. wouldn't have it, even as a gift wouldn't have it : because little fellow” dur- | banks, no railroads, none of the serv it h Yo You ing these last 30 months has been due | corporations and institutions which are to that scare. been prolific causes of credit contrac-|living fn an_ organized society tion. of railroad values have been the fuel dry up and business will stc upon which the flames of panic fed. permit our railroads to fail This is so per! The daily announcement of bank fail-| also fail Bank failures and the shrinkage | permit our banks to fail, credit p. 1, Fear and panic have|necessary to a civilized standard of If we hid i ou ob ures, in the days gone by, alarmed not | that even a slight reflection will de only other depositors, ers. the depy.ts of the failed bank, but answer to his needs. forced other bankers to protect them-i selves against possible runs by demand- ing payment of loans and by refusing| to extend new credits. Thus by the| spread of fear, credit was withdrawn from business.” Consumption declined and production was reduced. In turn, railroad tonnage fell off and the value of their securities dropped. This added to the difficulties of the banks in which “the little fellow” had his savings and the insurance companies in which he carrled his risks. Bank failures, con- tracting credit, falling buying power, declining production—it was along this viclous circle as it spiraled downward that “the little fellow” lost his market and his job. Finance Reconstruction. Reconstruction Finance Corporation was given the job of reversing this rocess. Already the failure of banks as largely ceased, and this cause for alarm has been withdrawn. If the flow of credit to business is resumed “the little fellow” will regain on the way up which he lost on the way down. Those who criticize because loans are made to banks and other institutions should pause to remember first, that all And have the protection of @« Guarantee from a r company that has Price Now Convenient Terms I Ask Us About It MAURICE J. LBERT % 1908 M St. N.W. Heating Homes for 29 Years It was on this Amoco lubrication regh? NOW | VEN a mild winter is hard on a car. Cold starts. . . rain, snow and sleet ... all take their toll. 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LOUIS, April 21 (®—C. C. Cameron, vice president of the Illinois Central Rallroad, announced here yes- ay that T. E. Harris, general agent at Gulfport, Miss., would succeed W. M. Rhett as head of the road’s forei May 1. with head trade department Rhett will be re- rters in Chicago. tired. Which of these two delicious tasting may- onnaises do you prefer? Hellmann’s Mayonnaise and Best Foods Mayonnaise are recognized as the two highest quality mayonnaises in America. For both are made of the finest of ingredi- ents . . . the freshest breakfast eggs, se- lected salad oils, special vinegar, and rare imported spices. Then they are double EZF" for extra creamy smoothness. Burt they are vastly different in flavor. Best Foods Mayonnaise is delicate and mild. Hellmann’s Mayonnaise is well- seasoned, spicy and zestful. And so we want you to decide which one you like the better. Go to your grocer’s today. Get both brands.Servethemonyour favorite salads. Taste their deliciousness. Compare their flavors. Then tonight tune in on Billy Jones and Ernie Hare, radio’s greatest song and comedy team, over N. B. C. net- work. And be ready for announcements of the big cash prize contests staged at frequent intervals. The radio page of this paper gives the exact station and time. BEST FOODS HELLMANN SCHOOL TEACHER SLAIN Shooting Believed Due to Quarrel Over Children. STOCKTON, Calif, April 21 (#).— Mrs. ET A. Taylor, teacher at the Castle School, 12 miles south of here, was shot and killed yesterday and the school Jjanitor was wounded as he came to her defense, Stockton authorities were notified. The shooting was done, polfce said, Tom Coman of Summer Home, g a quarrel over his children, o grere pupils at the school Cofnan, after the shooting, returned residence, packed hie family into a green automobile and departed. Sugar imports into Manchuria are in= creasing. | DISAGREE! BEST FOODS MAYONNAISE . . . 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