Evening Star Newspaper, January 1, 1933, Page 11

GRADUAL TRADE RECOVERY INDICATED FOR NEW YEAR 3 Change of Administration Is Declared by Writer to Have Re _Legislative Aids to Business. BY DAVID LAWRENCE. Eco- HAT will 1933 bring? nomic recovery or just an- ther year of painful read- M justment? To a remarkable degree ‘economists are saying that the future course of events depends to no small extent upon the action of governments, and particularly the Government of the United States. It becomes perti- nent, thertfore, to examine the policies that now are under consideration, as well as those that are likely to be formulated ~ after March 4, in order to appraise accu- rately what might be expected, either in the realm of Jegislation or in- ternational nego- tiation. We stood a year ago on the brink. The month of De- cember was with anxiety and uneasiness, as the wvery foundations of banking, as well as of state finance, were threatened by a general loss of confidence, which was concretely expressed in the form ©f hoarding inside this country as well as the flight of gold from our shores. There can be no question now in yetrospect that the creation of the Reconstruction Finance Corporation, as well as the passage of the Glass-Stea- -gall act, came in the nick of time and arrested & panic whose proportions be- came visibly large. There can be no | question also that during the Spring and early Summer of 1932 the Unites Btates recovered its poise and strengtn- | David Lawrence. ened its benking and financial structure | gepressions in the 70's or the 90's. to such an extent that it could look forward to the reconstruction era with 8 feeling that America had sesn its worst days. | Answer to the Paradox. Such statements as the foregoing, however, will immediately be challenged | mede possible by the by those who looking around them see | evidences of gloom and discouragement, | business statistics and reports that re- | weal no substantial progress and on all | sides a feeling that general Rusiness has | not made any substantial improvement. | The answer to the paradox lies in the | fact that readjustment is as painful and | as difficult a step in the course of an economic depression as any phase from the beginning to the end. Convales- cence has its relapses as well as its ex- hilarations. It may be disputed by those who are rtisan minded, but it appears none !’fle less that the Nation had begun & forward march during the Summer and received a setback in September when it became likeiy that there would be & change of administration. Looking back now iteis clear that the Maine election told the business world that it must expect in November a vote to| ,change pilots. Knowing what this | means under our' constitutional system, | business saw indeed that it must wait for several months after November be- fore it could be assured once more thal there was a definite forward advance. ‘Whatever we may think individually about the desirability of a change in administration in ‘Washington, and unquestionably many millions of people wanted a change and their collective gudgment ought not to be doubted, the fact remains that the most unfortunate thing about the current depression was the coincidence of a presidential elec- tion with a year which could little stand a change in a crisis, ve been far better for the United tes if the presidential election had e in November, 1933. Then merica would have recovered its ptrength sufficiently to stand the shock ©of divided counsels and the gap in government which must necessarily Tollow between November and the fol- fowing Spring. The Republicans have feen in power 12 years and in the nor- mal course of events the pendulum gwings anyhow. The American people ke to shift from, one of the major rties to the other and in the long un this is a desirable thing in & emocTacy. Change Means Delay. But the immediate effect of a change this time has been t‘o l'.g‘p’:‘he :heell rogress and to wait. not nec- ar to fight over the battles g‘l’ gl\l presidential campaign to recos e omic effect of that l‘;l&wflf nrugal; tween the major parties. It's wal er the dam njow ha the American jple already have in process a con- titutional change known as the Lame ck amendment which will shorten he time between the November ‘election gnd the inauguration of a new Presi- ent as well as the calling of the Con- ress which is elected at the preceding | ovember. A gap of only about two smonths will occur hereafter. But it is not- merely the gap in gov- ernment that has proved a setback for lAmerican economic progress, but the fact that the hoped-for co-operation be- tween the outgoing and incoming ad- ministrations has not materialized. It was perhaps too much to expect that political rivals and ambitious groups of contesting politicians would see eye to eye with the Nation in its desire for the laying aside of politics in a common icause. It was difficult even during the war for the Republicans and the Demo- crats to co-operate, though externally fthey gave a good exhibition of coalition. fThe truth of the matter is that rival liticlans do not trust each other and here is no force big enough in the WUnited States to compel them to work T, The layman, of course, doesn't under- ptand these things. He feels that the situation in America today is even more gerious than it was during the war and that the crisis is big enough to make the leaders of the country, irrespective of pi work together for the common good. ce the election, however. ihe Democrats have indicated that they would not like to assume any resporsi- bilitles until March 4. The Republic- ans, on the other hand, have publicly #passed the buck” and are doing very little except to liquidate their adminis- tration. War Debt Problem. The price of this costly break in wvernment will probably never be ::a‘m until after the history of the entire economic depression can be tten, Certainly the effects of this ression could be mitigated if many of the proppsals which have been be- fore the United States Government as well as other governments could have been much sooner. Un- doubtedly, for example, the war debts have been given an exaggerated Lmzm'- tance. In amounts they are not lil ely to affect the world situation very much even if they are materially reduced But they do_have a psychological value Which has become interwoven in the entire international situation. The fact the United States Ovvemme'r‘:& un! sulted in Delaying tion or not is beside the question. The truth is that the European governments feel that they do not have the oppor- | tunity to present their case and that America is postponing action until next Spring because of the change in ad- | ministrations—something about which, | of course, Europe has no course except to wait patiently for the operation of a constitutional system which is wholly unlike the flexibility of their parlia- mentary systems. And ‘if the debt question cannot be | settled, what progress can b> made on the other items on the economic agenda which await international action? Two Fundamental Factors. There are two fundamental factors or methods by which economic recovery can be accelerated. One has to do with the increase in the volume of do- mestic and_foreign business, and this relates to stabilization of exchange, re- moval of trade restricticns and barriers, and hence the gradual increase in com- modity prices “through_the restoration of purchasing power. The other lies in the directicn of adjustment of debts, governmental and private. President Hoover laid before Con- gress last Spring a recommendation which has been slumbering, but of | which much_will be heard during the |year 1933. In some respects it is the | most impor¢ant proposal now being ccnsidered by Congress. It certainly | has in it possibilities of far-reaching iimpor(ance to the economic welfare of the country. It has to do with the legal cpportunities to adjust debts end Temove from the area of uncertainty many thousands of businesses and the affairs of many millions of individuals | who find themselves unable to pay their | maturities. | It is a strange thing, but the laws | relating to debtors rarely undergo re- | vision except as a consequence of scme profound economic change, such as the | This is probably because the debtor class is insignificantly small in normal times, but reaches a large size when there is a depression. There is no way of estimating the | sums of money involved in the reor- ganization processes which would be ssage of the amendments to the existing law now pending. Sentiment in Congress is favorable toward the changes and be- fore long they may be expected to be adopted. ‘ Foreign Trade Waits. On the side of affirmative increases | in business there i8 no doubt that the expansion of foreign trade walts now upon stabilization of exchange. Th2 economic conference in the Spring and the policies of the Roosevelt administra- tion are looked forward to as ble vehicles for the development of better international understanding on eco- nomic questions. The year 1933 will see an adjustment on the cebt problems of the world, both governmental and private, but it will not be an expeditious process. It will take many, many months and it will run into 1934, because the aftermath of a depression as extensive as the one through which we are passing is not quickly erased. The impetus ic busi- ness will come out of the increased opportunities for “the sale of er- ican products abroad, because the present decline in foreign trade of nearly 70 per cent is undoubtedly being reflected in the diminished pay rolls and closed factories at home. Governments are in no position immediately to rem- edy this situation, as it requires carpful building up by economic forces thém- selves. On the other hand, governments can be helpful by putting their own houses in order and removing some of the large problems that interfere with the commercial intercourse of nations. A Billion-Dollar Deficit. It would be encouraging, indeed, if progress could be reported on the bal- ancing of the budget and the general ment. Unfortunately, there has been | no such progress. The Government is g at a deficit of $1,000,000,000 a | year and the Democrats have not yet presented a plan to balance the budget. Great hopes have been raised by the belief that a beer bill would become law and thus yield an enormous revenue. ‘The truth is that two or three hundred million dollars would be a maximum amount from this source and it is un- likely that the machinery of retail dis- tribution could be set up soon which could insure a sufficient volume of sales in competition with hard liquor to yield the expected revenue. As for the repeal of the eighteenth amendment, it is con- ceded that this is a matter of two years at least, The latest figures from the Bureau of Internal Revenue show a huge shrink- age in incomes, both individual and cor- porate. When the time does come to balance the budget—and it will be | tackled probably in the Spring of 1933— the contest will be between a broad base of taxation with many indirect taxes and the levying of higher income taxes | in all brackets or classes. | | There will be an extra session, prob- | | ably about April 1. The Democrats | | have a working majority in both Houses | sufficient to enable them to try their hand once more with administration measures that have the active support | of the new Chief Executive. Looking to Roosevelt. The most hopeful factor in the whole | legislative outlook is the belief that Mr. Roosevelt will lead Congress and drive through the measures that he sponsors. | Much depends upon how public opinion | rallies behind him. The psychological effect of a Congress bowing once more | to the will of the Executive cannot be overestimated The economic situation in America | | will be improved when it is assured that the budget will be balanced, not only by new taxes, but by reduced expenditures. | Such a step would drive Government bonas to new highs and produce a bet- ter investment market than has been seen since the depression started. Much | depends. therefore, on ihe “new deal” and how the new President interprets the mandate given him by the American people. For business in 1933 all that can be | conservatively said is that probably a | beginning will be made sometime dur- | ing the year, possibly in the latter half, toward the expansion of our foreign trade and that this may see the start of an improvement in commodity prices which will make next Christmas a much happier one than that of 1982. (Copyright, 1933.) | X-RAY AUTHORITY DIES | Dr. Wee Kim Lim Born in Sumatra of Chinese Descent. DETROIT, December 31 (#)—Dr. fiscal situation of the American Govern- | ¢4 DOESN'T LIKE IT ANYMORE TWO CHIEF EVENTS OF 1382 WEIGHED Lausanne Accord and Franco- German Arms Understand- ing Emphasized. ' BY WILLIAM BIRD. (Consolidated Press.) PARIS—The year 1932 has to its credit a long list of achievements, of which two may certainly be considered | the.most important that have happen- since the war. Probably only a few people, as yet, have realized how im- portant, how almost Yevolutionary they are, and how much they mean to the consolidation of peace and to the im- provement of world economic con- ditions. One of these outstanding achieve- ments was the Lausanne agreement, which passed a sponge over the repara- tions slate, remitting to Germany all but a small fraction of the unpaid war indemnity owed to the allies. The other is the offer by Prance to admit Germany's equal right to arm, which virtually abolishes the limitation on German armanents imposed by the treaty of Versailles. 1t is easier to realize the importance of these two events if one bears in mind that ever since the Treaty of Versailles was signed, in 1919, it has served as a universal whipping-boy whenever anything in the world went wrong. And plenty of things have gone wrong during this 13-year period. France Given Credit. The particular reprobation. France has borne the brunt of the criticisni, because Prance, it was generally felt, was the principal beneficiary. It is only fair, th consequence, that France should reap the biggest part of the credit for the abrogation of these clauses. In Germany people still speak of the Treaty of Versailles as an iron collar around the nation's neck, and the Ger- man press and public complain loudly | at the refusal of the French to allow it to be amended. But, in point of fact, probably no important treaty in history was ever amended so much in its first Lgeyzlrl as the Treaty of Versailles has n. The cancelling of reparations does not mean merely lifting a burden from Germany’s back. Its effects are much broader, and indeed will be felt as much in the United States as anywhere. The obligation to pay reparations constituted a first morigage on the resources of | | the German nation, and if the allies had chosen to insist that Germany pay that debt it would have been impossi- ble for Germany to meet any other lol;zlgu obligation until that debt was patd. American investors have billions of dollars in German securitics. Repara- tions stood in the way, not only of ting their capital back, but of col- éflmgm;:?m;o jand dividends. With parations abolished, any payments glb?;nnndmy is able to eflec?lbrud € to private creditors, o Rnt o i o ot Must Sell Goods or Service. Nor is that all. Before an t can make foreign payments, y“n:fim earn the money. Tae only practicable way of securing large amounts of gold or foreign exchange is by exporting g0ods or selling services (such as ship- ping) abroad. The gold and foreign | Wee Kim Lim, nationally known in | medical circles’ for his research in | X-ray, died yesterday after a week's | iliness with pneumonia. He had been in ill health for & year, due to a nervous breakdown from overwork. He was born 39 years jumatra, of Chinese descent, and was soaansted both from Ohio State University and Detroit College of Medicine and He was a contributor to Journals. exchange thus obtained can be utilized forelgn goocs of Toreign sePvce) o pes s or fo service, fotnels"nmdebu. G ut the reparations were so that they called for misze g0l sus foreign exci than Germany was able to earn, tly there was pothing left which to pay forelgn private creditors, it is plain 'Therefore enough that the first beneficiaries of - (Continued on reparations and disarmament | clauses of the treaty have come in for | WEL\., You T WANTED THE UNITED STATES \WINS 1932 OLYRPICS well, N. J. Body found May 12. slaughter, Honolulu. Sentenced and May 20—Mrs. ‘woman to cross by air alone. August 31—Eclipse of the sun. G the presidency. APTALBENEFTE BY BGENTENAL National Spotlight Thrown on City by Important Celebrations. Contributing in no small measure t publicizing the Capital on a Nation wide scale during 1932 was the George Washington Biaentennial Celebration— | | an obsérvance having no central set- | ting, but inadvertently casting the na- tional spotlight on Washington. Throughout the nine-month period | which ended November 24 hundreds of | patriotic celebrations were held in all parts of the city by a wide variety of organizations, functioning in many in- stances under the general supervision of the District George Washington Bi- centennial Commission. 33 Major Events Held. A total of 33 major celebrations, at- tracting thousands of visitors from widely scattered points all over the country, wege held under the auspices of the commission. Approximately 55 collateral events also were staged under the direction of the commission, not including scores of celebrations con- ducted by school groups, dramatic or- ganizations, Community Center and Playground depar:ments. Dr. George C. Havenner, executive vice president of the commission, esti- mates that the Bicentennial celebration | was directly responsible for an increase of about one million in the number of u;l;l;hu visiting Washington during 1 The Bicentennial also brought 245 conventions to Washington during the year, Dr. Havenner says. Created by Congress. created by act of Congress and $100,000 appropriated from the mu- nicipal treasury to finance the cele- brations here. “Of this amount several thousand dollars is expected to be re turned to thle Government as soon as report of the ct ties has been drawn up and printed. '.l'hlsl gs expected to be before Janu- ary 15. Throughout the Bicentennial year the local commission worked in co-opera- United States Bicenten- nial Commission, {52 Bty S B s ond e B 8 block of New York avenue. to & Gov- 1700 The local Bicentennial Commission & 's activi- | De passed USE EXPENSIVE LUBRICATION. Headline News Events of 1932 ; | January 28—Japanese bombardment of Shanghal. | March 1—Charles A. Lindbergh, jr., kidnaped and murdered, Hope- March 12—Ivar Kreuger, match king, committed suicide, Paris. April 20—Lieut. Thomas H. Massie and others convicted of man- commuted May 5. Aum“" 4—Al Capone, Chicago beer baron, entered Federal penitentiary, May 6—President Doumer of France assassinated, Paris. Amelia Earhart Putnam flew the Atlantic. Pirst July 6—Z. Bmith Reynolds fatally shot, Winston-Salem, N. C. July 28—Bonus army expelled from Washington, August 14—United States won Olympic games, Los Angeles. August 19—Capt. J. A. Mollinson flew westward route over Atlantic. September 1—Mayor James J. Walker resigned. September 3—Raymond _ Robins, Found near Asheville, N. C., November 1 mcoecwber 10—Samuel Insull, Chicago utilities magnate, arrested, Athens, gmh!bmvn leader, disappeared. November 8—Franklin D. Roosevelt, Democratic candidate, elected to D. C. LEGISLATION SHOWS HEADWAY Merger in Final Stages, $625,000 Aid Approved by House, 39 Laws Passed. Congress enters the new year with the long-pending street railway merger legislation in the final stages of con- sideration and with the House approv- ing a deficlency appropriation of $625,000 for*emergency reiief in the District, under the Board of Public Welfare, for the first six months of the new calendar year. Besides the regular annual appropria- tion bill, which carried $44,497,622 for current expenses during the fiscal year 1932-33, Congress enacted 39 laws of interest to the District of Columbia during the calendar year which has just plmgm 't?'.oflhmfiry, e street railway merger resolution, a subject that has been considered at intervals for a quarter of a century, passed the House early in the year and went, through the Senate during the past month, following a compromise between opposing factions in branch. The ihtention in the House is to aecept the Senate amendments, in which case it would go to the Pre dent for signature without a confer- ence between the Senate and House on the Senate amendments. The reso- lution outlines the conditions under which the Washington Railway & Elec- tric Co. and the Capital Traction Co. could consolidate under the name of the Capital Transit Co. The terms of merger, however, would still be subject that | and tactics in the schools, and SCHOOLS ADVANCE *DESPITE ECONOMY EVENTS MAKE D. C. HISTORY World Attention Centered on Capital by Outstanding Episodes of Year—Bicen- tennial and Merger Happenings. VICTION of the Bonus Expe- ditionary Force and internment of the so-called “hunger march- | ers” stamped 1932 as one of the most stirring and eventful years in the recent history of Washington. Not only did these events serve to attract international attention, but the foreiful evacuation of the bonus army lenmnhuwmchmn%n-w threaten a congressional investigation in the new year. Serious economic conditions through. out the country brought both of these to the Nation's Capital—the AP paymenof paymen! marchers gress for immediate the bonus and the “hun; e to demand a Federal cash dole of $50 and unemployment insurance. munists were blamed for sowing the seeds of discontent that inspired each of these marches, in which a number 3f them are known to have Flmdplud. ‘The vanguard of unemployed World War veterans began trekking into Wash- | ington early in May, and by July 28, | when Federal troops, at the direction | of the President, chased them out of | the District with tear gas and bayo- nets. the ranks of the bonus army hed 20,000 to estimates of more than 0, The futility of the bonus march was reflected in the failure of the veterans to achieve their goal, but duriny the prolonged encampment, was uneasy with thousands of and jobless men its vainly sought some ‘peaceful getting them to return to their homes. Glassford and Criticism. Brig. Gen. Pelham D. Glassford, him- self & veteran of the World War, was at the head of the Metropolitan Police S e it vt veterans P Even s0, Gen. Glassford had made efforts to stop the march on Wash- ington. He well knew the hardships and the privaiicas that faced these men in a city that had no funds to feed them, or buildings in which to house them, Appeals to the Governors of the 48 States to discourage the march failed, however, and the veterans came in ever-increasing numbers. Gen. Glass- ford went to work to provide food and makeshift accommodations— an action for he was later severe- ly criticized on the theory that it en- couraged more veterans to come. . Here the major porti bonus army “dug in” for its long siege. But food supplies soon began dwindle and donations were com- ing in more slowly. Health officlals com about the sanitary con- ditions at Camp Marks and the va- rious other places where the veterans had estal morning of June missioners 1932 Memorable for Launch- ing of Sixth High, Named for Wilson. Efforts to push forward to higher educational standards in the -face of marked curtailments of expenditures characterized the year 1932 for the Dis- trict of Columbia public school system. The building program, the Cadet Suffered most from the bu m"v:fhmez?'ft lmn%fi menf activities past months. The administrative, teaching, clerical and cum:glnl personnel's B of other Federal and munipical pay through the operation of the econt act. But despite curtailments, remembered as the year in which the District’s sixth white high school— named only recently the Woodrow Wil- son High School—actually was launched. Funds for the preparation of the struc- ture’s plans were made available Congress, the drawings were begun and the site in Reno was purchased. The proposed school was named for the war-time President at the request of virtually all the civic or-.| ganizations in the general Northwest section that will be served by the school. Funds to begin construction of the school were included in the 1934 bud- get as it was transmitted to Congress during the last month of 1832. Teachers' College Part. ‘Wilson Teachers’ College played more than one prominent role in 1932's | pageant in the schools. In February the college building was pronounced “unsafe,” and it was abandoned an hour after school emhk received the engi- neers’_report ffom'the District Build- ing. The personnel of the college was transferred to the old Columbia Junior High School Building at Seventh and O streets and exhaustive technical surveys Do de l?n th?la these surveys Bullding _itself. en a1 were completed it decided ‘the, building could be re expensive new underpinning recom- mended after the initial investigation. This repalr work now is nea com-= letion. pl’l'he: et:mmm};l lct“da;lt ‘:deovu v': pfi‘xi Cadet Corps when lenied act status to Lieut. Col. wt-umu m& r of a e | U S. A., professol . h’.g(e | assistant officers, thus relieving the school of all official aid from trained | Army men. Ool. Craigie, however, de- clined to leave the corps and voluntarily | vern- | remained on duty with the boys on re- | Th | tired pay, although it meant a steep re- duction for him. The year saw the opening of the new Roosevelt High School. Corps and the teachers’ college program | iy, 12 | 55 Wilson College | by 3 'fi-:a without the] the veterans were clubbed them the bonus. us. . Gen. Glassford accepted ment hi , but hands of all suj the 60 hours, these ped in the Capitol groun sleeping—to im| Ordered Out by Leader. This “march of death” ended June 15, almost as abruotly as it started bertson ordered his men out of the Capitol grounds. * Two days later, however, the radical left of the manded by John T. Pace of Detroit, y rest. to reach the White Hoyse, of in skirmishes with police. ‘That was the beginning of the dis- orders that finally led to the eviction ys army. An order issued by the Treasury July 23 gave the bonus &rmy, com- |the mob became hcstile. A pitched battle ap] imminent. Every svailable policeman was called to the scene and surrounded the veterans. for military aid. Hoover called out the trogps, and with FortNiser 'and other neathy” casups dyer an er swept | into Washington and, with s barrrge of tear gas, dramati emp- tied the lower avenue sector of ‘bonus them and, finally, , ich they found Ml‘tnl{ deserted upon Those remaining were given an hour in which to evacuate, and by midnight the bonus camps were & mass of smouldering shambles, except Camp Bartlett, located on private property in Congress Heights. camp was not disturbed by the troops, but was volun- tarily evacuated. The B, E. F. had died in the same confusion in which it was born. Many of the veterans left Wi town, Pa., and established a new camp at the invitation of Mayor Comdr. Waters, however, in Maryland, where he planned to estab- lish a permanent colony on private propefty near Waterbury. This pro; was abandoned, however, due to the opposition of Gov. Demand of President. ‘With the passing of the bonus army, there came from the President a de- mand that the Commissioners find the instigators of the rioting and bring them to justice. The grand jury be- 8an an investigation, and as s result three of the bonus marchers—Bernard McCoy of Chicago, John O, O Vllplrflnh:logrsonm Mh g on District policemen, men, however, escaped sentences and were Gen. "Ghusatord's sympathetic n. ord’s atti- tude toward the veterans and the fric- tion which developed with the Com- missioners as a result, led Commissioners to “free ly | hand” in running vt.Pouu .Dvun- ment. “hunger marchers” who were then &Mnmllplknmmmwnmwn g(l’mn. g'omundg outl.l'h“ the District not an feed shelter the mn:h‘e':l B o Results Are Disappointing. As in the case of th march- ers, the -wel-lnomaa E‘i‘.m ;flhdwm%movme%t’. t&’fi session of the Seventy-second Come the “hunger marchers” 2,500 cony on Wi verged ashington. .mn.mnwnfludufi tion, had decided not to allow to wander aimlessly about Police Department any eventuality, and in order to have an adequate force called out all avail- able firemen for police duty. Mai. Brown's success in veterans two days to vacate buildings | dren t on lower Pennsylvania avenue and othérs in the vicinity of Thirteenth B ariment was expecied to carry out rtment was e carry ouf the eviction order, but Gen. Glassford refused to act, on the ground that his ers sup] this contention, and the actusl evie- tion was deiayed until July €8, when rexfimemuv- of the ‘l‘r-.lur{é u’uder ce protection, proceeded orce e men out of the buildings on lower st to approval by a majority of the stock- lwldgn, 7 ccause of the demand for reduction overnment expenditures, Confu-n luring 1932, applied a payless furlough per cent with Federal and District’ Government employes and the oy rogram for e next. fscal Year. lor . What the Senate will do is l-bfll’t“':! &I:l@ Economy with the Treasury-Post Office ¢, priation bill. i District Fund Reduced. headquar- As the national |7, avenue. er marchers” fad it redicet Josdge ers” ha TR of the original benus force, promoted a second bonus on - Washington, which attracles only a few hundred veterans, veterans were allowed to carry out their program under police supervision. The various :nch-ll on Washington overshadowed B.E.F. AND HUNGER MARCH . 3