Evening Star Newspaper, March 19, 1933, Page 5

BANK DEPOSITORS BACK COL. COOPER Plans He Outlines Indorsed by 3,000 at Unusual Mass Meeting. (Continued From First Page.) stock of the new bank, paying from 20 25 per cent of the face value per share. He suggested this new bank be talized for $500,000, with a surplus 0,000. The new stock, he asserted, not carry with it any liability on the part of the holders. Alternative Suggested. an alternative, he suggested that depositors take preferred stock in the present bank and reduce the capital grom $1,000,000 to $500,000, the deposi- tors to take over and collect for their benefit frozen assets to an amount equal to the deposit surrendered. - . The question of whether, under the law, the Controller of the Currency has any authority to permit such action ‘was not settled. Col. Cooper said the plan was the E:dufla of his “own fertile imagination.” also sald the present stockholders would not be relieved of their liability to the depositors under a reorganiza- tion unless they should realize in full on their deposits. He predicted that within a few months the stock in the new bank, if the proposal should be carried out, would double in value. Resolutions Adopted. “This bank belongs to the depositors,” he declared. been wiped out. You will lose from three to four million in a forced liquida- tion. But if you follow me I believe we pay off.” The bank had tor will be able to sbout 22,000 depositors. ‘The customers of the bank, he de- tlared, have recelved ‘“terrible treat- t” from those now in charge when uv‘l‘enzwthabagfonbgamu A Tesolution proposed Col. Cooper and wing that the receiver ‘be asked. o show courtesy and consideration to the customers of the bank was adopted. After Col. Cooper said he had been denied access to the bank records, the depositors approved a resolution call- ing upon the Controller to take the necessary steps to see that Col. Cooper be given “full and free access to the Tecords of the bank, including the names of depositors and their balances, to assist him in reorganizing and re- opening the institution, and that if it be necessary to accomplish this purpose he remove the present receiver and ap- point a different one.” Another resolution adopted requested ©o-operation by the Senate, the House, the Secretary of the Treasury, the controller and the receiver with Col. Cooper in arranging an early reorgani- ®ation and reopening. Withdrawal Record Read. Still another resolution was passed thanking the newspapers for their co- operation in presenting news of the bank’s condition to the customers. To dispute charges he had withdrawn large sums of money from the bank shortly before it closed, Col. Cooper Tead a record of his withdrawals for January and February. The total was $527.50. He said he had a balance in his personal account of several thou- sand dollars, but did not know the exact amount. He sald he had received one threat- ening letter since the bank closed, and that one woman had threatened to pull his hair out. He also read several let- ters expressing confidence in him. He recelved a great many letters of this character, he said, and only a few “mean” ones. After he had read the commendatory letters Col. Cooper discussed the value of friendship in a time of crisis. “It is like a golden cord stretching from the human heart to the throne of God,” he declared. He also quoted from Shakespeare to illustrate his point. Col. Cooper said that when he went into the bank some three years ago it Was already in difficulties. Series of Setbacks. “Interest rates were reduced at that time,” he declared, “and we lost depos- its on that account. Later, the fact that we had borrowed from the Re- construction Finance Corporation was published and that led to more with- drawals. The closing of banks in Miche- igan and Maryland hurt us still more. “There came a grand rush for cash and I had to decide whether to stay epen or close the bank to protect depositors who were standing by us. “I favored a moratorium on with- drawals and my board of directors finally consented. After this decjsion had been reached a gentleman from the clearing house called me at my home one night while I was entertain- ing friends.” Col. Cooper said the fol- Jowing conversation ensued: “I understand, Col. Cooper, that you are about to declare & moratorium in wu; bank.” “Yes.” Conferred With Controller. “I want you to promise me that you will keep your bank wide open tomor- Tow.” “I'm sorry, but I must promise you the exact opposite.” “‘If you do, the controller will close your bank in 15 minutes.’ “‘I'm sorry, but I can't help it. I think it is the best thing to do.’” Later that night, he said, he re- ceived a call from ghe controller, and went to a conference with him. H;‘g\mud the controller as saying he promised the Clearing House to close the bank if he declared the moratorium. “You may open or close,” the con- troller said, according to Col. Cooper, “but there can be no moratorium. You may be right in your beliefs—I don’t know—but you are the only man in town who favors such a moratorium.” Describes Bank’s Condition. Col. Cooper said he did not want to be understood as criticizing the con- troller, but that he believed a mora- torium would have acted as a shock absorber. When he left the bank, he said, there was about $1,000,000 in cash on hand. “It should still be there,” he declared. He said the total of deposits at closing was about $10.000,000, whereas they had been $17,000,000 before the withdrawals peTria areyis harges on the bank e o on the banl building are. too. high, he sald, and should reduced under any reorgani- zation. Col. Cooper said he belleved he was entitled to the confidence of the de- positors. ““There have been practically no losses since I have been in the bank,” he said. “I don’t make losses.” He said, however, that he lost $250,000 in stock When the bank closed. Wade H. Ellis, local attorney, was se- WITH THIS $ COUPON GOOD FOR Monday & Tuesday ANY MAKE WATCH CLEANED Guaranteed for One Year J. F. ADAMS " JEWELRY CO. 804 F St. N.W. “The stockholders have | THE SUNDAY Benefits of De-Hoarding PROVIDES NEW CURRENCY, AIDING BUSINESS. Shown above are some of those who rushed their gold to the Federal Reserve banks after the Government had warned those holding it. ,The sketch suggests why Uncle Sam wants the gold taken out of hoarding. Federal Reserve notes are 40 per cent gold and 60 per cent bonds or business men's notes. If a hoarder brings a $10 gold piece to the bank, it may be put with the bonds and notes and $25 in currency issued, thus aiding business. [} BY J. R. BRACKETT. NEW YORK (#).—The most valuable money in the world is rapidly becoming & money that can’t be spent. Gold is this most valuable money. Government edict now prevents its ordi- nary use, and Government pressure brought some $100,000,000 of it out of hoarding within a week. And by the mere movement of these private "hoards into official resting places in bank vaults the Federal Re- serve system can increase the $100,000,- 000 in gold money to $250,000,000 in nglem Reserve notes redeemable in gold. This is an example of what gold has become in the long evolution of money. Impractical as a money for everyday use because of its scarcity and fragility, it is a base and a measuring stick for other money. Federal Reserve notes are the Nation's most widely used currency. When the bank holiday began about $3,500,000,000 worth of them were in circulation. By law these notes are backed with 40 per cent gold and 60 per cent Government honds or business men's notes. Thus, by law, $1,400,000,000 in gold (40 per cent) and $2,100,000,000 (60 per cent) in bonds and notes was all that was needed to support the $3,500,000,000 of Federal Reserve notes. ‘The new Federal Reserve bank notes need no gold for backing, since they are issued on bonds and other collateral deemed sufficlent by the Federal Re- serve Banks. Three billion or more could be issued in this form of money. But the more gold in the banks the greater the possible issuance of Federal Reserve notes and the less need there ‘would be for the new money. Gold in itself cannot now be used for hand-to-hand maney. For that matter, up to the bank holiday, the United States was the only major nation which freely coined gold for the public. France, Belgium, Holland and Switzerland, the remaining free gold standard nations, gold is kept only in bars worth about $8,000 each. No one knows how much gold there is in the world. Authorities estimate that since 1492 some $22,000,000,000 has been brought to some form of use. There is today something more than $12,000,000,000 held by Government and central banks. Billions more are in the form of gold ornaments. Other bil- lzi;::mlnhuxzho-rdxlnmehr About 1,100,000,000 troy ounces o ! ®old have been mined since 1492. lected as cl of the meeting. Thomas P, Morgan, jr., was chosen sec- retary. Col. Cooper indicated he would select his Reo; tion Committee, of which he is to be the chairman, from among the following: Mr. Ellis, David B. Har- rick, Charles A. Baker, N. I. Urdong, William L. Clarke, Judge Luke C. Strider, Eugene Adams, former Gov. E. F. Morgan of West Virginia, Percy ‘Thompson, William H. Sholes, Harry K. Boss, Mr. Morgan, William Green, presi- dent of the American Federation of La- bor; Dr. George Tully Vaughan and E. C. Davison. After the resolutions had been passed Mr. Morgan called for a rising vote of confidence in Col. Cooper. A large ma- Jority of the depositors stood up. The meeting was closed with a selec- tion from the orchestra. —_— CONSERVATOR REQUESTED UPON CASHIER’S SUICIDE Official of New Wilmington, Pa., Bank Leaves Note Citing $50,000 Insurance to Help Institution. By the Associated Press. NEW CASTLE, Pa, March 18—Di- rectors of the First National Bank of New Wilmingtcn today asked Federal Reserve authorities at Cleveland to ap- point a conservator for the institution to assume charge Monday. The action followed the suicide of Howell T. Getty, cashier. Getty left a note sa; that a $50,000 insurance policy on his life would care for a de- ficit on bonds held by the bank. Officials sald depreciation of the bonds prevented the bank from reopening on an un- restricted basis. ‘The directors announced they ex- pected the bank to resume business in full in a short time. $4,120,000 Gold Turned In. DALLAS, Tex., March 18 (#)—Of- clals of the Eleventh District Federal Reserve Bank said today that $4,120,000 in gold had been turned in from mem- ber banks at the close of business yes- terday. Michigan Man Dies in Paris. PARIS, March 18 (#).— Harry Rindge, 60, a native of Michigan, but long a resident of France, died at a hospital today after a long illness. TENNESSEE BANK DECREE EXTENDED FOR 30 DAYS Governor Renews Emergency Holi- day, but Ruling Is Not Manda- tory, Most Institutions Open. By the Associated Press. NASHVILLE, Tenn., March 18.—A proclamation Tennessee's emergency bank holiday for 30 days was: issued by Gov. Hill McAlister today in order to “safeguard the interests of the depositors- and creditors in the banks of the State.” The proclamation was explained at the Governor’s office as a precautionary measure to enable the State superin. tendent of banks to limit withdrawals if such a step becomes necessary. The holiday is not mandatory and the ma- jority of banks in the State are 8ting on a normal basis except for Fed- eral restrictions. immediately after the procl‘nmuan was issued that he would issue no new reg- ulations governing bank operations, 2n BANKS' LICENSED Fifth District Federal Reserve Re- ports 117 Members Still Closed. March 18 (#)— Bank of Richmond this afternoon that 271 ber banks in the fifth district have been licensed to open and that 117 are still closed. ‘Total collections of gold and gold certificates through March 17, the date set in the anti-hoarding cam Was announced as $23,900,000 from the fifth district. INTEREST RATE RAISED ‘Wilmington, Del.,, Banks to Pay More on Time Deposits. WILMINGTON, Del, March 18 (®). —The Wiliningion Cearing House As- | sociation, which includes seven of the banks in this city, today voted to in- crease the interest rate on time deposits. Effective Momt“}'l'\m:l;betr ,/’hnnd ; will ay 1 cent, of per Cent, year of the de- positor’s balance which exceeds $500. cent, yearly “on that part PIANOS ’ FROM LOCAL ‘WAREHOUSE 10 . . . . . FREE TO LOAN TO SAVE STORAGE CHARGES LOOK THEM OVER ARTHUR JORDAN PIANO CO. 1239 G St. Cor. 13th N.W. ASK FOR MR. LEONARD OFFICE MANAGER We want to avoid pay- ing any further storage charges and will LOAN them to responsible f‘m- ilies. There are no strings to this offer and you sign no agreement whatsoever to buy the Pianos we LOAN you. Simply come in and make your selec- tion. We have both PLAY- ERS and UPRIGHTS. ARTHUR JORDAN PIANO COMIFANY 1239 G—Cor. 13th s | serve the assets of such STAR, WASHINGTON OFFICIALS NAME AS CONSERVATORS Vice Presidents Put in Charge of Franklin and U. S. Savings Bank. National benk egaminers who have been in charge of the Franklin National Bank and the United States'Savings Bank yesterday turned over the insti- tutions to their own vice presidents who will be conservators. F. C. Ockershausen, the examiner who has been in charge of the Franklin bank since last Tuesday, turned over his re- sponsibilities to Thomas P. Hickman, vice president of that bank, who now is in charge as conservator. Zepp Succeeds Bailey. At the United States Savings Bank, J. L. Bailey turned over his dutles as Meantime, most of the banks in the city which are in the hands of con- servators have been operating trust funds. Under the emergency banking legislation, these institutions are author- ized to receive money on deposit in trust and to have it available for withdrawal. These funds must be kept either in cash, on ceposit at the Federal Reserve Bank or in Government securities. Work on Reorganization. Efforts are being made by conserva- tors not only in Washington but throughout the country to recognize banks, or get them in condition to meet the requirements of the Treasury De- partment for a license to reopen. ‘The exact status of the 13 banks here which are in the hands of conservators has been kept officially & secret, while the conservators are endeavoring to make as rapid progress as possible. Reports were current that some of the banks would reopen this week. 40 BANKS’ OPENING SOON ANNOUNCED BY TREASURY HEAD (Continued From Pirst Page.) licenses to them as soon as final details are completed and within a short time.” The Secretary sald he hoped -that many banks in addition to the two score he referred to would be able to follow the same procedure. He obviously was greatly pleased with the report of the action. He. held the list in his hand while he discussed the subject and expressed his admiration for the men who had “toed the mark” | 000 and made personal sacrifices to aid the institutions. Text of Executive Order. ‘The executive order issued by the President follows: “By virtue of the authority vested in £ me by section 5 (b) of the act of Octo- ber 6, 1917 (40 Stat. L., 411), as amended by the act of March 9, 1933, and section 4 of the said act of March 9, 1933, and by virtue of all authority vested in me, I hereby issue the follow- ing “g.xleclltlve t:d": i i - enever le appropriate auf ity having immediate supe: of any banking institution located in any State or place subject to the jurisdiction of the United States, which is a member of the Federal Reserve System and wml::chholisfhmb;guunudbymesoc- ry e Treasury to resume its usual banking functions, shall deem it eceu:hry or :dvl:llble ;‘n order to con- e assets of such banking insti- tution for the benefit of the depositors or other creditors, such authority may, in with the provisions of the A3Point such sppropHate ol af ey such appi be authorized under such laws to eur;- banking insti- tution pending further disposition of its business as provided by such laws. Must Be Licensed. “This order shall not authorize any such member bank to reopen for the performance of usual and normal func- tions until it shall have received a license from the of the Treasury as led in executive orders of March 10, 1933.” (Signed) “FRANKLIN D. ROOSEVELT.” Meanwhile, after a meeting between & group of Detroit business leaders and members of the Reconstruction Corpora- tion, Jesse Jones, a member of the cor- poration’s board, announced that “the &jfll’ tllfllcl.lrlunfii lln’u t'he way of provid- blnkl.ng ac or Proaching settiement T Dr UL AT€ 8- —_— BANK TAKES IN 70 ~ $10,000 GOLD NOTES 0ld Big Bills of Other Denomina- tions for Total of $1,400,000 Also Deposited. By Nu:w Associated Press. YORK, March 18.—Among the money deposited at the Chemical Bank & Trust Co. since the national anti- campaign was launched are 70 $10,000 gold notes in the old-fash- foned size. Old big bills of other denominations for a_ total of $1,400,000 have also been recen officials ited there 3 of the bank said today. FLYING ANTS cause $40, mgm:-?-)u-un to wood- l.r:-t-’-.nl‘ vacat! unnecessary. n. spection. 2 Terminix Co. of Washington 1102 National Press Bldg. Phone National 3703 D. C, MARCH 19, 1933—PART ONE. INFLATION TO BE CURBED - BY BALANCING OF BUDGET Roosevelt Aiming at Cut of 750 Million by Drastic Paring of Federal Establishment_. ' __(Continued From Finst Page) n fiscal , in the absence of = T With the beer m estimated w':fi'a $150,000,000 in | ring the first and the gasoline tax an MPIT.M.M.MWHMM to obviate the need of further , for several imponderables such : “mth o d_suffering, the prevent hunger an 3 March income tax returns and the de- termination of the Roosevelt policy as to loans from the Reconstruction Finence -action, the ac- cumulated deficit would be $5,000,000,- 000 at the close of the next fiscal year, June 30, 1934, Probable Method Used. How the President arrived at his es- timate of a $1,000,000,000 deficit for that fiscal year was not explained officially. In well informed un 1 sources it is that the administrati Roose- | have ‘The “oh-:lk{ in the velt ld:m is that, hm- foreseen developmehts, the it = %‘mrcuhrog wmnm%w over an: gnt he can observe meantime the trend 16 has | peduct public’ informed *OThese, and vatious other factors, will affect the final of the Ped- Senator James F. Byrnes, Democrat, of South Carolina, a close friend and ad- viser of the President, which would permit the removal of capital expendi- tures to an account for bond issues not exceeding $500,000,000. Plan Opposed by Douglas. This legislation has yet to become law and Lewis W. Douglas, the Budget director, was on record before he en- tered the Ron‘:evelt ldmlnht;lflnn a8 opposed to such segregation. Neverthe- less, such an operation is not necess- arlly ruled out as to certain types of public works. ‘The President’s determination is to reduce the Federal budget to a point be- low $3,000,000,000, even including the statutory public debt retirement of about $535,000,000. Should he succeed, ke ot S B S t-war e ire of $5,000,000,f gthed in 1921 and again in the de- pression period. ‘To bring 000 is c mediate possibilities, and now contemplated would be, question, the most sweeping ever made at one time in the Nation's history. It took until 1927, in the Coolidge era of economy and easy revenue, to reduce the post-war budget total of $5,000,000,- to a total of about $3,500,000,200. By 1929 it had risen again to about $3.900,000,000 and the requirements of the depression sent it upward again. ‘With approximately one-fourth of the Nation’s expenditures committed to the veterans’ payments of various forms, the difficulty about bringing down the budget has lain in the hitherto impos- sible task of getting Congress to author- ize drastic_cuts in veterans’ compensa. tion. Mr, Roosevek, with the extremely favorable psychology due not only to the acuteness of the economic crisis as he took office but also to his newness in office and his patronage whip-hand over Congress, took that fortress and, with it, the right to make reductions almost at will in the veterans’ part of By many students of Govgrnment economy it has been considered difficult to go much farther in that direction than indicated in the congressional de- bates. Assuming that the reorganization and consolidation powers conferred by the -Post Office bill limited further economies to less than $75,000,- 000, it has been felt that retrenchments much in excess of the total of these pos- flblllfl:hemudm not ‘l':‘ Nm without e avy. e Sarvices. Mave protescsd that i would be unfair to apply to them the same rules for reducing pay as will af- fect Government employes le%nlly, this in view of the pay inequality they have protested for years. The current Army and Navy Journal carries on its first page an open appeal to the President to this effect. One of his secretaries, Col. Marvin H. Mc- Intyre, was for a long time correspond- ent of that journal and an energetic protestant against cutting down the strength of. the naval establishment. The heavy cuts in the veterans' ad- ministration will show in the inde- Specializing in Perfect + DIAMONDS Also complete line of Charge Accounts Invited urizburger Co. 901 G St. N.W. ’f MW A R a4 Give the home a “NEW DEAL,” Install AMERICAN RADIATOR CO. Hot Water Heat A safe investment that pays life- time dividends. T 9Th 3 Years to Pay—As Low as $10 Monthly AMERICAN HEATING ENGINEERING CO. 907N.Y. AVE. ~ NAT. 8421 reached White Districe of Columbla Net total . . $3,351,399,700 T W i I . .$2,9406,162,713 pi e not in sight... Ly 828,742,877 2,620,419,836 Pranchise tax receipts, etc.,s send which under law must be applied to debt reduction.. Net recelpts ....... 3,600,000 $2,616,819,830 Probable thrinkage since De- cember in income taxes. cus- miscellan; z other unfavorable Total expenditur Total receipts .... Prospective deficit. .. 1934 Costs Estimated. If the probable deficiency appropria- tions during fiscal year 1934' are placed at only $15,000,000, which is much too low, it runs the prospective deficit above $1,000,000,000. President Hoover's esti- mate of deferments in cuts made in 1934 bills was about $40,000,000. On the basis of appropriations ap- proved by in the recent ses- sion, including the independent offices bill, which President Hoover refused to sign, and the District of Columbia bill, which only reached the stage of a con- ference agreement, expenditures in 1934 would be approximately $3,886,- 470.000. This total is exclusive of postal costs met from postal receipts, but includes $534,000,000 for statutory public debt retirements. It includes $196,600,000, which is the Budget Bureau's estimate of unexpended balances of previous ap- propriations which will be drawn upon during the year. The prospective total expenditures represent a reduction of $382,418.400 be- low estimated expenditures for the cur- rent fiscal year of $4,268,888,400 and a reduction of $1,110,120,305 below actual expenditures in the fiscal year 1932 of $5,006.590.205, when about a billion was accounted for by the Reconstruction Fi- nance Corporation and other emer- gency items. The total is about $323,- 000.000 under that for the fiscal vear 1931 and $108,000,000 less than expendi- tures in 1930. It is a little higher than in 1929, when at the height of the busi- ness boom tax revenues reached huge totals. Tt is greater than any previous year since 1921, when war costs were still reflected in expenditures. Allowances Offset Savings. PUBLIC OWNERSHIP OF BANKSPROPOSED Compete “Shaking Up” Also Urged Before Industrial Democracy League. By the Assoclated Press. NEW YORK, March 18—Public ownership of banks or a “shaking up” of banking methods was suggested speakers at a luncheon of League for Industrial Democracy -today. vestiga banking, said that, although the Nlt‘l'gl still believes in the ability of the Government to cope fully with the banking situation, a complete: over- hauling of the system is essential. Cites South American Bonds. Bonds of several South American countries, floated by American bankers and held by American citizens, he said, “are worth today not more than a frac- tion more than their souvenir value.” Harry W. Laidler, director ot! t:‘kw league, suggested thé Governmen e over & large share of banking by con- solidating the Federal Reserve System with the Postal Savings banks. “Public ownership,” he said, “would reduce the cost of doing banking busi- ness. The country would not longer have to pay bank presidents salaries and bonuses of $1,200,000 a year, & re- turn exacted by Charles E. Mitchell during the golden days of the past—a return equal to the average wage of 1.- 000 American workers during periods of prosperity.” Blames Metropolitan Banks. John T. Flynn, economist, sald the reason “many little banks, essentially sound themselves, cannot re is because their funds are tied uj the great metropolitan banks like in Detroit, Cleveland and Baltimore, which are the victims of security poi- soning that was self-inflicted.” He called for the divorce of secfirity affiliates from banks and also said banks should be restrained from doing any security business. He also said | private banking must end. TWO VIRGINIA BANKS PLAN CONSOLIDATION Hampton and First National Ex- pected to Combine—Col. Healy Named Conservator. By the Associated Press. HAMPTON, Va, March 18.—The pending consclidation of the Bank of Hampton and the First National Bank here became known today with the an- | nouncement of the appointment of Col. Joseph E. Healy, executive vice presi- dent of the Bank of Hampton as con- servator for the First Naticnal. “We are getting plans in shape as rapidly as possible to complete the merger of the Bank of Hampton and the First National” Col. Healy said, “and in the meantime every courtesy and convenience will be afforded the clients of the First National that are permih tted us by the national banking ws.” Director of the two organizations sald the reorganization details are being ironed out and will be put into effect as quickly as banking machinery will Bince the bulk of expenditures due | Permi £ e, SR I e Finance tion, which is !lmnc:'é borro , ordinary - mnt:l mu;u will x;’ml“xr‘\t at Ig;t vel _ preval prior the stock market crash. jsur_h nvln:: as have been eg;md have been offset bfinnoenmn burden of allowances for war veterans. reductions represent the depression items and a curtailment of ccnstruction. President Hoover, in refusing to sign the independent offices bill, said that $39.626.650 of the es- timates merely represented deferments which must be provided for by de- ficiency bills. On this basis, expendi- tures in 1934 would be $3,926,000,000 m-i.fi than su‘u,ooo,oooim‘ figures for tions are mwummnmmmmex- Mwhfle the Democratic congressional leaders point to a saving of $65,050,588 C Homer L. Kitt Company 1330 G St. N.W. CO-OPERATION—At this time, more than any other time, we extend to all Washington music-lovers our 1009, co- operation and we will facilitate the selec- tion and easy ownership of the piano which you may choose. Extra Specials Kimball .....$78.00 Upright, reconditioned + Period design Steinway . . . .$189.00 ‘Studio, used, in perfect condition 2 Uprights. . $16.00 Used. Good for beginners 3 Players. . . $42.00 Used, but Guaranteed Richmond ... .$49.00 Used upright, in perfect condition Knabe . .....$124.00 Used, marvelous tone it. It was ted out that through the moumfin the Bank of Hampton business will total $6,000,000. The Bank of Hampton was reopened for active business yesterday. The ap- pointment of Conservator Healy for 'ge First National was announced officially at noon yesterday. below what they regard as the budget estimates, the total is $117,820,665 less than recommended by Mr. Hoover in his budg:t message. This increase over the Hoover recommendations is boosted to more than $157,000,000 if the so- called deferments are added. discrepancy between the calcu- lations of congressional leaders and Mr. Hoover is due primarily to the inclusion in his budget message in December of supplemental recommendations requir- ing new legislation which would have made possible a reduction of $127,000,- 000 in veterans’ costs and $55,000,000 in Government salaries. The congres- sional leaders have ignored these items, aggregating $182,000,000. O-OPERATIV n today | - A-S§* SOVIETRECOGNITION AWATTS ROOSEVELT Action in Senate May Be De- ferred for Administra- tions Views. By the Associated Press. - ‘The question of rtcownlzlni Russia to be raised again soon in the but may be deferred until the Roose- velt administration expresses its ideas. To Senator Willlam E. Borah of Idaho, former Republican chairman of the all-important Foreign Relations Committee, the best course to be pur- sued in the immediate future is to walt on & statement of White House policy. Although President Roosevelt is withholding comment, the belief is growing in some Capital circles that the Moscow regime is being looked on with more and more friendliness. Borah has advocated recognition of Russia for 10 years and is now sponsor- ing a brief, 18-word resolution that would put the Senate definitely on record in favor of it. - “Resolved, That the Senate of the United States favors the recognition of | the present Soviet government of Rus- sia,” it reads. For this resolution, which he has just reintroduced, he has no immediate plans, “I think it might be best to wait for the administration to express its policy.” he expleins. Firemen to Hold Tacky Party. CAPITOL HEIGHTS, Md., h 18 (Special). —A tacky party be given in Piremen's Hall here next Saturday night by members of the C:p\:‘ol Heights Volunteer Fire Departe ‘men! = EISEMAN’S SEVENTH AND F $6 Monthly Will Pay for Your NEW SPRING SUIT 18 NOTHING DOWN Just Pay $6 IN APRIL $6 IN MAY $6 IN JUNE Greys, tans, browns, blues—in light and dark shades. All-wool mate- rials that wear and hold their press. Open a charge account. Nothing down. Washington Music Lovers CONFIDENCE! The name Kitt has been synonymous with Washington music lovers for a number of years. Thou- sands have bought with confidence their pianos from “Kitt’s”, have tested them in their homes, and received their full measure of satisfaction, NO MONEY DOWN COMPANY I330G. SE. Think of it! Only $195 for a slightly used Grand