Evening Star Newspaper, April 2, 1933, Page 21

Editorial Page — Part 2—8 Pages EDITORIAL SECTION he Sundwy Star. Special Articles WASHINGTON, P, INCREASE IN PRICE LEVEL WOULD BRING “INFLATION” Commentator Points to Present State of “Deflation,” Owing to Low Commod BY MARK SULLIVAN. QUESTION which pours into Washington in greater num- bers than any other, asks: “Is there going to be inflation?” I ought to say at once that the question is extremely difficult to answer. There are days when I feel inflation is right ahead of us and other days when it seems utterly unlikely. “Inflation” in the popular sense, as used in the questions coming to Wash- ington, has one of two meanings. Hence the questions divide themselves into two classes: 1. Will there be inflation in the sense of a considerable and rapid rise in prices of goods, arising normally out of existing conditions? 2. Will there be inflation in the sense of formal action by Congress or the administration about currency with the deliberate intention of so altering the value of the dollar as to cause a rise in_prices? Let us answer the first question first: “Will there be inflation arising nor- mally out of existing conditions?” A very recent existing condition, bear- ing on inflation and prices, is that the Government has just added two billion dollars to the quantity of cur- rency. Any assertion that this is’in- flation should be promptly qualified by two facts: One is that the intention is to retire this additional currency when it has served its emergency purpose. The other is that this recent addition to the currency is in reality not an ad- dition at all—it is in large part a sub- stitute foz currency which is in hoard- ing, and #lso for bank deposits frozen in closed banks. Deflation Now Obtains. An answer, therefore, might say that the recent addition of two billion dol- lars of new currency does not increase the total of currency and bank deposits now in actual use. On the contrary, the sum of currency and bank de- posits now in active use is consider- ably below normal. And this condition is not inflation. It is deflation. At the moment this is writtep the country is in a condition of acute and extreme de- fiation. ‘To put it in figures: A year or so ago there use about five billion dollars in cur- rency and about forty-six billion dol- lars in bank deposits. The sum of those, fifty-one billion dollars, was the coun- try’s medium for carrying on business at that time. Today currency in circulation has gone up to about seven billions, but bank deposits have been reduced by the amount frozen in closed banks, which is, roughly, six billions; that is, active bank deposits are now down to about forty billions. The present total of active bank deposits plus currency in circulation is about forty-seven billions. In other words, we have now a total of about forty-seven billions as against a total of about fifty-one billions a year were in circulation and active part, as follows: policy of the United S aver: chasing pow lar f:feth;: years 1921 to 1929, inclusive, il be g‘: control of the volume of credit and currency.” ity Costs. action. of it. To answer “No” for the administra- tion is almost to answer “No” for Con- gress, because the great Democratic ma- Jjority in Congress follows the Presi- dent pretty willingly. Yet there is in Congress great impatience with the present level of prices, much eagerness to raise it. Congress May Attempt It. Perhaps a fairer answer about the at- titude of Congress might say this: If there is within a short time a consider- able rise in prices ana a considerable increase in business activity—an in- crease in what we call prosperity—in that event there will be no attempt at statutory inflation by Congress, but if there is not a rise in prices and a con- siderable resumption of prosperity, then Congress might make the attempt at statutory inflation. Congress, if it should come to the point of enacting inflation, would not do so through use of silver as a basis of currency—there is not the faintest evi- dence of likellhood of that. Neither would Congress inflate through in- crease of flat paper money. There is not the faintest evidence of likelihood of that, either. Those—silver and pa- per—are two of the three familiar methods of statutory inflation. The third method of statutory in- flation would be reduction of the quan- tity of gold in the standard gold dol- lar from the present 23.22 grains to something lower. If statutory infla- tion comes at all, this is the form it would be likely to take. If there is not a reasonably early rise in prices and increase of prosperity—if condi- tions continue as they are—in that event Congress might pass with a rush a measure to reduce the quantity of gold in the standard dollar. They would do so overwhelmingly if such a measure were proposed or not resisted by President Roosevelt. They might readily do so even against Mr. Roose- velt's opposition. Assuming that de- pression continues, it would be no trick at all to find a two-thirds ma- jority for a proposal to reduce the weight of gold in the gold dollar from 25.22 grains to, say, 15 grains. Last year, against the opposition of President Hoover and the Federal Re- serve System, the House passed by 289 to 60 the Goldsborough bill whose aim was to raise the price level. Passage in the Senate was only averted by per- But there is no present sign suading Senate leaders of both parties ot to let the measure appear on the oor. The Goldsborough bill read, in declared to be the tates that the er of the dol- “It is hereby urt restored and maintained by It is in terms of price level that Congress mainly thinks. Most of the concrete proposals for raising the price My F The wife of the President of the United States shows in this article that she is confronted by many of the same problems in running her household in Washington, even to paring expenses, that confront housewives the world over. BY MRS. FRANKLIN D. ROOSEVELT. Before I came to the White House I‘ confess that I was not a little worried at the prospect of how a house whlch[ ‘was partly public and partly private on such a large scale as the White House could be run, in order to provide for a family real peace and quiet and home life and still give the public all th2 rights which it should have. There | was, of course, at the Governor's man- | sion in Albany a little of the same prob- lem, but in no way did it compare with the problem in Washington. ! My recollection of the past was simply | that certain rooms were kept for publiz use and that the public was allowed to | see those rooms. I was quite vague, but | I knew that where one person had come to see them 20 years ago probably 100 | came today, and the mere fact of keep- ing these rooms clean would be quite an_undertaking. I have always felt that a house wLich after all was paid for and supnorted by the taxpayers of the country skould be as far as possible in its public aspects open to them, and I have always had g feeling that a life lived even privately in that house should, as far as possible, meet the desires of the average Amer- ican citizen. : Their conception of the dignity due to their Government and the relation- ship which this Government, as rep- resented by the White House and the people who live in it, should bear to | the other governments of the world, as represented by their Ambassacors in ‘Washington, is something which one can only guess at, but which one should, as far as possible, try to meet. One should use one’s imagination and one’s experience and do what one feels is th2 desire of the public. Economies Effected. 1t is probable, of course, that one may ’, not always be correct in one's concep- tion of the desires of the majorily cf the people, but at least they should know that every effort is being made to meet their desires. My first difficulty came when my lrusband requested that the White | House do as all other Government departments were doing, and cut down on its expenses 25 per cent. I tried to do it in the way which seemed to me | the wisest and most efficient. Certain | people, naturally, had to lose their jobs, | but I hoped they were the people who | would more easily find work again with | recomendations such as they could have for their past years of work in the ‘White House. t!r;‘g'firy housewife will knov; whe:‘ti cul; expenses means, so I need not| detail the thought that had to go into | this preparation. I can best give you | an idea of what has to be done in the SUNDAY MORNING, APRIL 9 1933. TP XY FIRST PICTURE OF MRS. ROOSEVELT IN THE WHITE HOU! E. SHE 1S SHOWN IN HER PRIVATE DRAWING ROOM ON THE SECOND FLOOR. sentatives and Senators may be shown the other formal entertainment rooms. | There is a small dining room which is kept for the family, and the life of the family goes on upon the second and third fioors. g Each individual family coming in, of course, arranges these floors to meet its own needs. have a large family whose members like frequently to stay with their father and mother. Therefore, on the third floor I arranged two nurseries for my It happens that we | —A. P. Photo. | nothing which will change a house | |more than the hanging of many pic- tures. These pictures were hung in the | oval room, which my husband has |taken as a study and where he holds |all his evening conferences, which have | taken place .practically every evening | since March 4. His bed room is imme- diately adjacent, that being more con- | ! venient for him. | I found in the storerooms some old | sofas and comfortable chairs which had | been put away by former occupants and had them covered with cretonne and irst Month In White House First Lady Encounters Problem in Reducing Expenses 25 Per Cent. | President Monroe’s time. I changed this room into our family sitting room. where I have tea every afterncon, and gather in friends who come to Wash- ington and many other people who wish to see us informally. Into that {room I have put a good deal of my own rather comfortable furniture. Feel- ing that my rather large sized family might be harmful to the Monroe furni- ture. I placed that in the hall im- mediately outside, where people were likely to sit more formally. Otherwise there are few changes, and I think every one who comes to the second floor of the White House must | be impressed with a sense of living in histeric~1 surroundings. Markers have been placed which tell you of things which happensd in the various rooms. For instance, in one rocm you read on the mantel an inscription: | “This room was r cabinet meet- |ings from President Johnson's time until 1902 Here was signed the treaty of peace with Spain.” In another room: “In this room Lincoln signed the emancipation proclamation, freeing the slaves.” In the other room: “In this room Lincoln slept.” Spell of the Past. It is a beautiful house with lovely proportions—great dignity, and I do not think any one looking at it from the outside or living in it can fail to feel the spell of the past and the re- sponsibility of iivihg up to the fine things which have been done and lived in that house. As a housewife, of course, one rather changes one’s usuz]l mode of existence, for one has a housekeeper who super- vises what the large staff of servants does. The head usher looks after the public part of the house; the house- keeper looks after the domestic end of the house and sees me every morning. She brings me the menus for two days in advance, as a rule, and these menus have to be so arranged that if extra people come in at the last minute they can be expanded easily. She brings me any questions that she wishes to ask, and we discuss any arrange- ments that have to pe made. She goes the rounds of every room every day; she does the ordering of food; she sees the person responsible in the pantry and in the kitchen and upstairs, and she handles the individ- uals who run the house, keeping them content and happy and feeling that they are being fairly treated and that they have some form of supervision and a real understanding of their work. Keeping a household running smoothly, whether for 1 or 20, is quite a job. And if it is well done, it means a com- fortable, smoothly running home—and that, I think, we now have in the White House. I have always felt that no family could be happy if the people around them were not happy, and in the White House I feel that it is not only the people around them, but the people who constantly pass through it, who must sense an atmosphere of happiness. If “TRY IT ON THE DISTRICT” OLD PLEA {Many Attemp to Inflict Capric ‘ | BY SENATOR ARTHUR CAPPER. HEN Mr. Jones goes out to buy a suit of clothes, it is unlikely that he will give his trade and goodwill to a merchant who refuses to let | him examine fabrics or choose between | colors and designs. | And when Mrs. Jones fares forth to | market, you may be sure that she does not intend to allow any dealer to force her to buy goods she cannot use and does not want, The American citizen wants to know beforehand what he is getting for his mone. Moreover, he prefers that the decision 7 buy or not to buy shall rest with him and not with some per- son who may have other interests at heart. ‘Want to Crack Whip. | Yet Congress is con:‘zatly being urged to take the position of a tyrant | toward the District of Columbia, by | persons who seek to advance their in- terests, or the prestige of their faction, through enactment of laws for the people of Washington. These attempts to persuade Congress | to crack the whip of legislative power | over the District are frequnetly cloaked as altruistic endeavors in behalf of | model laws for our National Capital. | But Congress patiently refuses to abuse its sweeping authority over the seat of National government. Congress permits Mr. and Mrs. Jones, the people of Washington, to examine proposed Dis- trict laws, and does not force upon them obnoxious and unfair enactments. How effectively Congress provides against capricious or arbitrary action in this respect is best shown by its record in legislating for the District. Wash- ingtonians may well take pride in know- ing that, although they have not yet attained their rightful goal of repre- sentation in_Congress, the laws gov- erning the District are enacted only after studious deliberation and after consideration of the wishes of the Dis- trict. Visited by Many Lobbyists. The relations of Congress with the District should be well known to all the people. But, in my eight years as chair- man of the Senate Committee on the District of Columbia, I was frequently visited by lobbying committees from other cities in the interest of ready-to- use laws for the National Capital. Many of whom .were not only meagerly in- formed as to the interest of Congress in the District; they were entirely un- familiar with existing District laws and with administrative set-up of the Dis- trict government. The mental attitude of this type of lobbyist, who is often as overbearing as he is ill-advised, is somewhat difficult to understand, because his mental pro- cesses are utterly devoid of the Amer- ican idea of government by the consent of the governed. To illustrate, permit me to cite an imaginary conversation TO CONGRESS ts Made by Special Interests ious Legislation, | could have been obtained m no way | other than by questioning witnesscz The committee must be satisfled witn | the merits of the bill before it reports | the measure back to the Senate or House. Sometimes, despite the care | that is takon in committee to insure | against error, defects are discovered by other legislators when the bill is called up for consideration in the houses of | Congress. | ~The result of this procedure is to make every District bill stand on its own | merits, regardless of its origin. If the bill is sponsored by interests outside the District, even though they maintain an active and vociferous lobby, their object is defeated if the bill is shown not to be in the public interest. Good legisla~ tion for tho District needs no lobby. It must_po:cess, however, these essentials: | 1. It must meet a need not provided by existing law. 2. It must be fair to the public in all its terms and, conditions. | 3. It must be free from ambiguity, stating_its object frankly. The District of Columbia has been the | legitimate concern of Congress since the infancy of the Republic. In the first session of Congress hel¢ in this city, the | question of governing .the 10 miles square of Federal tefiliory was laid | squarely before the Nat#ial Legislature by President John Adafs, on Novem- | ber 22, 1800. | Goverument <e:-ap. |, In the succeeding fi*e years, Congress ‘had provided for the old city of Wash- | ington a municipal government fhrough a mayor and council, and had altered the government of Georgetown, incor- porated since 1789, so as to include a board of aldermen and a board of com- mon councilmen. Attention was given also to that portion of the District ceded | by Maryland lying outside the boun- daries of Washington and Georgetown, This part of the Federal territory, known as Washington County, was gov- crned by a levy court, which continued in power by Congress. Although it may be assumed that, by setting up self-contained governments for Washington and Georgetown, with councils holding ordinary municipal powers, Congress relieved itself of con- siderable responsibility for local legis- lation; it did not entirely delegate its legislative control over the District to the city governments and the levy court. There was sufficient interest in District affairs in Consress to warrant the creation of a District Committee by the House of Reoresentatives in 1808, and a similar committee by the , fol tha colorful re: of Alexander Robey Shepherd, Cc’f: | gress took complete legislative charge of the District, setting up a commis- sion form of government, which was rxz;l_slge permanent by the act of June 11, Granted More Authority. From that time until the recent past. - |grandchildren and two bed rooms for v Congress has usl; rded its 13 or s Therefore, the present con- | 1] by statute have Trow come down | White House by ftelling you a little |BOUCTHCIn TR CHO od oo | e the ond of the hall tom's 2ic | we succeed in doing that, then I think B> e s between a Senator and a lobbyist of this dition is not inflation—it is deflation. But inflation is a tricky subject to write about or to deal with. To a con- siderable extent inflation is a matter of public psychology. If, for example, great numbers of people should get the idea today that there is going to be in- flation—if they should get that icea from reading this article—then inflation of & certain kind would come and come pretty promptly. The expecting of in- fiation actually brings inflation. The state of mind which brings in- flation is that which thinks money is going to be cheaper. The reader of this article knows that today a 50-cent piece is equivalent, roughly, to a bushel of wheat. To turn it around, a bushel of wheat is equivalent to a 50-cent piece. Let us assume he gets the idea that a month from now a bushel of wheat will be equivalent to a dollar. If he gets that idea he will bromptly begin to get rid of his money by buying wheat with it, or other goods. That state of mind, the wish to exchange money for goods. Is a kind of inflation. Two or three times in recent week it has seemed to me the public was just on the point of getting this idea and acting oh it. In which event we should have inflation in actual existence, inflation to a reasonable and ‘wholesale degree. I think we were pretty close to this kind of psychological infla- tion, to a sudden burst of rising prices, about two weeks ago. The Materials Exist. To sum up the present situation, in- flation does not exist today, but the materials for inflation do .exist—they are here in great quantity. There is, to start at the base, nearly five bil- lions in gold, and the Government and the Federal Reserve System are im- pounding it and preventing it from getting away. This five billions in gold is more than we had at the time of the great boom of 1929. Five billions in gold could support upward of ten billions of currency. I am using rough figures here and I am speaking for the layman and not for the expert. Ten billions in currency could support an enormous sum in bank deposits, some- thing approaching 100 billions, for, as things go in America, $1 in rency has supported $10 to $12 in bank deposits or bank credits. This is the same as saying that there exists today the materials for a de- cided inflation and therefore a de cur- | to the notion of reducing the weight of e gold dollar. m?rgobnbly a fair summary of the atti- tude of Congress would say something like this: Nine-tenths—more than that, ten-tenths—of both chambers want prices to rise above their present ab- normally low level. If the rise takes place, as now seems possible, thmuzhI the addition already made to the cur- rency and through other normal and wholesome forces, well and good. But if by any chance a considerable rise should fail to develop there will be a very strong disposition in Congress to reduce the present quantity of 23.22 grains of gold in the standard dollar. The talk about such a measure does not contemplate a very material reduc- tion. A figure sometimes mentioned is 20 grains. The lowest quantity seri- ously mentioned is 15 grains. Who Will Take Responsibility. ‘When the history of this depression is written, a vivid chapter will say that | on March 11 and March 15, 138 Repre- sentatives and 13 Senators voted “nay against “An act to maintain the credit of the United States Government.” President Roosevelt, on the seventh day he was in office, sent to Congress a | measure bearing that title and having that purpose—“to maintain the credit of the United States Government.” Mr. Roosevelt described the measure as “of urgent necessity,” as dictated by | “great present emergency,” as calling | for “frank, courageous and prompt | action,” as necessary for “the safety of ] (savings bank) deposits, the security of insurance policies.” as calling for “direct and absolute” action, as neces- sary for “the very stability of our Government,” as dictated by the fact that “a great danger threatens our | basic security. * * * It is in this spirit at I appeal to you.” On Lhigp;lfl. thus described by Presi- dent Roosevelt, and thus designated | “an act to maintain the credit of the | United States Government,” 266 mem- | bers of the House and 62 members of the Senate voted “yea” and the bill was enacted. The credit of the United States Government was maintained. But 138 members of the House | and 13 of the Senate voted “nay.” | They voted “nay” for the reason, al- most without exception, that the bill re- | duced pensions to veterans and pay of | about the life that is lived there. In the first place the public can come in on the lower floor and up the on their holidays. | ting room for young people, as we so On the second floor the greatest |frequently have young people with us. main staircase into the east room every change has probably been the fact that | day except Sunday from 10 to 2, and lmy husband brought all his naval pic- | called the Monroe room, and in it were those who hold cards from their Repre- | tures and prints down, and I know of 'a few pieces of furniture belonging to Power Holdé Great Promise Broad Field Awaits Further Development and People Are Insured a Cheaper and Plentiful Product THE MAMMOTH WILSON DAM AT MUSCLE SHOALS AND (RIGHT) A WATERPOWER PLANT ON THE SPOKANE RIVER. ‘The. other sitting room had been we will have done what will not only make our lives happy, but at the same time will give something of a lift to the spirits of the rest of the country. (Copyright, 1933, by North American News- paper Ailiance, Inc.) stamp. Senator—Why do you want this bill introduced? Lobbyist—Because it represents the ideals of our organization and carries them into practical effect. We want the bill enacted into law for the District of Columbia, so it may be a model for the State Legislatures to follow. ‘Wants to Try it Out. Senator—Is there a similar law in your own State, or in any other State? Lobbyist—No, Senator. is a model bill. We want to have it enacted ss for the benefit of the Na- people. Then we will seek the enact- ment of similar laws in the States. Senator—Have you consulted the Dis- trict government or any of the repre- :fim‘uve organizations here about this Lobbyist—We have not attempted to do that, except among our own mem- bers here, who are in favor of it. We understand the Commissioners reported | unfavorably on a similar bill a year or so ago. But frankly, Senator, we are not Dparticularly interested in their opinion. The people of this country want this law passed for their own Capital City. The District people are not supposed to make laws for them- selves. Congress must act for them, and judge what is best for them.” We may leave the conversation at that point, for the lobbyist has fully shown his hand. He has disclosed the utterly selfish and intolerant attitude representative of his class. He also has revealed his ignorance of how District legislation is handled in Congress. While the dialogue is entirely imaginary, the arguments of the lobbyist are the same that are presented to members of Con- gress year after year. Members of Congress realize, how- ever, that the prime reason for these lobbying endeavors is the fact the Congress of the United States legislates for the District. Organizations pri- marily interested in obtaining enact- ment of laws in the States are aware of the weight lent to their arguments by congressional approval of their pet legislation. Fortunately, not all District bills | emanating from sources outside of Washington are the products of self- I have had the y Congres tional Capital, which belongs to all the | I to exclusive ition over the Na- | tional Capital. tely, due to the g-eat number of et bills authcrizing minor acts of the Commissioners, Con- gress has been inclined to give the heads of the local government more adequate authority over matters which do not affect in any way the interests oéclhe United States within the trict. Through the creation of such useful bodies as the National Capital Park and Planning , the Public Utili- ties Commission, and the Board of Public Welfare, to name a few, Con- gress has lightened its burden of regu~ lating affairs in the District. Neverthe- less, the District Committees of Con- gress are occupied constantly with leg- islation referred to their attention. The expanding requirements of the Capital, the revision of laws to keep pace with the times, and the development of im- provements in government, combine to keep these committees hard at work. It is almost impossible for the mod- ern Washingtonian to visualize his city as it appeared to Albert Gallatin when, in 1801, he wrote to his wife: “Around the Capitol are seven or eight boarding houses, one tailor, one shoemaker, a washing woman, a gro- cery shop, a_pamphlets and stationery shop, a small dry goods shop and an oyster house. This makes the whole of the Federal City as connected with the Capitol.” City Has Grown Great. The city has indee-l grown great since the days when_lt evoked cow-, tempt and ridicule frtfn its own resi- dents. Each step forvard has meant the giving of additiona! service by the city to the people. The progress of the National Capital ¢nd the responsi- bility of Congress to this Capital de- mand that the local government main- tain its usefulness by the enactment of good laws. Under present practices in Congress the promoters of unwanted legislation are amply restrained from achieving their purposes through the joint ef- forts of Congress and the people of the District, but this task calls for unending vigilance, To guard against a relaxation of this vigilance and to advance the orderly processes of government in the Cap- ital, the District of Columbia should A f ok izati have representation by its own citizens - | Government employes. They voted “nay, BY GEORGE W. GRAY. imaginations can grasp. Further elec-| “All contracts between holding com- | with public interest involves dangerous |3§€XIng organizations. in houses of Congress and the cided rise in prices of goods. In say-| ing this. one should add that if a| really great inflation got going, if it should threaten to be a runaway infla- tion, the Government would check it ¥y | retiring a good deal of currency and | by other means. But the Government | would not do this for some time. The | Government wants a certain amount of | inflation, of the right sort, wants it| very much. Checking inflation would be an act of deflation—and I should | like to see the government that would | commit an act of deflation under pres- | nt conditions. ¥ The net of all this is that there exists the materials for a very consid- | erable inflation and a very considerable | Tise in prices. They exist in such a way that one is tempted to be ready to see the rise begin almost any day. Po- tential inflation exists, very decidedly | 1t exists * The other question is: “Is there going to be inflation in the sense 0(1 formal action by Congress or the ad-| ministration about currency with the deliberate intention of so altering value of the dollar as to cause a in prices?” As to the administration, the answer can be prompt and complete. There is no faintest sign of intention on the part of the administration to inflate the currency. On the contrary, every utterance and act of the administra- tion reflects intention not to inflate. ‘There are some who think President Roosevelt in his inaugural address held the door open for one form of mflat.lnn if need should come. His phrase “an adequate but sound currency” might be consistent with reduction of the uantity of gold in the dollar. But re is no faintest present sign of any intention on the part of the adminis- tration to do that. Some members of Mr, elt’s cabinet and some of his advisers believe in reduction of the guantity of gold in the dollar. Sventy might press toward -such an rise ‘9 T that is, because the bill was against the interest of the two groups upon | whom most Congressmen mainly de-| pend for re-election. The lobbyist of | the American Legion in a letter to every member of Congress called on them to vote “nay.” All the members of the House, those who voted “yea,” and those who voted | “nay,” will come up for renomination | and re-election, beginning about one year from now, when the primary elec- tions will start. (The Senators will come up in series, 1, 3 and 5 years from now.) WLy The Congressmen who voted “yea, to “maintain the credit of the Gov- ernment of the United States,” will be opposed by fully 19 out of 20 of the veterans. Let there be no doubt about that. Every politician knows it to be true. Some leaders of the veterans have given lip service for the moment to the wave of feeling in support of President Roosevelt. But the mass of veterans will carry a deep and biting animus against Congressmen who voted he | to reduce their pensions, present and potential. They will express this sullen | | resentment next year by opposing re- election of Congressmen who voted to sustain President Roosevelt and to “maintain the credit of the United States Government.” ‘The veterans will remember, will be organized and will act, powerfully. Who will remember on the other side? Who among those now indig- nant against the veterans and their congressional spokesmen will keep their indignation alive for a year? Who will now take the trouble to preserve the names of Congressmen and the record of their votes? Who, and what organi- zation, or what newspapers, or what other organized instrumentalities of public opinion, will make it their busi- ness to protect against crucifixion a year from now the Congressmen who voted “to maintain the Ebdlt of the United States T f | for a single day has the fuel ration of | N a remote Marconi station in Africa two natives work daily at an odd task. Their job is to sit tandem fashion at a pedal-driven | dynamo and tread out the electric | [ power necessary to actuate the wireless. In an eight-hour day, with a half-hour off for lunch, they may pump into the line one kilowatt hour of energy. In Connecticut today a massive wheel | turbine whirls under the hot breath of a blast of mercury vapor and pro- duces an equal amount of energy in one-third of a second, at a fuel ex- pense of three-quarters of a pound of coal. These two performances represent the extremes of contemporary efficiency in the electric power field—three-quar- ters of a pound of bituminous coal (cost about .002 cent) versus 15 hours of hard human labor! | Nor will the record stand still. Never | the power industry stayed put. Twelve | years ago three pounds of coal burned for every kilowatt-hour that pulsed | over the wires. By 1925 the average was down to two pounds. In the boom year of 1929 it was a trifie under 1.7 pounds. Last year the 3,879 generating plants averaged 1.5 unds. This year everybody in the g’lodu.fl.ry knows it will go down more; new steam units with more efficient burners and boilers have been in- even more powerful prime- Jjust emerging from the research lal oratories. The promise of power is the promise of cheap energy, everywhere and con- veniently available. The popularity of the subject in the political forum is po ‘nd:nx-nbum";: .‘L“i“"fim“’m Shaes power , wi e- rule cannot confirm all the promises of the stumj lh , its"forecast of the possibilit is greater than most trification of the factory, of the trans- portation ways of the farms and of | the homes threatens to work yet more revolutionary changes in our mode of living—and it will be an advantageous revolution, say its advocates. Electrically lighted motor roads to eliminate the headlight nuisance and insure greater safety for night traffic; electric _air-conditioning, already well begun in modern business buildings and now to be extended to apartments and small dwellings; electric cooling | and heating of homes, electric cooking, electric lighting with strange new vapor lamps—these are some of the items on the lists of prophecy. Cheaper power will hasten them. Increase of Efficiency. Cheaper power involves increased ef- ficiencies, not only in the generating stations (where miracles have already been wrought), but also in the dis- tributing lines (where high costitems hide) and in the integration of tech- nological management with financial management. It is even possible that the collapse of Mr. Insull's “empire” may come eventually to be regarded as one of the major gains of the de- pression, in spite of its devastations of many innocent victims. It did show up vividly and unforgettably what a holding company system may not do. Everywhere today, but especially in the public utility field, the holding company is under challenge to prove its reason for existence. A tendency to decentralize has riade itself no- ticeable and the trend,is conspicuously in the direction of eliminating grandiose | pyramid organizations and engineering and construction affiliates. Public serv- ic> commissions are revising their codes to bring holding company contracts un- der supervision. Utility executives have gone on record as for regula- tion that will guard an panies and their operating companies | for ~financing, managing, purchasing | and construction should be open to the inspection of commissions at all times,” declares John E. Zimmermann, president of the United Gas Improve- ment Co. of Philadelphia, “and, if necessary, in order to remove the criti- cism of unreasonableness and unfair- | ness, they should be subject to com- mission approval.” Also significant is the organization | early in 1933 of the Edison Electric| Institute as the national trade associ- | ation of the industry. This, too, is an echo of the crash of Insull, since the institute was formed to supplant the National Electric Light Association, | which was long dominated by the Chi- | cago magnate and which under his | leadership attained notoriety as an agency of propaganda. Organizers of the Edison Electric Institute, which comprises in its membership 85 per cent of the electric power industry, point to | a rigid code of business ethics to which all members subscribe. It requires pub- licity of financial records of each mem- ber-company and empowers the insti- tute to investigate, discipline and expel those who refuse to furnish information or who in other ways intract the new code. Pressure of the Times. ‘What has happened, pointed out George Otis Smith, chairman of the Federal Power Commission, is a rather general and widespread readjustment of | the public’s ideas regarding private ownership—a readjustment forced by the remorseless pressure of these times. “We should emerge from the present economic crucible with a more adequate idea of th> public relations of private saw at his office in Washington. “In- vestors in utilities securities, as well as consumers of electricity, begin to de- mand the benefits of public supervision. . .“The theory that clothing a business business,” thinks Dr. Smith, whom I| interference with private initiative may even suffer an abrupt halt. Recent ex- perience has caused many an executive to wish that there had been more such interference, and to see that a require- ment of public convenience and neces- sity would have protected him and his undertaking from disaster. Several basic industries are now seeking public regulation, simply because unrestrained competition is the death of profits. They envy the relative stability of pub- lic_utilities.” The stability of public utilities, as represented by the power industry, is indicated in many items on the balance sheet. Since 1929 capital investment has increased by $1,500,000,000, the ca- pacity of generating plants by more than 3,000,000 horsepower, the lines of transmission systems by more than or purchasers of electricity by nearly | 500,000. Domestic demand for electricity has increased, but purchases by fac- | | tories, mills, railroads and other large commercial customers have fallen off. | In consequence, total sales are about 15 | per cent under 1929's figures, and reve- | nues therefrom show a decline of ebout 7 per cent. Employment in the power industry, always small in proportion to investment and output, s slumped | about 19 per cent. Such changes, how- |ever, are slight when compared with | the drastic declines in employment, | sales and revenues of other basic in- | | dustries. | Perhaps the most encouraging item | in recent power history is the increased | demand of the American home for elec- tricity. During these depression years domestic purchases of energy increased from an annual average of 498 kilowatt- hours a home in 1929 to 612 in 1932, And with increased consumption prices pleasure of assisting to enactment bills concerning the District which had been recommended to me by persons and or- | ganizations remote from this city. | . In these cases, however, the persons |interested invariably acted with intel- ligence and with due consideration for |the wishes of the Washington people. They studied the District laws to avoid |any possible conflict or duplication; they sought the opinions of District officials, of civic organizations, and other stu- dents of local affairs. Not until they were satisfled that their bill would be | welcomed as a means to meet a need of | the people did they ask that the meas- ure be introduced. Won't Permit of Haste. This fair-minded and really helpful | class knows that Congress does not| rush thoughtlessly to enactment any| | District legislation. The mechanics of | | 13,000 miles, the number of consumers | law-making for the National Capital | simply do not permit haste. | Practically all bills introducsd in Con- gress affecting the District are referred to the District Committees of the Senate and House. There the bills are given a close and painstaking inspection. They receive not only the study by committee members, but at the same time are scru. tinized by officers of the District go ernment, by local organizations, and by individuals interested in good local gov- ernment. If the interests of the Fed- eral Government or any of its agencies are affected by the bill, it receives addi- tl‘:iiul study by appropriate Federal offi- cials. During my service as chairman of the Senate District Comimttee, I endeavored to hold public on any bills when hearings were requested by the public. Although it is virtually im- le to keep out irrelevant and ver- statements at such hearings, my experience has been that, by this have declined—from the average do- i method, the committee often has de- veloped inf¢ which right of all other American citizens to participate in the national elections. —_— | Moscow Police Busy With Counterfeiters MOSCOW.—Moscow police have had | their hands full with two big counter- |feiting cases and a wave of petty thievery. Some weeks ago it was noticed that the Torgsin stores, where purchases may be made only with foreign cur- rency or with coupons representing “gold rubles,” were being flooded with counterfeit coupons. The “gold ruble” coupons, given to Russians in return for their old gold and silver, are plainly printed slips of paper, and it had been an easy matter for some clever gang to print thousands of dollars’ worth and pass them in exchange for such delica- cles as butter, eggs and cream at the | shops. To prevent the recurrence of this practice, the authorities were com- pelled to institute a new and highly complicated system of trading books. The introduction of the internal passport system offered another op- portunity for counterfeiting on a large scale, and by the time the system had gone into effect there were some 200,000 spurious rts on the mar- ket, selling for ween 300 and 700 rubles apiece. The latest racket is that run by a gmup of individuals, who go from one ouse to another, purporting to be building inspectors but actually making a room to room search for valuables. Russians are so accustomed to )uvl.n’ their privacy disturbed at all hours of the da; to ny one’s authority, that the racketeers have so far proceeded un- dist 4 L comment, 10320 ,r,