Evening Star Newspaper, April 9, 1933, Page 21

Editorial Page I Part 2—8 Pages EDITORIAL SECTION he Sunday Star, WASHI RENUNCIATION BY FRANCE OF HER ALLIES UNLIKELY Poles and Czechs Would Lose Entity| in Event of “Big Four Peace Club.” BY FRANK H. SIMONDS. ILL Prance throw over her Polish and Little Entente al- lies and join Britain, Italy and Germany in a “Big Four Peace Club?” Will a Peshuffiing of the territories of the smaller states avert the danger of a new war between the larger European states? In a word, will Daladier—or whoever later speaks for France—con- sent to treat present allies as Ramsay MacDonald treated his former labor as- sociates in the British political crisis two years ago? That is the greatest question be- Fore Europe and the world at the pres- ent moment. Upon the answer to it will depend more than it is possible to esti- mate today. But for France what must | such a decision mean? It is clear that it would involve the practical extinc- tion of Poland and Czechoslovakia as _political or economic entities. Poland, | without the Corridor, which is its out- let to the sea, and without Upper Bilesia, which is its great coal and in- idustrial region, would sink to ines- i eapable dependence :pon Germany. In the same fashion Czechoslovakia, pnce Germany had recovered Upper | Silesia and realized the long-projected union with Austria, would be little more than & tiny Slav island in the midst of German sea. Its outlets alike, by the lbe and the Danube, would be in Ger- man hands. Its great German minori- ties would infallibly seek union directly with their brethren of the Reich. No more than a sort of limited autonomy rcould be hoped for by the Czechs, ex- tending only to regions in which they constitute the clear majority. As for Rumania and Yugoslavia, the vecently published program of Mussolini indicates the fate that the Duce, with obvious German approval, has indicated for both. In effect, while the Czechs would be compelled to retrocede Slo- vakia to the Magyars, Rumanian and Yugoslav sacrifices would also be re- quired—sacrifices sufficiently great prac- ically to restore the pre-war unity of &:e crown of St. Stephens. The Duce’s Punishment. The Banat and Transylvania would fall to Hungary, along with the Batchka; Croatia and Slavonia would go to some mew Slav state, obviously dependent recognize the right of Austria and the Reich to unite; who viewed the gradual expansion of German economic mastery in Central Europe without alarm, who not only regarded Franco-German con- ciliation and co-operation as necessary and possible, but were also prepared to pay a price for such an achievement, even if that price called for térritorial revision. In France, then, there was discover- able a gradual developing conviction that the task of maintaining the terri- torial system of Paris at the cost of undying German and Italjan hostility was both beyond national resources and contrary to national interest. More- over, that belief still exists and finds influential champions among the lead- ers of the Left mow dominating the Chamber. To imsgine that any or all of the French alliances are based upon sentiment is, therefore, to fall into an error not frequently made either in Warsaw or Prague. Much less is it on account of any dream of continental hegemony, be- cause of any militaristic spirit or by reason of any considerations of national prestige that France still visibly hesi- tates to abandon those allies who are such constant sources of cost and dan- ger for her. On the contrary, French policy is now and has always' been since the close of the war dictated by consideration of the unanswerable question: What would become of the security of European France and the integrity of Colonial France once the nation was compelled to face in isola- tion the two imperialistic nationalisms of Germany and Italy? Warsaw and Prague Warnings. From Warsaw and Prague, too, come warnirgs once voiced to me by a Polish Prime Minister, who said: “Our French allies would always do well to recall the interesting sequence of Sadowa and Sedan.” For, two genergtions ago, France did stand aside and permit Prussia to crush Austria. But that victorious army which considerately refrained from entering Vienna, five years later passed under the Arc de Triomphe in Paris. As for that Aus- tria which France suffered to be beaten in 1866, after 1871 it promptly allied itsel; with the new German Empire and became a co-guarantor of a Ger- man Alsace-Lorraine. Might not his- tory repeat itself? Nor is the other parallel of history . |less striking. For by one of the most to the level of pre- war time, while Czechoslovakia would be abolished. Such is the punishment the Duce DI es for the Little En- tente, which so far thwarted his plans in the Danubian area and on the east shore of the Adriatic. , 1t is obvious, then, what such a pro- gun of treaty revision as Hitler and ussolini contemplate must signify for ¥rance. Germany is to dispose of Po- Jand, Italy to scatter Yugoslavia to the four winds. proval of Austria and Hungary, they are to demolish the states of the Little Entente. When the process was com- pleted—doubtless at the cost of two wars, for patently both the Poles and the Serbs would resist—France would find herself without an ally or ‘friend on _the European Continent. Instead she would be confronted on the Rhine by of ninety million and along the Alps by an Italy rapidly marching toward fifty, to her own sta- tionary forty. But what if the new and dispropor- tionately strong Germany should pres- ently seek to recover Alsace-Lorraine and thus abolish the last vestige of the territorial decisions of Paris? And what if Italy, no longer restrained by Nugoslav hostilities, should undertake to_carry out that Fascist program of rolonial expansion which could only be at the expense of France? ‘What, indeed, if Germany and Italy “should agree to divide and rule—the one enjoying the hegemony of Europe, the other supremacy in the Mediter- ranean? Then Strasbourg and Tunis would be the respective booty of a combined attack at the Rhine and slong the Alps. A Double Specter. It is this double specter of German fnastery of the Continent and Italian | domination of the Mediterranean which today haunts the minds of all French-| men. It is, moreover, the rise of explo- | pive nationalism in both countries, per- sonified by Mussolini and Hitler, which | gives the danger a tenfold magnitude in ' French eyes. Nor is it possible for the French people to forget that while for | 30 years Italian Fascism has been grankly discussing the appropriation of French territory, concomitantly with the triumph of Hitler in Berlin Nazi bands appeared in Kehl, just across| ghe Rhine from Strasbourg. Five years ago, while Stresemann was #till alive, while Locarno was as yet a name to conjure by, there were French- , with the ap-|3ago. ironical of all conceivable circumstances France in 1933 faces the problems of Germany in 1914. Then, because German statesmen saw the security of their country locked up with the preservation of Austria, Bethmann- Hollweg felt himself compelled to fol- low Berchthold into the Serbian ad- venture. ‘Today France is confronted by the problem of what she must do if, now that the existence of Poland and Yugoslavia are both in peril, she has to deal with the question Germany was condemned to answer 19 years From Berlin, Rome, and even from London, come repeated assertions that it would require but a sture from Paris to persuade the es to make the necessary sacrifices in the Corridor, to reconcile the Czechs to the union of Austria with the Reich, to com- pel the Serbs to modify their intran- sigeance in the face of Italian menace. All of these declarations are, however, demonstrably untrue. On the contrary. it is the realization that Poland and Yugoslavia will resist all projects for revision by arms, if necessary, and that if abandoned they will be destroyed, which renders the French problem so difficult. ‘When, however, every consideration is paid to present French self-search- ing and disquiet in the face of ob- vious dangers, it is practically impos- sible to believe that in the light of contemporary German spirit and per- formance Prance will consent to make any formal, or even effective, renuncia- tion of her present policy or agree to sacrifice her existing allies. That she would not unwillingly urge them to make territorial concessions were there any chance that they would heed her advice is begund question. But since she knows the answer to all such re- quests she will hardly invite the other risks such a course would involve. Thus, as there is not the smallest chance that the Germans will in any respect modify their present revision- ary program and there is even less | possibility that Poland or the Little Entente will agree voluntarily to the necessary sacrifices of their own unity and security, it is plain that the causes of the still recent “war panic” of early March endure. Consequently we are in truth back not only in the atmos- phere but in the circumstances of 1914. War now as then has certainly not become inevitable but it is henceforth always possible and may arrive with all the unexpectedness of the great conflict itself. s Indubitably, Europe continues mmen, of whom Briand was only the fmost conspicuous, who were ready to! move toward war., (Copyright. 1033.) Epicurean France in Hostile Camps PARIS —The centenary of the death| Pf Marie-Antonin Careme, French cook of the revolutionary and ! Wapoleonic era, has started a contro- | sition of meals, and particularly on the | wersy about gastronomy that has di-|importance of pleasing the eye as well | ¥ided all epicurean France into two hostile camps. Careme, who was successively cook modern taste would allow, but he was | #o Czar Alexander I of Russia, Talley- | and, King George IV of England and aron Rothschild, was as famous in his | Lime as Napoleon himself. His name for & century has stood in the same rela- | ::On to the art of cookery as that of | 'hidias in sculpture and Raphael in | painting. It is related that Talleyrand used Careme’s cooking to put foreign diplomats in a propitious mood for | signing any treaty that he might pre- | pent to them. But the spirit of modern criticism E.us begun to attack the gilding on ‘areme’s reputation. Iconoclastic Jean- acques Brousson, whose hilarious books bout the foibles of Anatole France vere a sensation a few years ago, de- kclares roundly that Careme did more ko ruin French cooking than any man who ever lived. It was Careme who banished from the table of society the simple, honest and straightforward Kcocking of the provinces, substituting he ornate and rococo “made dishes” at were the fashion throughout the mineteenth century and only recently have begun to be ‘abandoned. But Brousson's attacks have not gone nanswered. Other critics declare that | clamations of wonder, the butler, fol- slipped on' the | which Brousson vaunts did not exist|polished floor and the marvelous fish before Careme’s time. Until the French | fell in a heap. The guests gasped and Fevolution there was no such thing as | turned compassionate glances toward e sound and sane peasant cooking gastronomy in Paris. Huge piles of meat, crudely cooked, were thrust be- Bore guests, and a meal consisted in | Careme, waited until the butler had gobbling and guzzling «s much as one :m'.ld hold, with no care for quality 7 | On Merits of Famed Napoleonic Cook Careme, his defenders assert, was the | famous | first to insist on the artistic prepara- | tion of food, on the balanced compo- as the palate. It may be granted that he carried his theory further than cooking for kings and emperors and he undertook to bring the dining table into harmony with the sumptuousness of the background. At a time when gentlemen wore powdered wigs, bright velvet clothing, jewels and gold lace, M. Brousson's honest, straightforward lamb stew with French peas would have been incongruous. There are many stories about Careme, particularly during the time he was | working for the foxy Talleyrand. One of the most typical concerns a small | diplomatic dinner which Talleyrand was giving. Much depended on the | success of the affair and Talleyrand | instructed Careme to outdo himself. | Careme managed to acquire two of the largest turbots ever secn in Paris, each weighing upward of 20 pounds. Talleyrand, when he saw them, bit | his lip in vexation. “It is too bad we cannot serve them both,” he said. “Nobody ever saw two such fish on the same table. But it cannot be done. With only 12 at table, it would seem too ostentatious.” But Careme thought of a plan. When the first turbot was served, amid ex- lowing instructions, their host. | picked himself up and then said non- | chalantly: “Bring another!” | (Copyright. 1933.) Talleyrand, well styled in advance by | MACDONALD. —Harris-Ewing Photo. PREMIER PREMIER MUSSOLINI. —A. P. Photo. BY PAUL SCOTT MOWRER., ARIS—The political and econo- mic center of the world is about to shift suddenly to Washington. This seems to be the mean- ing of the preparations now rapidly proceeding for British, French, American and probably also German and Ttalian conversations in the Capital of the United States toward the end of April, with President Rocsevelt speak- ing for the United States, Primg ister Ramsay MacDonald £ for Britein and perhaps Premier Edouard Daladier or former Premier Edouard Herriot for France. ‘Whatever is discussed and in what- ever order, the real aim will be to find a basis among the principal powers for constructive common efforts toward the re-establishment of the world’s political stability and prosperity. The talks which Norman H. Davis, special envoy of President Roosevelt, has had in London and Paris and will begin tonight in Berlin, have been mainly exploratory and informatory. They serve the purpose of preparing those other and far more important talks which will be held in Washington. Davis, while he has explained as far as he has been able to the American viewpoint, has as yet done no genuine negotiating and made no proposals or . He has simply devoted him- self to understanding the various phases of the complex situation and to seeking means of rendering easier some sort of later agreement. - It is President Roosevelt himself who will do the real negotiating on the American side. The American Prec- ident and the foreign premiers cer- tainly will not enter into the details of the world’s difficulties. The details will be left to experts and diplomats. But they will seemingly endeavor, nevertheless, to reach some board prin- ciples of agreement. The fundamental problem, it appears, will be one of mak- ing political and econcmic peace. The hate propaganda and the war tension must be stopped or financial and com- mercial reconstruction will be impos- sible, for fear will keep capital in hid- ing, obstruct trade and interfere with the normal flow of goods and credit. Then the excessive and constantly increasing trade and exchange restric- tions behind which each country is shutting itself off from the rest of the world to its own and the general detri- ment, must somehow be broken down or trade cannot be revived anc the lack of broader demand will obstruct any normal rise of prices. | It is difficult to say which of these two wars, the political or the eccnomic, is doing the most harm, for they are interactive and each contributes to make the other more intense. On the political side it is obviously the subject of disarmament in which all the countries, including the United States, are directly interested and which will furnish the framewcrk for the discussions. Only by reaching a| general disarmament treaty, in which | there will be no victors and no van- | quished, but all will find their due measure of fair treatment and assur- ances of future security, can political peace be made, it is asserted. The powers assembled at Washington may, therefore, well make a pledge to concert their efforts along certain well- defined lines to this end. Whether Italian Premier Benito Mus- solini’s four-power pact proposal for treaty revision will also be discussed is not certain. It is possible that the oc- casion will be taken, in the name of peace and disarmament, to ask the re- visionist powers the gquestions which | Daladier raised in the French Chamber of Deputies with such emphasis— namely: “Just what revisions are proposed? What frontiers? May not the word ‘revision’ thus suddenly be injected into the debate and arouse other ideas than those of international justice? under the flag of peace? actually lead to war?” Probably, however, even before Mac- Donald salls, a new French memoran-’ dum on the Italian proposal will be circulated and discussed, and this issue of revision will already have entered some new phase. | On the economic side, experts agreed long ago that what is necessary. They enumerated the following problems: A new settlement of intergovernmental debts. Speedy de facto stabilization of cur- rencles at appropriate levels, followed | by the restoration of the free gold standard and the abolition of foreign exchange restrictions. May it not NGTON, B L, SUNDAY MORNING, APRIL 9, 1933. PRESIDENT ROOSEVELT. Consolidation of foreign short-term loans. e Creation of machinery for reviewing and, wherever necessary, readjustment of foreign long-term debts. Abolition of quotas and other forms of indirect protection. An immediate tariff truce, followed by general gradual reductions, but with the maintenance of the most-favored- nation clause. Cessation of uneconomic subsidies to steamship and airlines. An international agreement for the limitation of production of certain easily controlled commodities. Prices, most experts add, will look after themselves once trade and credit obstacles are removed and demand can again assert itself. But it is one thing to get experts more or less to agree and quite an- other to get governments to act on their recommendations. ‘The chief obstacle to a new war debt settlement is the United States. The chief obstacle to removal of devastating import quotas is France. The chief obstacle to speedy currency. stabiliza- tion is Great Britain. There is obviously room here for active diplomacy on the basis of give and take. If Germany can be dis- suaded from rearmament, if Prance, Great Britain and the United . States can be petsuaded that abolition of quotas, currency stabilization and a new war debt settlement are necessary parts % one xlfi‘r cammmdmwrut. tthat is y, world peace and prosperity, the whole international atmosphere, it is thought, ht rapidly be transformed, confidence restored and the long- awaited business upturn actually begin. TREATY REVISION PROBLEM. ‘What Part Germany Will Play in Con- ference Uncertain. BY EDGAR ANSEL MOWRER. BERLIN.—Will the Germans consent to attend the World Economic Confer- Political and Economic Problems May Be Solved in Forthcoming Deliberation With President Roosevelt ence at the present time? If not, why not? Will they demand as a_ condition for their attendance further progress in the matter of disarmament and the so- called equality status? Is it possible to get further either | toward disarmament of the equality status without discussing the entire problem of treaty revision? Can_such discussion probably be pushed unless it is known in advance just what points of the treaties the Germans wish to revise? These are some of the points the American Ambassador at Large, Nor- man H. Davis, and his assistant, Allen W. Dulles, will endeavor to clear up during their short stay in Berlin, be- gun today. For, short as their stay is, g,l will be packed with important mee gS. Today the Americans saw Foreign Minister Baron Constantin von Neu- | rath, President Paul von Hindenburg, Herr Posse, German economic expert, and Chancellor Adolf Hitler, in the order mentioned. Davis also had long talks with Amer- ican Charge d’Affaires George A. Gor- don and Consul General George S. Messersmith. - In addition, he informed himself concerning the situation of American correspondents in Germany. Forelgners here believe that, although Hitler himself is unquestionably trying to be reasonable and moderate in matters of foreign policy, he is con- stantly being pushed by hotheads within his party. The influence of Baron von Neurath does not seem to be what it was.' Some persons even claim that the resl policy is dictated not by Baron von nNeurath, but by the head of the newly formed foreign political affairs department within the Nazi party, Dr. Alfred Rosen- berg, editor of the chief Nazi news- pcger, the Racial Observer. r. Rosenberg hails from the Baltic countries and is of Germanic origin, but became a German citizen only five years ago. He is said to be hostile to Soviet Russia and an anti-Jewish fanatic. In Great Britain he is sup- COURTS MAY HAVE TO RULE ON “GOLIl CLAUSE” INLOANS “Legal Tender” Decisions by Supremef Court in the' 1870s May Not Be Conclusive Precedents. BY MARK SULLIVAN. HERE is in every quarter of the United States, in every section of society — debtors, creditors, wage earners, farmers, investors, bankers, lawyers —an immense amount of talk about a thing called “inflation,” “going off the gold stand- ard,” “reducing the quantity of gold in the dollar,” ~ “issuing more paper money,” “coinage of silver” in a fixed ratio to gold, and that sort of thing. The subject has many aspects. To cover all would fill this whole news- paper, not only today but for 50 days. The present article aims to pick out one aspect—the aspect which I think is of most direct concern to the average reader—and deal with it in a spirit of attempting to achieve simplicity and concreteness. I have written about it before, but the amount of interest in the subject, and the questions raised by many readers, justify amplification. ‘There are in the United States some | scores of billions (in terms of quantity of dollars) of bonds, mortgages and other contracts, which contain the words—I quote from & bond I happen to have access to: “* * * promise to pay $1,000 [or some other sum] in gold coin of the United States of America, of or equal to the standard of weight and fine- ness existing July 1, 1926, and to pay interest thereon . . . in like gold coin. . Habit Dates Fram 1860. That is the “gold clause.” The bond I have quoted from happens to be one issued by the Kansas City Public Serv- ice Co. But the clause is substantially identical in vast masses of other bonds, mortgages and other contracts. Other bonds and mortgages use whatever date the contract happened to be made. Some do not mention a date, but merely | say “gold coin of the present standard.” May it | All that is immaterial. The central not also cloak mere hatred and greed |and important fact is that scores of billions of contracts written any time during the past 50 years contain the same gold clause. The habit of writing it into mortgages and bonds arose dur- ing the 1860s, when a condition ex- isted much like the present—there was a prolonged controversy about currency, inflation, “greenbacks,” “silver coinage,” “paper money”—and lawyers ‘adopted the practice of inserting the gold clause. I should say off-hand that three-fourths, perhaps more, of all the bonds, mortgages and similar contracts in the United States contain this gold clause. Some do not. Apparently some lawyers came to feel so confident, dur- ing the long years when we seemed as Co-operation of the central banks in credit policy. securely wedded to the gold standard ish e, that they nearly all lawyers continued to insert it. Any reader of this article who hap- pens either to own a bond or owe a mortgage is apt to find, if he reads it carefully, that the gold clause is there. Many insurance policies contain it. Practically every reader, though few may be aware of it, is either under an obligation to pay gold in satisfaction of his mortgage and the interest on it, or is entitled to recelve gold. For as long as younger readers can remember, as far back as 33 years at least, this gold clause did not matter. Neither the debtor nor the creditor paid any attention to it. They did not, in the legal phrase, insist on, spe- cific performance” by payment in gold. The creditor was willing to receive, and for the debtor it was more con- venient to pay, ordinary paper dol- lars or bank checks. Hundreds of thousands of persons have freely ac- cepted billions of dollars in paper money or bank checks without ever even knowing they were entitled to de- mand gold. The reason has been that paper money has had the same value as gold money. At all times, a man having a paper dollar could take it to the Treasury, or to a Federal Reserve bank, or, as a practical matter, to many bank, and exchange it for a gold dol- lar. The Government has always stood ready to make the exchange. That is what is meant by the currency of the United States being “on a gold basis.” And just because anybody could make the exchange, nobody cared to make it. We were for nearly half a century— as far back as the currency contro- versies, similar to the present, that fol- lowed the Civil War—in the happy con- dition of a nation whose citizens knew that every paper dollar was the equiva- lent of a gold dollar. Now No Practical Effect. And so, the “gold clause” came to have no practical effect. bond contracts continued to write the gold clause in. And it is the gold clause, exisiting in scores of billions of contracts, that is supposed to be an insuperable obstacle to America now going off the gold basis. Suppose now, either that the United States go “off the gold basis” in the sense of printing or minting great quantities of paper or silver money, or fully | that the size of the gold dollar be re- duced. 3 dollar, “of present it and fineness,” con- | nine-tenths fine, .or of pure gold. Let us’as- that Congress redupés. the of gold in the dolls# to, let y. 20 grains, or 15.,Or let us (Goftinued on Third Page.) But the law- | yers who drew mortgages and wrote | 20 FOUNDATIONS GRANT $60,000,000 EACH YEAR | 'World Looks to Washington | ‘Total of $660,000,000 in Philanthropic FORMER PREMIER HERRIOT. Note—The funds of the 20 lar American_philanthropic foundations gregate more than $660,000.000, and ears their annual grants have approximated $60.000.000. In the following article. Shelby M. Harrison, airector of the Russell Sage Foundation, discusses the work done by these or- sanizations. —New York Times Studio. | NORMAN H. DAVIS. —Underwood Photo. | posed to be a close friend of the oil ]klng, Sir Henri Deterding, but other- wise he is not particularly well liked. All such matters will doubtless come to the attention of Davis and Dulles and prove valuable in enabling. them to give President Roosevelt and the State Department information on which American foreign policy will be based. (Copyright. 1033.) Denies Church Secrets Stolen by Soviet Spy ROME.—A Bolshevik spy of the G. P. U. disguised himself as a priest, at- Commission, traveled widely in Russia with Msgr. D'Herbigny and succeeded in stealing some of the Holy See’s files on the Soviet Union, according to re- ports which have become so widespread that a long denial has been published in the Osservatore Romano, Vatican | newspaper. The informstion stolen by the G. P. U. agent has been the basis of renewed measures ‘taken by Moscow against priests in the Soviet Usion and of Catholic attacks on the Oriental Church in Poland, these reports say. The Osservatore devotes almost a col- umn to a denial that there is any truth in the stories. | Alexander Deubner, described in some of the reports as the G. P. U. spy, Was never secretary of the Holy See's Rus- cian Commisison, nor of the Oriental Institute, nor of the presidents of these bodies, nor of any other church digni- tarv. He never accompanied Msgr. D'Herbigny on any voyage anywhere. Deubner, ordained a priest in the | Oriental Church, merely came to Rome to study, according to the Osservatore. (Copyright, 1933.) e South Africa Summer Lightning Kills 197 JOHANNESBURG, South Africa.— South Africa, the world's worst coun- try for lightning, is living up to its evil reputation this Summer season. In three months the deaths of 173 natives and 24 white people have been caused by lightning. This is well above the average even of South Africa. In one case a native working in the middle of a cricket field was al- most cut in two, while his companion, less than 5 yards away, was uninjured. Two white girls, one the daughter o(’ the administrator of the Orange Free State, were killed by a flash of light- | ning as they were climbing Mount Aux Sources, the highest mountain in the | subcontinent, and in the valley below | 12 natives were wiped out at one stroke. ‘The high mortality rate is explained by the fact that most of the hills, or kopiies, as they are called, of the high- veld, are made of ironstone. “ (Copyright, 1933.) [31.7 Pet. of Canada’s People Live on Farms OTTAWA, -Ontario.—Only 3,288(507 persons, or 317 per cent of @Ginada’s populatjeh of 10,362,833, live“on farms. | The fural population of the Dominion at the last census numbered 4,792,135, of which 3,289,507, or 67.2 per cent, lived on farms énd were presumably engaged in fdrming. The remainder —1,502,628,“or 328 per cent—repre- sented the rural population which did not lve on farms—usually in small hamlets or other unincorporated vil- lages. Of the 728,623 farms in Canada 281,044, or 38.5 per cent, employed hired labo~ for 7,368,731 wecks at & cost of $100,425,980 for eash and board, mak- ing an average of 26.2 weeks per farm tached himself to the Vatican's Russian} BY SHELBY M. HARRISON. HE endowment or permanent set- tlug aside of funds for worthy | public purposes can be traced back many centuries, but the most significant developments in this fleld have occurred since about 1900. While the term “foundatio in a few cases was applied to these earlier funds, it has come into more common usage since the beginning of the twentieth century. Coincident with the greater use of | the term has also come the introduc- tion of two features which have tended to give the designation special mean- ing, and which have undoubtedly played major roles in winning for foundations an important place among American organizations for humax betterment. One of these was the| broadening of the chartered purposes so that, instead of being tied up in- definitely to services which the com- | munity or nation may have outgrown, 2s in the classic instance of the fund established to help victims of the Bar- bary pirates, foundations could change | their activities to meet changing needs, the new boundaries to work being flung ;as far and wide as “the improvement of social and living conditions,” “pro- moting the advancement and diffusion 1 of knowledge and understanding,” or “promoting the well being of mankind throughout the world.” | The second feature has been the very great increase in the size of funds es- tablished for these purposes, the com- bined endowment of the 20 largest foundations, all of them established since 1900, aggregating more than $660,000,000, and their total grants from income alone since their first es- tablishment running well up toward $300,000,000. Their total annual grants approximate $60,000,000 during recent years. Peabody Fund First. Probably the first foundation to be | established in this country in the broad | field of social improvement was the Pea- body Fund, set up in 1867 with a prin- cipal sum of more than $2,000,000 and discontinued in 1914, although the Smithsonian Institution — established “for the increase and diffusion of knowledge among men,” with a capital fund of something more than $500,000, and antedating the Peabody FPund by some 20 years—might lay some claim to first place. Then came the John F. Sla- ter Fund in the year 1882; the Baron %ehfllmh Fund E 11::{], the Thomas jompson Trust ; the Carnegie Institution of Washington in 1902; the Education Board in 1903; the Milbank Memorial Fund in 1905; the Carnegie Foundation for the Advance- ment of Teaching in 1906; the Russell Sage Foundation in 1907; the Anna T. Jeanes Foundation and the Elizabeth McCormick Memorial Pund in 1911; and in later years a host of others, including the very large e ts represented by the Rockefeller Foundation and the e laf now co! th the other Rockefeller benefactions. Total More Than 150. In a list of American foundations compiled in 1930 for the Russel Sage Foundation Library by Bertha F. Hul- seman, the total was seen to have miore than 150. Similar lists compiled .for that library showed 23 in 1915 and 33 in 1922; but the num- bers more than doubled in the next two years, reaching 77 in 1924, and in two to 120 Tn 1830 padrupled, . the = tion for 1932 of its E“Epoflur%: “Am:;!‘- can Foundations and Their Fields,” the foundations from which it sought in- formation, this total, however, 1‘1‘1‘(3]“&1111 several community trusts. The headquarters of most of the na- tional foundations are in New York City: the others for the most part are found in Chicago, Washington, Phila- delphia, Pittsburgh, Cleveland, Detroit, | Buffalo, San Prancisco and Cincinnati, The community trust, which, like | the endowed foundations, receives be- quests of funds, and aims through charter stipulation and its forms and methods of organization to keep its program flexible and adaptable to changing community conditions, has also come into existence and has had its largest development during the last | two decades. Beginning with the Cleve- land Foundation, organized in 1914 by the late Frederick H. Goff, these trusts or local foundations had reached a total g; 51“&3;” 1924 and approximately 75 Method of Disbursement The usual plan is for their fun be held by trust companies and Lh!dsd!:g bursement of income to be directed by a committee, a minority of whose mem- bers are appointed by the trust com- y, the others being selected by local public officials. Some of these trusts are as yet without funds, but more than half of the total had re- ceived bequests and contributions by 1932, the total of which ran upward of $37,000,000. One of the largest is the New York Community Trust, with something more than $8,000,000 of capital, and disbursements for charit- able purposes of $190,168 during the year 1931. Community trusts are as widely placed as Boston and Los An- geles, Spokane and Atlanta and are almost entirely local in scope. While the total number of founda- tions, plus funds and community trusts having kindred. characteristics, is seen Twentieth Century Fund discovered 207 | Institutions for Wide Variety of Edu- cational and Other Beneficiences. to run more than 200, those which are related more or less directly to the broad field of national social work, or which conduct or support local re- search likely to be of national signifi- cance, appear to be about 50, or about one-fourth of the total. These founda- tions may be roughly divided into five groups: Foundations which carry on or sup- port research, experimentation or other activities in - _veral fields: Brooking Institution. Carnegie Corporation of New York. Commonwealth Pund. General Education Board. Harmon Foundation, Inc. Julius Rosenwald Pund. Nathan Hofheimer Foundation. New York Foundation. Rockefeller Foundation. Russell Sage Foundation. Spelman Fund of New York. PFoundations working primarily in the health field, physical or mental, in- cluding public health and medical re- search: American Foundation for Mental Hygiene. Brush Foundation. Cincinnati Children’s Hospital Re- search Foundation. Foundation for Positive Healfh. Surfis Pund (or&e Winifred Master- son Burke Relief "Foundation. Foundations primarily for child wel- fare or the education of children: Behavior Research Pund. Child Education Foundation. Children’s Foundation. Children’s Pund of Michigan. Duke Endowment, Hospital and Or- phen Section. Elizabeth McCormick Memorial Fund. Jdge Baker Foundation. Fundations for other special, spe- | cific purposes, including in some cases both promotion and research: American Foundation for the Blind. Baron de Hirsch Pund. Bureau of Social Hygiene. Carnegie Foundation for the Ad- vancement of Teaching. Economic_Foundation. Genetic Foundation. Human Betterment Foundation. John F. Slater Fund. Buhumd. Ziegler Foundation for the ind. Maurice and Laura Falk Foundation. Negro Rural School Pund, Anna T. Jeanes Foundation. Payne Fund. Planning Foundation of America. Pollak Foundation for Economic Re- search. Race Betterment Foundation. Railway Labor Research Foundation. Foundation. | | | Milbank Memorial Fund. | list will give some indication of lines of interest represented. Operating Areas Vary. While these foundations and trusts there is con- slieh Some are empowered income from their princi] others may distribute both income capital; and in a few instances a (usually 25 or 30 years) has been within which the total amount must be disbursed. Some engage in no work as an operating agency, but pursue their by the making of ml:‘i their own auspices, . While practically all are permitted wide latitude as to the activities in which they may engage, most of them have, for the time being, selected broad but specific flelds in which to operate. A very large proportion of the foun- dations, it will be observed, devote their H 1 ong tion programs that these are highly ap- propriate functions for tax-exempt and quasi-public institutions of this sort, And the call for public service of this type in an age of such kaleidoscopic change as the present, when new knowl- edge essential to the understanding of new social situations lags behind, would seem to offer ample opportunity for their resources and powers. Demonstrations—which often include certain types of research and educa- tional work and which aim to test methods and set example rather than to establish institutions.and programs for permanent outside sup) -have also found some favor with tions. The latter do not ordinarily en- gage in relief work nor do they grant charitable aid to individuals. Follow- ing the principle that “the endowed foundation should not relieve contem- porary society of its obligation to stp- port its own day-by-day charitable work, these foundations do not - narily contritute to the budgets of wel- fare agencies.” Treasure Hunt Plan What King LONDON.—In a treasure hunt to be undertaken here soon it is hoped to solve & riddle of seven centuries—what did “King John, younger brother of ’;E&hh.‘fd the Lion-Hearted, lose in the Legend has it that this famous an- cestor of King George lost a great uantity of his own jewels, as well as the crown of King Alfred the Great and a rich hoard of booty plundered from the abbeys and castles of England, the value of which would run to several million dollars. His negligence and the mystery surrounding his loss in the Wash has made him the butt of ama- teur and professional wise-crackers. The unfortunate monarch suffered this misadventure in t; , one day in October, 1216, to wade with his army and jage train across the wide, shallow inlet of the sea on the east coast of England known as the Wash. His intelligence service must have been wanting in knowledge of tidal condi- tions, because his forces were overtaken by the tide and, though the King him- self got across safely, many of his sol- |8t an average cost of $13.62 weekly, (Copyright, 1933.) oA diers wore drowned and the whole of his treasure and baggage engulfed, ned to Seek John Lost in Wash In the intervening 700 years the of these isles has changed much '-hm sea encroachment and man’s efforts at land reclamation. The hunt for King John's treasure will be no deep-diving enterprise, for during the seventeenth and eighteenth centuries hundreds of acres of fen in the neighborhood where disaster overwhelmed him were re- claimed by land drainage. The coast }?&dmthe ‘Wash rn?: is about 8 miles e scene of e King's crossing. The traditional site of the old ford he used still is preserved in the name hx,l;g fJohmun'x Bln.:l.m" ;mt a 10-foot o hides the former at this point, - (Copyright. 1933.) — e Comedy. Prom the Pasadena Post. Chinese are assureds by Japan that 1f they make any effort to recover ter- ritory swiped by the Japanese the act will be deemed unfriendly. So there is an Oriental sense of humor,