Evening Star Newspaper, April 21, 1933, Page 4

ECONONISTS BACK BODSEVELT' PLAN Large Group Advocated Con- trol of Purchasing Power = of Doltar. B7 [be Assoclated Press. NEW YORK, April 21.—The vigorous program lsunched by President Roose- welt to control the purchasing power of $he dollar strikes at the roots of what one prominent group of economists has yegarded as the vital weakness of the Ppresent economic system. economists have long urged control of the value of currency to R out fluctuations in the price Jevel” < Jarious means have been sug- !’m ested,* Prominent in the group are f{. Irving Fisher of Yale, John May- nard Keynes of England and Prof. Gustam. Casgel of. Sweden. Position of Opponents. Opponents of the plan say human in- uity is inadequate to the gigantic of managing & currency, and that no better system has been devised than the international gold standard. They sttribute the breakdown of the nter- national gold standard to the abnor- y huge* shifting ‘of funds resulting the World War, together with the tnnumerable restrictions upon the move- ment of goods. Several schemes of controlled cur- fency envisage a flexible gold content per unit of currency, permitting in- creases to check advances in prices, and decreases to stop declines, but oppo- ments of such plans assert that succes- ful operation would be thwarted by seri- pus_complications, The administration’s plan, as under- by Wall street economists, con- mlnm control of the dollar through the Federal Reserve System during the uspension of the gold standard. Under he Thomas amendment to the farm bill, the administration would be au- thorized to expand credit to the extent. of $3,000,000,000 through purchases of Government bonds, or through expan- #ion of currency by & like amount, Modified Play Likely. 'elut it uhundnlst%td- 'wll]m‘ turn to the gold s rd, perbaps modifed to overcome possible _short- eomu.gs will be proposed in the dis- 6ns -between President Roosevelty Minister MacDonald and former Pren‘lfl Herriot, and perhaps perfected st the World Economic Canrerence International bankers incline to belief that it would be diffeult for France to continue for any length of time as the sole major power on the g0l standard. The controlled eurrency sch economists generally describes xm cur- rent economic dilemma as a monetary and credit crisis, rather than a resuit ehlefly of o\erpmducuon. undercon- ption, excessive specul of lh: other explundo Fluctuating price levels, they main- Paip, have reached such proportions as to jeopardize the economic fabric, since a large part of the payments re- main fixed. Debts and taxes, which weye not regarded as burdensome in 1928 or 1929, y estimate, now threat- en, on the of reduced price levels, #o_take over half the national income. Dr. Warred M. Persons, consulting economist to & number of large corpo- rations, in a hnel pr%ud at the Te- quest of the Sei anee Commit- tee, states: “In setting up ‘the legal rules for economic* activities we have carefolly safeguarded individyal m:dun. private property, contract, corporations and corporate securities, i ‘order to secure efficient produetion and distzibution by rewarding individual effielency. -After having carefully dene this, we have in- stituted a money, credit and debt sys- tem which -has substisuted. fortuitous gains ang Josses for reward for efficient produetion. Cites Illustration. “Let us take a simple illustration. ‘Two brothers, ome 60 .years old, one 40 .years old, owned in 1929 ud]ol.mnl farms in Iowa of 300 acres each. The first, being re: to retire, gold his farm to his br took a morigage on the entire $00 afres st 50 per cent of the total value, and retired, the morty ., In UIB the Lwn‘" brother that his equity zero and the oider brother owns M? e hrough 1 ht of “It was through no either brother that the nmuu the creditor and the second debtor; the first brother now owns both farms be-- cause he happened to cease producing and retired; the second brother now has lost all because he continued in the production of gdeds. The collapse in the price level since 1929 has changed ness contract made by the L3 into a gambling contract.” It is fiot’ the quest for profits which has brought about the economic collapse cataclysm, he says, “but rather the profit motive operating in a defective monetary and credit system.” MACON TAKES OFF ON. FIRST FLIGHT WITH 105 ABOARD (Continued Prom First Page) off into a 6-mile-an-hour northeast breeze shortly after daybresk. J. E. Wilson, a member of the ground crew, llipped frem" a platform of the giant mobile mooring mast and suffered pos- sible fractures of the legs. He was taken to a hospital for an X-ray. Avoids “Free” Takeoff. Capt. Dresel profited by the experi- ence learned through operation of the tilting propeliers of the Akron. Instead of a ‘“fres -balloon” takeoff, as was done when the Akron first went aloft & year and & half ago, the propellers were tilted and the engines turned on immediately. - ‘The complete schedule of tests which ‘will determine’ whether the Navy shall ronounce her as fulfiling the con- ct requirements will include six Tuns for a total of about 84 hours. They will determine the $2,450,000 craft's pewer, speed. climbing ability, endurance and other factors. The Macon:is the same size as Akron—of 6,500,000 cubic feet mnum mupncfi.wmd is nearly twice the of the Graf Zeppelin and three times that of the Los Angeles. De- ed_for scouting purposes, she will v five airplanes when commissioned. Other vital facts regarding the Ma- %fimemlom—"fi feet long, 146.5 feet 1329 feet maximum over-all, digmeter. ad weight—221400 pounds (estl- mated). Usefu) Jift—182,000 pounds. Engines—Eight. I2-tylinder gasoline motors totaling 4.480 horsepower. Bpeed—84 miles per hour (estimated maximum). ‘Cruising range—13,000 nautical miles ‘testimated at 40 knots in still air). Crew—50 officers and men, normal ing _cret “fle;—m.ooo pounds. Equipment of Dirigible. ‘Equipment—Radio, five . en gun’emplacement arrangements r' cooking and h-unc slectrie lights, talephones: t.ructum——Dunmmln rings, in real- ’su-lldnd forming 12 main nfi. triple longitudinal n'h each t ular lh’lkp?d ‘l‘l;d large U for:nfl‘w'l inside. Qsoslelr—-sem res’ of cotton fabrig, with acetate ‘and aluminum er to reflect the sun e in 12 es of special L atine.jatex and flled airplanes, | The Gold THE EVENING STAR, WASHINGTON, D. C. FRIDAY. APRIL..21 1933. Embargo White House Order Permits Treasury Secretary to Regulate Foreign Exchange and Earmarking or Shipments of Gold. T}m text of the President’s order permitting the Seeretary of the Treasury to regulate foreign exchange and the earmarking and export of n‘d follows: By virtue of the suthority vested in me by Section 5(b) of the act of October 6, 1917, as amended by Section 2 of the act of March 9, 1933, entitled “An act to provide re- lief in the existing national emerg- ency in banking, and for other pur- poses,” in which amendatory act Congress declared that s serious emergency exists, I, Pranklin D. Roosevelt, President of the United States of America, do declare that said national emergency still com- tinues to exist and pursuant to said section and by virtue of all other authority vested in me, do hereby is- sue the following executive order: 1. Until further order, the ear- mlrking for foreign account and the e:?an ld coin, gold bullion or cem tes from the United sum or any place subject to the jurisdiction thereof are hereby pro- hibited, except that the Secretary of the Treasury, in his discretion and subject to such regulations as he may prescribe, may issue licenses authorizing the export of gold coin “and bullion (a) earmarked or held in trust for a recognized foreign government or foreign central bank or the Bank for International Settle- ments, (b) imported for re-export or gold in reasonable amounts for usual trade requirements of refiners importing gold bearing materials under agreement to export gold, (¢) actually required for the fulfill- ment of any contract entered into prior to the date of this order, by an applicant who in obedience to the executive order of April 5 1933, has delivered gold coin, ld bullion . or gold certificates, and (d) with the approval of the President, for transactions which he may deem ,nlednry to promote the public in- ! Unlu further order, the Sec- retary of the Treasury is authorized, through any agency that he may designate, to investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange, transfers of credit from any banking institution within the United States “or any place subject to the jurisdic- tion thereof to any foreign branch -or office of such bsnhu institution or to any foreign bank or banker, and the export or withdrawal of currency from the United States or any place subject to the jurisdiction of the United States, by any indi- vidual, partnership, association, or corporation within the United States or any place subject to the jurisdic- tion thereof; and the Secretary of the Treasury :fi]require any in- dmdunl partnership, association, or ration engaged in any trans- act! referred to herein to furnish under oath, complete information relative thereto, including the pro- duction of any of account, contracts, letters or other papers, in connection therewith in the custody or control of such individual, part- nership, assoctation, or corporation either before or after such trans- action is completed. 3. The provisions relating to for- elgn exchange transactions con- tained in the executive order of March 10, 1933, shall remain in full force and effect except as amended or supplemented by this order and by regulations issued hereunder. 4. Applicants who have gold coin, lold bullion or gold certificates in eir possession or in who obedience |o the executive order of April 5, 1933, have delivered gold coin, gold bullion old certificates shall be entitled to licenses as provided in Section 8 of sald executive order for amounts not exceeding the equivalent ~of such coin, bullion or cemflcnus held or delivered. The Secretary may in his discretion issue or decline to issue any other licenses under said executive order, which shall in all other respects remain in full force and effect. 5. Whoever willfully violates any provision of this executive order or of any rule, regulation or license issued thereunder may be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than 10 years, or both; and any officer, director or agent of any corporation who knowingly partici- pates in any such violation may be punished by & like fine, imprison- ment or both. This order may be modified or revoked at any time. FRANKLIN D. ROOSEVELT. ‘The White House, April 20, 1933. “ LAMONT ASSAILS 1. BANKS SYSTEM Morgan Partner Blames Con- dition on Failure to Keep Pace With Expansion. NEW YORK, April 21.—Thomas W. Lamont of J. P. Morgan & Co., writ- ing in the issue of Colllers, out today, declared that “no civilized country of modern times has suffered so cruelly from unscientific and inefficient cur- rency and banking systems as has the United States in the last 145 years.” “Within that period,” Lamont con- | tinued, “the country has gone through | & long series of banking collapses, due largely to like causes, and bringing to the American community prodigious losses. “The money panic of 1907 * * ¢ was but another in the long series of Cisasters. The serious banking troubles of 1931 added another chapter to the melancholy record; and unfortunate developments 9f even more recent date have only served to sccemtuate the sit- uation.” Reform.-. Slow After 1907. He pointed out it took seven years “following the disastrous currency panic of 1907 to bring about banking ‘reform sufficient to get the Federal Re- system established,” and added: serve “Obvipusly the country cannot wait another seven years to bring about the changes necessary to prevent a recur- rence of its more recent difficulties.” Before outlining two remedies of his own, Lamont wrote: “Contrary to the expressed opinion of many persons, this sad history has been due, not to the machinations or deviltry of men or groups of men, but largely to the inherent conditions sur- rounding the astonishingly rapid de- velopment of a whole continent. “In banking, the country's experience and mobile resources have never kept pace with its expansion and with its changing conditions. “Unwise, reckless and. in occasional individual instances, dishonest manage- ment have added to the difficulties.” Remedies Proposed. In discussing his proposed remedies, he says: “No thorough-going can be brought about until two vital changes have been accomplished. “The first is to bring all the commer- cial banks of the country, small as well as large, under the single segis of the Federal Reserve system. “The second is to establish sensible provisions for regional branch banking, the geographical limits for each region to be carefully worked out and regu- lated. “Then we should have something worth talking about. Such reforms, brought about gradually, ought to be- gin to yield to the country some meas- ure of banking submu o Salt Cellar Brin[l $1,400. A rare Elizabethan salt cellar, bear- ing the date 1565 brought $1. m equivalent to $165 an ounce, at auction | banking reforms | VALUE OF DOLLAR - LASTFIXED IN 1900 Gold Content, Again Lively Issue, Has .Bobbed Up Many Times Before. By the Associated Press. The gold content of the dollar, now & lively issue, has bobbed up from time to time ever since the first gold dollar was made under an act passed in 1792. ‘The content of the present gold dol- lar i fixed by an act of Gorfress adopted March 14, 1900, that eStab- lished the dollar. as containing. 35.8 grains of gold 0.900 fine. This makes | the dollar contain 90 parts of gold and 100 parts of alloy. Established Two Units. In 1792, following Inauguration of | the Pederal Government, Congress es- tablished the first monetary system of the United States, with two units. The gold dollar contained 24.75 grains of purz gold and the silver dollar 371.25 grains of pure silver. The ratio of gold to silver was 1 to 15 and both were legal tenders, thus giving the Nation & double standard. Various changes were made untl 1873, when the unit of value of the gold dollar was set at the standard weight of 25.8 grains, 0.900 fine. In 1878 coin- age of silver was authorized, and it was provided they should be legal tender at their nominal value for all debts, except where otherwise expressly stipu- lated in the contract. Silver Defeated. In the years immediately following, politics centered abdut ‘the gold and silver question until in the late 90s the silver campaigns of William J. Bryan were fought out and ended in defeat for silver. ‘When the act of 1900 established the gold dollar as “the standard unit of value” and made it the duty of the Sec- retary of the Treasury to maintain all forms of money issued or coined by the United States at a parity of value with this standard, it also was provided that the change should not affect the legal tender quality of the silver dollar or other money coined or issued by the United sum e OTTAWA GRATIFIED AT U. S. GOLD ACTION OTTAWA, April 21.—Abandonment of the gold standard by the United States will bring Canadian and Ameri- can money closer to parity, it is pre- dicted here. President Roosevelt's move for con- trolled inflation was considered a con- structive efloat 'hk“;‘ Wfltlllld pravidehtu!‘le pro undwork for the approac! z We‘cr:namm conference. Canada’ obllnuonl pnylble in the United Slltes this year total $265,000,000. A reduction in the um on United States funds will bring relief to Ceanadian debtors. ‘These obligations compme muni The BANK for the INDIVIDUAL make hl‘“b“‘l. practical basis, which epables the borrower to liquidate his ob- ition by means weekly, semi- monthly or Loans are pass- od within a day or two after filing application— with few excep tions. MORRIS PLAN MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 H Street N. W,;, Washington, D. G o "Gharacter and Rerning Pouer Are the Basksof Orelifiy FIRST LADY TO SHARE IN-15-CENT LUNCHEON Mrs. Roosevelt and Miss Ishbel MacDonald to Be Guests of Girl Scouts. Mrs. Pranklin D. Roosevelt will at- tend a 15-cent economy luncheon to be given b‘ the Girl Scouts of Wash- ington at their Little House, Eighteenth street and New York avenue, tomor- row Mln Ishbel MacDonald, daugh- of the prime minister of Great nnum. will accompany the First udy‘ and Jhere will be other distinguished ues "me luncheon, to be cooked and served by a representative group of Girl Scouts, will follow a menu pre- pared by the Home Economics Bureau of the Department of Amuurz ln- cluding tomato cocktail ‘Sn 1 wafers, broiled beef on rounds Bmhhedflthp-mq!romhmfl garden, creamed cabbage, with crushed strawberries and wflee: ‘The girls in charge will be Barbara Bryant, Hel;: Cruckshank, SWISS LOSE TOURISTS BERNE (#)—Switzerland looks for- ward with anxiety to the coming tourist season. Although hotels have reduced prlcubymthmudcrcmt.m number of visitors dvln Mly. 8wiss net profits fi to be nearly 250 mmlon bvl- mm-. or_$50,000,000, lnlllll furnish 60 oent of the 'mmm rr lncome of the hotels, which employ 70,- either t:: RALEIGH HABERDASHER “ewice-over” with ordinary razor. 1310 F Street FOR RAZOR BLADE Cord, Plug, Complete A € CUMSNT OMY 1t's the Tark, the first electric razor we've seen for less than $7.50. We used it ourselves and found a“‘once-over” gave a cleaner, smoother and better shavé than a the No wonder! The electsie blade vibrates 7200 times a minute, whisking the whiskers off like magic without pullml or scTap- ing. And it's safe — no picks, no cuts = just a smooth, facial massage. ©_ WASHINGTON'S FINEST MEN'S WEAR STORE @ RALEIGH HABERDASHER 1310 F Street The Shirt Value of a Lifetime! “DORIC?” BROADCLOTHS IF you like Broadcloths in white, plain shades, and if your pnoe is around $1.55, well there just isn’t much choice about it with. the DORIC around.” Because the DORIC is tai- lored by MANHATTAN...pre. shrunk, and tailored to fit. . . tailored to sutufy. ..TODAY or TOMORROW —get yourself a half-dozen DORICS —shirt value of a llieumel 1554 OTHER MANHATTAN 'SHIRTS TO $3.50 Headqwmen for Manhattan quuma aend M. Underwear - By t) el No price advances on merchandise now in our stock . ...... Here, undoubtedly, are the values of a lifetime! HART SCHAFFNER & MARX SUITS and TorcoATs STURDY, weighty, long-wearing worsteds woven in America of American grown wools, and made with 72 Bench Tailoring features by skilled American craftsmen. HERE in new Spring styles In all the good colors and patterns, as well as the popular Wales Plaids and Stripes . . . several years ago you eouldn’t have matched these qual- itiés for $45 ... Today—Tomorrow— take advantage of the lowest price offer in 16 years on Suits .and’ Top- ‘eoats from the ‘greatest maker of fine clothes in Americal You are invited to open a CHARGE ACCOUNT Yow:may:pay in 30 days, or use owr Extended Payment Plan— " with' ¢ months to pay, no down peyment, and no interest cherges. 'VE been burning up 'the wires . . . talking to our 1mportant resources .. . we wanted the low-down on this inflation business . . . and it’s true — prices are soaring skyward . . . all list prices have been withdrawn on woolens—manufacturers must pay new, higher prices «.. the same holds true with cottons, silks, leathers! RETAIL prices will quick- ly reflect the upward trend in raw commodities « « « Meanwhile the Raleigh Haberdasher remains on the Gold standard . . . NOW— TODAY—your dollar com- mands the buying oppor- tunities of a lifetime on de: pendable, quality goods . .. We'll advance no prices on merchandise now in stock, but that’s all we can guaran- tee . .. NOW—TODAY— ACT! The Hat Value of a Lifetime! KNox Standard of style and qudlity for nearly a century %5 The distinguished Label of Knox in & Man's Hat proclaims the last word in correct style and the finest quality that can be pro- duced . . . $6 was the lowest Knox price before the war . . o today, indeed, Knox offers the Hat value of a Lifetime! OTHER KNOX HATS $7, $10, 20 Shoe Value of a Lifetime RALEIGH “8” i 2o You know what you always paid for them...You know their smartness and their wearing qualities...Buy them to- t their lowest regular prices of all time! ¢ WASHINGTON’S FINBST MEN’S WEAR STORE LEIGH HABBRDASHBR 7 1310°F Street =