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TRUCE IS REACHED BY AR GROUPS N. A. A. Allowed to Hold Meet at College Park Sunday. Breaking off of relations between the National Aeronautic Association and the Washington Air Derby Association was avoided today when the derby group agreed to sanctioning by the N. A A. of the Langley day air meet to be held Sunday at College Park Airport. A truce was reached, it was reported today, after the N. A. A. had threatened to suspend the sporting licenses of all pilots and officials participating in the College Park meet and after Maj. Gen. Benjamin D. Foulois, chief of the Army Air Corps, had submitted his resignation from the Derby Association. Gen. Foulois also is a member of the Na- ticnal Aercnautic Association. Full Sanction Given. As a result of the truce announced today, Sunday's meet will be held with the full sanction and co-operation of the National Aeronautic Association. Gen. Foulois was asked, in a letter sent today, to reconsider his resignation from the Advisory Committee of the Derby Association. Settlement of the differences between the sponsors of the local meet and the national aviation governing body was looked upon by aviation leaders, how- ever, merely a postponement of a i e con v between ama- sporting pilots and the N. A. A ch has been brewing for soveral years and which is to reach a climax this Summer in a series of unsanctioned air meets to be held in open defiance | of the association. After a meeting of the derby as- sociation last night at the Racquet Club, Chester H. Warrington, presi- dent of the association, announced today that he expects not fewer than 50 sportsman pilots from various parts of the United States to actually engage in_competition Sunday afternoon. The public will be admitted without charge to the airport and free parking space will be provided. The flying events are to begin at College Park at noon Sunday. Twelve competitive events have been planned, including various types of races, bomb- dropping, dead-stick landings, an auto- giro race and a model aircraft con- test. Twenty-six trophies will be of- fered for competition. Report at 9:30. Orders were issued today by Mr. Warrington for members of the Contest Committee in charge of the meet to report to him at the airport at 9:30 am. Sunday for inspection of the competing aircraft. committee, in addition to Mr. War- rington, chairman, are Dr. H. C. Dick- inson. George Plitt, Curtis Hodges, Joseph S. Edgerton, C. S. Fleidner, Roger Scott and George J. Brew. George Haldeman, transatlantic fiyer, is to be referee: Maj. E. W. Tipton, for- mer Army flyer and manager of the Curtiss - Wright _ Airport. Baltimore, starter; Gilbert G. Budwig and Jesse Lankford, Department of Commerce Acronautics Branch, assistant starters; J. D. Jernigan, Earl Wadsworth, super- | intendent of the contract airmail serv- ice, Post Office Department; Fiske Mar- shall, Department of Commerce; James Kinney, Department of Commerce, and Willlam O. Hunley, timers, and Gene Vidal, Paul Collins, G. O. Vass, A. K.| Barta, A. C. Case and Maj. Gen. James E. Fechet, retired chief of the Army| Air Corps, judges. U. S. BARS PAYMENT OF GOLD ON BONDS HERE AND ABROAD (Continued From First Page.) to celiver a certain weight of standard gold, to be ascertained by a count of coins, each of which is certified to con- tain a definite proportion of that weight. | It is not distinguishable, as we think in principle, from a contract to deliver an equal weight of bullion of equal fineness.” Creditor May Claim Gold. A second case, handed down in the game year by the Supreme Court, sub- stantially reiterated the same conclu- sion. Three years later a third case ving a promissory note al gave to another and which was “payable in specie.” ‘The court said: ““Here the terms, in specie, are merely descriptive of the kinds of dollars in | which the note is payable, there being different kinds in circulation, recog- nized by law. They mean that the des- ignated number of dollars in the note shall be paid in so many gold or silver dollars of the coinage of the United |jp States. They have acquired this mean- ing by general usage among traders, merchants and bankers, and are the opposite of the terms, in currency, which are used when it is desired to make a note payable in paper money.” Stripped of legal technicalities, these court rulings—maintain certain banking authorities—sustain the right of credi- tor to claim payment either in coin or specie where the contract calls for such payments, or for an adjustment in the | amount payable under the contract to give effect to the depreciation of cur- Tency in terms of gold. Strictly speaking, therefore, it 1is pointed out, at least $75,000,000,000 of debt will be affected by any new de- cision as to the validity of the gold clause, if a test case is brought. Bankers Indignant. Indignation was expressed in impor- tant Wall Street international banking quarters today over published comment in London describing American refusal to pay interest in gold on bonds held abroad as a breach of contract. ‘One prominent banker said that at a time when the United States had to cease redeeming its own currency for its own nationals in gold, it would be manifestly unfair and “wholly improp- er” to favor holders of bonds by (rly- ing gold, either at home or abroad. It was explained that when Great Britain left the gold standard more than a year ago, holders of sterling se- curities had to take depreciated pounds for both interest and dividends. While & huge amount of American securities are held abroad, variously estimated in Wall Street at around $2,000,000,000 worth, these securities are Prices on this sup Pennsylvania Anthracite Coal are sharply reduced for the month of May. We believe they are the lowest prices of the year. Al TERMINAL 3rd and K Sts. NW. F 1C U |Thomas of Colorado Acquires $120 of Yellow Metal for Test. Objects to President’s Order in Letter to District At- torney at Denver. | By the Associated Press. | DENVER, May 3. — Charles .| | Thomas, former United States Senator, | former Governor ot Colorado and long- | time bimetallist, asks the Government to place him in the penitentiary for | | Possessing $120 in gold. The 84-year-old statesman has writ- | ten to Ralph L. Carr, district attorney, | expressing objections to the order of | President” Roosevelt that all gold be | turned in to the Government. His let- | | ter: “I am the owner and possessor of one hundred and_twenty dollars ($120) in gold. which 1 have acquired in order | to qualify myself for the penitentiary, | pursuant to the recent edict of the President of the United States. “Being entitled, under the prevailing laws of the country to its retention, I THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, MAY 3, 1933, EX-SENATOR DARES UNCLE SAM TO JAIL HIM FOR HOARDING GOLD A CHARLES S. THOMAS. shall not comply with the presidential requirement and surrender it to the au- thorities, preferring to use my few re- maining’ years in testing the extent to which the executive power can compel a citizen to comply with its demands. “I am, therefore, at your service as desired.” Carr said he had received the letter, but would not discuss his plans. GURRENCY BATTLE RAGES CN BOURSE France May Be Forced to Place Embargo on Gold for Protection. BY PAUL SCOTT MOWRER. | | By Cable to The Star. | PARIS, France, May 3.—With the Paris Bourse, the world's only remain- ing free gold exchange center, as the | battleground, the war of currencies, which has now been added to the tariff |and quota war, continued today. | The British, through their skillfully | manipulated equalization fund, and as- | | sisted by the recent loan of francs by | London to the French treasury, show | every sign of their intention of main- | taining the present margin between the | dollar and the pound. | No sooner does the dollar fall than | the British bring down the pound,| the currencies of most countries in the so-called “sterling bloc.” Similarly, | when the dollar rises, the pound rises. | In terms of French francs, which | are now the cnly convenient gold meas- | ure left, the dollar, before the United | | States went off the gold standard, was| worth about 25.50 and the pound was stable at around 87. Now, with the| | dollar at 21.50, the pound is at 84. Embargo May Be Needed. ‘The French are terribly worried. Some experts think that it may be necessary | to place an embargo on gold here, too, | before long, else paper currencies can | ccntinue to buy real gold in France. while France, because of embargoes, is prevented from reciprocal operations elsewhere. It would thus theoretically be possible to drain off slowly Erance’s gold without a counterpart.s The British loan to the French| treasury is a sort of temporary guaranty | against such maneuvers on Great| Britain's part, but this loan is now being | strongly criticized here as giving Lon- don a sort of political hold over Paris and forcing France into Great Britain's economic scheme. The French government finances leave much to be desired. The budget is not balanced, the floating debt is rising, the treasury is empty and the local market for government paper is saturated; so that, in some respects, the British loan was a godsend to the treasury. At the same time there is beginning | to be a gcod deal of inflation talk. For the mement the government is strongly opposed to this inflationist trend. French investors, it is pointed out, have | already lost four-fifths cf their capital in the previous inflation and the holders of government bonds were squeezed again in the recent conversion. Tariff Truce Held Joke. It is obvious, however, that, unless France puts an embargo on gold and lets the franc slip down a little, it will be obliged, as a defense against thc falling pound and dollar, to restore to exchange surtaxes against British and American goods. French experts consider the Ameri- can proposal for a tariff truce here a Jjoke in these circumstances. One in- fluential expert goes further and sees President Roosevelt'’s plan a plot against France. The United States, he thinks, while maintaining its own tariffs the highest in the world, will try to force France to lower its own tariffs and quotas in exchange for war debt concessions at the very moment when the falling dollar gives American exporters the advantage. “Thus once again,” he adds, referting | to the Hoover moratorium, “we are fac- ing a proposal which, under the colors of general interest, is really pursuing virtually all dollar securities. It is many years since the United States has borrowed abroad. SCORES U. 8. ATTITUDE. LONDON, May 3 (P —“Breach of contract” is the blunt phrase used by both the Financial Times and the Morning Post in attacking the -United States Government on the ground that in the future interest on American bonds is to be paid in paper. “It would be difficult,” the financial editor of the Post declared, “to find a parallel for so unblushing and callous breach of contract as that which would seem to be involved in America's re- pudiation of gold contracts, which are applicable to so many millions of dol- lars’ of securities, both as regards gov- ernment bonds themselves and the bonds of innumerable railroads and other industrial undertakings. * * * “This repudiation of gold contracts in United States bond issues in Amer- ica has disturbed the very basis of credit and the sanctity of contracts.” erior, trade-marked E 2y COMPANY Phone NAt. 9515 very special alms. It is up to us not to be duped.” All these complications resulting from the tariff disturbances and the mone- tary war since the United States went ofi the gold cntial newspaper, Paria-Midi to remars editerially teday: “With ingenious malignity the United States is thus aggravating the world economic sit- uation.” It blames President Roose- velt's so-called “brain trust” for these developments. (Copyright, 1933.) MORE LIQUID ASSETS - SOUGHT BY BANK National City Institution Makes Offer to Buy From Union Trust Co. By the Associated Press. CLEVELAND, May 3.—The National City Bank of Cleveland, through fits | directors, last night made a conditional offer to purchase the more liquid assets of the Union Trust Co. and the Guard- ian Trust Co. large unlicensed Cleve- Members of the | which, in turn, drags erratically after it | land banks. ‘The offer was made to the Organiza- tion Committee of the First Mational Bank, which was being organized also for the purpose of taking over the Guardian and Union Trust liquid assets. Should the National City’s offer be accepted and approved by proper au- thorities, bankers said, the necessity of organizing the First National Bank presumably would be removed. One of the conditions of the National City’s offer would require the Recon- struction Finance Corporation to make Joans to the Union and the Guardian, sufficient to enable the Union to pay depositors approximately 35 per cent of their claims and to enable the Guardian to pay depositors approximately 20 per cent. The projected First National Bank was planned to have a capital of $10,- 000,000, of which $5,000,000 in common stock subscriptions was to be raised by Cleveland citizens, after which $5,000,- 000 in preferred stock would be pur- chased by the Federal Government. LoewsPALACECEEIT standard cause the influ- | INFLATION SCORED BYG..0.P. WOMEN Mrs. Wyeth Issues Statement Pointing to Past Evils From Practice. By the Associated Press. NEW YORK, May 3.—Mrs. George A. Wyeth, president of the Women's Na- tional Republican Club, Inc., issued to- day on behalf of the organization's board of governors a statement opposed to currency inflation. It called on Con- gress to be “guided by political mem- ory.” The statement represents, it wn; ex- plained, the findings of the group after & month of weekly discussions. “One might suppose that currency infiation had never been tried and found wanting,” it said. Point to Empire. “It is being presented to the Amer- ican people now as a direct inspira- tion, and this, despite the fact that recent financial history in three great European nations has shown precisely what inflation costs. “The visitor to Germany today is told that the prostration of that colintry re- sults from t disasters, the war, the revolution and inflation. Men of every party are agreed in this, and not the wildest agitator would stand before a German audience and suggest inflation’ of the currency as a remedy for their | economic ills. “And no one in France has forgotten | that when that country came, through | cheap money, to the brink of financial | chaos sh> was saved only through sta- bilizing the franc at & price which wiped out practically the whole of her internal debt. England’s Gain Doubted. “None of the farmers and small tradespeople who stood before the post office and bank windows in the Sum- mer of 1926, watching silently the post- ing of prices which indicated the evap- oration of security values, could now be told that currency juggling solves financial problems. “As to the experience of England with ‘controlled’ inflation, it has been urged by no_serious student of world affairs that British departure from the gold standard has resulted in a general and sustained advance of commodity prices in that country. The truth is that commodity prices and prices of | English_stocks were lower in March, | 1933, than they were in September, | 1931, when the depreciation of the | pound became necessary.” - MOTHER GREETS CHILD AFTER REMOVAL OF EYE | Convinced Operation She Opposed ‘Was for Best as Little Helen Vasco Improves. | By the Associated Press. NEW YORK, May 3.—Little Helen | Vasco will go home Friday to g§ mother | who now is convinced the operation vhich removed the child's left eye was { “all for the best.” Mrs. John Vasco of Hastings-on-Hud- | son, who had opposed the operation so | bitterly that a high court had to order it, visited the little girl at a hospital here. Judge George W. Smyth of Westches- ter Children’s Court, who originally or: dered the operation, said the mother was happy and satisfied. ‘The operation was ordered because physicians said a malignant tumor be- nind the eye would soon penetrate the brain and kill the girl. WHEN JOAN CRAWFO RD swoons lin the arms of GARY COOPER! Together . . . and what a pair they make! Magnetic, exquisite Joan ... as you desire her! Ardent, handsome Gary...as you thrill to him! Spectacular scenes follow in swift succession, and through each exciting moment is the passionate throbbing of a great love! The scene at Joan’s home, where the sweetheart she believed dead returns and finds her the mistress of another—is as powerful an emotional sequence as thy e screen has ever witnessed. Minute Mysteries Solution to THE STOLEN PACKAGE. See Page A-3. Fordney cpened the room’s only window. Therefore, it was closed when he entered. Butler, however, said he had seen a man escape through this window and that he (Butler) touched nothing. The gr&mwr naturally wondered who closed the window, were his story true. ILL EXAMPLE YOU WITH THIEVERY —Shakespeare. FARMERS URGED 10 FORCE HOLIDAY Rail Labor Head Hits “Legalized System of Racketeering.” By the Assoclated Press. DES MOINES, Iowa, May 3.—The | head of American railway labor told farmers today they had been “robbed by a legalized system of racketeering” and that he believed President Roose- velt and the Democratic Congress were prepared to give them a new deal. D. . BANKS RENEW RENOVIZING OFFER Loans Still Are Available for | Home Owners in Jobs Campaign. Despite the recent banking crisis, the District Bankers’ Association has re- newed its offer of small loans to home owners desiring to join in the “Reno- vize Washington” movement. C. H. Pope, president of the associa- tion, has advised Arthur B. Heaton, chairman of the Renovize Committee, that the original credit pool of $500,000 set up by local banks remains available. The loans may be obtained by qualified applicants from banks now open or which may reopen in the future. The banks now open, meanwhile, will assume the obligation of the entire fund, subject to conditions governing such loans. natlon because of race, religion or color, it was stated. Benefits Will Be Spread. The Renovize Washington Committee issued the following statement today: “In order to spread the work over the largest possible territory, the loans for the present will not exceed $500 per person. While this type of loan is more expensive to handle, the banks have agreed, in order to help out in the pres- ent situation, to accept the regular rate The statements were made by A. F. Whitney, Cleveland, president Brother- hood of Railroad Trainmen, in an address before delegates attending the ciation. “I want you to understand,” he said, “that organized labor sympathizes with you 100 per cent and is willing to fight with you. | “Let's get paid for what we do or not do it. You have the power to take the great corporations which hold your mortgages and titles to your properties in the palm of your hands. You may shake them into submission.” Asks Organization. ‘The railroad labor head called upon agriculturists to organize and declared that with veterans’ groups and labor unions they represented the three legitimate organizations of the Amer- | ican masses. Adherence to the fundamental eco- | nomic law of supply and demand and | |a belief in the necessity of the gold | standard were declared by the speaker | to be largely responsible for present conditions of unemployment. Both, he declared, were “originated | by and for the sole protection of the | selfish interests which have brought | about the greatest concentration of | wealth in the history of man and | hxvled impoverished the people of the world.” Declared Propaganda. | Recent arguments that reduced | freight rates contingent upon wage cuts | of rail employes would act as a boon to farmers, Whitney branded as propa- ganda. He said ra managements in asking for lower wages had never even intimated they would cut freight rates—in fact he said rates had been raised during the depression. He advised farmers to use the one weapon he said they had at hand— the farm holiday—to bring every city and even the national government to | his rescue. CONSCIENCE COSTS $5 The Treasury Department today re- | ceived, from a person who did not sign his name $5, which has been credited | to_the conscience fund. Inside the en- | velope, with the money, was a note | reading as follows | ““Please acknowledge the receipt in Evening Star, Washington, D. C. More | to follow. o of 6 per cent on these loans. They will | be repayable in monthly installments | but must be repaid within a year. “Each bank will lend to its depositors ‘home owners who are not depositors | when the note is indorsed by a satisfac- tory depositor. The applicant will be | required to set forth the amount and character of the work to be done and a minimum of expense. The applicant | lescribed must also show receipts to prove that'a man with vision. ‘There will be no discrimi- | P! of this year. “A few blueprints are still available fotpermm'hnda\relmemgsl‘:;ot;hz competition to supply a for the dilapidated little house | of the competitor being neath a strip of paper. the competition will be in charge of designing the new form into which the present struc~ ture will be renovized. “The work of restoring this house is one of the big features of the renovize Washington Through its instrumentality the committee will show just what can be accomplished at a small cost. Careful supervision will be kept so that information as to the progress of the work and its cost wfllkbe available at any stage of the work. “Washington is expected to do $5- 000,000 of renovizing as a result of the present campaign. Based on the per- centage of funds raised which were ex- pended for labor in other cities, this would mean the employment of 5,000 | men for a period of six months, or 30,- * A-S .[PLAN DEVELOPMENT OF COLUMBIA RIVER Vast Project for Power and Irrie gation Announced After Roose- velt Conferences. By the Associated Press. A vast project for power and irriga- tion development of the Columbia River Basin in the Pacific Northwest is being whipped into shape under the direction of Senator Dill, Democrat, of Wash- on. In announcing the new plan last night, Dill said it was the outgrowth of conferences with President Roose- velt. The cost of the plan, which Dill said would not require congressional approval, was estimated at $60,000,000, as compared with upward of $160,000,~ 000 asked for in previous programs. Funds would be supplied by the Re- construction Finance Corporation and the Washington State unemployment relief fund. A conference of Washing- ton State officials and Government ex- ecutives will be held soon to settle all points, Dill said. 000 for one month,” Mr. Heaton ex- lained. “In addition to being the means of placing a large number of unemployed men at work, the campaign is expected to result in enhancement of property values by almost the amount of work pledged.” The new plan calls for a dam 145 | feet above the river level, upon which a higher dam could be superimposed in the future, and a power plant, both of which would be liquidated in 24 years | through the sale of power. Dill said the project would furnish employment for several thousand men for the next Gen. Wood, U. 8. A, Retired, Lauds Roosevelt Vision in London Talk. | Robert E. Wood, U. S. A. retired, ad- meeting of the Farmers' Holiday Asso-| Who are home owners and to other dressing the American Chamber Commerce today, declared his belief | |that if Amreica and England could | agree at the World Economic Confer- | ence there was no reason why they shall have obtained at least two bids, | should not enter another era of pros- | to show that the work is being done at | perity. | four years, _— The development of an electric fuel valve which can be applied to airplanes make for greater safety for air pilots and passengers. The new valve will automatically seal a plane’s gasoline line when the ignition is turned off, eliminating to a large extent the dan- ger of gasoline fires. (Termites) Cause £10.000.000 Damage Annually T T Vaeating Unnecessary—Free Inspection Terminix Co. of Washington 1102 National Press Bldg. Phone National 3703 PROSPERITY HOPE SEEN LONDON, May 3 (#)—Brig. 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