Evening Star Newspaper, June 22, 1933, Page 5

THE EVENING STAR. WASHINGTON, D. C. ‘| against the deflationary influence of The Economic Conference non-gold countries. Move to Reduce Debts. THURSDAY, JUNE 22, 1933. “prh:es would make foreign goods more lwry commission warns against possible attractive to buy and domestic goods |dangers. |less attractive to foreign purchasers.| The elimination of trade barriers, a | The effect would be to stimulate im- |stabilization of currencies, the settle- ® WASHINGTON'S FINEST MEN'S WEAR STORE e CRITICS KEEP U. S In the United States as in other ports and decrease exports. This tend- ment of the debt question and other DELEGATION JuMPY Own Blunders Put Whole| American Group in Highly Nervous State. BY ARTHUR CRAWFORD. Commodity price levels form & focal point around which much of the discus- sion of the World Economic Conference will revolve. Measures to be considered by the Authorlty on_International Affairs. | conference are designed to raise price | By Cable to The Star. ¥ q1 g |levels or at least to eliminate what the LONDON, England, June 22.—It MAY | eoonomists call the disequilibrium be- be too much to say that the Americans |tween prices and costs. who are here in connection with the| There is a wide range of disagree- o 2 " ment as to just where the price level World Monetary and Economic Confer- | gy a60n enters into the depression pic- ence dwell in the midst of alarms, but |ture and what the approach should be it is safe to assert that mcst of them— |to it » delegates, attaches or correspondents— | Low llt’rw!csdflmgre both as ;“r):x\]h:e and are highly nervous and jumpy. a result of depression con S, To Most of them pick up the morning BY GEORGE H. MOSES, Former Senator From New Hampshire; Commodity Price Levels Form a Focal Point Around Which Much of Discussion Will Center at World Parley. impetus to the upward price movement and a general revival of business will take place. Those who would approach the sub- ject through an attack upon costs hold that the way out of former depressions has been through reductions in costs of production sufficient to offer pros- pects of business, profits. By widening the margin of profit, investment is stim- ulated, and economic progress resumed, whether by a reduction of costs or an increase in prices. It is especially diffi- cult, however, to reduce costs because of labor resistance to wage cuts and the immobility of debts, including both principal and interest. Great Britain mn abandoning the gold standard in September, 1931, had in view a scaling down of fixed charges in industry through currency deprecia- tion. The wage level had been too high in relation to the gold value of the pound. Sterling prices were expected to rise to correspond to the fall of the pound. There was an advance of about 6 per cent, but since then the level has fallen a little below that existing in September, 1931. Prices at least fell less than in the United States. The United States in leaving gold was actuated to a large extent by a de- | internal price levels LO sire to protect I Destinations EXCURSIONS Rownd Trip Fare countries movements have been on foot €ncy might continue until imports ex- . < ceeded exports which would mean & to scale down debts as well a5 t0 8d-| roiercal of the movement of gold and vance prices. a succession of events leading to a new Germany, Italy, Australia, New Zea- | equilibrium in values. While this proc- land and other countries have sought | ess is taking place in the country first to reduce price disparities by govern- | Teceiving the gold the country which is mental pressure on those prices which losing gold would suffer a reduction in | have remained relatively high. money incomes and prices but exports | "The wholesale price index for the would be stimulated and imports re- | United States on the basis of 100 for tarded. | 1926 was slightly below 60 on March 4, | when the depression reached its lowest | perts for the World Economic Confer- | depths with the Nation-wide closing of | ence suggested liberal credit policies as banks. It has slowly advanced to about | a means of stimulating prices and com- 62. The 1913 index number was 70.| mented favorably upon the open mar- The average level for 1931 was 73. |ket operations conducted by the Fed- |, The price index of England on & eral Reserve Banks a year ago which basis of 100 for 1913 was 99 in Febru- |arrested the contraction of credits al- ary, exactly the same os in September, | though failing to increase prices. To 1931. Germany had a price level of | foster a demand for credit extensive 91 in February as compared with 109 schemes for public expenditure are pro- in September, 1931, and 100 in 1913.! posed such as is now in contemplation France, on a basis of 100 for 1928, had in the United States, but the prepara- declined *> - little above 70 in Septem- ber. 1931, =~1 is now down close to 60. In normal times gold movements have a bearing upon commodity prices. If a country's trade balance is favor- able, which means that it has an excess of exports, including commodity exports. services and various invisible items, over imports it must ultimately receive gold | from abroad in settlement. If the trade | balance is unfavorable, which means that imports exceed exports, gold must | flow out. | This movement of gold back and forth creates a delicate balance. In the coun- try receiving gold there should theo- retically be an increase in the money income of the people and in conse- quence a greater demand for goods and | The increase in domestic | higher prices. W FARE Dates_and_particalars |"CHICAGO A ghole day to visit WORLD'S FAIR ‘All-expease tour lacluding $12. Ask sgents for longer limit rates and reduced Pullmaa fares Saturday, July | W, so 3 ington 130 p.m. Back home Monday 4.40 p.m. meals and sightseei NEW YORK Newark, Elizabeth, Plainfield $3.50 Sundays, July 2, 16 and 30 Independence D Lv. Wash. 12.01 PHILADELPHIA $3. Chester $3.00 Wilmington $2.75 Sundays, June 25 and July 9 “ I.VA(. 7.55 a1 *11.30 e Spend a day at the Seashore ATLANTIC CITY $3. All Expease Week-end Tours Every Fridey Sundays, July 2, 16 and 30 Independence Day, July 4 Lv. Washington 6.15 e.m. Saturday ington 1.00 p.m. The preparatory commission of ex- ||| $10.50 and up according to Hotel Selected—Lv. Wi seek first to cut costs 2o the fact that the United States has |tions made its report last year the ma- but also by editorial writers. To this | down of the international gold standard Hone has been pleasant reading for the | ynd post-war inflation. These included in extenuation, for it cannot be denied | 5nq rigid organizatiol cartelization, all the contretemps of the conference. | pounts | blundering ~speech ~at Cork—which | g5 the fundamental cause of the de- “Then came his initial address to the | WAT debis combined with the unwil- promise which was validated in a |50 that payment had to be made in Next came @ scheme for the tempo- | {0 Whether the differegt nations should {governor of the Federal Reserve Bank |Standard or whether the adoption of a ated by President Roosevelt. Low Prices Blamed. Dimetaliom g reduction of €9 prices and costs, contribute to the con- Gov. James M. Cox of Ohio when they | B¥ teasl of 'O% Brod iae DUCHE Capping the climax was Hull's sum- | them in as nearly a fish-wife fashion -spread through London a series of | | ibyword here that any American sug- | Wwho for a century have cried out lish so that it would agree in gender ‘Then came & ray of hope in “Ray” to London. He is a large cog in the the machine. Yet an American here | | overcome present difficulties some would force prices upward while others would newspapers with mingled feelings of h o 1d del. e ¢ the Fi i en the gold delegation of the Fi- chagrin and apprehension. This is due ,,psia] Committee of the League of Na- been criticized so unmercifully not only | jority held that the deciine in com- by headline writers and news Writers, imodity prices and the consequent break- fhas been added the free reprinting of | were primarily due to various economic comments of the continental press.|maladjustments arising from the war 7 “Americans s G profound changes in the structure and All this, in turn, has much to offer jocglization of industry, its elaborate that the American delegation has been | attem 5 valori I ; npts at price control. pools. valori- the fountain from which have gushed | jgtjon schemes, tariffs, prohibitions and {To name them seriatim one must begin | A minority of the delegation held that | With Secretary of State Cordell Hull's |y fa11in the general level of prices | mecessitated an explanation here. pression_and that this was the result | Hull Scolds Reporters. of the obligation to pay reparations and ; | lingness of the receiving countries to conference, promising _concrete pro- I : {posals on ithe part of the Americans, & | 2CCeDt payment in goods and services, alies 2 | gold. ) :g;fgl“’r;g‘};‘é“gn“;g scheme for & hori-| ®irfiere 15 a difference of opinfon as sary standardization of currencies, | take steps to advance price levels pre- {formulated by George H. Harrison, |Yious to a general return to the gold Jot New York, and Dr. O. M. W. Sprague, | ECld basis should be relied upon to fa- economic_adviser, and promptly repudi- | cllitate such an advance. At last was produced the plan of | . i s 5 All agree that contihued low prices, Senator Key Pttman of Nevada fOr |y volving a disequilibrium between ‘coverage, which ran counter to the po- | bt tinuance of the depression. ite and platitudinous speech of former | UTEARCE OF Ch8 QPIEECOR- g pinned on him the blue ribbon of the monetary commission chairmanship. mons to press representatives to chide | them for writing the truth. He scolded | as his natural mildness would permit. Synchronously with all these there stories of dissension among the Ameri- 3scan delegation, until it came to be a jgestion must be taken with several ‘grains of salt. The French especially, | against perfidious Albion, began to won- der how to say “double-cross” in Eng- with “Uncle Sam.'= Walt for Prof. Moley. Moley (Prof. Raymond Moley, Assistant | Secretary of State), who is on his way | administration machine and his coming here is regarded as that of the god of who is in a position to know President “Roosevelt’s mind, declares that there is nothing which Prof. Moley can say or | = do_which will be helpful materially. This person says that the President will not shift his position and that no form of stabilization, temporary or per- manent, will receive Roosevelt approval until the American domestic program | is put more fully into operation—and this regardless of the outstanding | feature of the Pittman resolution and | of real wealth. It is much more diffi- cult for debtors to discharge obligations entered into in times of high prices. PITTSBURGH $6. Sundays, June 25 and July 9 Lv. Wash. 1201 am. This difficulty is especially acute with respect to international obligations, in- cluding both the intergovernmental and YOUNGSTOWN AKRON-CLEVELAND $7.25 $8.25 Saturday, July | Lv. Wash. 8.00 p.os. private debts In a period of slackened business costs decline more slowly than prices, with BALTIMORE $1.25 Saturd and Sundeys $1.50 oS consequent serious effects upon indus- try and employment. The increasing unemployment ~ decreases purchasing power and the result is a further drop in_prices. The burden has been especially heavy upon farmers for the reason that prices of natural products decline more rap- idly than those of manufactured ar- ticles. Wholesale prices also feel the effect of a decline more quickly than SUNDAY, June 25. HOLLYHOCK WEEK Lv. Washington, Saturdays, $3.00 Cumberland $2.00 Martinsburg $1.50 Harpers Ferry Lv. Washington 8:25 am. Harpers Ferry—Week, June 23 WEEK-END RAIL-WATER EXCURSION $8.50 TO NEWPORT—FALL RIVER AND BOSTON AND HOMECOMING— July 1 end Aug. 26, 11.30 . retail prices. Costs of living do not | drop as rapidly as incomes. It is recognized that if an upward trend of prices such as has commenced recently can be maintained industry will find it profitable to resume opera- tions more extensively and the in- creased employment will furnish new 4 Trip $16.80 - TO NEW YORK $5.65 Every Night Open for occupancy Union Station 1 VACATION EXCURSIONS TO NIAGARA FALL! Leave Th RECLINING SEAT COACHES Lunch sad Porter Service 0 p.m. Leave 12.35 am. buying power. This will give a further " FLYING ANTS Go Friday ALSO VERY LOW WEEK-END FARES TO ALL POINTS n to Sunday noon. Return to Monday midnight. Longer limit over 4th July Holiday, Friday to Tuesday CREAM BUTTERMILK similar steps are designed to revive business and industry and in turn in- fluence prices. Proposals for a control of production also have a bearing on the price situation. Sensitiveness is one of the disguises of pride. Friday Special Sea Food Plate, Soft || Shell Crabs on Toast, Prime Ribs of Beef.... 50c Other Dinners, 55¢, 65c, 75¢ | @otiterFan AIR-COOLED DINING ROOM 18th & Col. Rd. LK St. N.W. B R T I A M S B COSTS NO MORE— and is yours for the asking! Enjoy thick, rich CREAM for your coffee, cereals, desserts— cream that WHIPS! Thousands of homes enthuse.over the quality and convenience of our special Pasteurized Milk in the Cream Top Bottle. So will you. For dependable service 'phone WEST 0183, hail our neighborhood routé man, or write us. "o ACIDOPHILUS MILK (Termites) Cause £10.000.000 Damage Annually d_Buildis Vacating Unnecessary—I Terminix Co. of Washington For Details, Ask Agents or Phone District 3300 TRAVEL BY TRAIN—QUICKLY—SAFELY—COMFORTABLY in spite of what France or any other | nation may say about the United States. | In this view of it, the Americans will have to wait uncomfortably for another ||| ‘week, and after Prof. Moley gets here, ||| they may be more uncomfortable than || ever. | 1102 National Press Bldg. 3 Phone National FIRE ESCAPES GUARDS — GATES ” RAILINGS— (Copyright, 1933.) S 1,550 MEN AND WOMEN | FENCES— GET DEGREES AT PENN U. e Students Represent 41 States and in the City 10 Foreign Countries, Includ- Special Attention ing D. C. School Head. to Repair Work FRED S. GICHNER IRON WORKS, INC. 1214 24th St. NW. WEST 2420 { igs, (Onsolidated Hardware 4 BIG VALUES on Sale Friday and Saturday Only! $1 Ice Cream Freezer || 8-in. Oscillating Fan By the Assoclated Press PHILADELPHIA, June 22—The Uni- versity of Pennsylvania erday awarded degrees in course to 1,550 men and women from 41 States and 10 for- eign countries. Recipients_of honorary degrees in- cluded Joseph Hofmann, noted pianist, doctor of music, and_Albert H. Lucas, headmaster of St. Alban’s School for Boys, Washington, D. C., master of arts. New style . . . Serves 12 peo- | ple. Quick sturdy and de- pendable. A Real Value S-Ft. Step Ladders 89c Each step braced . Strongly structed. Get one A Real Value at the Price at this special price. 26 Individually Owned and Operated Stores in All Sections to Serve You. Shop Nearest One. NORTHEAST NORTHWEST 1811 Georsia 3. W. ADAMEON OO« wth Capitel St. LIRS E T BROOKLAND HARDWARE CO. 12th and Monroe St DISTRICT LINE HARDWAERE CO. 6029 Dix St A reliable make. .. cool these .Get one ans. ps foods or or Guaran- con- \break- Ave. EDW F. DISMER HOPKINS HARDWAR LOVELESS HARD LOVELESS HARD SERVICE HARDW. 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Ask for—see that you get— Kodak VericaroME Film...in the yellow box with checkered stripes. TN Y T N AL ONNAAINI Monday, June 26th PRIGES ADVANGE Last 2 Days to buy your SHIRTS at Today’s Record-low Prices! $15 WHITE, BLUE, TAN, GREEN A ND GREY FEATURING THE “DORIC” BROADCLOTH will be $1.75 after June 26 THESE low prices simply couldn’t last . . . they represented losses to both mill and manufacturer . so on Monday, June 26th, by official order of the Manhattan Shirt Co., the thing we’ve been predicting becomes a redlity . .. Manhattan Shirts now $1.55 will be $1.75 ... and worth it . .. Man- hattan Shirts now $1.65 will be $1.95 . . . present $1.95 qualities will be $2.50...and so on, all through the Manhattan line. EN have already started flock- ing in for their Manhattans.. . . buying by the half dozens and dozens . . . They’re wise! That’s the way to save money—at least 15%—and remember, you're buy- ing shirts worth while — from America’s finest shirtmakers. The smart thing to dois to buy your Manhattans by the dozen, and just say “Charge it” If you haven’t an account here, we’ll gladly open one AY in 30 days, or use our Ex- tended Payment Plan, with 4 months to pay, and no down A payment. Open 8:30 AM. to 6 PM. WASHINGTON'S FINEST MEN'S WEAR STORE RALEIGH HABERDASHER 1310 F Street . P 130 A0 50t 0t N T o T T PR T S ———