Evening Star Newspaper, September 21, 1933, Page 2

FRESDENT MARKS | - TWE ON INFLATIN ;‘:‘flpponents and Proponents . Seen Dissatisfied With Present Outlook. BY MARK SULLIVAN. ‘s’ qhe dependable impression of those ! +* Pest informed is that President Roose- ~velt does not intend to inflate currency in the near future if he can avoid it and that he deplores the present pres- | sure of the inflationists in Congress upon him to act now. Some impres- sions go further and say President Roosevelt, as respects his present state of mind. subject, of course, to !u}ure_ change, would be glad if he could “get by” without inflating at all. | The position thus attributed to the President zbout inflation of currency | should be accompanied by a statement of his position about inflation of credit, which is a different thing. not seriously | criticized by conservatives. As to in- fiation of credit, the position of the administration is one of energetic ac- tivity. Credit is being inflated by about a)l the means that can be found or in-: vented. Some_new ways may be put in effect shortly. Inflation of credit is in part the administration’s attempted method of escape from inflation of cur- Tency. | Neither Side Satisfied. | That Mr. Roosevelt’s reluctance to inflate currency does not satisfy the in- flationists goes without saying. Because of a condition that has arisen, it does| not satisiy anti-inflationists _either. Probably it is fair to say broadly that Mr. Roosevelt's position, mere absti- nence from a present act of inflation.' does not meet the situation as a whole It does not cure, but on the other hand prolongs the condition. unfortunately from every point of view, which has arisen about this subject. i The root of the present situation goes back to the fact that Mr. Roosevelt once strongly implied and practioally said he might inflate. Merely to say | now that he does not intend to inflate | »at the present moment does not change | anything. Mr. Roosevelt in the past | has by action and even more Strongly in words implied he might inflate. He, #dmplied it by the act of going off the | T¥old basis in March and April. He| plied it egain more definitely in *Mpril by arranging with the inflation- ,;ls in Congress to confer on him the <apower to inflate the currency at his retion by any or all of the familiar | : “methods. Finally, Mr. Roosevelt has Sgmplied it very definitely in words. | *%_In his radio address May 7 the Presi- | “ulent said of himself, “The administra- | “ %ion has the definite objective of raising | -‘ommodity prices” to a level commonly | vnderstood to be roughly the 1926 level. | Then Mr. Roosevelt added a rather | equivocal sentence. He spoke of the; powers given him by Congress as: powers for an enlargement of credit ctually the powers also provided for | inflation of currency, and it was infla- tion of cuirency that was most in the | minis of Congress. Then Mr. Roose- velt said, “These powers will be used when, as and if necessary.” While microscopic examination of Mr. Roosevelt's words might reveal that technically he avoi a promise v inflate the curren when as and if necessary.” everybody. especially infla- tionists. understood him to make such & promise. Specific Statement Needed. | In this condition the only act of Mr. Roosevelt that would now create as- | surance and would now end the uncer- tainty arising out of anticipation of in- | flation would be a specific announce- | ment. Specific announcement that he will never inflate at all would please the anti-inflationists. But all persons would | be most assured by Mr. Roosevelt taking the step of inflation now, and at the same time stating positively he would never inflate further. Announcement | now that the gold dollar will be per-| manently valued at, for example, 55 _per cent of its old value would create “certainty for the future. provided—and the proviso s very important—it were “accompanied by a firm statement that no_further inflation will ever be made. For several reasons Mr. Roosevelt is unlikely to take this step. Whatever +-question there may be about his having | romised to inflate currency, there is | no question whatever about his promise | “4tb raise commodity prices. In addition | to that general promise to raise | [l commodity prices. he has, t.hroughi signing the farm bill. and through gecretary Agriculture Wallace, | romised raise prices of farm =Crops to a pbint where they have the #purchasing power of 1909-14. The ad- | ministration is trying hard to achieve ‘this rise in prices. but is not success- “¥ful. In this condition Mr. Roosevelt «-must hold on to inflation as his “‘ace 7%in the hole.” as the mcans to use for ~ralsing prices if all others fail « Meanwhile, inflationists everywhere .iiconsider that Mr. Roosevelt has made ise to _inflate “when, as and if "~ They are increasingly dis- | him to that. When Con- .igress meets, if Mr. Roosevelt has not | inflated, the inflationists in Congress Zere likely to take the step themselves. 3Unless Mr. Roosevelt has already in- | Mlated, or unless prices have gone up ‘other wise to the definitely promised “ levels. Mr. Roosevelt will hardly be in . & position to resist. | _U.S. ASKED TO BUY | COTTON CROP HALF AS AID TO GROWERS| (Continued From First Page.) ithe Reconstruction Finance Corpora- of to, ‘= thon. v The cotton would be purchased direct | the farmer, who. in turn. would ree to reduce acreage next year. | ‘o Benator Bankhead vesterday called on | Jesse H. Jones, chairman of the Re- | construction Finance Corporation. and ;explained the proposition to him. Bank- has not yet formally given to the | =conference the result of his meeting iwith Jones, but delegates sald they o rstood Jones had referred him to | M President | ;- President Roosevelt yesterday gave ! hiul consideration to the inflation in a long talk with Dr. George “of Cornell, who has made a v _pf the European monetary situ- i the Chief Executive. Pk liseveral hours tae economist atalked over the question with Mr. aRoosevelt, relating to him the results of “his study. - No offic #cussion: “ports ial word came from their dis- but the meeting revived re- bout the Capital that Warren ging out plans for & commodity oll: a odity dollar is one whose | but with relation to commodi- | ties W remain constant, but whose | ratio §o gold prices would rise and fall with the commodity price index. Along with the study the President was giving the dollar, the general ex- | pansion program of the administration was moving forward along a wide front Coupled with the plans for pushing money into ‘eirculation through public building projects, broadening credit to farmers, home owners and business houses. new efforts were being directed toward disposal of farm surpluses to bring agricultural prices into line with those of goods that the farmer buys. Coincidentally to the visit of cotton | delegates it was disclosed that Russia had offered to buy 1.000.000 bales of | cotton and a quantity of fats and oils | if the necessary credits could be ar- Tanged i Plans already are under way for ex- porting wheat from the Pagific Coast and for turning excess meats and milk | into relief channels. These plans are in addition to the acreage-reducing campaigns that already are under way. What’s What Behind News in Capital. Wall Street Pulling Strings to Halt Bank Inquiry. BY PAUL MALLON. OME extra fancy inside wire pull- S ing is being done by Wall Street to squelch the Senate stock mar- ket investigation. Several of the biggest men in the street are annoyed about what will come out if the inquiry resumes, as scheduled. in October. It seems Prose- cutor Pecora has struck pay dirt in every sense of the word. The Wall Streeters argue that Jurther persecution of them will cause business disturbances. They think it will interfere with the re- covery program. They may be right about that. At least they have convinced four conservative administration officials close to Mr. Roosevelt that they are right. These four are now supposed to be exerting pressure on the President to call off his dogs. Threatens to Call Names. The one thing essential to such & maneuver is secrecy. Unfortunately, a certain member of the Senate Investi- gating Committee has heard about the matter. He knows the names of the parties involved. He has the constitu- tional immunity necessary for calling names out in public and is threatening to do so. One thing deters him. Chairman Fletcher of the Investigating Com- mittee has summoned a.meeting jor October 3. This meeting is supposed to determine the policy of the com- mittee as to the future of the inquiry. If the committee decides to pursue the inquiry, nothing will be said. If it calls & halt, fur will fly. Have Made Some Gains. ‘The mere fact the committee is go- ing to talk policy shows how far the Wall Streeters have Qeen able to get. When the inquiry recessed several months ago. it announced it would continue October 3. Pecora went to New York to dig up evidence and has | spent the Summer at it. Now that he has the evidence the committee is going to meet to deter- mine whether it should proceed. The truth seems to be that no one, 'except Mr. Roosevelt, can Kkill the in- quiry and he will not. Wire pulling and’ pressure sometimes work in re- verse on him. Further public frying of Wall Street- ers may not accomplish any_construc- tive purpose, but it can hardly be stopped half way. The investigators have the bear by the tafl and cannot let go now. Mr. Roosevelt probably will tell the committee that privately if not publicly. Better Show Promised. Advance hints about Mr. Pecora's new evidence indicate the last half of the show will be better than the first half, even if J. P. Morgan and the midget are missing. The star may be a former bank board chairman. It seems he de- veloped some novel financing meth- ods through a family corporation he organized for financial drainage purposes. Since his retirement he has Dbeen receiving a stupendous annuity from the bank, much larger than Samuel Insull received when he sought solitude in Greece. o) Also Richard Whitney, president of the New York Stock Exchange, probably will be recalled. He thought the com- mittee was through with him, but it may want more details about opera- tions of the exchange. Mr. Morgan may not be disturbed, but his associates in Wall Street’s larg- est house will be needed. The ques- tion of going into the Morgan books is still hanging fire. * New List Under Way. Then there is a new list of politi- cians who were favored with bargain stocks below market prices. It will be a bigger and better list than any of those which have gone before. At least this is the advance notice which has reached those near the top. Some committee members have fur- ther big things in mind. They want to make public the books of special- ists. That will cause a shudder down ‘the spine of everv market man. A specialist’s book is the sanctum sanctorum of the stock market. In it are all the secrets about specific stocks. Publication of them would leave Wall Streeters nothing private except their own souls and the committee may take that angle up later. Borah Loses Weight. Senator Borah used to be the biggest American name to Europeans. Any- thing he said or did was more impor- tant than the actions of the President. His speeches were reported abroad more fully than they were here. However, times have changed. Recently a news agency received the following cablegram from its European headquarters: “Lay off Borah interviews. Name anr- ries no weight any more.” Probably it is the Roosevelt influence. Debt Talks Futile. War debts are no longer regarded as an important subject either here or abroad. The inner attitude is that it is futile to talk about them now. The coming talks with the British | cepresentative will be just going through of people of even moderate circum- 4 the motions ot diplomatic negotiations, with pessimism deep on both sides. Other nations will hang back to see what the British do. This administration will drop the matter rather than take the 5 to 15 per cent payments which the British are planning to offer. Prof. Moley's magazine will advo- cate a nationalist policy on the deb and other {nternational matters. It may frequently conflict with the views of State Secretary Hull. How- ever, there will be no direct attacks on Hull under present plans. Ford people u—y_tfiere has been no decline in their sales since Henry went into retirement on the N. R. A. The explanation of Prof. Rogers, that he is in Europe on the N. R. A, fooled no one here. He is working on the commodity dollar. THE EVENIN IPUPILS MAY LOSE PERMITS T0 WORK School Authorities Plan to Review Types of Labor Done by Students. Recall of most of the work permits issued by the department of school ! attendance and work permits of the | { public schools loomed as a probability | today as school authorities undertook | to apply the provisions of the N. R. A. | codes and agreements to the issue re- | | quirements. i | Until child labor limitations were established in the President's re-em- ployment agreement and in subsequently adopted, the school authorities issued work to boys and girls between 14 and 16 who had completed the eighth grade elementary school course. Besides the regular work permits, of which 158 were issued last year, so- called “vacation permits” permitting children to work outside of school hours and all day on Saturday and Bunday between the hours of 7 am. and 7 p.m. were issued. There are at resent 222 “vacation” permits held by ys and girls. The Board of Education was advised by Superintendent Frank W. Ballou yesterday that all permits will be re- viewed. Many are held by children who work in industries or occupations in which child labor is banned by the various N. R. A. codes. Others are held by children who work full time in occupations or industries in which child labor is permitted only part time. The part-time limitations permit chil* | dren to work not more than three | hours a day and these hours outside of 1 school hours. May Mean Withdrawal. Dr. Ballou told the board the new ' regulations probably will mean “the withdrawal of most of the permits.” ‘The School Board agreed at its meet- ing to ask the District Commissioners | to waive from impoundment $14,000 which has been saved by various econ mies for use in payment of officers salaries during the current year. If this sum is allowed for officers’ sal- aries there will be a balance at the end | of the year of $275. i When the strict economies enforced by the budget slashes were put into effect the school authorities asked | permission to use up to $20.000 fror the contingent expense item for this) year. Meanwhile, the economies ef-| fected savings of $14,000, which, under the economy legislation, would be im- pounded in the Treasury. It is the release from impoundment and the resultant transfer of this sum to the officers’ salary item that the board now seeks. | Criticism of the District Repair Shop for failure to begin renovation of the Terrell Junior High School Building ' luntil a few days before the reopening ! of school, despite the fact th: work was | requested by school authorities in July | when the funds became avaiiable, was voiced by Henry I. Quinn, chalrman of the Committee on Buildings, Grounds |and Equipment, at yesterday’s meeting. An inspection of the building with Charles Houston, fellow member of the | committee, Mr. Quinn said, had con- vinced them the ‘work could not have | been started more than a week before | school was to reopen. As a result of the delay. he sald. the building was full of workmen, with the accompanying noises of hammering, sawing and equip- | ment-moving. Seek More Authority. Mr. Quinn said his committee was de- termined to undertake to set up a new plan by which the School Board would | have more authority over the manner and time in which repairs to school butldings would be done. Logically, he said, the time to repair schools was dur- ing the Summer vacation period. A% his committee’s recommendation, the School Board called upon the Com- | missioners ‘for an explanation of the delay in beslnmn( repair work at the Terrell Building. Among the last steps taken in per- sonnel economies was the reduction yesterday of the head of the depart- ment of physical culture to a position of teacher, bringing the incumbent's | salary from $3,700 to $3200 per year. Dr. Ballou notified the School Board that a small elementary school organi- zation had been retained in the John- | son School. which reently was turned | over to the Powell Junior High School | for use as an annex. At present, he' explained, a kindergarten of 21 chil- dren, a first grade of 19, and a second | grade of 16 children were operating. | By law, however, a kindergarten must have an enrollment of at least 25 pupils to warrant its continuance. Hence, Dr. Ballou advised the board. unless the class increases within the next few days. it will be abolished and its pupils distributed among other schools in the Mount Pleasant section. COST-OF-LIVING QUIZ | TO BE MADE IN U. S. PAY-REVISION PLAN | ___ (Continued From First Page.) the proper weight to be assigned to| them. “The first step in the study will be the distribution of a questionnaire toall | Government_employes in Washington | early next week. This is very simple and designed to obtain merely pre- | arrangement of employes in the various salary groups. After this information | has been obtained, it will be possible to | select a smaller group known to be | representative of the whole in significant | 1espect who will be sasked to furnish | more detailed information about their living expenses during the past year. Old Records Sought. “Employes will also be asked on the first questionnaire if they have kept & written record of their expenses for any | part of the period. 1928-1933, and it is | hoped that a relatively large number of | such records may be made available for | analysis.” The questionnaires were being printed today by the Government Printing Office and will be distributed early next week through the co-operation of the heads of all Government agencies. The survey was the subject for discussion at a meeting of the Recovery Council | last Tuesday, Miss Perkins said, and promises of assistance in making the survey were forthcoming from all quar- ters. Automobiles Discussed. Among the items discussed informally by Miss Perkins will be cost of care, maintenance and replacement of auto- mobiles, This item, Miss Perkins said, 1s now logically icluded in the record stances. The new cost-of-living determination is authorized by the economy act to be based on a 6-month period to be com- pared with a 6-month period of 1938. The President is authorized then to recommend pay cuts based on the dif- ference in cost of living, not to exceed 15 per cent. The pay cut for Gov- ernment workers is not at the maxi- mum of 15 per cent. The latest de- termination under the economy Aact, showed a reduction in the cost of living since 1928 of 23 per cent. Only a iroken Leg. CHICAGO (#).—Jennie Shurtleff is }ettlng on nicely, despite the fact she ell through a window six stories. She i suffered nothing more than a fractured leg and some minor bruises. The win- dow screen acted a sa sort of cushion when she landed. Jennie is 3. liminary information about the living | o WASHINGTON, D. C., THURSDAY, SEPTEM BRIG. GEN. FRANK T. HINES. CAMPAIGN TO 0UST HINES UNDER WAY Legion Convention Actions | Promise Fight on Issue at Chicago. By the Associated Press. A quiet drive among some groups of ' American war veterans for removal of | Frank 1. Hines, Veterans Administrat- | or, will culminate at the National Con- vention of tre american Legion in Chicago October 2 to 5. A survey of the actions of State L.gion conventions, preparatory to the | national conclave, today disclosed the move against Hines as one of major issues tc be fought at the Chicago con- vention, together with a demand for restoration of veterans' benefits cut by the economy act The study also showed the demand of ex-service men for cash payment of the bonus, which reached a climax with the nine-to-one favorable vote at last year's Legion convention, had largely abated. Only five State conventions have called for cash payment of the bonus. an almost complete survey showed, whereas nearly all have favored in one form or another tne four-point pro- gram advanced by the Legion’s National Rehabilitation Committee for liberaliz- ing the economy law. Modification Sought. This program docs not call for repeal of the economy law, but centers upon a demand for restoration of full bene- fits to service-connected cases and free hospitalization of all honorably dis- charged veterans who are not reason- | ably able to pay for i Legion officials indicated they will carry on their own fight independent of other veterans' organizations, some of which are standing for more liberal plans. The Veterans of Foreign Wars has invited othe: groups to join in a united stand for repeal of the economy law Four State conventions have acted on resolutions calling for the removal of Hines, assuring its consideraticn at the national meeting. Two of them asked his removal outright, one adopted a resolution asking for an investigation of his administration and the fourth voted down the remcval proposal. Veteral opposition to Hines centers on the accusation that Hines' recom- mendations were responsible for what the veterans regard as the “drastic” economy_leglslation. ; | It is charged in some venerans’ quar- ters that Hines' ccst estimates and other figures in connection with the economy | battle before Congress recently were “misleading.” ! Legion officlals said yesterday the final decision dn joining other groups to secure blanket repeal of the economy law would be made at the Chicago convention and would be carried out by | the new national commander to be se- lected at that meeting. They said tiney expected one of the biggest disputes at Chicago would be the contest within the organization to_ place it back of the more liberal pro- | grams advanced by the other ser\'!ce‘ groups. The call for united action toward re- peal of the economy law went out yes- terday from James E. Van Zandt, com- mander in chief of the Veterans of Foreign Wars, to heads of other vet- erans’ crganizations inviting them to a conference here October 16. “The economy act,” he said. “was enacted by the Seventy-third Congress during a period of hysteria when that body and the Nation as a whole was swayed by a fear of economic chaos. With one sweep, enemies of veteran welfare destroyed legislation that was enacted during the past 15 years only | after due deliberation and considera- | tion of the problems involved.” | Legion officials said their program | would retain some of the savings under the economy act, pointing out it con- tained no request for restoration of benefits to veterans with non-service connected disabilities. Four-Point Plan. The Legion's four-point plan fol- “That no war veteran disabled in line of duty suffer any reduction of | those bencfits granted such veterans in the World War veterans' act as in effect prior to March 20, 1933 (the ef- fective date of the economy law). “That hospitalization under Federal Government auspices be afforded all veterans not dishonorably discharged | who require hospital treatment, and | who are not able to reasonably pay for | their own treatment. “That perpetuation of service-con- nection for "all veterans properly granted such service-connection under laws in existence prior to March 20, 1933, be ‘if“mend“ as an item of Legion policy. “That the benefits provided for de- pendents of veterans as established in the World War vetersns’' act be re- sumed and maintained as the Govern- | ment’s policy and that in no event | shall widows and dependent children | of deceased World War veterans be without Government protection.” /by the Nazis themselves were dealt AUSTRIAN FASCIST CABINET IS SWORN Chancellor Dollfuss . Holds Five Portfolios in New Government. By the Associated Press. VIENNA, "September 21.—The new government of Chancellor Englebert Dolifuss, which marks the crushing vic- tory ‘of Austrian Fascism over democ- | racy. was sworn in today by President Wilhelm Miklas. ‘The administration’s program was announced in the semi-official Reichpost as “economic rehabilitation, internal peace and order and external indepen- dence and sovereignty.” ; In other words, the government is definitely committed to carry on the Dollfuss fight against Anschluss (union with, Germany), and the presence of Maj. Emil Fey in the ministry as vice chancellor insures most vigorous con- tinuance of the campaign against the Nazis. Fey is a leader of the Heimwehr, the pro-Italian Fascist Home Guard. He has been demanding the “extermin: tion with fire and sword” of the Nazis, whom he describes as “traitors to Austria.’ Holds Five Portfolios. In the new dictatorial “cabinet of | personalities” Chancellor Dollfuss has five portfolios. In addition to chancellor, he is min- | ister of defense, security, agriculture and foreign affairs. His secretaries of state for defense and security are; Fascist Heimwehr sympathizers. The political parties are completely elimi: nated, even the chancellor’s own Christ- ian social group. Karl Vougoin, the builder of Austria's Army, a veteran of 16 cabinets and a survivor of countless political storms. | was unable to resist the Heimwehr cl:fposiuon and was thrown overboard. ¢ was chairman of the Christian Social party. The blow was softened by Vaugoin's appointment to the presidency of the federal railways. but the fact that even he was compelled to give way to the Heimwehr was accepted on all sides as of great significance. Former Vice Chancellor Franz Wink- | ler, democratic agrarian, and his col- league, Dr. Vincent Schumy, who was minister of interior. were uncere- moniously cast out, although two rep- resentatives of their “national corpo- | Tative front” were allowed to remain; as undersecretaries. i Eliminates Political Parties. This new cabinet, it has been ex- plained. was to have the motive of eliminating political parties. with man- dates to be laid down by Parliament. Its road was charted just nine days ago by the chancellor, who in a speech demanded the end of demagogy and party politics and “Godless Marxism.” He proclaimed a reorganization of the nation on a corporative or guild basis under a forthcoming constitution— “the Christian Corporative Authority State.’ It was this speech that precipitated a battle between Winkler and the Heim- wehr leader. Prince Starhemberg. The officlal newspaper Wiener Zei- tung had warned that the government recognized 1ts ability to institute mar- tial law. including the death penalty. to cope with political troubles. An appeal by Prince Starhember said that “Autrla’s future is and will! be a corporative state on fascistic prin- | ciples: this is our aim and we will hieve it.” To this a newspaper adde And no one shall hinder us—no one! Dollfuss. who is a scant five feet tall. assumed the powers of dictator last March on the invitation of Presi- dent Miklas. He is just past 40. the father of a young son and daughter | and in politics represents the rightist view and Conservatives. Parliament was indefinitely adjourned last March. TREASON IS STRESSED AT REICHSTAG TRIAL; BEHEADING DEMANDED (Continued From First Page.) who considered himself a born revolu- tionary leader. Van Der Lubbe denied being a Com- munist, but Judge Buenger said Com- munists sometimes detached themselves | from their party. Some of the chief contentions af | those who charge the fire was started with in quick order. (An unofficial legal commission sit- ting in London said in its report that grave grounds exist for suspecting that the blaze was started by, or on behalf | of. leading Nazis.) Judge Buenger pointed questions in an effort to show that Van Der Lubbe had no connection with the Nazi party, but. on the other hand., had tried to establish political contact with “certain other parties,” meaning the Commu- nists and, specifically, Torgler. Van Der Lubbe denied ever having spent a night at Brocketwitz, in 8ax- ony, where anti-Nazis have asserted he was seen in the company of Nazis. Lawyer Ban Explained. Another witness testifying that al- though the local mayor had asserted Van Der Lubbe was with Nazis at| Brocketwitz, it was a case of mistaken identity. Explaining why foreign were barred from representing the d fendants, Judge Buenger said, “the court was convinced the petitions were not motivated solely by the thought of safeguarding the defendants’ interests, but by the idea of planting and pro- moting suspicion against sovereign Ger- man justice.” Van Der Lubbe told the story of his life, saying he first came to Germany in December, 1918, and returned home later. In 1930, he declared, he went wx France, intending to enter a channel swimming contest. He abandoned the | idea, however, and then planned to hike through Europe and Russia. e Injured in Fall From Terrace. Thomas R. Cramer, 14, of 3403 Thirty-fourth place, is under treatment at Walter Reed Hospital for three frac- tured ribs and internal injuries suffered when he fell from the terrace in front of his home onto & pipe supporting & wire fence. 'KEPT AWAKE BY CONSCIENCE, DISTRICT BAKER ASKS ARREST Special Dispatch to The Star. BALTIMORE, September 21.—Henry | B. Maynard, a hollow-eyed Washington baker, walked into the Central Police Station here today and asked to be ar- 1;ctekd' for forgery and passing bad checks. > " he told it. or eat. My conscience w k me up and perhaps I'll feel better.” Sergt. George Sauer said the police station was open to all who belonged there by virtue of misdeeds, and in- quired what the stranger had done to qualify. “I ‘am wented in Washington for Mnfl bad checks, and the Govern ment is also looking for me for forging a name to get a package of mail,” the man said. Maynard, who said he lived on Thir- ty-ninth street in Washington, ex- plained he had come to Baltimore sev- | unable to sleep since his arrival. eral days ago and had been living at l| rooming house. He said he had been “Last night,” he safd, “I went to bed early, but had besn unable to sleep at A, S0 I arose and dressed.” ~H ¢ | precautionary measure.” appet at the police station half an hour later. ‘When the formalities of docking him as a prisoner had been completed, Maynard was led to a cell and turn- ke‘a. reported he fell asleep at once. 1timore police later communicated with authorities here. ‘Members of the bad check squad at headquarters today said a Henry G. Maynard is on a year's probation here on a bad check case. They said other checks were outstanding against him, but that no warrant had been issued. Local police expected to_send for | Maynard if he can be identified as the Maynard known here, it was sald of headquarters this morning. BER 21.. 1933 - Kidnap Trial Figures URSCHEL FACES MEN ACCUSED OF CRIME. Upper: Harvey Bailey, badman of the Southwest, as he sat in a Federal court room at Oklshoma City, Okla. and heard Charles F. Urschel, wealthy oil man, tell of the kidnaping that is charged to Bailey and four others. Lower: Charles F. Urschel pictured &8 he told his story of his kidnaping. —A. P. Photos. ELLY ISSUES NEW LOAN FOR FERRY THREATS OF DEATH Near Scene of Urschel Trial, He Calls on Witness to Warn Him. (Continued From First Page.) on a Texas farm, with Kelly and Bates branded as the machine gunners who kidnaped and held him last July. The millionaire’s associate, E. E. Kirkpat- rick of Tulsa. yesterday told of paying the $200.00( ransom to Kelly last July near a South Side Kansas City hotel. Balley té Take Stand. Bailey, alleged originator of the kid- nap plot, will take the stand in his own defense, his attorney, James H. Mathers, announced. Keenan said he had not received a threatening letter from Kelly, but had | been mentioned in the letter sent by the fugutive to Urschel The letter, as made public by the As- sistant Attorney General, had this to say regardin: Keenan: “Give Keenan my regards and tell him maybe he would like to meet the owner of the above.” “Owner of the above” referred to Kelly's fingerprints, inserted after his signature. Hyde proceeded to call his first wit- ness, W. U. Harris, rural mail carrier of Paradise, Tex. the home of R. G. Shannon, his wife and their son. Armon Shannon, and three other defendants. Harris said the Shannons were inter- ested in Fort Worth newspapers telling of the abduction at the time Urschel was held captive on their farm in Wise County. Urschel previously had testified his actual kidnapers. Kelly and Bates. read | the headlines and parts of the stories of the kidnaping to him while he lay fettered and blindfolded in & shack on the Shannon farm. Tells of Co-operation. Gus T. Jones, agent in charge of the United States Bureau of Investigation at San_Antonio, testified the Urschel family had co-operated with the Gov- ernment during the ofl man's captivity. After his release. Jones said. Urschel related to Government agents ‘“every move that had been made from the time he was kidnaped. even the day, the hour and the moment it rained. | Everything he heard. From that. I would check every known angle and altogether we located where he was held.” Jones then detailed the raid on the Shannon Farm where Bailey was cap- | tured and where Urschel was held prisoner. Bailey was asleep on a cot in the ones said. said, ‘Well. it's too bad. Harvey. If your head bobs up here, I'm going to kill you!” “Then some one slipped handcuffs on him and he said, ‘Go ahead. “I left some men at the farm and some of us went over to & small tenant house where Armon Shannon lived.” “Where did you get the first informa. tion on the farm that Urschel ha been held there?” Hyde asked. ];mm young Shannon and his wife.” “Yes, he even talked to Mr. Urschel that morning. He sald Urschel had gun “T been at his place and he had beent forced to guard him.” KEENAN HOME GUARDED. Justice Department Denies Attorney Was Threatened. Although Department of Justice offi- cials continued to deny there have been any threats against Joseph B. Keenan, special assistant to the Attorney Gen- eral in charge of the racketeering drive, | a Federal guard has been placed about the Keenan home cn Hztketh street, Chevy Chase, Md. It was said at the Department of Justice today that the Keenan home has been guarded ever since Keenan's departure for Oklahoma, “merely as a Mrs. Keenan todsy said she entertained no fear of kidnapers or cther gangsters. Department of Justice officials said only two letters signed by chine Gun) Kelly were received at the Balley trial—one by Charles F. Urschel, victtim of the kidnaping for which Balley and others are being tried, and another by the Daily Oklahoman. Neither letter, it was asserted. con- tained any threat against Keenan, though there was a reference to him in a boast by Kelly that Keenan had Dbeen unable to catch the fugitive. Attorney General Cummings said to- day fingerprints’ found on the death threat sent to Urschel had been tenta- tively identified as those of Kelly. The fingerprints, Cummings WILL BE AIRED Eastern Shore Group Will Urge Approval for Chesa- . peake Beach Line. ‘The Public Works Administration this afternoon was to tackle the prob- lem of whether it will lend $425,000 to the Chesapeake Beach Railway Co. for establishment of ferry service between Chesapeake Beach and Hudson, Md. A public hearing on the loan ap- plication was to take place in the In- terior Department at 2 p.m., with repre- sentatives of civic, trade and municipal groups of the Capital and the Eastern Shore territory of Maryland prepared to urge the granting of the loan. Both sides of the question will be threshed out before the administration’s Technical Board of Review—before which all controversial matters are debated. Ferry Company Opposed. The proposal to link Chesapeake Beach and Hudson, Md., by ferry, a proj- ect which would reduce the distance between the Capital and the Eastern Shore by some 40 miles, has been vig- orously opposed for more than three years by the Claiborne-Annapolis Ferry Co. and by Maryland political groups. The ferry company, which maintains & service farther down the bay, already has filed a brief opposing the granting of the loan, and is expected to be heard at_the hearing today. Briefs supporting the railway com- pany's application are on file from the | | Washington Chamber of Commerce !and from 16 trade. municipal and serv- ice organizations of the Eastern Shore counties. which would directly benefit by» establishment of the new ferry service. D. C. Groups to Take Part. Among Washington groups expected to be represented today are the Cham- | ber of Commerce, Board of Trade, | Merchants and Manufacturers’ Associa- tion, Central Labor Union, Federation | of Citizens’ Assoclations, Central Busi- ness Men’s Association, Federation of | Business Men's Associations, Short Line Railway Assoclation and the American Automobile Association. The $425,000 loan is asked by the | railway company to supplement $312.- 000 of private capital to build termi- | nals, boats, etc. at Chesapeake Beach |and Hudson, Md., and start the ferry service between the two points. | A certificate of public convenience and necessity authorizing the construc- tion and operation of such a ferry as an extension of the service now ren- cered by the company has been grant- |ed bl{ n'the Interstate Cemmerce Com- Im {JAPAN, QUITTING LEAGUE, | PLANS BUREAU AT GENEVA Adopts “American System" to Keep in Touch With De- velopments. By the Associated Press. GENEVA, September 21.—Japan is preparing to organize a bureau at Ge- Leva to follow the activities of the League of Nations after the Tokio gov- | ernment’s resignation from the League me; effective, it whl: lume:i“ M.u:yu spancie say they are adop the American system, the United States Laving a staff of five to keep in touch with League developments. It was an: nounced that the League has invited the United States to designate s rep- resentative to sit with the Council for the appointment of members of & cen tral opium board. were identified tentatively by Department agents in 8t. Louis. They have been sent to Washington for study by the Bureau of Identification. Cummings said a search was on for Kelly, & mguu from justice. He ex- pressed confidence Kelly would be ar- Tested. Cummings told newspaper men there is & lull in criminal activities at pres- ent. Although he believed this to be due to recent Government efforts to stamp out racketeering. he sald he did not want to stress tha:c point unduly. The cm%llcn agairs. racketeers and kidnapers, he added, must of necessity Dbe stretched over a_considerable period of time, during which some reverses will be met. AMERICANS: FORCE OWN DOLLAR DOWN Fear of Inflation Has Sent Capital to Four Corners of the World. BY DAVID LAWRENCE. American citizens are pounding their own dollar. The day-by-day headlines telling that the doliar is “weaker” and is constantiy being exchanged for fewer and fewer British pounds or French francs have back of them a story of flight of capital unlike any- thing in financial history. There hsve been flights of capital before, but never when the money of the Nation from which the flight oc- curred was intrinsically as strong as the American dollar really is today. Why, then, is the dollar weak and why does the Washington administra- tion wink at the obvious violations of exchange regulations whereby Ameri- can money is flowing abroad? The answer is that the Government is ex- perimenting, while fear of inflation and talk of increasing the number of dollars through an issue of greenbacks have scared capital and sent it to the four corners of the world for safekeeping. Keeping Money Abroad. Here is what is happening: Americans owning stocks or bonds are ordering their brokers to sell these securities either in Montreal or Lon- don, and are not bringing back the foreign currency they get in exchange. American companies selling goods sbroad and being paid in Prench francs or British pounds are keeping their money abroad. and are not asking that they be converted into dollars. American commodities are being shipped to people abroad, who are put- ting them in warehouses and holding jthem with the expectation of getting more dollars just as soon_as American currency inflation starts. It is said that six and & half times the amount of cotton that can be consumed in Europe Las already been shipped there for nu’xr;n. ere are rules against sending a abroad. 'and currency. oo, but "the the purposes for which exchange is made are so numerous that no close supervision is being kept over the many exchange transactions for which pere mits are being granted. Billions Have Gone Abroad. The Government could stop the flight of the dollar in so far as the sale of securities is concerned by some form of co-operation with the stock ex- changes, but this would not affect the speculation in commodities which is resulting in accumulations of Ameri- can balances abroad. It is estimated that billions of dole lars have gone abroad since April, Hoarding of gold on this side of the Atlantic is prohibited but Americans have been converting their securities into gold at London, where the biggest single hoard of gold in the world now is located. The rise in the price of BOld itself being recorded from day to day is due to the demand of Americans for gold, which their own Government denies them. The Bank of France keeps & record of those who want gold bullion but in England there is a free { market. So Americans are pasing a lDl’H‘nlum in London for gold in a wild scramble to get the metal and keep it. Value May Be Doubled. All this is inconsistent with the spirit of what the Government wants done, ‘but history shows capital is selfish and isel!-lmertsud always and when the | American Government anncunces that |it intends to cut every dollar's gold | content down, perhaps in half, then it i is obvious that some day a single god i dollar of the old weight may be worth two dollars in American paper money. !All currencies held abroad can, of course. be converted into American dol- lars whenever the downward curve stops and stabilization occurs. ‘The danger to these speculators and frightened owners of dol'ars is that some fine day President Roosevelt may | announce all restrictions on the move- i ment of the dollar are removed and 1 that a natural level is desired. Experts, | familiar with the flow of gold normally and the total amount of go'd payments 1due America from abroad. say that the dollar would suddenly rebound so high jthat it would cause all the shorts to jTun to cover and there would be large |losses to these who have sent their | capital abroad. For if the dollar grows | strong again, the American owner of | British pounds or French franes wiil | get fewer dollars back when he comes | to exchange thej1 again for his foreign holdings. Capital Plays Safe. Mr. Roosevelt has not said what the | dollar should ultimately be in valu On the strength of inflation talk and the devaluation powers granted oy | Congress there is. of course. much un- certainty. When in doubt. capital plays safe. American owners of foreign cur- rencies probably think they can con- vert quickly before the full effect of a presidential anncuncement of policy is known. This is the risk they are tak- ing. And every export of American dollars creates a demand for Britisa pounds, and hence increases their price. while at the same time depress- ing the dollar quotation, for whenever there sre more seilers of any articie than buyers the price goes down. Americans are thus weakening their own dollar. The Government here is bound to develop soon a definite policy on mon- etary reform. The uncertainty is hurt- ing business and causing apprehension in financial quarters everywhere. Gov- ernment securities, which were stroi & week ago, are turning downward. Commodities, which used to soar on talk of inflation, are not rising. Stocks, which used to climb a few points on the slightest rumors of inflation, are at a standstill and actually losing ground. Inflation medicine has about run its course as a remedy for stock Pprices. now on the Government is likely to turn its attention to credit expan. sion as a means of averting the de- mand for currency inflation and as a means of creating the business improve- ment which in turn develops the. very confidence needed to bring American dollars back home. (Copyright. 1933.) GANGSTERS THREATEN TO KIDNAP DAUGHTER OF KANSAS GOVERNOR (Continued Prom Pirat Page) have maintained watch over the execu- tive mansion, where the governor lives with Mrs. Landon, Miss Landon and her 14-month-old sister. Nancy Jo. Eleven men, including six long-term convicts in the penitentiary and a not _disclosed. Gov. Landon said, however, the gang included prisoners identified as havii al with the Balley-Underhill sang. Information given to him, he said, was that the plot was ol by “friends or relatives” of members of the gang in the penitentiary. Firemen to Give Dance. UPPER MARLBORO, Md.. Septemb-r 21 (8pecial).—The Marlboro Velunteer Fire Department will give a dance in Trinity Hsll September 28 from 9 to lb:;tbek. Music will be furnished by » '8