Evening Star Newspaper, December 26, 1934, Page 2

.K—Z FY'S NEW LOAN POLICY ADOPTED BY RF L. What’s What Behind News In Capital Federal Reserve May Follow Richberg Letter Termed Plan of Extending Credit to Pay Old Debts. BY DAVID LAWRENCE. By far the most important credit policy. adopted by the Federal Gov- ernment since the depression began has been quietly put into effect by the Reconstruction Finance Corpora- tion within the last few days. It permits the loan of Government funds to help pay off existing debt. Both the R. F. C. and the Federal Reserve Banks, although granted by Congress the right to make loans to business, have limited their aid to solvent concerns which are free of debt. But an official inquiry has just re- vealed that employment could be stimulated and business operations considerably enlarged if a company with a debt could find some way of liquidating it, and, at the same time, getting extra capital to finance fu- ture transactions. Banks May Follow Suit. What the R. F. C. is doing prob- ably will be followed by the Federal Reserve Banks. The operation works out about as follows: A small manufacturer, for instance, owes a few thousand dollars to the banks. Let us assume that the insti- tutions holding the notes were closed and are being liquidated by the Gov- ernment itself. The receivers are empowered to accept a reasonable compromise in settlement of the ex- isting debt, but, until this question is cleared up, the manufacturer who may need credit to carry on his busi- ness is unable to borrow anywhere. If he had a loan to pay off the exist- ing debt and to provide something for his immediate needs, he might be able to employ more people. Or, perhaps, an open bank holds a short time note and the manufacturer cannot pay it off at once, though he continues to pay interest and some small curtailments. But he meeds working capital and would be able to employ more people if he could get & five-year loan to embrace both his old short-term loan and the new cap- ital he requires. Survey Revealed Need. These are some of the kinds of cases that will come under the policy of the R. F. C. In this connection, what the Treasury Department’s sur- vey, conducted by Prof. Viner and Charles Hardy, disclosed after exam- ining several credit cases in the sev- enth Federal Reserve district is espe- cially pertinent. The Government lends through two agencies—the Fed- eral Reserve banks and the R. F. C. Said the report, in speaking of Fed- ezal Reserve loans: “By far the most important ques- tlon of interpretation of the term | ‘working capital’ relates to the extent to which Federal Reserve funds can be lent to pay existing debt. The present interpretation of the law is that money used to clear up debt is not for working capital purposes. Hence, if & man wants to expand in- ventory or accounts receivable, or the volume of goods in process, and can- not get the money from the bank, either because the banker does not believe in capital loans or because the bank examiners do not, and if his security is adequate, he is eligible for a loan at the Federal Reserve Bank. But if his working capital needs have already been financed by a bank on @ short-term note, he cannot shift to the Federal Reserve Bank when the note matures, even though he is other- wise sound. Indefinite Renewals Implied. “This restriction implies that banks which have made what are at least nomirally short-term loans are to be expected to renew them indefinitely. If they do not renew the loans and working capital consequently becomes depleted, then, and presumably then only, will the borrower become elig- ible for a Federal Reserve loan. “There seems to be no sound eco- nomic basis for this position. It is, of course, necessary to scrutinize ap- plications with great care where the money is to be applied to existing debt, in order to make sure that the old lender is not unloading a bad loan on the Reserve bank. But the issue we are raising now does not relate to bad or doubtful loans. It relates to cases ‘where the security is admittedly ade- quate but.where the bank is pressing for collection because of considerations of liquidity. We believe the purposes of the law would be better served if lending officials were given consider- ably greater latitude in the matter of loans to clear up existing debt.” R. F. C. Pelicy Criticized. Virtually the identical criticism was made of R. F. C. policy by the same report, which added: “The number of cases in which a loan to clear up old pressing debt would protect the working capital of a going concern and make it possible for it to maintain or expand produc- tion is very large.” From the start of the R. F. C. under the Hoover administration and con- tinuing until this very month, the offi- cials have feared to make any loans to pay off existing debt. The first loans to railroads in which banks were paid off their short term debt were severely criticized in Congress and hence caused a stoppage of what might have been a recuperative step in the handling of Government credit. The truth of the matter is that, as the Viner-Hardy report concedes, the channels of long-term credit normally avaailable through the securities market are choked up and the banks and mortgage companies, which usually take care of the working cap- ital needs of small businesses, have become very strict about using de- mand deposits for capital loans. Credit Policy Long Needed. The absence of an intermediate credit system to loan three or five- year money, something that from the beginning of the depression has been apparent as a vital need to take care of existing debt and provide new capital, has forced the Governmen: into the lending business through both the R. F. C. and the Pederal Reserve Banks. But the $300,000,000,000 fund of the R. F. C. has hardly been scratched, though at first it was ex- pected the amount would be absorbed in 60 days. It has been found that the real trouble is with the existing debt and that readjustment of capital structires, revaluation of assets and the provision of new capital are ail intertwined, as they always have been in the period immediately following a collapse of values in a panic or bank crash. Hence the steps taken to recognize goveramentally that existing debt must be reckoned with in the read- justment precess and that employ- ment can be ‘stimulated as more busi- nesses are readjusted and rebuilt are of transcendent importance, since they reach out to cure some of the fundamental ills of the present situa- tion, (Copyright. 1934.) i l l | i ! 1 BY PAUL MALLON. Good Publicity for Johnson’s Book. OW that Santa Claus has gone, it may be permissible to dis- close that the Christmas Eve greetings exchanged by Messrs. | Richberg and Johnson were not exactly heavenly. ' They were inspired by exigencies of ordinary political politeness among brethren of the New Deal, and by some one with a telephone who was able to| tell both boys what the exigencies of | political politeness in the New Dell, are. But it is just as well the greet- ings were exchanged between Messrs. | Richberg and Johnson by telegraph. | Each one still knows what the other | thinks about him. If these thoughts are ever faithfully reduced to writing, perhaps each can sue the other for livel. | i Richberg Hearing Steries. What happened was that Mr. Rich- ' berg has been hearing stories that Gen. Johnson is supposed to have been telling off the record. These verbal yarns are not the kind on which libel suits are usually based. They merely reflect personal opinion of one man for another. Mr. Richberg had no direct in=- formation of what was in Johm- son’s book. He did know that Johnson's opinions were usually expressed in a blue streak. If made a matter of official record by publication, they might be libelous. He hoped to keep his warning con- fidential. Three Copies of Letter. There were three copies of his letter of warning against publication of libel. The original went to the magazine editor, who, probably, did not give it out. The second went to the pub- lisher of Johnson’s book. The third was kept by Mr. Richberg under lock and key. One of the three copies fell into the hands of newspaper men, and that is the way the story got out. It was the best possible kind of publicity for the Johnson book. Got Johnson Out. What Gen. Johnson's friends really believe is that Mr. Richberg got John- son out of the N. R. A. They say that is the basis for Johnson's feeling. In a way, they are right. Mr. Richberg jound the N. R. A. too confining for himself and Johnson. Just before President Roosevelt started on his Hawaiian cruise last Summer, he thought the general’s tactics were detrimental to success of the N. R. A. A lot of people agreed with him. It was shortly after Mr. Roasevelt’ return from Hawali that Johnson left. Of course, the impetus of Mr. Rich- berg’s influence played a part in Johnson’s withdrawal. ‘Whether there was anything else is a matter for argument, but no one will care to start it, as no accusations have been made, and probably none will be. Inwardly Hard-Boiled. The N. R. A. is showing occasional inner signs of being just as hard- boiled as ever. The board has been somewhat careful about imposing codes on recalcitrant big industries which still have no codes, but has shown three umnoticed flashes of fire lately. The main diflerence from the old days appears to be that the board is being close-lipped about its crack-down blows and loud-mouthed about its moderate steps. This is a reversal of the Johnsonian technique. Code Authority Banished. ‘The picturesque * general himself could not have been more authorita- tive in the cotton garment code case. When garment makers resisted the 36-hour week, the board adopted a rule banishing from the code au- thority any one who did not co- operate. That effectively banished the code authority itself. Similarly, the board trampled all over the lumber code authority. It ordered a hearing on coniro- versial price-firing provisions, over the protest of the code authority, and then knocked out price fizing. ‘Thirdly, & hearing was ordered on the boot and shoe code when the board noted that many factories were moving to small towns. The board suspected that code provisions per- mitted lower wages in small towns. In the Johnsonian era, each of these steps would have been blown up into a headlined sensation by the skilled publicity staff. The world’s championship medal for hat-passing goes to the new Texas Governor, James V. Allred, without a question, When Allred went down to Relief Administrator Harry Hop- kins’ office the other day to see about Tezas relief money, he took of his hat and a dime dropped out. At least, a mews man insists he noticed the dime next to the Governor’s hat when the Governor stooped over to pick both up. Fortunately, only the newsman was present at the time, and Hopkins has not heard about it, so Texas will probably get her relief money. Two separate suspicions may be directed against Allred. Either he had been out on Pennsylvania avenue imitating a blind man, or else he had Jjust come from seeing Mr. Ickes about P. W. A, funds for Texas. (Copyright. 1934 ) MRS. H. J. REUSE DIES Wife of Naval Officer Succumbs at California Hospital. LONG BEACH, Calif., December 26 () —After a long illness, Mrs. Matil- da Mulford Reuse, 48, wife of Lieut. Comdr. Harry J. Reuse, U. 8. N, died at a hospital here yesterday. funeral will be at Norfolk, Va., at & a date to be set later. Mrs. Reuse was born.in Plaln- fleld, N. J. 4 James H. Mathers (Jeft) is shown conferring with his son, James H. Mathers, jr., shortly after the latter's arrest by Federal men i Oklahoma City charged with receiving part of ‘Young Mathers was released on $10,000 bond. the $200,000 Urschel ransom money. —Associated Press Photo. 500 Troops to Participate In Inauguration of Nice Maryland Governor-Elect Asks Simple Ceremonies, but Band Concerts and Parade Are on Program. By a Staff Correspondent of The Star, ANNAPOLIS, December 26—Mili- tary units will be much in evidence at the inaugural exercises of Gov.-elect Harry W. Nice on Jenuary 9. Mr. Nice has requested that the ceremonies be “simple.” More than 500 troops are to partici- pate in the band concerts and parade, which will lend color to the exercises, according to Maj. Gen. Milton A. Reckord. Academy Represented. The Naval Academy's band will be one of the three that will furnish mar- tial music. Through the courtesy of Rear Admiral David Foote Sellers, superintendent of the academy, ar- rangements have been made to have the naval musicians give a concert on the lawn of the executive mansion prior to the inauguration. The band of the 104th Mcdical Reg- iment has been assigned to the lobby | of the State house, while that of the 5th Regiment will be outside of the building as part of the escort of honor, which will form a line between the executive mansion and State house at 11:30 am. Shortly after noon Mr. Nice and his official party, together with Gov. Ritchie, will leave the mansion and walk to the Seate house, where Chief Judge Carroll T. Bond of the Court of Appeals will administer the oath of office in the Senate chamber. Immediately after the new Gov- ernor has been sworn in, a 19-gun salute will be fired on the campus of St. John's College by a provisional battery of the 110th Field Artillery. Church Gift of Bible. ‘The Bible to be used in the inaugura- tion has been presented by the con- gregation of Eiderslie Methodist Church, of which Mr. Nice is a member. After taking the oath of office the | incoming Governor will proceed to the House of Delegates, where he will de- liver his inaugural address before a jeint session of the Senate and House. Brig. Gen. J. Craig McLanahan has been designated marshal of the troops participating in the inaugural with Col. D. John Markey in command of | the provisional regiment of Infantry. Prederick C. Huben is general chair- ! man of arrangements for the affair. VIRGINIA LEGION 10 ACT ON BONUS Stand to Be Determined at Meeting of Department Early Next Month, By the Associated Press. RICHMOND, December 26.—The question of whether the Virginia De- partment of the American Legion will memorialize the Virginia delegation in Congress to vote for “immediate pay- ment of the adjusted service certifi- cates as an effective relief and re- covery measure,” will be answered here early in January. Although the Virginia Legionnaires were on record at the Miami Conven- uon as opposing the move, 12 to 3, the question now has arisen as to whether the Virginia Department will fol®w the will of the majority of the Legionnaires, as expressed in the con- vention. The convention vote was 987 to 183 favoring the immediate payment. To answer the question, as well as to draft the Virginia program for the new year to fit the national Legion program, the Executive Committce of the Virginia Department will meet at the State headquarters early next month. Date Not Definite. State Adjutant Glenn Elliott today said the exact date for the meeting has not been set. He added, how- ever, that it probably would be soon after New Year since the new session of Congress opens the first week in January. Legionnaires have been informed that the compensation question will find a top position among the matters to be considered by the Congress. It has No. 1 place on the Legion's program. Members of the Virginia Depart- ment Executive Committee have the power to act for the entire Virginia membership between conventions, Executive committeemen are: Robert L. Insko of Lorton, depart- ment commander; N. O. Akers, Abing- don; Wilmer Coffman, Harrisonburg; R. B. Crawford, Farmville; C. A Cutchins, jr, Franklin, and C. B. Rosseau, Williamsburg, vice com- manders; Dr. F. Whitney Godwin, Suffolk. and Homer K. Bowen, Wythe- ville, ex-commanders, and Harry L. Nachman, Newport News; J. M. Joy- ner, Portsmouth; Frank F. Rennie, jr.; Richmond; Ross H. Holsclaw, Hopewell; C. H. Harville, Danville; Dr. J. J. Giesen, Radford: Edward C. Goss, Winchester; John W. Haggerty, Quantico; J. Frank Richmond, Ap- palachia, and E. C. Westerman, Clif- twn Forge, district commanders. 166 Posts in State. The Virginia department now num- bers 166 posts, with & membership goal of 12,000 for the year. Thus far the paid-up membership is 4.834. ‘This number is more than 1,000 ahead of the paid-up membership at the same date last year. The year ended October 20, 1934, saw the depart- ment with a paid-up membership of more than 9,000 Other matters to be considered by the Executive Committe are the na- tional program problems of Govern- ment protection for World War vet- erans’ widows and dependents, umi- versal service law, strong national de- L FARMERMAY FAC MURDER CHARGES :Maflboro Prisoner Said to Have Quarreled With A. Matt, Slain in Yard. By a Staff Correspondent of The Star. UPPER MARLBORO, Md., Decem- | ber 26—Formal murder charges | were expected to be placed today against a German farmer being held in the Marlboro Jail in connection with the shooting of August Matt, 40, one of his neighbors. The shooting, police say, climaxed a quarrel between the two men over Mrs. Leta Brodhaute, who formerly worked as a housekeeper for the sus- pect but recently had been employed in a similar capacity by Matt. Police say they have the shotgun believed used by the slayer and an automobile in which he fled from the scene. Matt was shot through the abdo- men Christmas Eve. A car had been driven into the yard of his Chelten- ham home and its lights turned off. Going outside to investigate he was greeted by the discharge of a shot- gun. Mrs. Brodhaute found him lying on the ground, mortally wound- ed. She made a note of the tag number of the automobile as it sped away. Under the direction of Sergt. A. ‘W. Hepburn, county police checked the suspect’s movements yesterday and expect to lay the evidence they have collected before State's Attor- ney Alan Bowie today. C. C. C. CAMP BURNED Buildings Destroyed Pennsylvania Fire. WELLSBORO, Pa., December 26 (/). —The hospital and & bunk house of C. C. C. Camp No. 92, in the mountains, near Wellsboro, were des- troyed yesterday in a fire that left only one main building standing. Only 20 men were in camp, about 180 members of the company being on furlough for the holidays. The origin of the blize was not determined. Two in OLD FIRE REVIVES Firemen Called Back Twice on Christmas After Two Weeks. rupted twice yesterday by a fire they thought they had conquered two weeks 2go. A building of the Atlantic Rag Co. caught fire two weeks ago, causing a five-alarm signal. A fireman was killed and several injured battling the stubborn blaze then. SAAR LURES CHICAGOANS | | BAL BOHEME TITLE 1S “INTHE ORIENT” Harold Allen Long Named Chairman for Fete Febru- ary 4 at Willard. The Arts Club of Washington has decided on the title “In the Orient” for its 1935 Bal Boheme, to be held Monday night, February 4, in the ‘Willard Hotel. In making this announcement to- day the club said Harold Allen Long will be chairman, assisted by a com- mittee of experienced artists of the club, all of whom have been asso- ciated with previous successful bails. A committee of 20 already has started work on plans for the big lcivic arts event of the Midwinter | season. | As in the past, the club will award | | three prizes for the most effective posters created for the Bal Boheme | this year. The prizes will be $25 for | the first, $15 for the second and two | Bal Boheme tickets for the third best poster submitted to the club on or before January 12. ‘The posters must be 15 by 20 inches, and any number of colors may be| used. The wording is to be: “Arts Club Bal Boheme, In the Orient, February 4, 1935, Willard Hotel.” The word “February” may be abbre- viated, if desired, and the words “The ‘Willard” may be used instead of “Wil- + lard Hotel” The Poster Committee comprises, in addition to Miss Garels, Mrs. Susan | B. Chase, Clifford K. Berryman, Rob- | ert Le Fevre and Charles A. R. Dunn. MISS HELEN HARMONSON | TO WED HENRY K. WEIR | Bride-to-Be Attended Cathedral | School Here—Youth Is Son of Steel Magnate, By the Associated Press. PITTSBURGH, December 26 —The engagement of Helen Denny Harmon- son, daughter of Mr, and Mrs, Charles Leland Harmonson of Smyrna, Del., and Henry Kline Weir, son of Ernest | Tener Weir, steel magnate, of Pitts- | burgh. was among society’s C! holiday announcements. Miss Harmonson attended National Cathedral School of Washington, D. C. and is a graduate of Sarah Law- rence College. Weir prepared at Exeter and was graduated from Yale University, later doing post-graduate work at the Harvard School of Busi- ness Administration. ‘The date was not disclosed. GREETING TRAVELS FAR Byrd Scientist Sends Wireless Yule Note to Mother. DALLAS. December 26 {(#).—Long- distance Christmas greetings came | yesterday to Mrs. Joseph Morgan ol‘ Dallas from her son, Dr. Charles Gill | Morgan, scientist with the Byrd Ant- arctic expedition. “Here' happy trail. Tough weather, but well sup- plied. Having time with tractor.” Dr. Morgan is with a tractor party about 150 miles from Little America, expedition headquarters. VETERAN FIREMAN DIES Chicagoan Stricken on Way Home for Christmas Gathering. By the Associated Press. CHICAGO, December 26—Pire Capt. | Patrick Sullivan, 60, veteran whe par- ticipated in the two historic fires at the stockyards, including the $8,000,- 000 blaze last May, was on duty five successive Christmas days. Yesterday { he was to have been free to celebrate | with his family. Capt. Sullivan boarded a street car en route hame, where his wife, daugh- ters and friends had gathered. He | was stricken with a heart attack and died, SELF-DEFENSE IS PLEA Youth Accused of Killing Athlete at Dance. CHICAGO, December 26 () —Self- defense apparently will be the de- fense of the youth accused of slay- ing Stanley Prankowski, 23, former member of the University of Michi- gan foot ball squad. Police today said John Miraglia, 19, had admitted shooting the youth as a result of a dance hall argument after some one bumped into his danc- ing partner. “About all we can get out of Mi- raglia,” said police, “is the statement that ‘if I hadn't got him, he would have got me. | trict of Columbia. Dean Lewis (left), 9-month- old son of Mr. and Mrs. Dow Lewis of Kansas City, knocked over the goldfish bowl and, be- Jore his mother could stop him, swallowed a 3-inch goldfish. From the expression on his Jace, he apparently nas de- signs on the surviving inhabi- tant of the bowl, guarded by ZI: 2-year-old brother, Don- —A. P. Photo. PRESIDENT OFFERS AID IN ARMS PROBE Nye Says Roosevelt Will Support Request for More Funds. If the profit is to be taken out of war, as has been proposed by Presi- dent Rooseveit, it will not be done by the use of “kid gloves,” according to Senator Gerald Nye of North Dakota, following a long talk with the Presi- | dent at the White House today. The North Dakota Senator, head of the Senate Munitions Investigation Committee, declared on leaving the President’s office that “if we are to take the profit out of war it is up to the Government to reach in and take ®n" Asked what methods he will pursue the Senator said the income taxes should be made to fit the cases of the profitmakers. When the President announced a fortnight ago the appointment of a special 5 to study the sub- ject of “aking the profits out of war, Senaror Nye, at the Capitol, showed some resentment. His conversai.on with the President today, however, lefl him with an en- tirely different feeling. He said the President’s original proposal was greatly misuncerstood. Now that he knows ihe real purposes behind the President’s move he looks for com- plete co-operation between the Execu- {tive branch ana the Senate Munitions BOWLES CLAIMS SENTENCE INVALID Asks Supreme Court to Set Aside Conviction on Tax Evasion Charge. By the Assoclated Press. Norman S. Bowles. who practiced law in the District of Columbia, today asked the Supreme Court to set aside his conviction on charges of evading | Federal income taxes and a sentence of three years' imprisonment and ! $3.000 fine. Bowles was convicted by the Federal District Court for Maryland, sitting at Baltimore, and the Fourth Circuit Court of Appeals approved its action. Asserting he had never been in Maryland, Bowles said in his petition he had committed no offense in that State. He contested the authority of the Federal courts in that State to try him for an offense which he said could have been committed only out- side their jurisdiction. Bowles challenged the authority of the President to change the jurisdic- tion of the Federal courts in Mary- land so as to give them authority in Pederal tax matters arising in the Dis- He contended that under the Constitution he was entitied to a trial by jury in Washington where, he said, the offense was alicged to have been committed. BRIDGE TO BE OPENED Special Dispatch tu The Star. CHESTERTOWN, Md., December | 26—The new State bridge over Morg- nec Creek, five miles north of here, will be formally opened to travel on January 15, it was announced by Rolph Townshend, district State Roads Commission engineer here. The span cost approximately $65.000 and will be an important link in a shorter route over one of Kent County's concrete roads to Wilmington and Philadelphia. e LODGE OFFICERS IN Speclzal Dispatch to The Star. HEATHSVILLE, Va., December 26. —Westmoreland Lodge, No. 212, A. F. ‘IMA.M.‘ held its annual meeting and banquet at Kinsale and installed the following officers for 1835: R. N. Thrift, worshipful master; R. M. Bailey, jr., senior warden; E. A. Hodg- son, junior warden; C. C. Thrift, treasurer; M. C. Moss, secretary: E. A. Rowe, senior deacon; J. R. Gardy, junior deacon; W. N. Chinn and C. E. Unruh, stewards; W. 8. Headley, tiler, and J. C. Moss, chaplain. Life’s Like That BY FRED NEHER. | JAPAN'S DEFENSE - BUDGET TARENUP | Hirohito Opens Parliament. | Approval of Armed Force Increase Expected. By the Associated Press. TOKIO, December 26 —While mili- | tary and naval leaders talked of the | empire’s security being in jeopardy, the Japanese Parliament met in an- nual session today to comsider the largest defense budget in history. More than 1.000,000,000 yen (ap- | proximately $288,000,000) were provid- | ed in the proposed budget prepared by the cabinet more than a month ago. The figure represented about 47 per cent of the entire appropriations pro- | posed for next year. It was an in- | crease of about 9 per cent over ex- | penditures for the current year. Navy spokesmen, in asking more money, point to the dark outlook of naval negotiations, and the army de- clares Soviet Russia still menaces Japan, and that the fighting machine should be prepared. Parliamentary approval of the ap- propriations without material amend- ment was expected generally. The proposed budget would give 491,000,000 yen to the army and 530,- 000,000 yen to the navy. Emperor Hirohito presided at the | opening ceremony in the Parliament | building. -— WATERWAY PROJECTS MAY BE DEVELOPED | Northern Neck Interest Revived' by Report Submitted by Army Engineers. Special Dispatch to The Star. HEATHSVILLE, Va., December 26. —The report of the Army Engineers on the value of the Virginia waterways projects has revived hope in the North- ern Neck of major improvements to several local water systems. The projects in this territory reported by the Engineers as meritorious and need- ing development and the cost of such improvements are: Totuskey Creek, in Richmond Coun- ty, dredge channel to 8 feet to To- tuskey Bridge, $35,000. Nomim: Bay and Creek. in West- | moreland County, dredge channel and turning basin, $9,500. Jacksan Creek, improve navigation | channel, $11,800. Mattaponi River, improve naviga- tion channel, $19,500. g MASONIC LODGE ELECTS Heathsville, Va., Choices Include Hudnall for Worshipful Master. Special Dispateh to The Star. HEATHSVILLE, Va., December 26. —At a meeting of the Heathsville Lodge, No. 109, A. F. and A. M., following were elected and installed: J. S. Hudnall, worshipful master; W. H. » senior warden; H. R. Straughan, junior warden; William Blundon, treasurer; H. G. Winstead, secretary, J. B. Dungan, jr, senior Committee. Nye said the President highly com- mended the work of his committee and gave assurance of support to ob- tain additional funds for the commit- tee to carry on its work. Nye said that there is much work in prospect for his committee, but he hoped to finish before the end cf the next session. He said hearings will be resumed some time between January 6 and 9. His committee has yet to hear from the shiobuilding industry, steelmakers and the financial tie-ups of the munitions manufacturers. Although President Roosevelt cleared up the misunderstanding and al- though he personally anticipates the closest co-operation, Nye said he is withholding comment on the Presi- dent's commissicn, hoping that there may be some change in the personnel. — CHINA DENIES INTEPiT TO DEVALUE CURRENCY Finance and Military Leaders Disavow Program, Charging Private Profit Is Hope. By the Associated Press. SHANGHAI, December 26—H. H. Kung, minister of finance, declared today that rumors the Chinese gov- ernment is planning to nationalize silver, adopt paper curre! and de- value its standard dollar “are spread by unscrupulous persons hoping 10 profit from disturbed financial markets and are without foundation.” Kung did not say if any fiscal meas- ures were under consideration by the government, but he did state: “It be understood that whatever measures the government undertakes will be determined by a consideration for the welfare of the state and the people.” Generalissimo Chiang Kai-Shek also took a hand in the silver situation. He issued a statement that the national government would not devalue the dollar or adopt a paper standard of currency. e SHANK LOSES COURT FIGHT TO ESCAPE CHAIR Ohio Lawyer Accused of Poison Death Must Die Friday, Justices Decree. By the Associated Press. LITTLE ROCK, Ark., December 26. —Two Supreme Court justices re- vealed today they had denied the petition of Mark H. Shank, Akron (Ohio) attorney, for a stay of exe- cution of his death sentence next Fri- day morning. Shank, convicted of one of four poison slayings of which he was ac- cused, had escaped death for almost a year through appeals, and six days ago started what prison officials said was a hunger strike “to cheat the electric chair.” Justices E. L. McHaney and Turner Butler said Shank’s attorneys had applied for the stay in order that they might perfect an appeal from the Jefferson Circuit Court’s action in denying their petition for manda- mus to compel Prison Supt. S. L. Tod- hunter to give Shank a sanity trial. P i ARENAS LAYZA CABINET TAKES OATH IN PERU By the Associated Press. LIMA, Peru, December 26.—Carlos Arenas Layza has formed a cabinet to replace that of Premier Alfredo Rey De Castro, which resigned last week. Arenas holds three portfolios in ad- dition to the premiership. The cabi- net was sworn in yesterday. ‘The new government also includes: Foreign affairs, Carlos Concha; in- terior, Walfredo Henriod; war, Gen. Manuel Rodriguez; marine and navy, Capt. Carlos Rotalde; finance, Man- uel Ugarteche, and public works, rail- deacon; W. C. Blackwell, jr., juni deacon; O. C. V. tiler; T. M. Dobyns, sr, chaplain, and T. Edward Hall and E. Hugh Smith, | stewards. Girl Scouts Admit* Five. DECATUR HEIGHTS, Md., Decem-, ber 26 (Special).—At court awards held by the Decatur Heights way and sanitation, Hector Boza. MUSIC REVIEWER DIES NEW YORK, December 26 (#).— Hubbard Hutchinson, 37, music re- viewer for the New York Times, died yesterday. His mother, Mrs. Harriet Hutchinson, flew from Columbus, Ohio, when friends notified her that her son was not expected to live, HOLD-UP IS FOILED Bliss