Evening Star Newspaper, April 28, 1935, Page 2

JALING OF NUNS AROUSES GERMANY Protestant Group Fears They May Be:Driven to Secret Worship. By the Associated Press. BERLIN, April 27.—Wholesale ar- irests of Catholics allegedly violating Nazi foreign exchange regulations ‘were disclosed today. and Protestant ‘sources declared Germans might be .compelled to emulate _Roman Chris- ‘tians and take ref in. modern-day ‘catacombs—air-protection cellars and ‘other subterranean vaults—for their iservices. * While the opposition Protestant confessional synod declared it had definitely established that 35 minisfers were held in concentration camps and prisons, authoritative . sources said Nazis had “purged” 54 different Cath- olic orders of nuns and monks ac- cused of violating exchange regulations. Taken From Relreats. Many of the nuns arrested, Cath- olic sources said. had been in solitary retreat for more than five years, 'scarcely knew who Hitler was and “most certainly never heard of the Devisen (foreign exchange) law.” Some of those arrested, it was stated. were old and ill. Elderly mother superiors were jailed. Some nuns were brought to Berlin and Iodged, in the women's prison. Catholic spokesmen have main- tained that in the sending of money out of Germany for mission or other religious purposes, there has been no intent to violate government decrees. ‘The new developments in the ever more tense situation, growing out of opposition to Nazi efforts at church dictatorship, came on the heels of last night’s mammoth mass meeting of the anti-Christian Germanic faith movement in the Sportspalast here. Hit at Christianity. Utah; New York and Payments to BY JOHN C. HENRY, While a hesitant Congress ponders over the question of approving some form of national unemployment insurance legislation, a diminishing number of State Legislatures are| marking time—awaiting the guidance of Federal action before swinging into line. | Forty-four of the 48 State Assem- blies have been in session this Winter. Less than half of-that number still are meeting and only three of those already adjourned ventured to pass any such legislation before congres- sional action blazed a trail. venturesome Assemblies were those of Utah, New York and the State of Washington. In New Hampshire the Lower House adopted an unemployment insurance law by unanimous vote, but between | the measure has been waylaid. Unless soon, the New England attempt prob- ably will languish and die. Two Await U. S. Action. Of the three noted above, only one is intended to become efTective without regard to Pederal action. That one, { the Byrne-Killgrew measure in New York, follows in a general way the| | outline of the pending Federal bill | Taxation beginning on January 1, 1936, the law levies a contribution of | 1 per cent of pay | engaging more than {1937, the tax increases to 2 per cent and in 1938 it jumps to 3 per cent, | at which figure it is intended to remain. No levy is made upon em- ployes or the State. In its coverage, the New York law | exempts farm laborers, non-manual employes earning more than $50 per ‘The more | the two branches of the Legislature the congressional mind is made up | Such speakers as Prof. Jacob | week, public employes and those work- Wilhelm Hauer, leader of the move- | ing for non-profit institutions. Bene- ment, and Count Ernest Reventlow, | fits have a range of $5 as minimum old-time Nazi stalwart, struck out and $15 as maximom per week, the bitterly at Christianity. period being restricted to 16 weeks Still another factor making for new in any calendar year. Among other | tenseness was the admitted possibility | qualifications, provision is made for| that the Vatican might lodge an offi- a waiting period of three weeks be- THE SUNDAY STAR, WASHINGTO States Await Congress’ Lead In Social Security Legislation Washingmfl Among Few to Enact Laws— Wisconsin Start July 1. tax thus levied. With this tax imposed, funds collected will go into the general coffers of the Treasury—there to be used for roads, battleships, or govern- mental expenses of any nature. States to Distribute Fund. For the State where an approved local unemployment insurance law exists, however, all but a small por- tion of the tax will be diverted to the local government for disbursement among its eligible unemployed. In addition, each State thus protected will receive a Federal grant for sd- ministration of its insurance system. Meanwhile, Wisconsin is prepared to become the center of attention as it begins payment of benefits on July 1 of this year. Adopting the indivi- dual reserve plan in 1932, its em- ployers have been contributing to their unemployment funds since July 11, 1934. With the contribution rang- |ing from 1 to 2 per cent of their pay rolls, employers have aimed at a reserve of $75 per employe. Employers of 10 or more persons, excluding certain classes, have beel within the scope of the plan. Bene- fits are limited to 10 weeks in any one year, may begin after two weeks | of waiting and may range from $5 | to $10 per week. Although the FPederal bill in its present form does not accept the Wisconsin plan as eligible for tax | rebate credit, it is considered about even chance that such a system | | before final passage of national legis | lation. It is known that the question | was one of the most controversial | points at issue within the House Ways | and Means Committee and that con- | siderable sentiment still exists for | allowing the Wisconsin plan to come within the scope of the Federal law. HT C.C.C. MENHIG cial protest against the new press law designed to bring church publications under absolute Nazi control. LOOT-FOR-RANSOM RACKET WILL FEEL LASH OF U. S. LAW (Continued Prom First Page.) are returned through mysterious chan- nels and ““no questions are asked.” Hoover explained that in many large cities there are underworld fig- ures known as “fixers.,” who arrange for the “recovery” of the stolen goods and distribution of the rewards. “There are organized bands of crim- | " he said. “which are engaged ' in this ‘profession’ of returning stolen ! property. There are ‘fences’ who have ! ina regular schedules of commissions to to be paid to the actual perpetrators of | the robberies, and specified percent- ages of the rewards to be paid for the sur-ender or the mysterious ‘find- ing’ of the loot.” The bureau. Hoover pointed out. can operate only in cases where stolen property has been transported across a State line, in violation of a law, passed last year, making it a Pederal offense to take stolen property worth $5.000 or mcre in interstate com- merce. The jewels stolen in Miami were taken to New York and back to Miami. where they were returned to Mrs. Bell by Eugene Bryant, Miami chief of detectives, with the explanation that Bryant had “found” them on the floor of his automobile. Bryant later confessed to Hoover's men that he really took the jewels from a lock box, the key to which had been turned over to him by Noel Scaffa, New York private detective. Amplifying this statement on the witness stand at Miami last week, Bryant said Scaffa promised to divide $15.000 among the detective chief. the county prosecutor and other officials. Associates te Feel Drive. In this connection Hoover said that his men throughout the country are under instructions to center attention on “those who assist, protect and ad- vise major criminals in their illegal operations.” “We are going after not only the actual criminals, but =fter their as- sociates, protectors and illegal de- fenders,” the director stated. “We hope to make it unprofitable as well as dangerous for these persons to aid the underworld. We have followed this policy in the Urschel kidnaping fore benefit may be paid. | Benefit payments are to begin on | January 1. 1938, two vears after the first taxes are levied. Washingten Has Plan. In the State of Washington a pooled fund insurance plan aiso has been | approved. Following the 1, 2 and 3 per cent tax idea on employers' pay rolls during the first three years, the Washington law calls in addition for |a levy of 1 per cent on employes’ | wages. Employers of four or more | persons are included in the scope of the act. In spite of the increased taxation feature, the Washington Stafe law | contemplates no greater benefits than ' that of New York. in fact a longer waiting period of six weeks is required before payment of initial benefits. Maximum payment is set at $15. with coverage being given no more than 15 weeks in each year. | The Utah Legisiature, however, chose to follow the lead of Wisconsin, | ploneer among States experimenting | with | A the individual reserve plan. Ilhe Utah law taxes employers 3 por | | cent of their pay rolls until a reserve | has been accumulated amounting to | $75 per worker. The rate then drops [to 1 per cent, and, after accumula- tion of $100 per employe, contribu- tions cease temporarily. | Benefits range between $6 and $18 | per month, with 16 weeks being the \ maximum period. Utah Law Elastic. Recognizing the uncertainty of the congressional mind and desirous that | the State should benefit in any event by national legislation. the Utah law includes an elastic provision by which the Governor of the State may alter the set-up in whatever degree neces- sa' - to make it conform to Pederal !re .rements. In view of the present foon of the Pederal legislation by | which the individual reserve plan is | ruled ineligible to receive a tax re- bate from the Federal Government, | this elasticity in the Utah law may be the means of saving it. In the suspended animation noted in New Hampshire. a pooled fund plan | calls for contributions from both em- | ployers and employes. The former starts at 1 per cent and rises to 3 per cent, as does the national tax. while the employe levy is one-half of 1 per cent for 1936 and 1 per cent thereafter. In this law is contained | a merit clause somewhat similar to | that proposed in the pending Ellen | bogen bill for the District. Bmployers ! who succeed in stabilizing their in- dustries would be rewarded by a re- duction in tax rate. case, the Dillinger case and in other | instances, with the result that many | who harbored or otherwise aided criminals are serving prison terms.” Hoover said a far-reaching drive Also is being made to wipe out “the widespread, continuing and blighting effects of perjury. manifested every day of the year in trials of every de- scription.” The bureau will confine its investigations to prejury commit- ted in Pederal courts during the trial ©of cases preparec by the bureau. FEDERAL CONTROLLER IS NAMED IN SUIT Massachusetts Banking Commis- | ‘sioner Seeks to Recover $1,300, 000 for State Banks. Br the Associated Press. . BOSTON, April 27—A suit to re- | Gover $1300,000 on behalf of State banks in Worcester, Lawrence, Brock- thn and Cambridge was filed today in ral Court by Henry H. Pierce, State banking commissioner, he an- nounced. The suit, he said, was filed against the Federal controller of cur- rency in connection with the admin- iftration of the closed Pederal Na- tional Bank. . The banks on behalf of which Com- missioner Pieree instituted suit, he said, were the Bancroft Trust Co., « Pierce announced that the $1,300,000 ®as supposed io have been earmarked | for the four banks as the result of a Guy when the bank pald depositors dividends. : Difference in Contribution. Compared with the proposed Ellen- | bogen measure, the greatest difference |in these newly enacted or proposed | State laws is that of a State contribu- | tion to the fund. Where the Ellen- | bogen bill called for no empioye con- tribution, but one from the District Government equaling 1 per cent of the private pay rolls, the above men- | tioned laws make no requirement of | the individual States. Nor do any of the State laws make allowance for such a long period of benefits each year, their range being 5 and 16 weeks, while that proposed | for the District was 26 weeks in a single year. Although special conditions of the various local Legisiatures may siter the estimates somewhat, the Presi- dent’s special committee on economic Security has estimated that the fol- lowing numbers of workers would be affected in the States already enacting laws: New York, 2,000,000: Wisconsin. 80 Bills Introdueed. ‘With more than $0 unemployment insurance bills having been introduced unemployment *compensation. | | | Hundreds of Forest Acres Burn—Anne Arundel ‘ Blaze Quenched. By the Associated Press. HARRISONBURG, Va. April 27— A forest fire was sweeping the east siope of Massanutten Mountain in | George Washington National Porest | near here tonizht. but C. C. C. crews "unend they had the flames under | controi. Several hundred acres have | been burned over. Porest Service and Conservation Corps men have been battling the fire since it started yesterday in flat woods and climbed slowiy toward the top of pressed into service. MARYLAND HOMES PERILED. Several Families Flee Before Flames | Are Checked. |a path from one to two and a half miles wide and 12 miles in length, a forest fire in Upper Anne Arundel County today was brought under con- trol only after it had endangered doz- ens of homes and outbuildings in that area. Homes in Glen Burnie, Baltimore suburb, were threatened at one time, | but efforts of hundreds of volunteer firemen were concentrated in keeping property loss down. Damsge was confined chiefly to woods and fields and several orchards. Several fire-fighters suffered minor burns, and Herbert Meddler, chief of the Orchard Beach Fire Co, was overcome by smoke. Several colored families occupying | homes in wooded sections were forced | to flee - temporarily. ~Firemen from ! several companies and C. C. C. work- ers fought the blaze by building backfires and by ditching as well as by the conventional method of beating it out with brush. ROOSEVELT'S SON MAY JOIN STAFF Rearrangement of Secretariat at White House Reported by New York Paper. (The New York Herald-Tribune will carry the following copyrighted dispatch todey from its Washing- ton duregu.) 3 James Roosevelt, the President's eldest son, will become a member of the White House secretariat, it was learned last night. A rearrangement of the secretariat has been in view for some months and is necessitated by the serious illness of Col. Louis McHenry Howe. Although ‘Col, Howe has improved considerably and in recent weeks has psid some attention to public affairs, the secre- um has been heavily overloaded. active force, consisting of | Stephen Early, the press secretary, | and Marvin H. Mclntyre, the appoint- | ment secretary, has been supplemented tative Charles Wesi of Ohio, who is on the pay roll of the Parm Credit Administra- tion, has been serving as liaison man between the White House and Con- | Corcoran, counsel for the Reconstruc- tion Finance Corp., has been detailed to part-time temporary duty at the ‘White House, presumably as a legal assistant. . (ml 1835_by the New York - Yy 3 York Herald. BEER DISPENSER FINED Georgia Avenue Woman Is First Convicted in Health Drive. BLUE RDGE FRE the mountain. All available men were | BALTIMORE. April 27 M’}.—Bhlng' SCOUT IAMBOREE WL ORAY 500 Complete Own Community Is Planned for Boys Here in August. A complete community, with its own water, communication and transpor- tation systems and operating its own newspaper, will be established in the District and nearby Virginia when 35,000 members of the Boy Scouts of | America hold their jamboree here, | August 21 to 30, according to plans announced yesterday by Scout head- quarters. E. S. Martin of national headquar- ters, who is in Washington to work out the plans with Army, District, Government and Scout officials, said commitments already had been re-! ceived from troops in every State and the District, as well as from England, Canada, Mexico and several other countries, and that so far more than 30,000 Scouts had signified their in- | tention of attending the jamboree. This figure is expected to be swelled | to at least 35,000. | All the resources of the Army and | Navy have been put at the disposal of | the Committee on Arrangements to assure that the Scouts will be prop- | | erly housed, fed and given the best | | of medical attention. They will be, housed in Army tents and will sleep | | on Army cots on Columbia Island. on | property adjacent to the Mount Ver- | | non Memorial Highway at Abingdon, | Va., and on the lower portion of Hains | }Polnl. Construction of the necessary facilities has been started at Abing- Programs Are Arranged. Everything has been arranged for | | the convenience of the Scouts during | their stay. Included in the programs | will be tours, excursions, hikes, pag- | eants, campfire get togethers, religious | services, boating, swimming, stunt| | nights and torchlight ceremonies. The first day of the jamboree -uu{ be featured by a review of the Scouts by President Roosevelt, who is hono- | rary president. This review will be held on Constitution avenue, the Scouts to be lined up in columas of eight on each side of the avenue while | the Chief Executive passes through. It is expected that the President will be accompanied by members of the Cabinet and the Diplomatic Corps. The President and his party will leave the Capitol and drive slowly \ the entire line of Scouts and on to the White House. After a brief time during which the Scouts will march to the Ellipse, the President agan will appear and give the Scouts his formal greeting and welcome to the Capital. | What probably will prove to be the most spectacular event will be held | on the Wednesday night of the jambo- ! ree on the Ellipse, when the 35.000 boys gather for huge pageantry. ‘The | presentation of this pageant will re- quire the largest stage ever con- structed in the Capital. Mr. Martin sald. At e end will be a Hopi In- dian village; at the other tepees, log | cabins and block h ouses. Indian dances, an old stage coach and tn"-! boys in their colorful regalia and other | portrayals of the early pioneer days | Pollowing the pageant, the leaders in the Scout movement, Dan w; | Dr. James E. West, President Roose- velt and probably Lord Baden-Powell, will be presented to the boys. As s00n a3 the leaders have been intro- duced great bonfires will be lighted !and an elaborate fireworks set touched off. Teurs Planned Daily. Tours for the toys to Mount Ver-, non, s cirele tour of the city. visits | to all points of interest in the city. hikes alg Diplomatic no.;;l :;:‘d. through many of the residen = Hons of the city will be held daily. ! Construction headquarters have been set up in ‘Norton's lane. near Pour Mile Run on the Mount Vernon Memorial Highway. and 3 surveyiDg crew is at work stakag out the en- tire layout for the three camp sites. 1t is expected that approximately 10.- 000 boys 'u.lhzmnmpednne.moh‘ the sites. | General near the end of the street bridge on Columbi is here that the general post office will also be located. The Scouts will arrive by special trains and will be disembarked at points nearest the | camp where they are to stay. Ar- ngements have been made for bus rvice between the city and z!:e. cal . All the camps have been ar- | n;‘:d so they will be within sight of the Potomac and within easy hik- lnqdhtmeeolunw(nuo(numl‘ | interest to the Scouts. High Officials Aid. | Co-operating with the President’s | | Committee for the encampment are | Secretary of the Interior Ickes, Arno B. Cammerer, director of the National | Park Service; C. Marshall Pinnan, | superintendent of the National Capi- | tal Parks and Buildings, the Wash- ington Board of Trade. the Greater National Capital Committee, hotel and other associations. The camps will occupy more than 300 acres of ground for the tents alone and about 100 acres will be utilized on the Ellipse, the Monument grounds, and other places for the reviews, circuses and demonstration:. There will be 8500 tents for sleep- ing purposes, 180 hospital tents, trading posts and other camp facil- jties. In addition, there will be more than 1,000 dining iy tents. The troops will be grouped into | 28 sections of 34 troops each, each | troop being composed of 33 boys and | three officers. Each section will have a first aid hospital tent. The camps will require 10 miles of ielephone lines and will have their own telephone exchange, with more than 100 instruments being served. About 30 post office sub-stations will serve the various sections of the en- i 1 Scout headquarters will be | Fourteenth | ia Island. It a se | i | The camp also will have iis own newspaper, which probably will be called the Jamboree Journal. A reg- ular camp publicity bureau also will De set up and broadcasting facilities mwwflwl He 1 - Pt ¥ i T o3 'unued, the man who was tops in the D. C., APRIL 28 1935—PART ONE. Where Scouts Will Hold Forth CHANNEL WASHINGTON 0770 £oN CAmPs (o- DEMONSTRATIONS. Scms 1m . JOOOFT. JAN. S, 93T \ Map shows section in Washington and vicinity which will be used as encampments and demonstration grounds during the toming Boy Scout Jamboree. JRY DSHISED | N SCALTZEASE | Unable to Agree After 21 Hours—Retrial Is Set for May 14. By the Associated Press. SYRACUSE, N. Y, April 27— Hopelessly deadlocked. the jury was dismissed today from furtber deliber- ation in the Dutch Schultz income | tax evasion trial. more than 27 hours after receiving the case. Judge Pred- erick H. Bryant immediately set May 14 for a retrial after being informed by John H. McEvers, special prose- cutor, that the Attorney General at Washingtoa had requested the date be fixed as early as possible. “We will keep on trying,” sald Mc- Evers, speaking for the downcast prosecution cast, “and we feel confl- | dent we will get a conviction.” Schalts Refuses Comment. Schultz, who stood trial on charges of dodging payment of $92.000 tax on income of $481,000 amassed in | 1929, 1930 and 1931, said: “I have nothing to say.” His bail of $75,000 having been con- beer racket of the Bronx in the last “golden days” of prohibition—the “tough buck days” as he called them—-| had his coat over his arm and his hat on his head, ready to leave. But where he was going neither he nor | his counsel would reveal. A few minutes later he went down the marble corridor along which he has paced off miles during the trial | and while waiting for the long-think- | ing jury. Again there appeared to return upon him that spirit of old- | time braggadoccio that led him to declare “the Government spent a mil- | jon to bring me into court.” Can Get 16 Years. Had he been convicted, he would have faced a maximum of 16 years in prison and a fine of $40,000. Twice the jury, middle aged on the average, came into the court room to tell Judge Bryant they had not reached an agreement. The first time, at 11:43 am.| Michael G. Shea, the foreman, said: “Your honor, we have not been able to agree.” Was it a hopeless disagreement, the | judge wanted to know. “Yes, I think we may agree,” Shea | replied, and the judge sent the 12| back to try again. RED CROSS COURSES it K“s i i | Washington and what is going to be | Scout Jamboree Calls for 100,000 Meals Each Day | | | Imposing Facts Indicate What Big Relly Will | Mean to Capital. Here are some of the pertinent facts | about what the Boy Scouts of Amer: ican Jamboree is going to mean to | required to take care of them: | 31416 Scouts and 3,856 troop of- ficers. \ 300 cooks and helpers. 100 telephone instruments—switch- | board. 250 tons of food daily and supplies. 1,000.000 galions of water each day. 5 miles of water line. 3.000 faucets and shower heads. 60 batteries of showers with 35 beads each. 20,000 lineal feet of sewage disposal | lines. 100,000 meals served each day. 1 70,000 quarts of garbage to be dis- | | unduly intimate with Lady Milford- each. | 15,000 pounds of meat for one meal. | 900 bushels of potatoes for one | mesl. 15,000 pounds of bread for one day. | 30,000 quarts of milk for one day. 4,000 pounds of butter for one day. | 4,000 pounds of sugar for one day. 1,200 galions any canned vegetable | per meal, such as tomatoes, corn suc- | cotash or string beans. | 70,000 eggs for breakfast. ! 100,000 flapjacks for one breakfast: 5250 dining tables. 9,400 yards of table oilcloth. 1,000 refrigerating units. CATHOLIC ALUMNI CONDEMNS MEXICO| Pledge Selves to Remove “Stigma | of Responsbility” From U. 8 By the Associated Press. CHICAGO, April 27.—The National Catholic Alumni Pederation today pledged itselfl “not to rest until it In -‘reloluung as it closed its ln-I nual meeting, the federation con- BURNS IN CHAIR FATAL Bucket Brigade by Girl and Boy Fails to Save Man. BALTIMORE, April 27 (P —Ef- forts of a 19-year-old girl and her a VANDERBILT TRIAL CHARGES PRINTED Secret Accusations Against Principals in Case Claimed by Newspaper. By the Associated Press. NEW YORK, April 27.—Charges and counter charges purportedly made in the secret sessions of the recent court battle over custody of the 10-year-old heiress, Gloria Vanderbilt, were printed tonight by the Daily News in a copyrighted story. Harry Payne Whitney was | awarded custody of Gloria by Justice John F. Carew. who held against the mm” r, Mrs. Gloria Morgan Vander- bilt. The News says the testimony printed is included in the record of the case as appealed by Mrs. Vanderbilt. Maria Caillot, Prench maid, the News says. was unable to subsiantiate her charge that Mrs. Vanderbilt was Haven. Anotber charge the News says was contained in the record was: ‘That Mrs. Vanderbilt's former fiance, Prince Gottfried Zu Hohe lohe, accused Mrs. Laura K. Morga Mrs. Vanderbilt's mother, of believin, her daughter and the prince “in- tended to do away with little after they had , presumal to come into the child's $4,000,000 estate.” Mrs. Morgan, the News says, ad- mitted her distaste for Prince Hohen- lohe came into “sharp focus” after she saw him in her daughter’s bed. Another portion of Mrs. Morgan's testimony related to the divorce she obtained from her husband, the late e G Harry Hays Morgan. The News says | | she testified she band when he was over 70 so he would not be living “in sin.” and claimed he was intimate with three women in London. Mrs. Morgan hinted ai a past love affair in the life of her daughter. “I think she saw quite a lot of him during the time Mr. Vanderbilt was alive, but T don't know anything more than that.” “Would you say that she was un- faithful?® Mrs. VanderlLilt's counsel asked. “I don’t know,” Mrs. Morgan re- plied. 35,000 THREATEN COAST STRIKE AID Norse Leader of Seamen Hurls Challenge at Capitalism. May Support Tankers. oy | divorced her hus- | ROCKETING PRICE OF SILVER HALTS Mexico, China and India Take Stock—U. S. Is Silent on Future. By the Associated Press. NEW YORK, April 27—The up- ’nrd stambede in world silver mar- !leh was brought to a halt today and yesterday’s advance in the price “u the white metal was canceled. { Mexico strove to repair its' seri- ous trampled monetary system, and Chinese banking quarters breathed a sigh of relief, | But silver miners, despite the set- | back in world silver prices, still hoped to see the price go on up to $1.29 | an ounce. All banks in Mexico were closed ‘for the day, silver coins called in to be exchanged for paper currency, and | exports banned by presidential de- | cree. Treasury inspectors proceeded ! to withdraw all silver coins from local banks and at 6 pm. 40.000.000 pesos | had been taken. the government pat- | ing the equivalent in bank notes. | Washington considered the prob- lem. but remained silent as to wha! its next step would be. Speculators Cash In. The fact that the Treasury failed to boost its domestic buying price | above the world price prompted spec- | ulators in London, Montreal and | other markets to cash in their profits. | The world price of bar silver in New York slid back 4!; cenis to 17634 cents an ounce, or slightly un- | der the Treasury's price to American mines of 7757 cents. London and | Montreal prices reacted similarly. Shares of mining companies in the ! New York Stock Exchange lost about $1 to $3 a share, but retained most of their gains registered earlier in the ! week. The Mexican crisis was provoked by the fact that the world price of silver had risen to a level which made it more profitable to melt up silver pesos and sell the metal. rather than to spend the coins at their face value. It became necessary to act to pre- vent the coinage from disappearing. $1.08 India’s Limit. Foreign exchange circles in Wall Street pointed out that with the pres- ent value of the Indian rupee. silver coins in India might suffer the same fate should the world silver price ex- ceed $108 cents an ounce, a level which would be surpassed should the Treasury's silver program bring the !level up to $1.29 as many expect. The Chinese problem, it was ex- | plained, did not present the aspects of an immediate crisis, since pressure had been steadily increasing for some ’ume with the rise in silver prices. | The three great pressure spots de- + veloping from the silver program. it | was explained, were Mexico, China | and India, but the situation was said !to differ considerably in the various | countries. . Mexiz== has had its currency oa a { managed paper currency basis, with | the objective of returning to gold. | The same situation prevails in India. But China has been on a definite sil- ver basis. | While Mexico and India have had | coins in circulation with a face value | of more than the silver content, much like the American half dollars, quar- ters and dimes, the Chinese currency unit has had the exchange value of the actual amount of silver in it, 50 1t has fluctuated with silver. i U. S. STANDS PAT. Morgenthas Urged te Peg Price at $1.29 to Stop Gambling, By the Associated Press. Anxious to aveid rapid fluctuations and accompanying speculation, the Treasury stood pat on its silver price yesterday and announced the week | end would see no change. | Apparently born of international monetary disturbances, this temporary policy of watchful waiting seemed to have an effect. Prom Priday's peak of 81 cents an ounce world prices slumped below the 77.57 cents fixed by the Government April 24 for newly mined domestic metal. | The Treasury announcement that | there would be no change in its silver policy over the week end came after | Secretary Morgenthau and his eoun- sel, Herman Oliphant, went over the \m.ulnon with Senator McCarran, | Demoerat, of Nevada, at the Secre- | tary’s home. The Nevadan, when questioned later | by newspaper men at the Capitol, said | Morgenthau had not “evinced any determined attitude as to what he intends to do.” Pegging at $1.29 Urged. McCarran recommended ' to the | Treasury head. however, that the do- | mestic price be pegged immediately | to the statutory level of $1.29 an ounce | and left there. He also proposed elim- ination of the 50 per cent tax onm sil- | ver trading profits in this country. | By these steps, McCarran said the tive element would be removed and silver would be “practically re- monetized” instead of left on the mar- ket to be bought and sold as any other commodity. McCarran said three alternative steps were discussed at the Morgen- | thau conference—to go on paying | the present price for domestic-mined metal, move it up siowly as at first, or jump it immediately to $1.29 and leave it there. There were some predictions—more “guesses” than anything else—that the Treasury probably would boost the price to $1.29 shortly. If this should happen. no one was prepared to | | | hered | how the world price reacted. | Werld Attitade Studied. figure as Jong as the world price did not exceed it, but moved beyond in event of a world increase. Others thought it might be stabilized at $1.29 by an announcement that a higher price would not be paid. Senator Wheeler, Democrat, of Montana has a 16-to-1 free coinage bill pending which would not attempt stabilization until the price reached # [about $2.18. ‘Whatever the policy might be next week, Treasury officials apparently of | were looking forward to a conference | with a Mexican government repre- | sentative, Roberto Lopez, assistant secretary of the Mexican department |of the treasury, who arrived here today. | Lopes in & formal statement, said: “I have come here to get & full glimpse of the silver situation. As an | t producer of the metal | Mexico is as deeply interested as this country in recent developments. For this reason it would seem proper that both wum:.u should find a way to