Evening Star Newspaper, July 12, 1936, Page 14

COST OF RECOVERY 15 DECLARED LOW Debt Up $60 Per Capita and Income $160, Douglas Tells Institute. By the Associated Press. CHARLOTTESVILLE, Va., July 11. —William O. Douglas, member of the | Becurities and Exchange Commission, | declared here tonight that the United | States had obtained recovery at a| surprisingly low cost. | Holding there was no reason for treating borrowings of a nation dif- | ferently from borrowings of an indi- vidual, he told the University of Vir-| ginia Institute of Public Affairs that “we must look at the balance sheet | of the profit and loss account of the‘ Nation as a whole.” Against the increase in the national debt, Douglas said, must be set the increase in the total marketable wealth of the Nation. The annual national income, he continued, in- creased two and a half times the net increase of the public debt during the last four years, or while the pub- le debt rose $60 per capita, the na- tional income climbed $160 per capita. Increase in Debt. The gross increase in the public debt from February, 1933, to June 30, 1936, was about $15,000,000,000, but allowing for “high-grade” tangible assets, large ‘“realizable assets” and other offsets the net increase “may be no more and probably less than half of the gross total, or about $7,500,- 000,000, he said. “As against this increase in the national debt there is, of course” | he said, “first, the immense apprecia- tion in the total marketable l'ealth« of the Nation. . “It may be interesting to compare | that increase in debt with the in- crease in the annual national income. The 1932 national income was less than $40,000,000,000. The national income at present is at a rate of | probably over $60,000,000,000 a year, an increase of $20,000,000,000. Only a “few segments” of the prob- lem of Federal regulation of the se- curities market have been attacked, and until an approach is gained from the viewpoint of national economy rather than the viewpoint of brokers and dealers “bent” on increasing their income, a satisfactory solution will never be reached, Douglas said. What is frequently forgotten, | Douglas said, is that the cost of ' RATES by MAIL Payable in Advance Maryland and Virginia- One Month, 85¢ One Week, 25¢ Other States and Canada £BUnaLy Evening Sunday speculation to the public is very high. Douglas said that so-called in- judicious speculation had long been recognized as economically harmful and harmful to the individual, #nd that conservative brokerage houses discouraged their customers from over-trading and too rapid turnover, even though it meant a loss of com- missions. “All speculative theories agree that the fundamental basis of 2li inarkets,” he said, “is legitimate trading.” “Rapid turnovers mean increased brokerage commissions. But from a broad, national point of view, there is little economic significance in whether the turnovers are high or low.” Gorham Munson, editor of the New Democracy, at the concluding session of the special conference un power age economics, declared that the real pur- pose of planned social credit was not “to set class against class but to unite the classes in the real struggle, international finance versus the cum- | munity.” The two Federal securities acts have set up provisions “calculated to as- | sure that there will be no corruption of financial information in transmis- sion” of financial news, Kenneth C. Hogate, president of Dow Jones & Co., publishers of the Wall Street Journal, told the Business and Finance Round Table. Commends Stock Exchange. He commended the New York Stock Exchange for the efforts in which he said it had pioneered in making more information available to the press from those countries listtd on the board. Dr. Leland Rex Robison, president of the International Securities Corp. of America, declared that securities markets reflecting the result of in- formed investor demand were more than ever before essential to the guid- ance of the flow of capital toward eco- nomically useful enterprises. He It does not matter how far away from home you spend your vacation « + . the fine local and national news present- ed by The Star will reach you. Mail or leave your ad- dress or itinerary at The Star Business Office, and The Star will be mailed to you with the same dispatch as if you were in your own home in Washington. he Foening Shad i A warned of possible dangers in “soak the corporation” taxes. Information for investors becomes of paramount importance, he said, be- cause directors are less free to take responsibility for * withholding earn- ings from distribution, and because as income from stocks register “the vicissitudes of business, the capital- ization of income which takes place in the securities markets is likely to be wider in its swings than when offi- cers and directors shape dividends to their own notions of stability and of proper balance between distribution and reinvestment.” Dr. Frank P. Graham, president of the University of North Carolina, in discussion of human relations at the last meeting of the round table on international good will, sponsored by the Rotary Clubs of Virginia, declared that “Americans, who with scientific knowledge and mechanical device, have won & physical mastery of this great continent, will not long stand bafied and afraid along the social frontiers of a civilization which has not yet mastered the hazards of mod- ern society. “We must work and think from day to day in a world of insecurity and NO MATTER how you classify your expenditures for car up-keep—it’s your total éxpenditure that counts. How much “dollar mileage” is your car giving you? Dollars do go farther in the Ford V-8. Modern improved earburetion gives you unusual gasoline mileage with brilliant V-8 performance. Most own- ers of today’s Ford change oil only at 2000-mile intervals and never add a drop between changes. FRED WARING AND HIS PENNSYLVANIANS & grim realities” he said, “and dream & bit some time that the old society may yet become the great soclety of liberty and opportunity, sutonomous organization and collective co-opera- tion, security and happiness for more and more of the people of America and the world.” Dr. Patterson Speaks. Dr. Ernest Minor Patterson of the University of Pennsylvania asserted that it “will not do merely to talk of good will—to urge that all we need do is to sit around a table at Geneva or elsewhere with the expectation that all will be well if we merely under stand each other.” Unsettled relations between na- tional currencies and high barriers to international trade, he said, pro- vide enlarging flelds where rival in- terests are not harmonious. Dr. Edward W. Carter of the politi- cal science department of the Uni- versity of Pennsylvania, Prof. John F. Sly of the local government survey of Princeton University, C. R. Erd- man, jr., mayor of Princeton, N. J., and Dr. George W. Spicer of the Uni- versity of Virginia and chairman of the Virginia Commission on County FORD V'8 ECONOMY MEANS HIGH TUESDAYS, ON THE COLUMBIA OHAIN. D. T JULY 19,%:193—PART ONE. 2 X THE SUNDAY STAR, WASHINGTON, D. 4 XE. How Good Is Your Memory for Names, News and Faces? These Pictures Appenred in The Star During the Last W“k How Well Do You Remember Them and the Incidents Th')’ llustrated? Try to Recall the Name of the Individiial or Scene Pictured. Then Check Your Choice Against the Correct Name and Answer That Will Be Found Under “Answers” on Page 10. g Government, spoke before the round table on local government, which will continug through next week. Dr. Adrian Recinos, Minister from Guatemala to the United States, vis- ualized a regional league of natigns as & result of the tendency of the “three Americas” to cease to look te the League of Nations as a basis for col- lective security. Such a new affillation might be de- cided upon at the coming Inter- American, Conference at Buenos Aires, he said. While the 15 American re- publics that joined the League of Nations in 1919 would find it easy to agree upon the formation of a league of American nations, there might be some difficulty in inducing the United States to join, he added. Donald Heath of the Division of Latin American Affairs, United States | Department of State, termed the “Pan-American conception” as a dy- namic one envisaging the steady in- crease of useful international co- operation. Dr. Recinos said the Inter- American Conference probahly would not assemble until after the Novem- ber elections in the United States. He between countries of one or more continents would not impair the “uni- versal chargcter” of the League of Nations. APPEALS TO PRESIDENT Asserting that they failed to obtain aid through local or Federal W. P. A. | agencies, members of the Workers' Alliance of America in a letter to President Roosevelt yesterday, asked that he provide them with some form of relief. The letter said that because mem- | ~¢AMOUS~ | - TR MOTOR OIL, IAYIRSON OII. VIORKS oLuMBIA pointed out that regional sgreements | bers of the alliance were considered | The letter listed several cases to which as employables, local relief authori- | the President was asked to give par- ties were unable to handle their cases. Only afew dem- onstrators at “Mww N ‘And after the first few thousand miles you know what Ford V-8 “dollar mileage” really means. It gives you more miles per dollar because it gives you all-round economy—low first cost, low upkeep cost, low depreciation and long life— as well as low gasoline and oil consymption. All these help to make the most economical car. FORD MOTOR. COMPANY !'RIDAYg. ON THE NOW AT A NEW TIME, °P. M. E DS T . B. C. BLUE NETWORK, ticular attention. 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