Evening Star Newspaper, September 26, 1936, Page 1

\ WEATHER, (U. 8. Weather Bureau Forecast.) Fair and warmer tonight; tomorrow mostly cloudy and warmer; gentle to moderate southeast and south winds; i ‘Temperatures—High- Monday showers. - est, 67, at 4 p.m. yesterday; lowest, 47, at 6:30 a.m. today. Full report on Page A-2. he Zoenin Closing New York Markets, Page 14 : / WITH SUNDAY MORNING EDITION Yesterday's Circulation, 135,888, (Some returns not yet received.) No. 33751, e Entered as second class office, Washington, D. matter 3 WASHINGTON, D. C, SATURDAY, SEPTEMBER 26, 1936—FORTY PAGES. ##% MORGENTHAU PLEDGES 2 BILLIONS TO PROTECT POUND AND FRANG; SOVIET RAID ON STERLING HALTED French Embargo Is Due Today Pending Parliament Session Assembly Called for Monday to Con- sider Measures Rushed to Comple- tion by Blum Cabinet. Million Pounds Bought by Treasury. PACT PLEDGE IS FULFILLED Stabilizing Fund Is Ready, Says Secretary. By the Associated Press. In & sudden, swift move, Secretary Morgenthau today poured $5,000,000 into the international exchange mar- ket to block what he said was & Rus- sian State Bank move to hammer down the value of the British pound, and soon afterward pledged the entire $2,- 000,000,000 stabilization fund to the tenance of the British, French 12 American currencies. rgenthau summoned reporters to his office to announce he had acted without delay to throw the Treasury’s $2,000,000,000 stabilization fund be- hind the pound in line with a Franco- British-American agreement pledging the three nations to use “appropriate available resources” to prevent ex- change disturbances in their cur- rencies. Co-operation is Invited. ‘The three nations invited the “co- ‘operation” of other nations in this policy, and Morgenthau said this Na- tion “trusts that no country will at- tempt to attain an unreasonable com- petitive exchange advantage and thereby hamper the effort to restore more stable economic relations.” ‘The agreement, announced last night, provides for devaluation of the franc in what Treasury officials de- scribed as an important stride toward currency stabilization. In & formal statement today, Sec- retary Hull said the move “should greatly strengthen the prospect of stability in international exchange re- lationships” and “should result in further strengthening the basic con- ditions of our domestic recovery.” Referring to what he called the Morgenthau added: “I sincerely hope that this incident will not be -repeated.” ‘Morgenthau spoke quietly, but in & tone of deep earnestness. He sald he had been informed shortly after exchange dealings started in New York this morning that the Russian State Bank had ordered the sale of 1,000,000 pounds “at any price.” Price Drops 11 Cents. ‘The effect of this was to drive down sterling from $5.02 to $4.91, the Treas- ury chief said, at his first press con- Zerence. He refused, however, to express an opinion on what Russia might have expected to gain from the move. At a second press conference a few minutes after the first, Morgenthau sald he would go “to the limit” to maintain the stability of the French, British and American currencies. Asked what the limit was, Morgen- pounds dent Roosevelt, but the Treasury chief did not say exactly what conversation he had with the Chief Executive. Asked whether the Russian move had dampened his hopes for the understanding, which had been described as a “gentleman’s sgreement,” Morgenthau replied: “As far as the gentlemen are con- eerned we are still gentl R Another interrogator sought to learn whether Morgenthau expected any more efforts to depress the pound or other currencies affected by the theee-power agreement. “If there are,” he replied, “we are Teady.” Morganthau did not say at exactly what price he bought the pounds, but asserted that they were “bought at a price that gives the United States Government a handsome profit.” He said he received information about the Russian offer about 45 min- utes after New York exchange deal- ings started this morning and “gave (8See MORGENTHAU, Page A-7.) SAN ANGELO AGAIN MENACED BY FLOOD North Concho River ‘Higher at ‘Water Valley Than Before $5,000,000 Damage. (Copyright, 1936, by the Assoclated Press.) PARIS, September 26.—Financially- harassed France, allied with Grea! Britain and the United States in a “monetary equilibrium” program, look- ed ahead today to a formal embargo on gold exports preliminary to pro- posed devaluation of the franc. Members of Premier Leon Blum's cabinet and the governing board of the Bank of France labored to prepare measures for submission to a special session of Parliament Monday. ‘The proposed statutes, an official an- nouncement declared, would reduce “approximately one-third” the franc's gold content, Paul Reynaud, leader of the French devaluationists, predicted the new monetary policy would succeed “if French Moves On Franc End Long Struggle Refused to Yield to Devaluation Pleas. £y the Associated Press. France’s move to devalue the franc marks the end of one of the most remarkable “last ditch” stands in modern economic history. For several years she suffered the severest kind of deflation—falling prices, wages, etc.—accompanied by mounting political unrest. 2 But while other countries, includ- ing the United States, yielded and revalued their currency in an effort to halt deflation and give a fill-up to their internal economy and their international trade, PFrance, which had had bitter experiences in the past with money which decreased in value, doggedly refused. Now, under the stress and strain, France at last has yielded. Her gov- ernment leaders tacitly have acknowl- edged that under present conditions the franc is worth more than it should be. Francs at present are “dear” in terms of other currencies. Here's why: ‘When an American sends his dol- lars to France to buy its products they are, in effect, converted into francs. At present he can get about 152 francs for one dollar. In some other countries a dollar will buy the equiv- alent of more than 15.2 francs. Other factors—such as tariffs and quota limitations—being equal, the purchaser will send his dollar to the country where it will have the greatest purchasing power. Thus, the international bargain hunter might find that by sending his dollar to France he could buy 3 yards of ribbon, but that in another country he could get 5 yards. ‘When Prance devalues it means she is reducing the amount of gold which each franc represents. This makes one unit of gold worth more francs, and, if the relationship of the dollar to gold remains unchanged one dollar also is worth more francs. The American, then, finds that his dollar may buy more French products than before—that he may get 5 yards of ribbon for a dollar instead of the former 3. This tends to put Prance in a posi- tion to compete for American pur- chases. Conversely, however, devaluation may have American products cost the French more because more francs are fiu‘:lnd to purchase one American T, The trade situation created by de- valuation might be only temporary, (See DEVALUATION, Page A-7.) RACKETEER MURDERED Vengeance Motive Seen in New York Axe Killing. NEW YORK, September 26 (#).— freight yards. “This is no racket killing,” Deputy Chiet Prancis J. Kear said. “It definitely looks like a vengeance caze.” conducted with due regard perience of other countries. If not, he declared, it would mark “the beginning of our downfll.” “This is our last chance,” he said. “We cannot afford to bungle it.” He termed the new policy “delicate because it is tardy,” adding that France had lost 30,000,000,000 francs in gold since .he urged devaluation two and & half years ago. ‘The Bourse—stock market—was closed “for several days” as details of the suggested monetary revision were worked out. Informed quarters ex- pected the gold embargo, which must bear approval of the governor of the Bank of France, would be proclaimed (See FRANC, Page A-T.) WOODRING READY TOTAKE WARPOST to the ex- New Secretary Pledges |ty “Adequate National De- fense for Peace.” By the Associated Press. Pledged to “an adequate national defense in the interest of peace,” Harry H. Woodring, & World War vet- eran, prepared today to take office as Secretary of War. 8till in his 40s, the Kansan takes command of the Nation's land de- fenses at & time when military officials are expending one of the largest peace-time appropriations in history. President Roosevelt announced the temporary elevation of the Acting Secretary to full power over the Na- tion’s war machine at the Hyde Park, N. Y, ‘White House last night. Woodring succeeds George H. Dern of Utah, who died late last month. ‘Whether Woodring, former Gover- nor of Kansas, will be given the post permanently or whether & new Secre- tary of War will be named later was not revealed. Acting Head Many Months, ‘Woodring had served as acting head of the War Department for many months while Dern was too ill to work. found an adequate national defense in the interest of peace for our Na- tion, I shall feel repaid for every effort,” he said. A banker, Woodring retired from active. business in 1928. His first political venture took him into the (See WOODRING, Page A-7.) —_— OPERATION GIVES BABY A CHANCE FOR LIFE Surgeon Opens Passage From Stomach to Small Intestines to Complete Digestive Process. By the Associated Press. FINDLAY, Ohio, September 26— An 8-week-old-boy, Bobby Howard McLeod, fought against the danger of infection today as he convalesced from == Virginia Court Convicts Man As “Runner” for Attorney é 143 HEEE ie g i ] K I ; i : i Hs : ! 5 : | | ; gs g | i snother attorney and then capping - | it with & contract for the attorney. charged H sfiégE‘Eig witnesses Gold Bloe Dies in France’s Devaluing. SWISS FOLLOW PARIS ACTION Holland Unmoved. Belgium Backs " French Step. By the Associated Press. Leading world foreign exchange centers were at a standstill today as the French government prepared to submit a plan to an extraordinary session of Parliament Monday to cut the value of her currency by approx- imately one-quarter to one-third. Securities prices in the New York Stock Exchange—the major world market open—trended upward, how- ever, as Wall Street experts hailed the French move as constructive and London bankers looked for revival of world trade. In Amsterdam the stock exchange was quiet, with Amer- ican issues in demand. ‘The decision to devalue the franc appeared virtually to have ended the erlands authorities indicated that would continue to maintain the parity of their currency. Swiss Parliament Called. In Switzerland, third member of the gold bloc, however, Parliament was summoned to convene at the same time the French Chamber meets to bring the Swiss franc into line with the devalued Prench franc. The French government proposed s plan of devaluation similar to that adopted by the United States three years ago, involving seizure of all gold in the country at its present value and establishment of a stabil- ization fund. The devaluation plan immediately provoked some opposition from both Right and Left political circles in France, and world financial centers ative movement to bring the French currency into line with the dollar and pound, but failed to steps they would take. (8ee EXCHANGES, Page A-1) YOUTH ADMITS SLAYING Mingled With Crowd at Scene After S8hooting, Police Told. KL g il E 7 ‘Tallach confessed, Capt. Egan sai that he and his companion were in- 3 Readers’ Guide Amusements .............C-16 THAT BROTHERS KILLED AS CAR HITS POLE Park Policeman Raspberry Thrown From Motor Cycle and Badly Injured. ‘Two brothers—Ralph Edwards, 26, of 1100 Eighth street and Maurice Edwards, 28, of Hyattsville, Md.— were fatally injured last night when their automobile crashed into a tele- phone pole at Thirtieth street and Queen’s Chapel road in nearby Mount Rainier, Md. In another accident Park Policeman succumbed to head and chest injuries at 12:40 am. Police had not de- termined this morning which man was driving. Policeman Raspberry was one of four assigned accompany Miss Peoples, daughteP of Rear Admiral IT'S ONLY TiLL AFTER THE ELECTION = (P Maans Associated Press. NEW DEAL | jCLoser I | ) I W . TUGWELLIAN ALARM CLOCK! Fortune Tellers Advise Lovers Be Calm During 1937 TRENTON, N. J, September 26.—An advance tip to lovers was offered today by the National Association of Fortune Tellers, which will combine all its mem- bers tomorrow for s complete forecast of 1937 at its first an- nual convention. “We already know that 1937 is to lovers,” said Miss Helen A. Perota, “Gypsy Lee,” president. “We can advise lovers now not to be too ex- cited.” STEEL WORKERS T0 SEEK PARLEY Chairman Murray Calls Meeting for Report on Organizing Move. By the Associated Press. PITTSBURGH, September 26.— Philip Murray, chairman of the Steel Workers' Organizing Committee, an- nounced today that “within a rea- sonable length of time” he expected to demand a conference with steel operators for the formulation of & wage agreement, “or agreements.” Murray, who is a vice president of the United Mine Workers, called & meeting of the full organizing com- mittee for next Tuesday to report on the progress of the three months’ campaign to organize the steel in- dustry’s 450,000 wage earners into one union, Conference With Operators. He said: “We will discuss also this question of a conference with the ‘operators. “I feel that if the steel workers organizing committee decided to change its policy with respect to the organizing campaign of steel workers that within & comparatively short time they could build up a situation, nu- . | merically speaking, to close the entire down.” he fell. Vaughn Independence avenue sutomoblle at Vermont avenue and Eleventh street. ‘The injured—Bernice Clark, 35, of 621 Emerson street; Mrs. Edith Garri- son, 30, of 3511 Thirteenth street, and | gate of Murray asserfed the committee’s policy, however, had been dedicated to building up s permanent structure “without resorting to strike threats.” Joint Conference Aim. “But we do believe that within & reasonable length of time,” he added, “operating under our present policy, we will have secured a sufficient num- ber of members to warrant a demand for & joint conference for the pur- pose of negotiating a wage agreement, or agreements. “Responsibility for failure to thén meet with us will lay squarely upon the shoulders of the operators.” The Iron and Steel Institute, whose membership includes more than 95 per cent of the industry’s operators, announced plonship today with a 72-hole 282 O'BRIEN IS VIGTOR IN COMET CLASS Jersey Man, Champion, Takes Honors in Sailing Race—D. C. Boat Second. BY J. A. FOX. Scoring his third successive victory in two days, Alton O'Brien of Perth Amboy, N. J, national champion, to- day won undisputed honors in the comet class with his Aquila as the sailing races, preliminary to the Pres- ident’s Cup race, were ending off Hains Point. De Verner Smythe, Washington champion, was second with his Sassy, and Adolph Grant, also of Perth Am- boy, third in the Red Don. As in the two five-mile brushes, which opened the card yesterday, Sassy and Red Don were closest to Aquils at the fnish, with the rest of the fleld trailing. Total point scores for the three races determine the winners of the trophies which The Star is awarding for the nine classes of sailing boais on the program. Open Race Results. In the 20-foot open race, the first event to finish, Dick Hartge of Gales- ville, Md,, skipper of the Challenger, was the winner. The victory culmi- nated three years' effort on Hartge's part to trim the Vanitie, sailed by Osborne "Owings of Washington. Vanitie won the first race yesterday morning, but turned over in the aft- TWO CENTS. ANARCHISTS SEEK 10 KILL HOSTAGES AS REBELS BOMB BILBAO FROM AR Heavy Fighting Near Toledo. Reports to Lisbon Say City Already Has Fallen to Insurgents. LAST OF LOYALISTS’ NORTHERN CITIES HIT, Shrieking Mobs Surge Through the Streets, Killing Fascists. Basque Leaders Seek to Curb Stricken Populace Aroused by Attacks. BACKGROUND— Last few weeks of Spanish civil war have been marked by undise puted gains by rebel forces. Tri- umphant in the important northern border section, near French ports, the insurgents have spent the last week consolidating forces for push on Bilbao, last important city un- taken. Meanwhile, in the central part of country fighting has been flerce around Madrid, with Commu- nist-Socialist defenders of present regime hard hit trying to defend the capital city from consistent at- tacks by the Fascist rebels. BULLETIN, (Copyright. 1036, by the Associated Press.) MADRID, 2:35 p.m., September 26—(Delayed by Censor)—The government announced today it had started a determined attack by several batteries of artillery and & squadron of bombing planes on the insurgent armies at the thres- hold of Toledo. (Copyright, 1936, by the Associated Press.) BILBAO, Spain, September 26 (by warship to Saint Jean de Luz, France). —Three insurgent airplanes rained bombs into this chaotic city today as vengeful anarchists sought to kill ine surgent sympathizers held as hostages. ‘The new aerial attack brought fresh loss of life and property damage to the panic-stricken city. Victims of the explosions included one foreigner and a year-old French girl ‘commanders, who reaffirmed their intention to hold out to the last man. i Anarchists Seek Hostages. Basque Nationalists labored to main- tain order as the frenzied anarchists fought to kill 3,900 insurgent prisoners in retaliation for the Fascist bom- bardment yesterday which killed and injured hundreds of persons. The Basques, striving to maintain their control of this Bay of Biscay port, toward which the rebels are drive ing with hammerlike blows from the east, feared they might be unable to restrain the panic-stricken populace. Shrieking mobs, surging through Bilbao's streets last night, killed 60 Fascist hostages and forced Eliadore de la Tore, Basque Nationalist chief, to promise them the satisfaction they demanded. While firemen fought to bring order - | out of the chacs and curb the fires ignited by the roaring two-hour bom- bardment of eight tri-motored Fascist planes, citizens of Bilbao burrowed . | into deep cellars to escape the assault ised there with & fleld of nine crack entries, did not overshadow the sup- (8ee REGATTA, Page A-2) expected to be renewed today. Basque leaders considered attempte ing to lock up as many of their Anare chist and Communist comrades as they could corral, but feared their action would set off the spark which might destroy the city, just as maddened Anarchists, facing defeat, sacked Irun (See SPAIN, Page A-3) COOL SPELL BREAK FORECAST TODAY Fair and Warmer Today and To- night to Be Followed by Cloudy Weather. fiuroremnm,'unbt this time of the year. A 47 Brazilians Awed by Horse God’s|.> ARRESTS IN HAVANA HAVANA, September 26 (F).—Na-