Evening Star Newspaper, October 12, 1936, Page 9

Hoover Failed To Dramatize His Rescues “Little to Show for It” Phrase Recalls Action. BY DAVID LAWRENCE. N ROUTE TO KENTUCKY, October 12—As I ride toward the blue grass region, there’s s phrase that keeps ringing in my ears. It is a phrase that awakens memories, s phrase that probably millions of persons heard on the night of October 1, and millions more agreed with as the President of the United States spoke it. Mr, Roosevelt was making his *“box score” speech at Pitts- burgh. He was “President Hoover's admin- Istration increased the natfonal debt in the net amount of $3,000,000,000 in three depres- sion years and there was little to show for it.” The phrase keeps coming back— *and there was little to show for it.” My memory reverts to a certain night 4in 1932 when a certain group of banks in Kentucky, with branches in Ten- nessee and Arkansas were on the verge of failure. The danger of start- ing a fire of bank failures that might become Nation-wide was known in ‘Washington and the President of the United States was being petitioned by anxious people in those States to avert it. Rescue Arranged. I remember the incident vividly, not because a line about it was printed in the newspapers at the time—for to give publicity to such things meant & conflagration—but because Alex Legge, now dead, who was head of the Federal Farm Board, talked to me about it many times. The Govern- ment put about $100,000,000 in the breach to avert disaster. The method ‘was to lend on the farm commodities which these banks had in their port- folio of loans. Criticism of the lend- ing on crops by the Farm Board was widespread, but it wasn't farm policy that caused the making of those loans—it was a simple act of rescue. “I don’t care what they say about the Farm Board,” said Legge to me with considerable feeling, “I'm not going to let 100 little banks go to the wall” And he did prevent the immediate crisis. Yet, as President Roosevelt says, there is “little to show for it.” I remember another occasion in the Winter of 1931. The whispering was that three States in the far South were on the edge of the financial precipice, that they could hold out no longer without Federal aid. Mem- bers of Congress from those States— Democratic Senators, of course—were imploring the White House for aid. And Hoover was imploring other mem- bers of Congress to rush his bill through that would create the Recon- struction Finance Corp. and give him at least a couple billion dollars to stem the tide of deflation that had set in with respect to certain large segments of our banking structure, Law Grudgingly Passed. T remember the incident because it meant a dark and gloomy Christmas for Hoover and for a host of other persons who sat up in the Treasury and elsewhere worrying about how to get the money to help. And finally the law was passed rather grudgingly by the Democrats who controlled the House and dominated the Senate. It was stated in the cloak rooms at the time that to give Hoover $2,000,000,- 000 would surely re-elect him and that wouldn't be very desirable from a Demooratic point of view. But the Reconstruction Finance Corp. was created—its powers were not as extensive as Hoover asked, but they were sufficient with which to make a start. My memory goes back once more to the Spring and Summer of 1932. In Chicago, rumors about bank runs ‘were growing more and more ugly. There was a weak bank among the strong ones. It was the Dawes bank. If it were allowed to go to the wall il other banks would go, t00. That was the outery. Midnight sessions, frantic conversations back and forth, everybody in the inner circles and many newspaper men knew the situa- tion. PFinally came the Dawes loan— not out of any fondness for any in- dividual or for any particular group of people, but to save Chicago, to save Illinois, to save Iowa, to save the Middle West. If Chicago went, under, what would happen? Chicago Saved. Well do I remember the head of one of the largest banks, Melvin ‘Traylor, now dead, standing on the streets of Chicago exhorting thousands of people to go back home, that their banks were protected by the R. F. C. and by the Federal Reserve and there were ample funds. He was right— the big Chicago banks were safe but the people didn't think so. The Tumors had begun to seep through. And so Chicago was saved from what might have been a social dis- turbance—possibly revolution — who knows? And yet there is “little to show for it.” Hoover didn't know how to bally- hoo what he was doing. He was curiously inept when it came to self- dramatizhtion. And, of course, ke couldn't have boasted about it on & Nation-wide radio hook-up anyway, for to tell the story was to risk the danger of more such situations being created. Then there came the dark and anxious days after Hoover was de- David La DE MARK Victorian Love Seat s and Chairs, Carved At Public Auction at SLOAN’S 715 13th St. WEDNESDAY October 14, 1936 at 10 am. By order of the Union Storase Co. Terms 5%, Sloan & Co. Ine., Auets. ~ THE EVENING STAR, WASHINGTON, D. C, MONDAY, OCTOBER 12, 1936. - News Behind the News Final Digest Poll Reported 54.6 for Landon—Ac- curacy Disputed by Democrats. BY PAUL MALLON. Literary Digest has become as secretive about its final poll figures as the Supreme Court is about its decisions, and rightly s0. It does mot want any one publishing its conclusions in advance. At the.same time, the mechanics of magazine publication are such that the figures must de collected consideradly in advance of publication. The upper strata of political leaders must know ebout such things and there is practically nothing that a political leader cannot find out if he sets his mind to it. Consequently, the word is out in thoroughly reliable form in the political stratosphere that Gov. Landon’s present published Digest poll strength of 56.9 per cent will work . down to a tentatively final figure of 54.6. Allowing 10 per cent for error (the general working per- centage of Digest error) this would still leave Mr. Landon with more than 49 per cent of the Digest straws and seem to forecast a close Landon victory, as Lemke will draw from Mr. Roosevelt’s total. * % % % Needless to say, the Democrats do not share this conclusion. Their Iatest inside figure on the popular vote (not for publicity purposes, but for their own private headquarters informa- tion) shows an expected majority of 3,500,000 for Mr. Roosevelt. Their expectations on the electoral vote run up over 400 for Roosevelt (266 is the majority needed to win). They discount the Digest vote on the ground that it did not reach lower strata of voters. A confidential poll of Washington political writers during the last few days showed somewhat similar erpectations, but was not conclusive. Most of those polled were Roosevelt supporters. Some of the Republican supporters failed to join in. Consequently the poll averaged out to the astounding consensus of more than 400 electoral votes for Roosevelt. Apparently every one knows what the outcome will be, but few agree. * ¥ X % ‘Top trade unionists are generally characterizing the current talk about 8 Lewis-Green peace as nonsense. Their inside line of the situation is that the party of the first part does not want peace. Mister John L. Lewis, they say, is desirous of having a showdown and believes he can win eventually. What started the peace rumors was some pacifying talk from David Dubinsky, the garmenteer ally of Lewis. The explanation behind that is supposed to be that Dubinsky was talking mainly for the purpose of getting a certain union with which he had been dickering into the Lewis C. I. O. He wanted to show that C. I O. is not & wrecking crew. As soon as Mr. Lewis heard about it he called a press conference and passed around word there would be no peace except on his teyms, which simply means there will probably be no peace. * % * % ‘The business of prophecying has been almost as dangerous during the last four years as in the Hoover era. Books have been written about the bad guesses of industrial giants of the booster decade, 1920-30, but no one has mentioned the sour predictions of some of the congressional political glants in recent years and months. Noteworthy was the one that the scrapping of the N. R. A. would cause industrial chaos, whereas employment has risen. Equally spoiled is the one that voiding of the Guffey coal bill would ruin the coal industry. Coal production is now at peak, warnings of price increases have been made and a shortage of cars is predicted by some of the new predicters. * kX % Chairman Nye of the Munitions Committee, who gave out the Elliott Roosevelt-Fokker data, still is neutral in the presidential election fight. This apparently leaves only two out of the 125,000,000 persons in this country as neutrals. Incidentally, Nye did not give out all the data he had. He is sitting on several exhibitions. These are comparatively unimportant. Criticism leveled against him by Senator Clark of Missourl for giving out anything is a continuation of the old scrap Nye had with the Democrats. You may recall that he questioned the acts of Woodrow Wilson and thereby caused the Senate to shut off his funds and conclude his investigation. (Copyright. 1936.) WRECKAGE OF PLANE 03 feated in November, 1932. He begged Mr. Roosevelt to send one of his own men down to Washington to get fa- miliar with the fast-growing crisis FOUND IN MEXICO in the banks. The Democrats in Con- gress, by their foolish insistence on making known the names of banks to which money was being loaned by the R. F. C., were unwittingly causing endless rumors to get into circulation. Co-operation Denied. Mr. Roosevelt thought he sensed & political trick, I suppose. He wanted to keep clear of political entangle- ment till March 4. I shall always believe the bank holiday could have been averted had there been co-op- eration between the incoming and outgoing administrations in ordering a gradual reclassification of assets in the banks of the country along the lines of a New York State law which could have been taken by Congress as & model. Yes, as Mr. Roosevelt says, there is “little to show for it,” little to show for those anxious nights and millions of dollars that were poured out to try to stave off disaster. And when I heard Mr. Roosevelt speak a few nights ago, another thought came to my mind. I realized that out of the $2,225,000,000 loaned by Mr. Hoover's administration prior to March 4, 1933, through the R. F. C., about two-thirds has been paid back now to the Treas- ury. Sad to relate, the proceeds of these loans have been spent by the Roosevelt administration, so that there is now actually “little to show for it.” For the “recoverable assets,” instead of being used for debt retirement, are being poured into the various Federal agencies for further spending. (Copyright, 1936.) Three Americans, Crew of ‘Wrecked Pan-American Ship, Killed in Crash. By the Associated Press. MEXICO CITY, October 12.—A searching party reported yesterday it had located the wreckage of a Pan- American Airways plane an the bodies of three American members of its crew, killed when the ship crashed Sunday night. A fourth crew member, Steward Kinderman, said to be a Guatemala citizen, escaped with slight burns. The dead were listed as Capt. A. Paschal, pilot; Co-Pilot A. L. Palmer and Radio Operator W, P. Neyman, all of Brownsville, Tex. The plane apparently crashed while flying through clouds, the searchers reported. Earlier messages said it fell near San Jose Pinula, 15 miles southeast of Guatemala City, on a run from San Salvador without passengers. Indiana Firm President Dies. NEW YORK, October 12 (#).—An- drew H. Beardsley, president of Miles Laboratories, Inc., Elkhardt, Ind., and & member of the Indiana State Senate from 1916 to 1924, died of pneumonia yesterday at Doctors’ Hospital. He was 72. Beardsley returned from Europe on the Normandie two weeks ago and was taken directly to the hospital. Speaking of the outstanding meter car for 1937 THE opinions of the writers on this page are their own, not necessarily The Star’s. Such opinions are presented in The Star’s eflort to give all sides of questions of interest to its readers, although such opinions may be contradictory among themselves and directly opposed to The Star’s. On the Record America’s Role as Foreigners Talk of Drawing Lines for “War of Religion.” BY DOROTHY THOMPSON. USSOLINI has again voiced his conviction that we stand “on the eve of & decisive conflict” for which his people must be prepared “spirituslly and materially.” The war, if it comes, he said, “will be s war of religion,” in which “humanity and civil progress” will be arrayed against anarchy. The words are disturbing, coming as they do in the midst of a new flare-up between some of the nations over Spain. The Soviets have sud- denly announced 8 that they will S " break the neu- trality agreement with regard to Spain unless the Italians and the Germans cease furnishing arms to the Spanish rebels. The Rus- sian action is difficult to under- stand, particu- larly the manner in which it was . made, for it was brusque in the DT’ b extreme. That the Italians and the Germans have been furnishing aid to the rebels has been established by en- tirely neutral journalists. The Rus- sians asked some days ago that an impartial commission be sent to Spain, particularly to the Spanish-Portu- guese border, to ascertain whether neutrality was being kept. In this the British concurred and were, we are informed, about to make the pro- posal themselves, stating that it would come more happily from a country whose own neutrality was not in the least in question. Russia’s, of course, is. ‘There is no proof of any Russian intervention in Spain since the neu- trality agreement was signed, but there is no question of where Russian sym- pathies lie. Russia retreated because her national interests were jeopar- dized by her international activities. The good will of the democratic pow= ers is very valuable to her. The Russian excitement over the advance of the Spanish rebels is easy to understand. Another Fascist power in Europe is certainly nothing that any country can contemplate with equanimity, let alone Russia. But there is emerging in Europe since the stabilization agreement an offensive and defensive collaboration of those powers which intend to stretch every nerve to maintain peace and to re- establish the prestige of free govern- ment. These powers are willing to ac- cept Russia among them, because they believe that Russia shares their own interest in peace. But Russia will get their collaboration on their terms, not on her own. Sick of Planned Economy. Fortunately, the Russian “ulti- matum” will be impeded in execution because of the procedure which the neutrality agreement forces her to take. And the democratic powers are standing more strongly at this mo- ment than they have in a long time. Italy has thrown over Germany in the matter of the stabilization agreement. Germany is, due to it, more isolated than she has been since Hitler came into power. The prospect of being able to return to easier trading on the con- tinent exerts an immensely strong pull and the reaction to it shows just how thoroughly sick the world is of the planned economy which the dictator- ships have inaugurated. The British are banking on this new tendency in public opinion. They think that to support it is far more important at this moment than to keep the rebels out of Madrid. It is very questionable whether the rebels will be able to es- tablish a dictatorship in Spain even if they win a military victory. Spama has already had a military dictatorship which did not last. And what any victorious groups do in Spain will de- WISH WE COULD AFFORD AN OIL BURNER! pend very much on what is the dom- inant feeling in the rest of Europe. For three years Mr. Hitler has black. mailed the democratic countries, threatening, like Samson, to pull down the European structure unless Ger- many were given this or that, while Mussolini has defled openly. No wonder that a part of the Span- fards were prepared to throw in their lot with a dictatorship. When the democracies changed from a defensive to an offensive position, although they have done it only in the realm of eco- nomics, the European picture changed considerably. ‘The Fascist dictatorships will con- tinue to clamor that an Armageddon is approaching, & “religious war” be- tween the forces of order and the forces of anarchy. The Russians will accept the dictum and say an Arma- geddon is approaching between the forces of democracy and the forces of tyranny. Both the Communist and the Fascist dictatorships need the threat of approaching conflict to as- sist them in holding together their people under the terrific hardships which the dictatorial systems impose. But whether the Armageddon occurs and embroils a large part of the world will depend on the extent to which the thesis of Mussolini, Hitler and Stalin is accepted elsewhere, Dangerous Campaign Statements. That is what makes the participa- tion of the sympathies of our own few Communists in the foreign strug- gle somewhat dangerous, and that is what makes some of the very reck- less statements being made during this campaign even more dangerous. Mr. Hearst's campaign against communism is just the sort of thing to work Ppeople up into the religious crusading spirit which will compel them to see an eventual struggle between s Com- munist and a Fascist dictatorship as an Armageddon which calis for all g00d men and true. And that is what makes the manner of John Ham- {iton’s attacks on Mr. Dubinsky, to say the least, regrettable. For, although Mr. Hamilton may deplore that a body of American workers chose to send some money to the Spanish workers to aid them in ther cam- paign, it was an entirely unofficial action, and Mr. Hamilton’s own speech was not a plea for neutrality, but was a tirade against the Spanish loyalists and by clearest inference on behalf of the Spanish rebels. In his attempt to smear the President through Mr. Dubinsky with collabora- tion with the Spanish loyalists he inferred a sympathy on his own part with the Spanish insurgents. It is a completely untenable position. Mr. Dubinsky, also, is of no great im- portance. But Mr. Hamilton is the manager of the campaign of the man who may be the next President of the United States. For Mussolini is right. If there is another war it will be & highly moral affair. Most wars are. On one side will be ranged all those who claim to represent “the people,” “fregfiom,” “democracy” and “the workers.” On the other side will be those who claim to represent ‘“civilization,” “order,” “religion” and “tradition.” And the thing that we shall have to bear in mind very vigorously is that war has been a woeful failure in extending either democracy or civilization or order or religion. For those who think that Russia represents freedom I urge a careful perusal of the official Russian report of the recent trial of the Trotzkyists, whereby one may see what opposition becomes under any form of dictatorship. It becomes out- right conspiracy and high treason. And for those who think Germany represents order and civilization I recommend reading carefully day by day any newspaper published in Ger- many, Read how a great and beauti- ful art exhibition was closed last month because the pictures didn't We, the People Dartmouth President Should Try Making Students Abandon Family Support. BY JAY FRANKLIN, RESIDENT ERNEST HOPKINS of Dartmouth College has come out for Landon because, in his opinion, the New Desl is undere mining the initiative and sapping the morale of our young men. Instead of looking to themselves, he feels that they are being :.l'l‘lthl to look to the Government—or to soclety—for a chance to make a ng. Dr. Hopkins is known as s libera) ‘educator and a good Yankee to boot. Bo many good Yankees have been booted, in fact, that one can sympathize strongly with his sense of the great blight which has be- fallen our ruggeder individualists. Yet, if the experience of New Eng- land college graduates is anything to go by, their initiative was pretty well done to death before Mr. Roosevelt undermined it by de- ciding that no American should be allowed to starve in the midst of plenty. It was always a shock to dis- cover that, of my own classmates, 9 out of 10 seemed to know exactly what they were going to do after graduation. Many of them knew before they left prep school. Of course, there was a World War being held at the time, which threw some of their plans out permanently. But this man was going to be a lawyer, that man was going to teach, another was going into business, others into banking, medicine and similar routine professions. That meant that their fathers could afford to send them to professional schools for an expensive post-graduate training or that, through family and friends, they would be taken into a going business concern before the ink was dry on their sheepskins. They were, in jact, being regimented in the direction of more or less priileged economic opportunities, Little or no initiative was called for under these circumstances. They had money, pull, and the training to back them up and so long as they kept in step with not very ezacting standards, they were assured of a darned good chance at making a darned good living. Or s0 it seemed at the time. Out of my class there were only two or three men who made any sort of career out of public service. They were pretty well despised, while the big cheers went for the big men who were making the big money in ‘Wall Street, buying expensive autos for their wives and taking title to gently mortgaged country homes in the metropolitan suburbs. When the panic came, more of them began poppirg up in Washington, looking for a chance to support themselves by servirg the public, and the place fairly swarmed with college men under the New Deal. They were annoyed to find that good Government jobs were acquired much as they had got their good business jobs—by pull, friendship or money, provided they could meet minimum qualifications. They simply had to know a slightly different set of people and think along slightly dif- ferent lines to ease in. This shocked them profoundly and many of them ‘went away, when business picked up, firmly convinced that politics and patronage were sordid and ignoble processes. Even today the private Eastern colleges, including Dartmouth, are reservoirs of business patronage. The bull markets of tomorrow are being won on the playing flelds of the Big Ten. Undergrad- uate competition is intense, but oh! so safe. There is no drastic penalty for failure to be elected editor of the col- lege paper or to be tapped last man for Skull and Bones. It is a sort of qualifying round for banking and the professional schools. College spirit rests on the solid foundation of privileged access to ‘white-collar economic opportunity. Wealthy graduates are always glad to try out the foot ball captain in a steel factory or the summa cum laudes in the old brokerage. And there are university employment agencies which undertake to find economic toe-holds for the rank and file, who can only rely on the general trade mark of the alma mater, 1t President Hopkins really wants to restore the initiative of Dart- mouth undergraduates, he should = make it a prerequisite for a degree that each student, at the end of sopho- more year, shall go off for 3 wanderjahr and shall support himself by his own efforts, without help from family, friends or the Government, before completing his course. This would cut down the nimber of Dartmouth alumni, but those who survived the test would be worth the parchment their names are written on when they step up to receive the degree of bachelor of arts. Until then, he and his fellow educators might have the grace to keep still about the debilitating effect of Federal social legisiation upon the fine, upstanding men of America. (Copyright. 1936.) happen to please Mr. Hitler's very \WE| | ESLEY TO INSTALL questionable taste in art; read how day by day men and women are sent to prison for trying to get a few dollars of their fortunes outside Ger- many to s place where they think they will be safer. Read day by day of the executions for treason. There is only one struggle in the world and that is the struggle be- | tween any form of dictatorship and | free government. And it happens that it is the struggle between war | and peace. And since the free gov- | ernments still have the largest amount | of riches, and the largest amount of | brains, which are still allowed to func- | tion, everything is on their side if they | keep their heads. YOUNGEST PRESIDENT Miss Mildred G. McAfee Will Be Inaugurated in Simple Cere- mony Friday. By the Associated Press. WELLESLEY, Mass., October 12.— Slim, bobbed-haired Mildred G. Mc- Afee, who occasionally is mistaken for an undergraduate, will be inaugu- | rated seventh president of Wellesley College next Friday. The college office announced a | simple ceremony before trustees, the faculty and graduates and under- (Copyrisht 1936, graduates. At 36. Miss McAfee is one of the youngest women to hold so prominent 388 Varieties of Fruit. The citrus experiment station at Riverdale, Calif, contains 386 varie- ties of citrus fruits. & position in the educational world. Miss McAfee, formerly dean of col- lege women at Oberlin, succeeds Ellen Fitz Pendleton, who died last July. Headline Folk and What They Do Lord Howe, Vander- bilt Cup Racer To- day, Noted Driver. BY LEMUEL F. PARTON. ORD HOWE, England's sport- ing earl, the fifth of his line, is 52 years old, “the patron of eight livings,” according to Burke, Thus, including his own, he may be said to have nine lives, which is not a bad idea for a Vanderbilt Cup racer—which his lordship is today, at Roosevelt Raceway. Considering the way he has been banged up, once wrap- ping his car around a tree in the Grand Prix at Berne, he seems to be cut out for longevity. When he arrived on the Queen Mary the other day, he murmured some- thing about some of his relatives hav- ing been here once. That might have been a sly bit of spoofing, for it was his ancestor, Gen. Howe, who took and held New York against the Revolutionary Army. The general came on a frigate called the Grey- hound. The Howes always craved speed. Lord Howe's mother, Lady Georgina Elizabeth Spencer-Churchill, was American born. Gen. Howe had two daughters, Lord Howe being the de- scendant of the elder, Ann Penn, which gives him kinship to William Penn. Educated at Eton, Christ Church and Oxford, he commanded the Howe Battalion of the R. N. D. in Belgium and was later a commodore of the Royal Naval Reserve and a member of Parliament from Battersea. His favorite sport for many years has been automobile racing, and he is regarded as one of the best drivers in England. He is of medium stat- ure, solidly built, adept at tinkering his owa car if he has to, easy-going, with the suggestion of reserve capacity typical of British blue-bloods. He has one son and one daughter. Earl Carroll, top dreamer and care« free innovator of the theatrical world, goes into bankruptcy, with liabilities just under $1,000,000, at the age of 44. The Peer Gyat of the theater, he has schemed and dreamed cloud-cap- ped tcwers—real enough, one of them being a $4,500,000 theater, but fading like smoke with a whiff of hard times, 50 far as Mr. Carroll's equity is con« cerned. Mr. Carroll has shown himself the master of the big splash—color, fabric, girls, bravura, magnificence and dirt —but that's about all. There’s no use dredging up his troubles with the John Laws. But there should be no statute of limitations on that Abraham Lincoln performance. He staged Lin- coln delivering the Gettysburg ade dress in a stew of undressed show girls. May it please the court, that ought to run that item of liabilities away up over a million. He was a stage-struck boy in Pittse burgh, mooning and dreaming and drifting off to the South Seas at the age of 16 with $18 in his pocket. Later, in his little back-street coop in New York, he wrote Caruso, offering to write a song for him. Caruso agreed. They got out “Dreams of Long Ago.” That started young Mr. Carroll in Tin-Pan Alley. (Cooyright, 193¢ ) ADVERTISEMENT, Coughs Relieved Right Away You want prompt relief. Hall's Expectorant quiets coughs due to colds amazingly quick. Soothes and heals irritated membranes. Special ingredients warm throat and chest and make you feel many times better. A cough, due to a cold, is Nature’s warning of danger ahead. Take no needless chances. Get a bottle of sooth- ing Hall's Expectorant today. 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