Evening Star Newspaper, November 1, 1937, Page 9

Defeat Faces Roosevelt Policy Economic Program Seen Leading to Busi- ness Depression. By DAVID LAWRENCE. RESIDENT ROOSEVELT is still gambling on the success of an economic theory which never in world history has ever succeeded—the theory that na- tional income can be materially in- creased by less work and merely by devaluing cur- rency — for in- stance, calling a B0-cent piece a dollar. ‘The President’s press conference of last Friday is i the mast impor- tant happening ;. since the present business decline set in last sum- : mer. It is im- portant because & it reveals that i Mr. Roosevelt does not know when he is defeated—he didn’t know that he had lost the Supreme Court fight, for example, six months before the final roll call. The handwriting on the wall already tells of the im- pending defeat of New Deal econo- mies by a severe business depression. Today the President faces the ne- cessity of reversing his economic poli- cies. Statesmen frankly acknowledge error and retreat and so do great gen- erals. Will Mr. Roosevelt turn about and save America—the two-thirds who have jobs and the one-third who are “ill-housed, ill-clad and ill-nourished? Or must there be more breadlines, more panic and more depression before America’s economic dictator will swal- low pride and abandon the so-called economists who have been mislead- ing him or rather leading him from one morass into another? Moving National Income Up. The President’s position as revealed in his press conference last Friday was that he was not thinking of tax revisions, but of moving the national income up to the fantastic heights of $90.000,000,000 and $100,000,000,- 000. This reference to such a huge national income is familiar, indeed, to those who have followed New Deal strategy. The Roosevelt idea is that the present tax burden isn't burden- some and that it can be still further increased by moving the national in- come upward. The orthodox methods of increasing national income aren't working or being permitted to work. Mr. Roosevelt has the choice of con- tinuing the pump priming with Fed- eral funds or resorting to more infla- tion or letting private industry ex- pand. The first two courses mean a continuance of unbalanced budgets. ‘The third course means an equitable tax revision. While the President is non-com- mittal about tax plans, what he did #ay last Friday would seem to indicate that he still thinks in terms of the first two plans—moving up the national income by artificial inflationary de- vices. Perhaps the best analysis of what is happening today was made by the Brookings Institution—com- prising the most eminent group of economists in America—in a book en- titled “The Recovery Problem in the United States,” which was published last January. Here is an all-impor- tant excerpt that throws light on the Government policies of the hour: “The possibility of a serious break- down of Government finance still exists. We are still gambling, so to speak, upon a sufficiently rapid growth in national income to permit a bal- ancing of the budget before confidence in the credit of the Government, wanes. ‘The continued ability of the ‘Treasury to obtain all the funds required at low rates of interest has given rise to 8 false sense of security. We are working on a very narrow margin, and adverse developments could quickly upset all present calculations. “There is always a tendency when Ppredicted crises, whether in business or public finance, are slow in reaching 8n acute stage, to assume that the dangers have been grossly exag- perated, if indeed they are not alto- gether fanciful. Whether the present fiscal situation will lead to a break- down of Government credit and a disastrous period of inflation, no one can predict with certainty. One may fairly conclude, however, that though the task of establishing financial sta- bility is not insurmountable, it is one which cannot be taken lightly.” Taking Sitvation Lightly. Unhappily the President is taking the situation lightly. He never says & word about increased output, but emphasizes policies that mean shorter hours for the same pay. He still thinks he is fighting the Liberty Leaguers and the “economic royal- ists” He continually refers to the “haves” and the “have-nots” and be- lieves that the average man will eat epithets and invectives when he loses his job or when the boss starts in an- other one of those 10 per cent wage reductions which made Hoover so popular with the workingmen of the Nation. What Mr. Roosevelt fails to T 8 that uniess the whole capitflafupr individualistic system is to be de- stroyed and the slate wiped clean as in Russia, he must still pay some attention to the operations of human nature. Capital is today frightened and stagnant. Mr. Roosevelt's tax system and his sporadic attacks on the business system itself without David Lawrence. providing a workable substitute have | et last coincided with the complete collapse of “pump priming” as a method of building sound prosperity. On every side the reports are coming in of more unemployment, severe re- trenchment, cancellation of orders and &l the gloomy news that made the “prosperity around the corner” slogans ©f 1930 a hallow mockery. Mr. Roose- velt talks of the hidden taxes paid by the persons of lowest incomes. He is right that this is a vicious burcen and #hould be lightened. But if he puts a few of his swivel chair economists to work in the fleld, they will find that the hidden taxes paid by the low- income groups are passed on because of the price levels forced by indis- eriminate taxes at the top or by high eosts of labor imposed by the few on the many. Indeed, the tax burden of the American people has now reached un- bearable proportions. The total cost of Government, Federal, State and ¢ity, is now around $16,000,000,000 & year. Only about $12,000,000,000 is being paid for in taxes. That's about 17 per cent of the national income. If the whole $16,000,000,000 were being ocollected in taxes, we would be paying nearly 23 per cent of our national income—a dangerous per cent, ‘When Mr. Roosevelt talks about & $100,000,000,000 national income, to r | Senator Berry Reported Wanting Nomination for Vice President. By H. R. BAUKHAGE. POLITICAL ambition unique in history has been discovered in the United States Senate—a Senator who actually wants to be Vice President. . ‘The man is George Berry of Tennessee. True the voice of this desire has been virtually drowned amid the buzzing of presidential bees and only the Senator's closest friends have heard it. But they are sure of their ears. Maj. Berry has had the urge for a long, long time, the nomination in 1924—missed by only three votes. But almost wasn't enough. As recorded in Who's Who, he refused to allow his name to be resubmitted. The vice presi= dency to him isn't & matter of a mere stepping stone. It's a goal. He is by no means insistent that the No. 1 man on the ticket be a poor insurance risk. It is doubtful if the Tennes- sean has even started to do any sounding on the matter. But that doesn’t mean he isn't optimistic over his plans. His national political climb has been pretty rapid and he is geared to the pace. He almost got * K ¥ ok . Maj. Berry missed one other nomination, but that was because of a combination of circumstances. He wanted to run for commander of the American Legion, which isn’t such a bad gateway to national promi- nence, but there was something wrong in the set-up and he was advised against it, although he had plenty of backing. He found another royal road to Washington, however—the N. R. A. Then along came labor's Nonpartisan League. John Lewis and Sidney Hillman agreed on him as the head of this unique or- ganization, which did so much to get the New Deal into its debt and then, according to Mr. Lewis, didn't receive payment. Maj. Berry was picked because it was felt he would be acceptable to both the American Federation of Labor and the Committee for In- dustrial Organization. Maj. Berry had served under the N. R. A. and, when the Blue Eagle's feathers were cleared away, he emerged with a title the length of which makes up for the brevity of his recent political career. He was named by the President “Federal co-ordinator for industrial co-operation.” Then Senator Bachman of Tennessee died, and the major was ap- pointed to succeed him. Maj. Berry assumed his seat, shortly after resigned as head of the Non- Partisan League, wound up some of his business affairs and knuckled to his job. The role he chose was conciliator, go-between for labor and the White House. Not an easy task when labor was split a mile and the “splits” between the President and Maj. Berry's erstwhile colleague, Mr. Lewis, were being announced weekly. However, the Senator stuck to his task and is now reaching for the first pages with attempts at compromise on the wages and hours bill, Maj. Berry started at the bottom and is now worth, it is reported, $3,000.000. . * ok k% The rumor that Chairman Kennedy of the Maritime Commis~ sion is going to step out of his present job and take over Secre- tary Morgenthaw’s still persists on Wall Street. Wall Street wouldn't mind the change. Mr. Kennedy has denied the aliegation and likewise that he was going to quit his present post by December 1. He planned to step out and back into private life on the first of the year. There is no indication that he has changed his plans at this writing, though it may be possible, if the scrap over his forthcoming report on the American merchant marine gets too hot, that he will merely take leave and come back to fin- ish it. Mr. Kennedy is Irish and the chances are that, if a fight is in the wind, he will not be walking in the opposite direction. .The C. I. O. is out for his scalp, at least that branch of it which is trying to organize the sailor men. The official price index—just figures to most people—is turning out to be the silver lining to the farmer’s cloud of declining commodity prices. the things the farmer has to buy are going down, t0o0. Secretary Wallace's report of these costs shows that they are continu- ing to go down. In mid-October, they stood at 128 per cent of the pre-war level. The farm-price index, now at the lowest point since June, 1936, stands at 112 per cent of pre-war level. ¥ * Kk ok Kk Dr. Townsend probably hasn’t heard about it yet, but the Government is going to make an attempt to boost old-age pensions. An amendment has been drawn up by the Social Security Board, which it hopes Congress will pass at the coming session, increasing the basic rate of benefit payments by $10 a month . This would mean that if you were to begin drawing the minimum in 1942 (which is $10 at present), you would get $20 instead. (Copyright, 1937 by the North American Newspaper Alliance, Inc.) support a $16,000,000,000 tax struc-|above $70,000,000,000. Just how the ture, he means to attain a ratio of | President can be talking about a taxes of about 16 per cent. But the | $100,000,000,000 national income when national income isn’'t going up that|it would take even at the present rate fast. It has risen about $7,000.-|of $7,000,000,000 a year another five THB 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. 000,000 a year since 1932 and the inside information from the official estimators this year is that of $70,- 000,000,000 figure for 1937 will not be increased by the usual amount in 1938, years of high-level business is difficult to understand unless Mr. Roosevelt has made up his mind to try another devaluation of the dollar as an ultimate step or is getting ready for more in fact that~we shall be luck; to get|inflationary spending. HAHN [4-POINT Shoe Bepair IT'S WISE TO WINTER-IZE YOUR SHOES THE HAHN WAY You get the services of a specialist at no extra cost when your shoes are repaired by Hahn. Our great volume enables us to maintain a complete staff of experts—each a specialist in one particular type of work. Women’s shoes are assigned to one—children’s shoes to an- other—men’s heavy shoes to a third—and so forth. Naturally, these experts know all the fine points in their special line. This, together with our factory facilities and quality materials, result in the finest calibre repair work for you. Try it and see the difference! HAHN REPAIR SHOP 14th & G Phone District 5470 or leave at any Hahn store. Izzie Makes Peace Bronx Jewish War Veteran Gains Guard of Honor to Lay Wreath on German Soldier’s Tomb. By DOROTHY THOMPSON, OWEVER you look at it, from whatever angle, the gesture of Isadore Gennett is flawless. It has the inevitability, the complete harmony between idea and expression, of a perfect work of art. It elates, it delights, it charms. It has the innocence of childhood, the genius of the innocent . adult. It is total- L ly simple and cosmically signif- icant. Isadore Gen- nett, race, Jew- ish; habitat, the Bronx; is a mem- ber of the Ameri- can Legion. When the boys went abroad this summer on a junket, he went along. He be- lieves in peace between nations and between classes. He decided to lay a wreath upon the chief war mon- ument in every capital he visited, as a memorial to the dead, and a silent rebuke to war, which killed them. Eventually he came to Berlin, and there did, with complete insouciance, what he would have done anywhere else. And with that simple gesture, he threw, for one moment, into a clear white light, the issues of peace and war, nationalism and international- ism, the civilian versus the military machine, the individual versus to- talitarianism. Not that he knew that he was doing anything of the kind. The gesture was too inspired for any- thing so conscious. Aided by Nazi Army. Consider what happened, What happened is the impossible. A com- pletely obscure Jew from the New York Bronx, entirely alone, with no organization behind him, came to Berlin, mobilized the German Army and obtained its active co-operation in a public gesture of reconciliation between Jews and their persecutors and between all men, everywhere. It is true that the army had not the re- motest idea of what it was doing. But it dit it, and the symbol of its confusion lies in Unter den Linden, upon the memorial to the dead, cheek-by-jowl with the wreath from Mussolini, its white and gold ribbon implicitly proclaiming to all who pass that the Morris Krumholtz, Post 18, of the Jewish War Veterans of Amer- ica denies the intrinsic divisions amongst nations and races and affirms the solidarity of mankind in the will for peace. Isadore Gennett laid it there—not surreptitiously. With the collabora- tion of the Nazi army! With a guard Dorothy Thempson, of honor! Solemnly, ceremoniously. With a salute. “I salute you, unknown German sol- diers! May your souls rest in peace, for the sake of the peace we all seek.” Yes, he mobilized the German Army. Only a few men, to be sure, but in them was the symbol of the whole. For to move the tiniest cog in the ma- chine is to demonstrate that it can be touched by infidel hands, and thus to challenge the whole organization and system. How did he do it? By acting in a completely normal, civilian way. He wanted to lay a wreath in tribute to the unhappy German dead. He asked permission. The permission was granted. Wreath-laying on the dead is part of the military routine between wars. Besides, he wore a uniform. To be sure it was the uniform of the Ameri- can Legion, the uniform of the de- mobilized, the habiliments of the sol- dier who has turned to normalcy. But a uniform is a uniform, apparently, to the military mind. The permission was " granted. And now the permission fitself started automatic forces. It moved the robot machine. The guards goose- stepped out. The hollow ceremonial was staged. And it was with a guard of honor that Izzie made his gesture, with which he cried aloud to the Ger- man people and to the world: Let's call off this monkey business! Let's really honor the dead! Let's all make peace. Primacy of Individual. No conceivable organization or con- spiracy, not a world-wide plot, not a trained and weaponed army, could have accomplished what Izzie Gennett of the Bronx did, quite by himself, quite alone. Not all the speeches and manifestoes and protests which have been uttered for four years now, on behalf of the persecuted German Jews, contain a rebuke so courteous, so un- answerable, as Izzie’s implicit remark: Some of our boys died, too. In an overorganized world, where ideas have validity accordng to the number of heads that can be counted marching behind them, Izzie of the Bronx asserted the primacy of the in- dividual. “No. Nobody told me to do it. I don't represent any body.” Bombs fall on Shanghai and burst in Spain. And in the midst of the tumult and the terror lies Izzie's wreath, saving until its brave ribbon fades, that this world is not becoming to those born into the great race, the only race: The human: Leave Izzie alone. Let him come back in quiet to his newsstand in Wall street. Hold back the ballyhoo. Leave mamma and the children, and Izzie's past and Izzie's future quite alone. The perfect work of art asks only reverence. (Copyright, 1937.) Mussolini Keeps Britain and France Continually Worried, Even Though They Know He Is Bluffing. By CONSTANTINE BROWN. USSOLINI is a tease. His jokes worry the French and the British considerably. If we were to believe what reliable obse. .crs say and what he himself emphasizes in every speech, I1 Duce has no intention of embarking in another bellicose enterprise, But when he sends trocps—at the rate of about 1,500 a week—to Libya; when he helps along the Arabs in the French possessions and in the British territory; when his Eari radio station pounces on the British four times a day, the Paris and the London governments do not seem to relish his sense of humor. They still “know” that he is bluffing and that he does not intend to wage war. But they are worried all the same, * ok ok X His last speech butting into the colonial business exploded like & shell among the London and the Paris diplomats. They wondered what 11 Duce had in mind. He surely claims none of the colonies which have been “mandated” by the League of Nations to France and to Great Britain, He merely asserted once more that the Berlin-Rome axis is stronger than people like to believe. He told the world that he wMl be at Hitler's elbow when and if he decides to make a strong bid for the return of the lost colonies. Il Duce must have a good time. In all this heretofore un- known international mess the leading Euroepean democratic powers warn the two dictators that they will take all kind of measures against them except fight. And Mussolini good-humoredly is send- ing representatives and delegates to all the conferences while the 3Soldiers take a direct action. It does not cost much to send a few government representatives to London or Paris or Brussels, where they just talk llke the others. But their talk does not interfere with the plans of Il Duce regarding those parts of the world which he intends to bring under the Italian crown, * K Kk The most typical example of talk versus action can be seen in the Balearic Islands. Mussolini ordered Franco last year to dispatch a force of Black Shirts to Mallorca and Iviza. Minorca was left under the Valencia government. Recently Il Duce thought he might just as well complete the occupation of those strategically important islands by adding Minorca to the other two. His plans were known to the French. Instead of doing what Mussolini had done in the past—send a French force under the Loyalist banner and occupy properly Minorca—the French talked and threatened. Il Duce asked a simple question: “By what right would you send troops into Spanish territory?” The Italian government, it was officially explained, never sent govern- ment troops to Spain. It merely helped Franco by allowing volunteers to go over. But those Black Shirts were under Franco’s orders and were fighting for Spain and against Communism, An official French expedition to Minorca would be against every rule of the international diplomatic game. And the legalistically minded French thought it over and decided that Il Duce’s point of view was correct. *oK K ok In his office in Berlin, Dr. Schacht has a poster on the wall. It says: “It is forbidden to alight while the trolley is in motion.” He has taken it from one of the many Berlin street cars which carry that warning for reckless commuters. Poor Schacht is trying to get off while the German government trolley is still in motion. He will probably succeed in doing this, but for the time being he is not allowed to follow his desire. He must wait, Hitler told him, until the car makes a stop. It won't be long, but still for the moment he cannot do as he pleases. * ok k% The Duchess of Windsor is completing her winter and spring ward- robe for her American tour under the critical eye of her husband. The Duke insists on being present every time she tries a new dress and gives his advice as to what touches the dressmaker must put on it to make 1t just right. The former Wallis Simpson has adopted as her special perfume a new production by a well-known French manufacturer, It is called “My Supreme Moment.” And What They Do Prince Teh, Budding Genghis Khan, Goes Over to lapan. By LEMUEL F. PARTON, AVING shifted back and forth in allegiance between China and Japan for seven years, Prince Teh, budding Genghis Khan of Inner Mongolia, leads his Mongol hordes over to Japan, pro- claiming Nippon the only bulwark against Communism and “the only stabilizing force in Asia.” At Kuisui, Japanese officials super- vise the birth of Mongokuo, little play- mate for Manchukuo, with an invoca- tion of Genghis Khan. It is made clear that little Mongo and Manchu Join the family of nations entirely on their own account, and with nothing more than loving friendship from Japan, which is pleased to see them break away from tyrannical China. Kuisui, the ancient Mongol-Chinese trading center, will be the eapital. Just last August, Chiang Kai-shek had a letter from Prince Teh fer- vently assuring him of his undying friendship and loyal support. Just s few days ago Mme. Chiang Kai-shek said the Japanese were trying to buy up Mongol leaders, but that Prince Teh was loyal to China. But, for the last few months, the Japunese Army has appeared to be running Mongolia and there seemed to be little doubt of the outcome, Prince Teh is the hereditary Mongol Emperor, whose Mongol name is Demchukdongrab. He is young, ag- gressive and clever, and since 1930 has been deploying armies around his borders, trying to mobilize enough strength to talk business with either Japan or China. The Nanking govern« ment recognized his rule of the crude tribal government at Chapsar. He sheltered his ragged army in felt huts and lived off the countryside. Flirt- ing with Japan, he lost the allegiance of a large section of his troops, and last December the Chinese gave his outfit a thorough drubbing at Pailing= miao. The new near-sovereign state of Mongokuo, now making its debut in a troubled world, is about the size of the State of Ohio, and is populated mainly by shaggy Mongol ponies and 3,000,000 Mongolians, also shaggy. News reports emphasize it as a buffer state between Russia’s Outer Mone golia and North China. The Japa- nese, in behalf of Prince Teh, issue a statement in which he says Mon- gokuo will “resolutely go forward and build up a great Asia.” (Copyright, 1937 Brothers Lost 46 Years. After a separation of 46 years, Mme. Anna Adam has just been accidentally reunited to her two brothers in La Gorgue, France. The three wers separated in 1891 when their mother died and Mme. Adam was placed in & public institution. She had given up all hope of finding her brothers. A new FRESH note in the Old Quartet | LL THY OTHER leading cigarette brands A sing the praises of their fine tobac- cos. So does Old Gold! No finer tobaccos grow than those used in Old Golds. 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