Evening Star Newspaper, May 3, 1940, Page 6

Big U. §. Gold Supply Is a Shock Absorber, Says Morgenthau Secretary Defends Policies; Ickes Also Addresses Institute Defending the Government’s gold policy against current criticism, Sec- retary of the Treasury Morgenthau today characterized the American dollar as the “soundest unit of cur- rency in the world.” The Secretary, in the first impor- tant public speech he has made in two years, faced the possibility of upset of the existing independent monetary system by the European war, but expressed the firm convic- tion that democracy would survive and that gold would coritinue to be used as the medium of international payments. He saw no reason for changing the present gold policy of the United States, either by stopping th: purchase of gold or by a price cut. Mr. Morgenthau addressed a large gathering of Democratic women from all parts of the country in their first National Institute of Govern- ment at the Departmental Audi- torium. Ickes Presents Claims. He followed Secretary of the In- terior Ickes, who had declared that conservation was the outstanding | domestic problem before the Amer- ican people.: Mr. Ickes reiterated a recommendation that forestry be re- turned from the Department of Ag- riculture, where it now is, to the De- partment of Interior, from which it was taken in 1905. He insisted that the name of the Department of the Interior should be the Department of Conservation, but that the Agriculture Depart- ment had objected to this change. The Democratic women, who heard the national defense policies of the Government explained last night by officials from the State, . War and Navy Departments, turned their attention further today to other domestic problems after hear- ing Mr. Morgenthau and Mr. Ickes and looked forward to a garden party at the White House this after- noon. President Roosevelt himself is scheduled to address them at 5 pm. Gold Seen as Shock Absorber. Secretary Morgenthau firmly up- held the financial policies of - the United States. Explaining that there has been an acquisition of $10,000,000,000 in gold from abroad during the last six years, the Treasury Secretary told the women, “There are somre sincere people who have been dis- turbed by stories that this coun- try has a monetary policy that threatens to cause loss to the Na- tion. If you meet such people I hope you will reassure them. You may tell them that the greatest and richest country of the world has the best and soundest mone- tary system and that there is no| reason to fear that it will not re- main sound. 5 “We can feel entirely comfort- able in the possession of a supply of gold with which we can meet fu- | ture demands on our monetary sys- tem without any shock to our econ- omy. We can be prepared also to play the part we ought to play in the reconstruction of the world that must follow the senseless destruc- tion. of war. “The American dollar is the soundest unit of currency in the world. Its value is unquestioned here at home, and it is not ques- tioned anywhere else in the world. It is the solid rock of strength and stability amid all the monetary con- fusion created by aggression and war, It is more than a domestic currency; it has become in the last few years more and more an inter- national currency. People through- out the world who are driven by disaster and fear to hoard currency prefer to hoard the currency of the United States when they can get it.” ‘Would Have U. 8. Aid Peace. In order to direct gradually the flow of gold away from the United States, the Treasury Secretary rec- ommended that the United States “do everything in our power to con- tribute to the return of peace to the world and to encourage reconstruc- tion and the restoration of normal ade. “To be sure, if the political pic- ture of the world would undergo a drastic change in the future, so that instead of 50 or 60 independent na- tions. there should exist only one or two groups, dominated by ruthless powers, then international trade and finance may assume the character of domestic trade. hTere would cease to be independent monetary systems as there would cease to be independent foreign policy. Balances between countries would be settled as balances between our States are now settled, that is, by transfers of deposits. Under such circumstances, it might well be that gold would no longer be needed. But, under those circumstances, life would be so dif- ferent that the possible loss in the value of gold would, I am sure, be the least of our troubles.” National defense and foreign pol- ey occupied the delegates last night, when these subjects were dwelt upon by Secretary of War Woodring, Sec- retary of the Navy Edison and As- sistant Secretary of State Brecken- ridge Long. ‘Woodring Asks Effective Army. Reiterating a statement he has made on several occasions before, Secretary Woodring emphasized that the United States “must have—and is determined to have—a real and an effective Army, an ‘Army in being,’ not a paper military force.” The Nation, Mr. Woodring said, *must have those defensive installa- tions adequate to serve as absolute deterrents to any aggressive designs against this land of ours. We must maintain a military establishment of that suficiency which permits us to speak—and to speak with author- \ fty—for peace. We are at peace and, in & world now dominated by the ruthless force of armed might, we are determined to remain at peace.” As for the Navy, Secretary Edison sald this branch of the Nation’s armed forces deserves and is getting the support of the American people. “The American people,” he said, “in supporting this Navy program are using traditional Yankee common sense and prudence. To do other- wise in & world aflame with unde- clared wars, violated treaties and sudden invasions of innocent, peace- ful countries, would mean, that America had changed its course— EVENING 'STAR, WASHINGTO! AT NATIONAL DEFENSE FORUM—Shown at a forum session of Pollio Is Elected President 0f Washington Lions Ralph L. Pollio, manager of the Mayflower Hotel, last night was elected president of the Washing- ton Lions Club at the organization’s annual meeting . at the Mayflow- : er. He succeeds | Floyd D. Akers, local automobile dealer. Other officers elected include Hugh V. Keiser, first vice presi- dent; Bert H. Piers, second vice president; Randolph E. Myers, secre- tary, and Verne W. Potter, treas- urer. George R. L. Pollie, Ward was re-elected “lion tamer” and Raymond B. Clifford was named for the position of “tail twister.” Mr. Pollio, Mr. Piers and Mr. My- ers were named delegates to the international convention to be held in Havana, Cuba,.in July. Retiring President Akers reviewed the civic and charitable work of the club during the last year. Dr. Guy W. Leadbetter, a past presi- dent, told of other charitable ac- tivities, particularly orthopedic work, among the adult population of Washington. Aeronautics (Continued From First Page.) had been solicited and indicated that if sufficient assurances are giv- en the Civil Aeronautics Board would retain actual independence he personally would consider the transfer acceptable. With the appointment of Assistant Secretary of Commerce J. Monroe Johnson to a vacancy on the Inter- state Commerce Commission, the possibility also arose that some one favored by the air transport indus- try, perhaps Mr. Hinckley, might be named to the Commerce Depart- ment post. ¢ Hinckley Would Keep Chairmanship | Under the suggested plan Mr, Hinckley would keep the C. A. A. chairmanship in addition to the duties of assistant secretary. He would not be burdened with cus- tomary administrative detail, but would have charge of the Weather Bureau, the Coast and Geodetic Survey and possibly the National Buresn of Standards. The same reorganization order which would put the C. A. A. in the Commerce Department also would transfer the Weather Bureau from the Agriculture Department to the | Commerce Department because of | the importance of weather forecasts | to airline operation. The Coast and Geodetic Survey aids aviation by preparing air navi- gation charts, and the Bureau of Standards is doing research on such aircraft problems as the estinguish- ment of engine fires. If Mr. Hinckley becomes Assist- ant Secretary, he would rank just under his close friend, Edward J. Noble, the Undersecretary. Mr. Noble preceded Mr. Hinckley as C. A. A. chairman, and the two share a hotel ‘apartment. cent inerease in the fleet “in order that we may keep pace with the greatly accelerated building program of other powers,” and that provi- sions also have been made for en- larged and improved shore estab- Jishments, additional aircraft and means for recruiting and trairfing necessary additional personnel. Mr. Long reminded the institute that “the primary policy of the United States is to keep out of this war in Europe. That is the policy today, and that has been the policy since the war started.” Major difficulties of many kinds may follow, he said, if war continues for long, if normal trade is further impeded by military activity, if ave- nues of commerce are continually disrupted by artificial barriers, if financial structures are more seri- ously impaired, if discontent is rife and injustice heavy-handed. ‘Would Keep Out of War. “To obviate those consequences so unpleasant to contemplate,” Mr. Long said in conclusion, “our for- eign policy is: First, to keep out of war. Second, to keep alive and pre- serve all American rights. Third, to minimize during its course the evil effects of war upon commerce and industry. And fourth, to plan with the hope that after the war conditions will be so stabilized that in peaceful pursuits, established under & broad program of trade agreements, nations will be pros- perous, peoples contented and the causes of war reduced to a mini- mum.” Miss Josephine Schain presided at last night’s forum, following which the delegates attended a re- ception in the Hall of Nations at bers of the cabinet and their wives. ‘This morning the delegates were breakfast guests of the Senators and Representatives from their home States. The Wisconsin delegation, however, found itself in the predica- ment of not having a Democratic member of Congress to stake them to bacon and eggs. This problem was solved when Arthur J. Altmeyer, that the American people had . changed their character.” Mr. Edison pointed out that Oon- chairman of the Social Security Board, volunteered to play host to the women from the Badger State— ‘which is also his own. the Washington Hotel to meet mem- | pe, the National Institute of Government yesterday are, left to right, Mrs. Harry H. Woodring, whose husband, the Secretary of War, Hatch Bill (Continued From First Page.) D, C, FRIDAY, spoke; Miss Josephine Schain, presiding officer; Secretary of the Navy Charles Edison and Assistant Secretary of State Breckin- ridge Long, both speakers. Labor Board (Continued From First Page.) the likellhood of early adjourn- ment.” The alternatives are: To ask the Judiciary Committee to reconsider the secret vote. To ask the Rules Committee to bring out the bill. ‘When the bill was going through the Senate, the Republicans sup- ported it solidly, and a substantial number of the 167 G. O. P. mem- bers in the House is expected to back the measure. Mr. Dempsey predicted about half of the Democrats in the House would sign his petition, but some observers at the Capitol took the view that the bill would not muster as much strength on the discharge petition as it would on a record vote in the House. Obtaining the floor in the House yesterday afternoon, Mr. Dempsey brought the subject back into the limelight when he told his col- leagues: “Mr. Speaker, great confusion exists with reference to the vote of the Judiciary Committee on yester- day. The report in the newspapers states there were 14 votes to table the Hatch amendments and 10 against tabling. Since that time the members of the committee have largely made it known how they voted, as I understand was their privilege. Some 14 have declared to the press and to me that they voted not to table. I know the members of the Judiciary Committee. They are men of great ability and in- tegrity. Certainly I would not ques- tion any of them, but I wonder if an honest mistake was probably not made by the tellers, and if it would be in order to have a recapitulation of the vote?” Purpose of Bill. ‘The bill is designed primarily to prevent thousands of State employes who receive part of their pay out of Federal funds from taking active part in political campaigns, a ban already imposed on Federal em- ployes by the original Hatch Act. A large bloc of Democrats fought the bill in the Senate on the ground that it tied the hands of those on public pay rolls, while leaving out- siders who may be aspirants for Government jobs to campaign actively. These opponents had the bill amended to place a $5,000 limit on the amount any individual could contribute to a political campaign, but it did not slow up passage of the bill in the Senate. The House Subcommittee that recommended the bill to the Judi- ciary Committee several weeks ago went a step further and placed a $3,000,000 limit on the amount that could be spent by any one Cam- paign Committee, Goose Creek Valley Hike ‘The Capital Hiking Club will take an 8-mile trek Sunday through Goose Creek Valley, near Leesburg, Va, it was announced today. Hik- ers will leave, by special bus, at 9 am. from 1416 F street NW. B. F. Rogers will lead the party. Athens (Continued From First Page.) by her owners to return empty to England. Two other British vessels, the Llandovery Castle and the Switzer- land, were reported to have sailed from Genoa, and still another, the Baltara, was ready to leave. Vessels of the Italian Lines con- tinued on schedule, the Vulcania leaving Genoa for South America and the Roma making preparations to sail tomorrow for New York. . Ethiopian War Move Recalled. ‘While the motive behind the re- inforcement of the allied warships in the Mediterranean was being weighed, some Fascists compared the move to the ineffective dispatch of the British home fleet to the Mediterranean during the Ethiopian war. They said they believed the new action is only a demonstration intended to influence Italian policy. But Italians attributed greater importance to the German victories in Norway than to symptoms that war may be drawing near Italian shores. Authoritative Italians displayed an apparent complete indifference. “Let’s wait and see whai they're going to do,” one of them said, adding: “We don't care any way.” 1,200,000 Italians Under Arms. In Italy there is no external evi- dence of final preparations for war. Construction of anti-aircraft shel- ters and preparations for blackouts, which took place in all Italian cities last fall, have not been resumed. On the other hand, basic war Hawaiian Suger Planters’ Associ- ation. “While the Governor of the Terri- tory is appointed by the President, he also is subject fo domination by the ‘big five’” ‘The Governor's appointment, Mr. Eagen said, “was alleged to have been secured by Frank E. Thomp- son,” attorney for the Matson Navi- gation Co, and the N. L. R. B. official added that “it is generally rumored that Thompson makes the selections for the Governor’s ap- pointments.” “The Governor,” Mr. Eagen as- serted, “pays lip service to Congress and the President.” Mr. Thompson also was “alleged to have secured the appointment of most of those persons in the island holding judicial positions,” and Mr. Eagen wrote: ‘He is reported to have a blackmail system which keeps these men under control.” Federal district judges, the re- port said, “do not seem to be quite so much under the control of the | ‘big five, although their sympa- | thies are contrary to those of the Democratic party.” Some workers on Hawalian sugar plantations, Mr. Eagen reported, worked as high as 90 hours a week, and some wages had been as low as 9 cents an hour. The base pay for plantation workers, he said, still was $1 a day. Plans to Question Smith. Mr. Toland planned to question Mr. Smith further today regarding his contracts with Harry Bridges, West Coast C. I. O. leader. ‘The House group learned yester- day afternoon that Mr. Bridges, in correspondence with Mr. Smith suggested the board send a “strong” representative to Hawail to handle labor disputes on the islands and discussed with candor alleged shortcomings of the San Francisco regional office of the N. L. R. B, although indorsing its new director. A reply from Mr. Smith indicated sympathetic interest in the problems | posed by Mr. Bridges. preparations have been going on steadily for several months. There are approximately 1,200,000 men un- der arms, and although there have been many rumors of the calling up of additional contingents these have not been confirmed. ‘The arms industry has been work- ing at top speed, and the demoli- tion of iron fences to provide ad- ditional raw material already has gun. Laws have been enacted to pro- vide for immediate civilian mob- ilization upon Italy’s entrance into war. Haas Bros. 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