The Key West Citizen Newspaper, March 28, 1938, Page 3

ae el ee ee, ke ee MONDAY, MARCH 28, By HUGO S. SIMS. Special Washington ¢ Correspondent of The Citizen Deficit Cut Of Billion Is Indicated As Tax Collections Surprise Treasury The Federal Government's bud- get is $1,000,000,000 nearer bal- anced in the fiscal year that ends June 30th than it was in the last fiscal year. During the first nine months of the present year about $700,000,000 was borrowed as compared to more than $1,700,- 000,000 in the same period of the preceding year. Another en- couraging factor is the increased income tax payments by corpora- tions and individuals in March, with receipts exceeding those of last March by $100,000,000. The increased revenue from taxes on income reflect larger earnings by individuals and cor- porations during the year 1937. Even with the slump that occur- red in the final three months of the last year, 1937 was a profit- able year for business although business generally is in the midst of a defeatist psychology on ac- count of present conditions. Ex- perts attribute part of the increas- ed revenues to legislation, closing loopholes which heretofore per- mitted large sums to escape the Treasury. The tax on undistri- buted earnings of corporations undoubtedly forced | dividends, which increased individual in- come tax payments. The improved condition of the Treasury is not due to reduced expenditures but almost solely to enlarged revenues. For the first three-quarters of the present fis- cal year, expenditures totalled about the same as during the pre- ceding year when they were al- most exactly $5,500,000,000. The reader should note, however, that the total of expenditures for the present year includes a large amount belonging to the old age reserve accounts. The Treasury used the money that came from payroll taxes, paying the fund three percent interest, and the amount was charged as an ex- penditure because of the debt cre- ated. In fact, however, nearly the entire $700,000,000 deficit of the Government is represented by the dollars borrowed from the old age savings. Viewed in another light, the Government, in nine months, has taken in taxes almost as many dollars as it has distributed in ex- penditures. In other words, for the first time in nearly eight years, the Treasury operations created no net “purchasing pow- er”. In view of the economic structure’ of the nation in recent years, the cessation of govern- mental priming is genesally, con- sidered a major factor in the pres- ent recession. In the opiniens 6f some officials and many experts, the failure of private business to replace Government spending made a recession inevitable and the business slump will probably continue until the Government re- sumes its pump-priming or busi- ness takes up the slack by capital investments. Early Solution Of Railroad Problem Vital To Nation’s Economic Recovery The plight of the railroads of the nation involves the welfare of banks and insurance compan- ies which have invested heavily in the Sevurifies 6f.'the ‘carriers. In fact, certain railroads of the nation have seemed to be mere ing crisis was to the nation in 1933. Unless something is done, officials fear that the business slump will be aggravated. With widespread insolvency and other companies facing difficulties, pos- itive action is necessary if the in- _ dustry, which employs a million hardly true of all carriers and. the fact remains that most. 6f them carry insuperable financial bur-» dens. That some.solution of the problem. is vital to the nation's economi¢ welfare is generally realized. but no easy manoeuvres i will be effective. elt recently committee” in an apparent “to avoid anything like Government owner- ship or control at this time. How- eyer, it is generally recognized that the situation demands an au- thority with power to force sweeping reorganization of the entire railroad industry. About five years ago, the railroads in a statement addressed “To the American People”, pleaded a re- duction of competitive waste. Somewhere along the line, some- thing interferred with the results anticipated. The railroad crisis is to the present recession what the bank-’ epresents a big slice of na- tional investment and looms large in our economic setup, is to sur- vive. T&e plight may ve empha- sized when one realizes that three and a half billion dollars of the thirteen and a half billion dollar- first-lien railroad bonds are now in default. The President is concerned about the men who will lose jobs by reason of economies effected. It is estimated that enforced con- solidations might save $250,000,- 000 a year but that about seventy cents of every dollar saved would be at the expense of labor. Con- sequently, Mr. Roosevelt argues that the Government will have to take care of the men displaced until they can get other work or new railroad jobs through subse- quent expansion and plant im- provements. Studies show that almost one-half of the roads lost money last year, and that receiv- | erships were operating thirty per- cent of the nation’s direct mile- age. Hull Says Nation Cannot Surrender Principles And Hope To Gain Peace ‘The foreign policy of the U the United States to’ States is somewhat puzzli t < “werld clash Americans, as well as to foreign= ing itimest that ers. The sentiment for peace at any price, the fear of entangling alliances and the belief that it is this ‘nation is inevitably involved in the affairs of the world and that its prospects for peace will be = PIFIIPCCLLLLLL Le a Good Only! you'll be «. IAA AAA dA hbk diddhahi dadad, dadkd Impressions —that's the rule at our shop .. . and at the low price! The Artman Press Printing — Engraving IN THE CITIZEN BUILDING PHONE 51 (L2Q¢dAdtdbLAAAAALAALALL A Ks % N N) surprised ALAA LLALALALAAL A enhanced by intelligent participa- tion in world affairs. Secretary of State Cordell Hull recently attempted to outline the principles guiding this nation in its relations with other powers. He insisted that “we are fully de- termined to avoid the extremes either of internationalism or of isolationism”. It is not possible; to fully state the argument of the | Secretary’s seven-thousand-word address but it is worth noting’that he expressed devouon to the = cause of peace, the sanctity off treaty obligations, our deep con- cern over the rising tide of law- léssness and the necessity for every nation to accept and ob- serve the principles upon which international law and order are based. Mr. Hull urges each nation to to assist in promoting the econom- ic security and stability the world over. He declared that the Gov- ernment would follow its policy of affording protection “by -ap- propriate meats and under the rule of reason”, to its nationals and their rights and interests abroad. “To waive these rights in the face of threats”, he said, “would encourgae the disregard of law” and “contribute to an inevitable spread of international anarchy”. He backed the adequate defense program because to do less “would lay our country open to unpre- dictable hazards”. He defended the exchange of information with governments facing common problems and maintained that for peace-seeking nations to remain completely aloof from each other would mean the encouragement of nations lawlessly inclined. He defined “the one objective of our entire foreign policy” as “the establishment of durable peace” and held that our most ef- fective contribution in the face of present tragic conditions is to have “this country respected throughout the world for integri- ty, justice, good-will, strength and unswerving loyalty to principles”. He opposed measures intended to keep us out of war which were in complete disregard of experience and practicability. To “withdraw precipitately from any part of the world in which violators of international decenies chose to assert’ them- selves” would involve the surren- der of fundamental principles which must be the basis of inter- national order as opposed to inter- national anarchy. Support of these principles are more fundamental. he declared, than the protection if citizens and trade investments in particular areas. The momentous question “is whether the doctrine of force shall become enthroned once more and bring in its wake inex- orably international anarchy and a relapse into barbarism?” The alternative is for this and other Peaceful nations to work unceas- ingly—singly or in cooperation with each other, as circumstances, their traditional policies, practices and their enlightened self-interest may dictate—to promote and pre- serve law, order, morality and justice as the unshakeable basis THE KEY WEST CITIZEN Bondsman Makes Good —But Rather Late (My Associated Press) DENVER, March 28.—For 12 years Hal D. Van Gilder, bonds- man, tracked a fugitive who jumped a $10,000 bond which Van Gilder had to forfeit. Finally, in Reno, Nev., Van Gil der “got his man”, a former de- OPERA TO HELP GERMANS C¢ CONSERVE (My Axsociated Press) BERLIN, March 28.—Puccini's opera, “La Boheme”, is being used to aid in Germany’s self-suf- ficiency campaign. In movie houses throughout the Reich a propaganda strip is running which has for its motif }fendant in a Denver —“bunes"=zhe scene between Mareril, the | game case. and returned tim te: Deever- = Taf bondsman: proudly broughi_$ his Prisoner before police andcity fand county officials. “Now, I want my $10,500: bond returned”, said Van Giider.~ Authorities decided=feo Ipng a period had elapsed and declined to pay. Van Gilder filed suit to collect it. Chicago Schools Teach “How To Swing It” (My Associated Press) CHICAGO, March 28.—Chicago public school authorities have de- cided to include dancing in the high school curriculum 2: a means of making the boys and girls more sociable. Superintendent William H. Johnson issued .a bulletin saying the instruction ‘should develop the social grates até destroy self-con- SCIOUSNECSS. 6159q The lessons start with pupils paired into couples marching to music. Next come the simple dance steps and instruction in etiquette. dramatic works of Ben Jonson’s rank second only to those Shakespeare. of civilized tions”. internaticnal rela- To turn our backs on the prob- lems of the world would mean an abject retreat before those forces which we have, throughout our own nationa lhistory, consistent- ly opposed. It would mean the menace of our security “in pro- portion as other nations came to believe that, either through fear or unwillingness, we did not in- tend to afford protection to our legitimate national interests abroad, but, on the contrary, in- tended to abandon them at the first sign of danger”. This would mean the abandon- ment of economic, cultural, intel- lectual and other international re- lationships, the development of a self-contained existence, with less production at higher cost, lower living standards, regimentation in every phase of life, economic dis- tress to wage earners and farmers, and the dole on an ever-increas- ing scale. This would be the re- sult of an attempt to isolate our- selves to avoid war when reason and experience definitely point to a conclusion that “we cannot withdraw from the world itself”. It’s Deliciously Fresh! — TRY IT TODAY — STAR * BRAND CUBAN COFFEE ON SALE AT ALL GROCERS OVERSEAS TRANSPORTATION CO., INC. Fast, Dependable Freight and Express Service —between— MIAMI and KEY WEST Also Serving All Points on Florida Keys between MIAMI AND KEY WEST Four round trips weekly direct between Miami and Key West via Diesel Power Boats—with over- night delivery to Key West. Leave Miami at 12:00 o'clock noon on Mon- day, Tuesday, Thursday and Friday! | Leave Key West at 8:00 o’tlock Pi M. dni Tuesday, W: Sunday. ; i H Daily service (ex Boats between Miami y, Saturday and « ppt Sunday) via Tracks and Key West, se-vimg all in- termediate points on Florida Keys. Northbound, leaves Key West 7:00 a. m. Southbound, leaves Miami 7:00 a. m. Free Pick-Up and Delivery Service Full Cargo Insurance Office: 813 Caroline St. =Painter, and-Rudolf, the writer, n-thése twe “roommates are trying to heat their cold studio. Rudolf has just thrown his un- published mnatscripts into the fire with the words, “Tis a heavy loss for this.century”, when a new figure, unknown to Puccini, bobs up It is an agent of Goering’s Four Year Plan. “Gentlemen”, he exclaims, “just imagine if everybody were to act in so senseless a manner! Millions worth of scrapped paper would go up in smoke”. It Is This custom of police combing the country unavailingly for crim- s suggests that there must be manatee the matter with the comb.—Wichita Eagle. ABOUT WOMEN cf The world-wide aad moblog activ- ities of her husband have been depicted by Mrs. Theodore Roose- velt, Jr in needlework, which was recently exhibited in New York. Mrs. Charlotte A. Kankin of Washington, D. C., is an author- ity on the work and history of, the Supreme Court She went abroad recently for the Ameri- can Association of University Women to study the courts and legal ways of Europe. i Every Sunday for 28 at Miss Margaret Morris, 8, of} Cadiz, O.. has walked to church: and back, a distance of eight; miles. Once every year she walks to Deersville, O., 14 miles away, to visit her relatives. President defines defense policy of the navy for a fleet able to guard both of the coasts. 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