New Britain Herald Newspaper, June 16, 1921, Page 10

Jmeric:ansfllust./lwalrtow By FRANCIS H. S8ISSON, Boe President Guaranty Trust Company of New York. HE fact that we Americans bave not awakened to the complete meaning of our new place in world affalrs ind of the reactions here of inter- sational ecomomic forces is made evident on every hand. Only very recently, for Instance, farmer or- ganizations petitioned the President and the Interstate Commerce Com- mission to readjust ratiroad rates to pre-war basis and théy have brought pressure to bear on Congress to pass &n emergency tariff. The farmers have also sought the President’s ald for a general decrease in Federal Reserve Bank rediscount rates based on farm commodities and a large Increase In Federal Reserve notes. A bill bas been Introduced In the house of representatives proposing to lUmit the Interest chargeable by the Federal Reserve banks. Or ganized labor is seeking to maintain war-nflated wages and special privileges, seemingly unconscious of the fact that the International po- litical and economie forces which made those wages and privileges possible have been replaced by equally irresistible forces of defla- tion. While we have made many {mpor- tant readjustments since the peak of inflation ln May of last year, we have not accomplished the most im- portant of all — mental readjust- ment to the stubborn and inescapa- ble facts in the case. Rall rates are unquestionably too high In instances, not only for the welfare of business generally, but also for the best Interests of the rallroads themselves. There they should be reduced. But the farm- ers and business men who are clam- oring for a general readjustment of these rates to a prewar basis should realize that they are de- manding drastic action on the part of the Interstate Commerce Com- mission which would mean financial disaster to the rallroads and event- ually to the commerce of the country. It should be evident to all that to reduce rates without first reducing rallroad operating costs would be calamitous. Operating costd, how- ever, cannot be greatly lowered #o loag as 63 per cent of raliroad revenue !s absorbed In wages, as contrasted with only 43 per cent In 1917. 8o, In the final analysis the farmers’ quarrel is not with the raliroad managements but with or- ganized rallroad labor, which is op- posing a reduction In the largest Item of operating cost and thereby penalizing the farmer and all other prodmcing Interests In the country. At the level established by the In- creased wage award of 1920 rall- road wages represented an Increase of 180 per cent over 1915, while the cost of living, as estimated by the National Industrial Conference Board, was only 80 per cent. above the cost of living figure for 1915. The annual return on railroad In- vestment for the last eleven years proves that the railroads did not profiteer during the war and after-war periods. On the contrary, thelr return steadily declined, while the earnings of railroad employees were mounting by no less than two blllion dollars In three years. This Increase In payroll was to compen- sate for the Increase In the cost of living. But the rallroad Investor was not only compensated In the same depreciated dollar that the workingman found to be worth only fifty cents in purchasing power, but the Investor recelved fewer dollars. Rallroad dividends declined from an aggregate of three bundred and twenty million dollars in 1917 to two hundred and seventy-eight mil- lion dollars in 1920. uring that period rallroad wages, however, in- creased from one billion seven hun- dred and thirty-nine million dollars to three billion sixty million dollars. The throwing up.of tariff barfiers for_ which the farmers plead will, in the end, pot only, fail to accomplish its purpose—the bettering of the farmers’ condition—but will do the very opposite. And the crux of this misconception lles in the failure of the advocates of the Emergency Tariff Bill to realize that this coun- try has been transformed from a debtor to the leading creditor na- tion of the world. - - . . Actual relief of the present con- dition can come only through the creation of new markets and out- lets for the products of the farmer and not by artificially increasing the prices of goods -entering into domestic consumption. This result can be accomplished best by open- ing up our foreign markets to take over our surplus supplies. The fu- ture prosperity of the country de- pends largely upon our activities in foreign fields of commerce, and a policy so archalc and provincial as to shut off our commercial Inter- course with the world cannot rem- edy the - unfavorable conditions agalinst which we are now fighting. A systematic campaign to bring about lower Federal Reserve dis- count rates and to increase the vol- vme of our currency has been launched. * The specific objectives sought are a general decrease in re- discount rates based on farm com- moditles from 7 to 6 per cent and an increase of one and three-quar- ter billion dollars in Federal Re- serve Notes. There has also been referred to the House Committee on Banking a bill"which would limit the interest chargeable by the Federal Reserve Banks to 5 per cent per annum. Wholly aside from the question ther paper based on farm of commodities merits a preferential rediscount rate, the fundamental mistake lies In the effort to bring political pressure to: bear on the Federal Reserve which should be as free from such consid- erations as the United States .Su- preme Court. The policies of the Federal Reserve Board must be de- termined by the economic factors alone. The passage of the bil which proposes to limit interest rates of the Federal Reserve Banks would automatically revive currency infla- tion and deprive the Federal Re- serve Banks of all power they now possess for controlling inflation. The inevitable result would be to recreate conditions which could pre- cipitate money panics, one of the cnief things the Federal Reserve System was designed to prevent. After passing through the throes of monetary Inflation and its resuit- ant vicious circle of ever soaring prices and costs the country’s ac- tual circulating medium was de- creased only one hundred and twen- ty-five million two hundred and ninety-two ‘thousand dollars be- tween April 1, 1920, and the corre- sponding date ef this year. To add one and three-quarter billion dol- lars to Federal Reserve Notes would not relieve the financial con- dition of the farmer or business man, but, on the contrary, would Jeopardize it even more through re- viving cutrency inflation and all its atterrdant evils. More productivity and more thrift, not more Inflatlon, |. are demanded in‘this country today. We must not take a backward step. We must go.on with the nec-. essary readjustments until they, have been combpleted. We cannot have stabilized conditions other--j wise. Our farmers must remember that, while they bave borne : the brunt of deflated- prices so, fap— and the average price paid to the producers of the principal erops in this country on April 1 was 58 per cent lower than a year ago—tha’ forthcoming crop will be raised | cheaper than the last by about 25! 4 per cent. The supply of farm labor in April was 95 per cent normal as compared with 72 per cent in April, 1920, and 84 per cent in April, 1919, | and wages are from 25 to 85 pc{ cent less than last year. In the end the farmer will profit most by not seeking to increase tha price of his products by artificial means and economically unsound devices, but by exerting his powers to effect a readjustment. of com- modity prices and production costs to a fair, stabilized basis. His trou- ble today is chiefly mnladjustme.nt, and the solution of the problem’ is balanced readjustment. The farmer' - has most to gain finally by produc- ing as much primary wealth as his land will yleld. Prosperity is essen- tially based on production. 2t And if the period of deflation through which we are passing has taught our business men anything . it should have impressed iipon, them the absolute necessity for adequate financial reserve to take care of tha ., “lean” years that follow the ‘“fat® years. ' Many- business Interests have depended too much on tha banks in the last year to meet ex- ceptional situations because thosa interests did not have foresight to create sufficient surplus for just such exigencles as occurred and were long foreshadowed. We must also understand the ne- | cessity that rests upon all of us to work out our salvation on a basis of values. Our principal dificulty is that all of us have not visualized that cardinal fact. : ] But, after all, the enactment of emergency tariff legislation, the changing of taxes, the return to in- flation, the reduction of raflroad rates and other similar measures advocated today as panaceas of our: economic ills cannot solve our.;prob- lem. They could not materially bet- - ter domestic conditions even were all of them' sound and safe—which they are not—because the ‘real rea+ son for our present depression lies in International economic paralysls., ” Our task, therefore, 18 to help speed world stabilization, and the .sooner .. we appreciate the duty as well as . opportunity the quicker will we dis- sipate the depression that retards . business activities in this country. We must ald far more than we have in putting Europe back 1@ bill paid by the comptroller to Dr. J. R. Harris, amounting to $98, the body unanimously voted to recon~ sider the action following: a claim that it was linked directly with the Pierce bill. Alderman Paonessa asked the mayor to explain what the bill was for, but the executive refused to do so. No one elsé being in a po- sition to explain the matter, it was by negessity dropped.. The. mayor afterward explained that Lawyer- Pierce was hired by himself and Dr. Harris, receiving a retainer of $100. The mayor A ad- vanceq the money and Dr. Harris afterward paid him. When Dr. Har- ris was leaving the city, the comp- troller discounted the bill, giving the doctor $98. Approval was given coal contracts sent in hy the charity board. The Iprinling codtracts for parking ordi- |nances were given Thomas H. Kehoe and the Eastern Weekly Publishing company. A comptroller's order for $9,000 to pay interest on City Hall bonds, was authorized. A petition of Mrs. Mary Brewin for damages as g result of a fall May 27, at 138 Oak street, was re- ferred. to the claims committee. Why Not Try This? If u Pile sufferer don't become desponden: — try Hem-Roid — no greasy salves*-—no cutting—a harmless internal - tablet remedy that is guar- anteed- to - quickly banish all misery favored payment were: Aldermen Wells, Gill and Gilpatric and Coun- cilmen Rice, Hart, Morey, Towers, Parker, Crusberg, Wall, Weld, Porter, Timbrell, McKirdy, Carlson, Peterson, Mylnarski, Walrath, Knowles, Korytko, King and Dunn. On the bill of Lewis Sperry for $250 for legal services in.connection with the Taxpayers' injunction suit, Alder- man Gilpatric moved for its payment. Alderman Paonessa moved an amend- ment for its rejection.. Arguyments similar to those in the Goodrich case were advanced pro and con. The corporatidn counsel.did not ask for an assistant in the injunction trial, the mayor informed the council. The bill was ordered paid. : Supt. Would Prosecute. . The electrical superintendent asked- the council to act on his report- that A. M. Horenstein had not complied with orders relative to wiring in his Main street place of business. The matter was referred to the prosecut- ing attorney. A complete report was presented by the board ‘of assessors on the'rate- book for street sprinkling. Alderman Gilpatric’s motion for the approval of the rate book was approved. Fifth Warders Peeved. Discussing the report of the police board that a traffic policeman haa been detailed for the corner of Broad and Grove streets, Alderman Pajew- ski said he had not yet seen the po- liceman on duty. Other Fifth ward members, Councilmen Mlynarski and ‘Walrath joined a.‘crabfest” in which the police board was scored for var- ous alleged indifferences. sonal interests were jeopardized and he, personally, hired the attorney. He questioned that Lawyer Pierce at the time he was engaged thought he was working for the city. He asked the members of the council to refuse to pay for what they were already pay- ing Judge Kirkham. Taking the floor after the mayor had pronounéed the alderman in er- ror as to who had hired the lawyer, Alderman Paonessa reiterated that Dr. Harris had hired. the attorney. Gill for Kirkham Alderman George Wells and F. Rymond Gilpatric spoke in favor of payment of the bill. Alderman J. F. Gill felt the case a most important one which, had Judge Kirkham lost it, might have cost the city thous- ands of dollars He complimented .Judxe Kirkham on his legal ability. Mayor Takes Floor. Mayor Curtis left the rostrum, plac- ing Councilman Michael Kerwin in the chair. He charged the alderman with making misstatements. Mr. Plerce, he 'said, was engaged because Judge Kirkham was not acquainted . With the facts, being a new man in office. The ‘original bill of $100 was ;cut to $50 because the lawver founa it necessary to come here but once. Alderman Gilpatric moved for the acceptance of the bill and Alderman Paonessa amended to refer it to the corporation counsel. The alderman from the sixth called for a yea and nay vote. How the Vote Stood. The following voted against the payment of the bill: Aldermen Pa- jewski and Paonessa, Councilmen Kerwin and McCormick. Those who <y No Coffee Pot Waste — If you use G. Washington’s Coffee! of costs nothing. Clark & Brainerd Co. Ea_ch cup is made to order at the table. No coffee pot needed. Dissolves instantly. Itis e:tunaged that twenty-five per cent. of all bean coffee made is wasted. Eachcan of G. Washington’s Coffee is equivalent to ten times its weight in roasted bean coffee. Measure the cost by the cup—not by the size of thecan | § |} Always delicious, healthful and economical. Recipe booklet free. ORIGINATED BY MR: WASHINGTON' IN 1909 would be called upon to do and In fact, the best car for fire department work to be bought within our appro- | ) WRANGLE GOES priation. Inasmuch as our judgment is unchanged we are disinclined to recommend any other car. However, this board feels that some car should be at the disposition of the chief and inasmuch as our appropriation has apparently shrunk to $2,500, we sug- gest the purchase of a Buick touring car at a price of $1,885 as per the attached contract. “Without disparagement in the least to the Buick and all othgr cars of its class we do not advise this ac- tion on any other basis whatsoever except expediency. If we are to be allowed to expend but $2,500 the Buick will probably compare favor- ably with any other car of approxi- mately the same pric May Ask for Alderman Paonessa, being the mov- er of the motion, will, undoubtedly, be named a member of the commit- tee of five. He has at various times since the discussion over a chief's car arose, advanced the suggestion that the health department’s Paige car be transferred to the fire board thus relieving the health department of an arti¢le for which it cannot find a market, and at the same time pro- viding a car for the chief. It is ex- pected that he will use his influence to have the committee accept that plan. Select Car for Fire Chiel— Common Council Doings —_— resolution of Alderman A. M that the mayor be empow- to appuint a commission of five b with power to act in pro- & car for the chief of the fire tment, was supported at last 's common council meeting. The ittee will be named by the may- once so that its business may pedited. The fire commission xplained that a car of some de- on is needed sorely. .\ com- pation was raceived from the relative to the action of the i in throwing down its recom- on for a Marmon car and the board for a recommenda- hecessitating the expenditure of balf the cost of the Marmon ommendation was flatly refused commission “advised” the of & Buick. Fire Board Reports. message i3 a3 follows: May 18th, the recommendation board of fire commissioners for urchase of a Marmon touring r the use of the chief ergineer cetved by vour honorable body 'erred back to this board with jctions not to exceed $2,600 on rchase of a chlef's car. This ng action on your part waa pepted by this board with pleas- d equanimity for obvious rea- At the time our budge: was led an item for $4,500 was in- as a special (and the ouly one) ? the cost of what wo consid- a suitable automoblle for the The chairman of this board appearance before tha board ce and taxation, In explana- this item, stated that in the ent of hia board it would bae ive economy to purchase a car t character of work at & much fignre than that included in the The finance board was heart- accord with the opinion cf the pard and when subsequently the fi budget with the estimate for chief's car uncut, was present. lyour honorable body it was ac- “in proto,' without, to my dge, a dissenting vote. No de- rose over the inclusion of this I appropriation, not an argu advanced against the polic hasing a so-called expensive —and here is candy satisfaction! 40 crisp, pure & sugar wafers of many delicious flavors in every . nickel roll. They're great? Good for litdle: tits? New England Confectionery CO. Over 73 Yedrs of Successful Candy Making 'VEDGES o/ JUICY RIPE | PINEAPPLE IMBEDDED Goodrich Seeks Damages. » Following the reading of a petition by Charles W. Goodrich for damages of $489 representing expenses in- curred in connection with the death ot his wife, Alderman F. R. Gilpatric moved that he be given leave to with- draw. Alderman A. M. Paonessa felt that the matter should go to the claims committee. Mayor O. F. Curtis ex- pressed himself as of the opinion that such action would be a reflection upon the work of tlle committee that sat In tho case. Alderman John F. Gill reiterated a previous statement that he feit Dr. J. R. Harris was partly to blame for the death, as was set forth by the peti- tioner. He amended the Gilpatric motion to have the claims committee act in the matter. On a standing vote the amendment was carried, 12 to 11. Bond Issues Ratified. A report of the finance and taxa- tion board was presented, recom- mending the issue of sewer bonds to the amount of $175,000, street bonds to the amount of $100,000 and ‘notes of the City of New Britain to the amount of $30,000, the latter to pay for the construction of a comfort sta- tion. Separate resolutions were offered in each of the three groups to refer the matters to the city meeting board. Each was unanimously carried. Bills to the amount of $60.982.61 were approved and ordered paid. The bills were itemized as follows: In-. $1,050.24; public works, board, $1,166.52; charity board, .260.84; water board, $3,603.60. ‘Inter Urban Transfer and Storag We make s Specialty of Packing, Crating and Shipping Household Goode. 0 cquipment is the best in this section, and our men are Experts. We unload the from our trucks In just as good condition as when they are put on, whether . they ; delivered within a few miles or a few huncred miles. by When desired, eve take full charge of Packing, Crating and Shipping. Rallway or by Truck. When moving, either Local or Long Distance, let us serve yéu OFFICE, 167 1.2 MAIN ST. Rear Dickinson Drug Store, New Britaim. Either Quick Results---Herald Classified Ad FOR RENT Entire floor 90x50 feet, with power, and water connections, suitable for light manufacturing or storage. pade- Inquire at Send 10c for special trial size. MADE INTHE CUP the theory then that the com- AT.THE TABLE ouncil and the board of fire| rs were one in believieg hase of a car of a type lar to the Marmon was