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January 19, 1934     Mouse River Journal
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January 19, 1934
 

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MOUSE RIVER FARMERS PRESS News Review of Current Events the World Over Pres|Jent Roosevelt Tells Congress and Nation the New Deal Must Be Permanent--Russian Ambassador Presents His Credentials. By EDWARD W. PICKARD JUffP Roosevelt to- what President tends to do and what he wants congress to do was not revealed in any detail in the message which he read before a Joint session of senate and house at the opening of the regular ses- sion. However, It was an excellent speech, addressed to the na- tion rather than to the congress and heard over the ra- dio hy millions of his fellow countrymen who should be en- President Roosevelt couraged by his gen- eral statement of Drogress made by tim recovery admin- istration and all the allled collect]v- 1~ institutions. In plain, forceful language, Mr. ]Roosevelt declared that the old meth- Ods have gone into the discard and that the new social and economic or- der upon the lines laid down by tile the Soviet has with various European nations. Mr. Bullltt, of course, reported di- rectly to the President and also pro- ceeded to organize hls embassy staff and to discuss Russian affairs with Acting Secretary of State William Phillips. He sald he hoped to start back to Moscow by February 1. Of Troyanovsky he said: "He is a swell fellow. You'll all like him." JAMES L. DONNELLY, executive vice president of tim Illinois Manu- facturers' association, voices an opin. ion that is held by many who have hesitated to express It publicly. He asserts that the objectives of the Pres- ident's recovery program are in dan- ger of being defeated by tim activities of leaders of organized labor. "An examination of the record of organized labor since the adoption of' the recovery program," he says, "indi- cates that its contribution has been definitely negative; that the policy of organized labor has reflected the self- BY A 5 to 4 vote the United States Supreme court sustained the con- stitutionality of the Minnesota emer- gency mortgage moratorium law which provides that, during the emergency declared to exist, courts might step in to halt or delay real estate mortgage sales and extend periods of redemp- tion. This was held to foreshadow the probable stand of the court when oth- er New Deal measures come up be- fore It. In another opinion the Supreme court held that Blshop James Cannon, Jr., and Miss Ads Burroughs, his sec- retary, must stand trial for conspiracy to violate the federal corrupt practices act during the campaign of 1928. iN HIS efforts to save New York city A from I~ankruptcy Mayor Fierello H. La Guardia asked the state legisla- ture to pass a bill that would give him full control of the city's finances. But he ran into a snag at once, for Governor Lehman In n stinging letter told the mayor he would never ap- prove such a measure whlch, he declared, 0 l~at'onal TopicbyIn~r~l:::druc Washlngton.--Whtle all of us are ~'onderlng whether the new year upon which we so recent- Seea Great lyembarked will see WarTh~sYear an end to the mis- ery and suffering wrought by the depression; wondering whether tile President's program for Jpendlng our way out of the depres- lion Is going to work; wondering whether our countless domestic prob- lems can be solved--I believe most of ns have been overlooking a grave dan- ger tlmt appears now to he rushing headlong at us. At the risk of being Jingoistic, I am going to record here a conviction that a gigantic war will be under way ere we tern into the lane marked 1935. dent Roosevelt spoke, In a dinner speech commemorating the late Presl. dent Wllson's birthday, that there was danger of war, he told the country then of a danger that is much more grave than he desires to admit at this time. But if war does come, all of our problems will be changed at once. Un- employment will disappear quickly; farm surpluses will be absorbed, pub- lic works, debts, taxes, credit, currency questions, all of these will be changed, nnd in their place will come new prob- lems. $ President Roosevelt is following out a policy in respect of his dealings with congress Mayor La Guardia t i a l ly un-American. "No man In this country has ever asked for or received the dictatorial powers which wouhl be yours through the enactment of this bill," the gov- ernor wrote. Mayor La Guardia, who always has would establish a fis-. Some months ago, I wrote lza these cal and politfcal dic-~ columns observations gatlmred in tatorsbip that he con- Wasldngton that Japan was on a fence, sidered entirely un- I Undetermined which way to jump. necessary and essen-t Jalan seems now to have decided. IIer course, unless quickly changed. will lead directly and with startling tuddenness into conflict with Russia. The great Russian bear Is fully aware ef this. War preparation is going on there and It Is going on feverishly In Japan. Fear to Oppose that he began President w h e n h e w a s forced to call it into extraordinary session last March. Thou, through circumsttlnces resulting from the distressed condition of the country at the moment, the Presi(lent was able to fornmlate a program for relief only in piecemeal fashion. Con- gress did-his bidding, lie submitted a recommendation one day, and a few dqys later it was enacted into law. ~flonal recovery legislation must be pushed forward and made lasting. Op- position to this, he asserted, is found among only a few individualists. In general terms he told of the success of the NRA In lessening unemploy- snent, abolishing child labor, establish- Ing uniform standards of hours and wages and preventing "mflnou8 rivnl- rl~ within industrial groups." The President's claim for farm re- lief will be questioned by many. Said he: "Actual experience with the op- elation of the agricultural adjustment act leads to my belief that thus far the experiment of seeking a balance between productlon and consumption is succeeding and has made progress entirely in line with reasonable ex- pectations toward the restoration of farm prices to parity." Brief allusion was made to the war debts, and. it was stated that stabll. l~mtlon of the dollar ts impossible at present because certain other nations are "handicapped by internal and other conditions." The message referred specifically to the disclosure~ before the senate banking and currency tom. mlttee of rich and powerful financiers who "evaded the spirit and purpose of our tax laws," enflched themselves at the expense of their stockholders and the public and through reckless speculation with their own and other people's money, "injured the values of the farmers' crops and the savings of the poor." It also declared the in. tention of the government and the people to suppress "crimes of organ. lzed banditry, cold-blooded shooting, lynching and kidnaping that have threatened our security." FOR the current and the next fiscal years the President asks congress to provide sixteen and a half billion dollars, In the budget message which was transmitted to the lawmakers. Of this immense sum the recovery agencies will require almost ten bil- lions, the remainder being for the rou- tine government establishment. For these two years the treasury deficits are estimated at nine billion three hundred million dollars. To meet these defldts the President proposes to horrow on the credit of the govern- ment ten billion dollars or more in addition to borrowing about twelve billions to refinance maturing govern- ment bonds and other obligations In the next year and a half, By July 1, 1935, when the Presidenl proposes to halt recovery operations and begin paying the bills oat of taxes the public debt, he estimates, will stand at the all.tlme record peak of thirty-one billions eight hundred and thirty-four millions. ' Republican senators and repre- sentatives and some Democrats pro- fessed to be appalled by the Presl. der:t's spending program, but it prob- lkbly wlll be put through, Just the same. RECOGNITION of Russia was for- mally completed when Alexander A. Troyanovsky, the Soviet ambassa- dor, arrived In Washington and pre- ~ented his credentials to President Roosevelt at the White House. He brought with him Jeveral members of the embhssy staff and as soon as the diplo- lnatle procedure had been completed he eagerly got down to work on the matters of trade relations, areal'its and other questions with the of- ,Rmba~ador ficials of the State Troyanovsky fepartment. Mr. Troyanovsky was accompanied an his Journey from Europe by Wil- liam C. Bullitt, American ambassador Jo Moscow. At the Washington station ~e was welcomed by Jefferson Patter- ~n and Robert F. Kelley of the State ~epartment, and by Toshihiko Take. Ioml, the Japanese charge d'affaires, a ~ersonal friend during the years when |'royanovsky was ambassador to To- Me. To reporters in New York the am- bassador said he would work diligently lot world peace, which may mean he sill seek to negotiate with the United |totes a much as isis ambitions of its leaders rather than been a fighter, came back with a let- the welfare of the American work- man." [ ter that bristled with references to the evils of the situation confronting He asserted that a recent survey the city, the hopelessness of trying to made by his association and other in- get assistance from the board of alder- dustrlal organizations in all parts'of men or putting piecemeal legislation the country indicate that since theI through at Albany and accusations of NRA was enacted approximately 1,2~ strikes involving about 800,000 work- political maneuvering by the governor. "Your charge (of dictatorship) ere have occurred. These workers lost approximately lO,O00,O00 working days and wages amounting to more than $85,000,000, he said. The American Federation of Labor, for Its part, thinks the business pros- pect~ for 1934 are bright though over- shadowed by the danger of inflation by fiat money. The organization es- thnates 6.400,000 persons have been put to work largely as a result of gov- ernment measures, but adds that in November 10,702,000 workers re- mained unemployed and that civil works administration funds, giving temporary work to 4.000,000 persons, will be exhausted by February 15. "In wages," it says, "there have been definite gains under codes for tile lowest wage groups, but workers of average or higher wages have been forced to a lower living standard. tIourly wage rates average higher by 5~ cents per hour, hut in many cases thts Is not enough to compensate for shorter hours, and In no ease Is It enough to compensate for higher prices. "Millions who got Jobs during the year are better off, but those who had obs at more than a minimum have lost ground." EARLE BAILIE, who has been act- ing as fiscal assistant to Secretary of the Treasury Morgenthau, bas re. signed, and it is no secret that his retirement was the price pald for the un- opposed confirmation of the appointment of Mr. Morgenthau hy the senate. Certain members of the upper house, notably Sena- tor Couzens, let the secretary know that they did not approve of the retention of Earle Baille Ballie, and Morgen- thau told them Bail]e had consented to help him temporarily and intended to quit soon. So the fis- cal assistant wrote e nice letter say- ing that he would have to get back to New York to resume his work with the Sellgman firm of investment bankers, and Morgenthau wrote the usual re- sponse accepting the resignation with regret. It was Bailie's connection wlth the banking house that aroused the oppo- sition to him. Senator'Couzens had said openly that it was scandalous that there should he chosen for a high treasury post a partner of tlle Selig. man firm. C HICAGO'S milk supply was praetl* caIly cut off by a strike of dairy farmers of that region who demand a higher price for their product. The controversy was complicated by the evident desire of the larger milk dis- tributing companies of the city to drlve out of business the smaller con- cerns that depend on "cash and carry" trade, and by the determination of the organized milk drivers not to accept reductions In pay. The farmers, thor- oughly organized and ably directed, and the temporary idle drivers commit. ted Innumerable acts of violence and vandalism, almost with Impunity. Milk trucks were burned or dumped in the river with their contents, and in at least one instance a train was stopped and robbed of a consignment of con- densed milk. The farm administration officials were trying to effect a com- promise. SPEAKER RAINEY, after a confer- ence at the White House, an- nounced that President Roosevelt was making no out of town engagements for the period during which congress would be In session but would remain at his desk until adjournment. He added that the President hopes this will be early in the spring, as he be. llev@~~ the legislative will be dlsposed comes as a hollow mockery to the overburdened home owners, taxpayers, rent payers, and wage earners of the city of New York, who. for more than a decade, have suffered under as cruel and vicious a secret political dictator- ship as has ever existed in an Amerl. can community," Mayor La Guardla wrote. WITIt only five votes in opposition, the government's liquor tax bill, which Is expected to add $470,000,000 to the national revenue, was passed by the house of representatives. Not one of more than a score of amendments altering the tax rates was accepted by the house and the measure, as finally passed, carried the same rates orig- Inally recommended by the ways and means committee. A rigid requirement that all bottled liquor sold at retail must carry a fed- eral stamp showing the government tax to have been paid and Indicating the quantity and quality of the con- tents was written into the bill by the ways and means committee at the in- stance of the Treasury department, As passed by the house, the bill im- poses a tax of $2 a gallon on distilled spirits, $5 a barrel on beer and from 10 to 40 cents a gallon on wine. In addition to the aggregate 470 millions In revenue looked for from these do- mestic excise taxes, the committee ex- pects 75 millions a year from the pres- ent import duties on foreign liquors and wines, bringing the total estimated revenue from liquor to 545 million dollars a year. FRANCE enjoyed one of those great financial scandals not infrequent in these times, and the government of Premier Chautemps was endangered. Serge Stavisky, known as "Handsome Alex,, had duped countless widows and orphans out of some sixty million francs through a Bayonne pawnshop swindle, and certain members of the cabinet were Involved. Stavisky fled but was traced to a lonely villa at Chamounlx, where two bullets In the head ended his life. The police said It was suicide, but the general belief was that the police shot the man so that the ministry could appear before the ctmmber of deputies with clean hands. The cleansing process was furthered by the enforced resignation of Albert Dallmier, minister of colonies. pRESIDENT GRAU and his sup- porters in Cub't were preparing to combat an anti-government conspir- acy whlch Secretary of the Interior Guiteras said had gone too far to be halted by any pl'm of political conciliation, or even recognition of tile Grau regime by the United States. The revolutionists, he said, were operating from Miami, Fla. In Havana the army's home made tanks were placed In stra- tegic positions, the President police were armed Grau with rifles and soldiers were stationed on housetops to check sniping. The Miami revolutionaries' plans "are too far advanced." Guiteras said, "because they accepted money from American corporations tn exchange for certain concessions If they attain power. They can't return the money. Therefore, they must carry out their plans." President Grau signed a decree set- ting April 22 as the date for the elec- tion of a constitutional assembly which wi'll meet on May 20 to choose a'new provisional pr~ldent and draft a new constitution. Grau said he would not contin(~e in the presidency after May 20, regardless of whether the assembl confirms him as slonal r Western But that is not all. Clouds of storm- portending intensity are gathering in Europe. They center about another Franco-German conflict. And I'ussia Is watching the potentialities of that situation as well. Military and naval students here, and tlmre are some of the greatest of the military and naval scientists In the world located in Washington, as- sure me that neither a conflict be- tween tlle Japanese and Russians, nor x Franco-German controversy ending in arms can be localized. Others ~mong the peoples will be drawn in, despite efforts to keep the peace. I do not know, nor does any of tile author- ities, whom I have consulted, know whetimr the United States can remain Dqtside of the lines of battle once they ~re drawn. My suspicion is that the United States would be dragged in. Nations in this age cannot live to limmselves alone. A picture of conditions among the powers at this writing, as given me by men acquainted with the details, ~hows relationships to be something like this : Russia and France regard Hitlerized ~ermany as a constant menace anti they have understandings that take in Poland and several other lesser states that always have been aligned with France as military allies. It might be called an entente. Then, Germany and Japan, each aware of the forces at work against them, have been re- ported as trying to establish some sort .f an agreement to act in concert lgalnst Russia. Italy, likewise, is said ~o be playing one group against the ether in an effort to gather something lor herself. And behind the scenes, ~o to speak, the British John Bull is ~hown as trading for advantages be- iween the two groups, seeking all of llm while to avoid a European conflict bt]t apparently out in tile open, or l]early so, in support of Japan against Russia. * $ 8 Wilfrid Fleisher, Tokyo correspond- eat of the New York tIerald Tribune, reported t o h i s Uneasy newspaper tile other About Japan day that Gem Sadao Araki. Japanese war minister, had called the attention of his people in a speech to the fact that this !s "dog year." He explained that Jap- lnese greet 1934 with pleasure for "in a dog year things come easily." He Identified a "dog year" as meaning ~mooth sailing in all affairs. There are a good many men in high places )f our government who shuddered a b:t when they read of General Arakl's ~tatement. They read into his lines ~u intention to employ 1934 as a year in which to attempt to weld the civill- tatlou of the Orient and the Western world, a year to launch a holy mission. Such a religious fervor contains por- tents that are not pleasant to con- template, as much because of the In- direct, as because of the direct, ~ffect of lighting the fuse. As the political maneuvers continue, 5 good many economic factors and de- velopments have been going on unno- llced while we here in the United States worried about the mortgage that was due, or about a job, or about mine other purely domestic matter. For instance, a brief cable dispatch few days ago told of an arrange- Inent by which Japan was trading fin- Ished textiles for Indian cotton. It Icported that Japan would buy 1,500,. Io0 bales of cotton, paying for It with t00.0(X).000 yards of cloth. Cotton is a aedessary prerequisite for war prep- tration. Also, Japan has been buying scrap ~ron for a year or more. That has been almost tile only market for scrap |ton which tim United States has had, but it has been a good market. Freight ~ars that are not of sufficient value to be repaired are being broken down and the scrap shipped to Japan. And last, but of great Importance, is the news report that vast deposits of sit'kel have been discovered in Men- |olin. Nickel, as every one knows, is t higlfly important metal in war plans, lad the deposits, as large or larger ~han those In Canada, are being to the seems to me that when Ite and his adviser~ wrote most of the I legislation before It ever was submit- ] ted formally to the imuse or the senate. Now, the President is doing to same thing. Ile saw the advantages of the system that he was forced to use once, and is capitalizing again on the per- sonal popularity which he has through- I out the country. Consequently, his speech, his message on the state of the Union, was in the form of generalities. He made not a siogle specific recom- mendation. But they are forthcoming now. in num~)ers. ()ne by one, tile projects of his plan move from the White House to the Capitol, there to l be accorded support by the tremendou s majority which the Democratic party holds. Few, if any, of them will be rejected. The reason is the Demo- cratic majority is afraid to oppose the President. Politicians. even in the President's own party, are mystified by his wide popularity. And when a politician is mystified, he doesn't know what to do about It! The result is that the Presi- dent is going to get on as he desires with consolidation or expansion or ex- tension of his recovery plans about as he desires. Republican leaders In congress are not going to raise much of a fuss. Ti~eir policy fs to let the Democrats take all of the rope they can use, and hope they will trip themselves. Democrats count on the personal popularity of the President to carry them along to re-election, for they don't see anything else to do. And while the subject under dfs- cusion is the personal popularity of the President, Washington observers attached great Importance to his per- sonal visit to the halls of congress for delivery of his mesage on the state of the Union. You will remember, the message was broadeast. Numerous writers and other observers here main- tain that Mr. Roosevelt was hardly giving a thought to congress, even though he stood before its member- ship in person, tie was concerned then, he had been concerned before, only with making his position clear with the folks back borne. In that manner he succeeded in getting pres- sure exerted on cm:gress for the things he wanted done. Present indications are that there will be little meddling with the tax laws this session. Avoid Ne~ The program of the Tax Leu~ea administration, a s thus far unfolded, Is read by many as avoiding new tax levies until congress returns in Jan- uary, 1935. In the meantime, the con- gressiona] elections will have been held and the averaffe person is not going to get excited about future taxes ; the Democrats will be able to cam- paign without having to fight Repub- lican argument calling attention to increased burdens of taxes. But more taxes will have to he levied in another year. The Presi- dent has proposed to congress the greatest peacetime budget in history, a budget that proposes the appropria- tion of $10,000,000,000. That is almost two times as much money actually as there Is in the United States, for the money stock of the government ranges only slightly more than $5,000,000,000, So it means that government credit, government debt will be boosted to new heights. Unless our government wants to do the dishonorable thing ot defaulting on Its obligations, the notes and bonds it sells on which the money is borrowed for budget use will have to be repaid. The taxpayers will pay and pay and pay! For Instance, when the public debt reached Its hitherto high point, about $26,500,000,000. the interest on It amounted to $960,00O,000 annually, or about $80,000,000 a month, more than $2,500,000 a day. The figures ors stupendous, but they can be larger. If the present average rate of interest paid by the treasury is contiaued ; that is, if the government does not have to pay a higher rate than the 3~ per cent now paid, the interest bill on th0 debt of about $3),5~,000,000 will ap- proach $1,100,000,000 a year. Mr, Roosevelt said in his budget that the debt ought not be allowed go than @ by Wutern WOKLD'S PICKLING f'ittsburgn, aside largest metallur world, is also c the world's largest pickli,g' To keep clean and l~ieree'n Plensunt liver, bowels and Odd, but a F~t A man with a sunny seldom hqs a hot Why Liquid are Back in The public is fast returnia~ of liquid laxatives. learned that the liquid laxative movement without any ~t the time, or after. 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