Indianapolis Times, Volume 44, Number 234, Indianapolis, Marion County, 8 February 1933 — Page 2

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PERILS OF INFLATION CITED BY OPPONENTS; FALL FROM GOLD STANDARD IS FEARED

Doubt Expressed That Commodity Prices Would Be Raised; See No Way to Assure Control. BY HERBERT LITTLE Timr* Staff Writer WASHINGTON, Feb 8 —The roar of the printing press sending out bales of greenbacks is the fear of the anti-inflationists. These include such leaders as President Hoover, Secretary Mills. Senator Carter Glass, and mast bankers and investors. Their distrust is particularly toward currency inflation, some of the arguments for which have been presented in this scries. They see three main dangers in any currency inflation plan: One, that it won't Inflate, or raise commodity prices; two, that it can not be controlled; three, that it will take us off the gold standard.

The plans all Involve an increase in the amount of money in "circulation.” which now is around $5,700,000,000 part of it hoarded. If an increase is accomplished merely by making the money available in the banks—as was clone by the Reconstruction Finance loans—there is danger that the banks will not lend it out. There then would be no inflation. No Shortage of Money If the money should be forced out into the public's hand—as proposed by the currency inflationists, in the form of a cash soldier bonus, payment of part of the public debt, or some such scheme—it might go right back into the banks. There is no shortage of money or bank credit now. The volume of money in "circulation” is more than ' a half-million dollars above the; peak figures of 1929. Total amounts of federal reserve j credit and federal reserve member J bank balances is high. The billion dollars loaned by the government in 1931 on soldier bonus certificates went directly to consumers, and therefore should have j inflated to some extent, stimulat- j ing purchases and stopping the fall! of prices. But it didn't. There was a slight increase in new and used automobile sales, but for the most part the ex-soldiers seem to have used the money to pay off ■ accrued grocery bills, rents and back i loans. The money went into debts | and was not used for purchase of goods. There was no stimulus for business.

Not Enough. They Cry The inflation reply is that the billion dollars wasn't enough. Their programs call for three billions to ten billions of new money. Difficulty of control, however, is the principal objection to inflation. If the government prints more money not fully backed by gold, its obligations and expenses will increase rapidly. To meet enlarged expenses of government, it will be necessary to print more money. Anti-inflationists claim this process will continue indefinitely, as it did in Germany after the war. It is impossible, furthermore, to keep gold behind part of the money while issuing billions of paper money, because of the economic law that “bad money drives out good money.’’ That is, the holders of the new paper money, guaranteed even though it is by the government, will trade it for the gold-backed money, or gold itself, and hoard this. This removes the gold money from circulation. France went off the gold standard and the franc dropped from 19 cents to about 5, where it was pegged by the national bank of France. Bark on Gold Standard Then having wiped out threefourths of her internal debts, both private and governmental, France went back on the gold standard. Germany was not aole to control her post-war inflation. All internal debts were wiped out and money became worth nothing. Then anew gold mark was adopted, and debtors and creditors started from scratch. Mast of the currency inflation plans involve going off the gold standard. The gold standard means that a government guarantees to meet its debts, and pay out gold in return for paper currency, at the accepted world price of gold. This is about S2O an ounce. Currency inflation means that the amount of gold behind each dollar bill will be reduced—making the price of gold S3O or S4O an ounce —or that the government will pay either partially or wholly in silver if it desires. Adoption of currency inflation—or even serious discussion of it in congress—immediately would begin a run on the treasury, it is believed, with capitalists here and abroad both demanding gold. If carried out to the logical extreme. this would deplete our treas-ury-federal reserve store of monetary gold. The treasury would be compelled to forestall this by “going off the gold standard” —refusing to pay and forbidding export of the yellow metal. Can Credit Stand Strain? This would depreciate the government's credit and securities. The question is, “Can the government's credit stand the strain? And the anti-inflationists answer no. But inflationists point to Great Britain and say it can. if the people are aroused patriotically to support of the government. Many of our debts, including real estate and farm mortgages and government bonds, call for payment in gold at the present standard, and anti-inflationists assert that creditors would have the constitutional right to collect at this rate even if the currency were inflated. But the inflationists declare the Constitution gives congress the power to regulate the value of money, a power superior even to the sanctity of contracts. The next story will tell what inflation would mean to most of us. FIREMAN IS PROMOTED Harry Colder to Become Chauffeur: Injured Last Fall. Harry Golder. first grade private in the fire department Tuesday, was promoted to chauffeur by the safety board. The promotion wiil become effective Saturday. Golder was injured last fall when the pumper truck which he was drivmg collided with a car at Sixteenth street and Central avenue. He was in the hospital about two months. Fire Lieutenant’ Louis Stanley was killed in the accident.

SENATOR ASKS ATTORNEY FEES Davis’ Request in Election Contest, to Be Denied by Committee. j By ScrippH-Howtirtl Snrxyapcr Alliance WASHINGTON. Feb. 8. The senate campaign investigating committee which investigated the Pennsylvania primary of 1930 will refuse a request by Senator James J. : Davis that it recommend that the j senate pay the fees of lawyers emI played by him during the inqury, ! Senator Gerald P. Nye (Rep., N. D.), announced today. Senator Davis came to him a few weeks ago, Senator Nye said, to urge I that the senate assume the cost of the attorneys fees estimated at approximately $28,000. Senator Davis also discussed the matter with Senator Porter H. Dale (Rep., Vt.). Expenditures in the Pennsylvania primary of 1930 investigated at the request of Senator George W. Norris of Nebraska disclosed total reported campaign costs of $633,148.39. These costs w-ere divided between the entire state ticket. Senator Davis’ personal expenditures were estimated at $14,336.45. “It is not likely that the committee will act favorably upon Senator Davis’ request,” Nye said. “The precedent which thus would be created would permit any individual called before any senate investigating committee to engage counsel with the expectation that the senate later would reimburse him. "It was not necessary for Davis to have employed counsel,” Nye continued. "The hearing was not a contest in any sense and his rights would have been—and were —fully protected.” SEVERE EARTH SHOCK IS FELT ON RHINE Quake Does Damage in German State of Baden. By United Pres* KARLSRUHE. Germany, Feb. B. A severe earth shock was felt throughout the state of Baden today, from Karlsruhe southwest almost to the Swiss border. The shock was most violent at Rastatt, thirty miles from here, near the Rhine. Hundreds of chimneys were toppled over and a wall of the local barracks was smashed. No deaths had been reported.

Help the Law Watch for Gunmen and Call Police If You See Them.

Indianapolis and the middle west today seek five gunmen responsible for the machine gun murder Tuesday of Sergeant Lester Jones. Descriptions of four of the five gunmen have been broadcast by both local radio stations and have been dispatched to every police official in Indiana and surrounding states. Description of the fifth gunman was not obtained. If you see these men, call police headquarters immediately. The descriptions: No. 1—35 years, 5 feet 2 inches tall; 150 pounds; dark complexion and wearing a dirty light hat and light shirt. He is the machine gunner. No. 2—30 lo 32; 5 feet 2: 135 to 140 pounds; light complexion: no description of apparel. No. 3—32; 5 feet 6; 160 pounds; long black overcoat and light hat. He has a heavy face and is smooth shaven. No. 4—23; 5 feet 11 inches; 160 pounds; light complexion; wearing gray overcoat and felt hat. DRIVER IS FREED OF MANSLAUGHTER CHARGE Peru Man Not to Blame In Fatal Accident. Witnesses Say. Manslaughter charges against Joseph Volpert. 28. of Peru, were dismissed in municipal court Tuesday after witnesses testified that Jackie Harker. 9. of 1210 East St. Clair street, who was struck and killed, Jan. 27 by Volperts car. had run, into the path of the automobile. Volpert swerved in an attempt to avoid striking the child, witnesses said, and also stopped within a few feet after the accident, which occurred at Dorman and Tenth streets. Fifth Person Dies in Crash H’< f iuffd Pre* TERRE HAUTE. Ind., Feb. B. An automobile-train here Sunday had claimed its fifth victim today with the death of George Ames, 27. Sullivan. Two others are still in the hospital. Free Luncheon Provided Free luncheon provided by the P -T.-A. will be given to pupils of School 19, at 1635 East Palmer street, Feb. 16.

Young Adventurer Branded Wanderwell Slayer by Members of Yacht's Crew

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The fog of mystery and adventure which has surrounded the death ship Carma is expected to lift in the Long Beach (Cal.) court room where William James "Curley” Guy is on trial charged with murder. A former associate of the adventurous Captain Walter Wanderwell, who was found shot to death

Guy Pales When Girl Taps His Shoulder and Says ‘That’s the Man.’ BY VINCENT MAHONEY United Press Staff Correspondent LONG BEACH, Cal., Feb. B. | Members of the adventure yacht I Carma’s crew dii'ectly have accused William James (Curley) Guy as the : "man at the porthole,” who board'ed the vessel the night Captain Walter Wanderwell, Polish sea : rever, was shot to death. Guy, the young Welsh adventurer on trial as Wander-weal's alleged murderer, paled visibly when young Marion Smith, Rockmart (Ga.) girl, [tapped him on the shoulder and said, "That’s the man.” A moment before, Edmund Zeranski, another of the Carma’s commonwealth crew, testified Guy "resembled” the man who entered Wanderwell’s cabin for the interview that ended when a bullet was fired through the captain’s back. Main Testimony Intact Guy’s defense, prepared for this crucial link in the state's chain of circumstancial evidence, succeeded in confusing the witnesses as to details, but their main testimony remained intact. Miss Smith testified Tuesday that she entered the Carma’s main cabin the night of last Dec. 5 with Zeranski, Mary Park and Cuthbert Wills. “And then Mr. Guy came to the porthole,” she blurted, even before prosecutors could lead her up to this point of her narrative. Defense counsel wrung complicting statements from her as to the visitor's clothes. She said that she could not make out whether he wore a hat or cap, whereupon her preliminary hearing statements were read, stating the man had on a tan cap. Draw Version of Quarrel Zeranski admitted all the state’s identification witnesses were shown photographs of Guy before they were taken to the city jail, where the Welshman was paraded before them in a group of prisoners. The defense inferred frfom this the witnesses were biased. From E. B. Mortensen, Los Angeles juvenile officer, prosecutors drew another version of a quarrel between Guy and Wanderwell in Panama, which the state contended I was a motive for the slaying. Mortensen said Guy came to him last July to lodge a complaint against Wanderwell, then planning a ! South Seas junket aboard the i Carma. He quoted Guy as saying Wanderj well called the crew of a former i cruise together at Panama and announced the voyage was “off.” Guy ! said the captain refused to return I their passage money and he had Wanderwell arrested. Wanderwell and his wife, Aloha, ! disappeared before the hearing, ! leaving the crew stranded. Mrs. Wanderwell, the blond young widow, earlier testified her husband discharged Guy from the ship for mutinous conduct. RECOGNITION IS WON I Decorator Who Turns to Writing Wins Praise From President-Elect. Thomas E. Halsey, 2927 1 2 East Tenth street, decorator-contractor, who has turned to poetry and fiction writing, has gained the recognition of President-Elect Franklin ! D. Roosevelt and Philip Lutz Jr., Indiana attorney-general. A poem written to Roosevelt by Halsey has been given a place in i ihe President-elect's scrapbook, according to a letter Halsey received from Louis M. H. Howe, Roosevelt's 1 -secretary. Halsey sent Lutz a poem based on the news story that one of Lutz’ j love birds died. Lutz thanked him - for the poem. Two Dead in Crash ' By United Press NEW ALBANY. Ind., Feb. B. j Two men were killed and two others injured when a small | coupe collided with a coal truck on State Road 62 near here Tuesday night. The dead are Harold Phillips, 29, and Edward Connelly. 58. both of New Albany. Both were riding in the coupe. Stop a COLD the First Day! This Four-Way Remedy Does It. Play safe! Take a COLD remedy for a cold! Grove's Laxative Bromo Quinine stops a cold quickly because it does the four things necessary. Opens the bowels, kills the cold germs and fever in the system, relieves the headache and tones the entire system. Get it today and be ready for any cold that may come along. Be sure to ask for Grove's Laxative BROMO QUININE. Now two sizes —3oc and 50c—at all druggists.— ! Advertisement.

THE INDIANAPOLIS TIMES

in his cabin on the Carma, Guy is believed to have been seen aboard the ship shortly before the murder. He is shown, at left, with hrs lawyer in court. The blond beauty of the widow. Mrs. Aloha Wanderwell, right, schooled in adventure, was unmoved as the trial began and she confronted the accused Guy.

16 Meetings Scheduled by Leisure Hour Clubs

Three Sessions to Be Held Tonight; Eleven Listed for Friday. LEISURE HOUR CALENDAR TONIGHT Rronksidr Park community house. J. T. V. Hill community house. Rhodius Park community house. THURSDAY CrisDUS Attucks hiah school. Oak Hill Women’s Club. FRIDAY Christian Park community house. Fletcher Place community center. Ft. Wayne and Walnut Club. Municipal Gardens. Michigan and Nob’e Club. Oak Hill Club at School 22 at 2030 Winter avenue. School 12 at 133 South West street. School 10 at 1102 West Market street. Nebraska Cropsey Club. School 22 at 1251 South Illinois street. School 26 at 1301 East Sixteenth street. School 34 at Kelly and Boyd streets. Lumber and canvas are being donated to the young men’s division of the Nebraska-Cropsey Leisure Hour Club from which scenery will be made for plays to be produced. Robert Oberreich. who will direct the plays, met with the group today, to read plays and select casts. There now are fifty-five members of the club. Marionettes made and operated by Harry Fowler- were examined today by members of the Michigan and Noble club. Plans are being considered for making similar figures by members of this division of the ciub. Anew division of the NebraskaCropsey Club is being formed. It will bo composed of young women past grade and high school age. Mrs. F. W. Maurer is in charge of organization of this group. Because of the weather, the program at the Prospect-Sherman Drive Club for tonight has been cancelled. Indiana Nighthawks, under the direction of Bill Stcinhaucr, will play tonight for a dance given by the Rhodius Park Leisure Hour Club, at the Rhodius community house. Brookside park community house will have on the program tonight the Sering trio, composed of Mary Alice and Charles Sering and Kenneth Manners, and the Odd Size Four, members of which are Roy Allred, Carlos Jones, James T. Sortwell and Harry Saunders. Visit Indian Exhibit Mrs. Stella Richardson, home economics teacher of Broad Ripple high school and sixteen members of her sewing class visited the Navajo Indian exhibition at L. S. Ayres Company Friday. Night Coughs Piso's stops night coughing instantj ly and effectively because it does | the needed things. Swallowed slowly. it clings to the throat, soothes inflamed tissues, and loosens the mucus. Better than a gargle because it reaches the lower throat and chest. Safe for children. 35c and 60c sizes, all druggists. BICfVC For Ccuglis ri3U 3 and Colds

r Dorit Netflect Your Kidneys Heed Promptly Kidney and Bladder Irregularities If bothered with bladder irregularities, waking tip at night and nagging backache, heed promptly these symptoms. They may warn of I some disordered kidney or I bladder condition. For 50 ■ years grateful users have re- ■ lied upon Doan's Fills. Praised E the country over. Sold by all K Doanis feggSPills A Diuretic

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Tough Times City Must Borrow SSOO to Pay Judgment of Court. By United Press city of Monmouth will have to borrow SSOO to pay off a court judgment. Its plight was revealed at a meeting of the city council when a circuit court judgment in favor of Edward L. McLaughlin was announced. McLaughlin sued the city on charges that city employes dumped the bodies of dead animals in Ceder creek, poluting the water and making it unfit for his livestock to drink. MOTHER OF HIGH COURT JUSTICE IS NEAR DEATH Willis Van Devanter Hurries From Capital to Marion Home. By United Press MARION, Ind., Feb. B.—Mrs. Violette Van Devanter, 94, mother of Willis Van Devanter, associate justice of the United States supreme court, was reported near death at her home here today. The son arrived Tuesday from Washington to be at her bedside.

j t " % v L ■-> zm i-51 :S i:t AM?3ga&haas=agj^.i.;fjL.< ? * /. *77 { AN ALLY OF BUSINESS During the ninety-four years that Fletcher American has been closely allied with the development of Indiana, loans totalling hundreds of millions of dollars have been made to assist business—to create profits and employment in industry and trade . Today, as in the past, Fletcher American possesses the ability and willingness to continue its uni interrupted service in stimulating sound business activities. the Fletcher American NATIONAL BANK OF INDIANAPOLIS CAPITAL AND SURPLUS, FOUR MILLION, SIX HUNDRED THOUSAND DOLLARS

'GUILTY' DECREE TO TURN JAPAN GUNSONJEHOL Geneva's Formal Decision on Manchuria to Bring Defiant Drive. By Scripyt-Hoicard Sewspaper Alliance WASHINGTON. Feb. B.—Japan's answer to the League of Nation's likely verdict of guilty in Manchuria, dispatches from responsible Chinese sources in the Orient indicate, will be to withdraw- from Geneva, and aim another blow at China. The Chinese, who have 200.000 troops in position in Jehol, it is stated, are expecting the Japanese to begin a major drive against them as soon as the League formally hands down its decision, and the weather makes an advance practicable. The munitions plant at Mukden, now in the hands of the Japanese, is described as working night and day, while news dispatches which have passed the Japanese censorship that in Japan stocks of war material far exceed those on hand at the outbreak of the Russo-Japanese w-ar. Observers here fear that the mili-' tary clique now in power at Tokio has gone too far to back down. They either must go forward, or seem to be to present the Japanese suffered humiliating defeat at the hands of a more or less united world. Means Political Suicide The latter means political suicide for them at home. Their overthrow' would follow almost immediately. The alternative to such an admission and its consequences would seem to be present the Japanese public with new military victories and new territory in China. Thus the gravest crisis since the Japanese began to overrun Manchuria in September, 1931, is regarded as imminent, not only in the far east, .but at Geneva. If the Japanese quit Geneva and defy the world by undertaking further military operations against the Chinese, China is prepared to invoke Article 16 of the covenant. Article 16 makes an act of war against one member an act of war against all the other members, and calls for severance of all trade or financial relations and the prohibition of all intercourse with the covenant-breaking state. Even armed force may "be used to protect the covenants of the league.” “World War” Is Menace Only last w-eek, at Tokio, government spokesmen warned that Japan would not only withdraw from the league, if the proposed verdict is formally handed down at Geneva, but that any effort to apply sanctions “would mean another world war.” As no sanctions of any kind could be made effective without the cooperation of the United States and Russia, the league will be obliged to get a clean-cut statement of policy from both countries before proceeding with any such drastic move. While President-elect Franklin D.

Roosevelt has given his support to the Stimson doctrine of non-recog-nitiorr of Manehukuo. it is understood this government's far eastern policy will be one of extreme caution, with Mr. Roosevelt's firm backing. “Dad” Elliot to Speak A. J. (Dad Elliot, national secretary of the student division of the Y. M. C. A., will address boys of Washington high school Friday at, 10 in the school auditorium.

BLOCK'S Perfect Fitting HIGH Dame “ Cover for Large Chickens or Out-of-Town Orders Sale!Famous ‘ National 9 Cast Aluminum CHICKEN FRYERS Extra HIGH Dome Cover for Large Chickens or Roasts |liSßj| *lo* 2-In. Fry Pan, Extra Deep! • Deep Dome Self-Basting Cover! I lllSllllr • Double Lifts, Removable Handle! These are the chicken fryers being used at the Cooking School. Can be used as a roaster or Dutch oven for baking potatoes or for any waterless cooking. Tomorrow you can buy them at an almost unbelievably low price! Made of thick cast aluminum, highly polished and weighs only 3 1 ■> pounds. Bastes as it cooks. Don’t miss this sensational sale! block s—Fifth Floor. Turn to Page 7 for Block’s “Follies of 1932”—.

FEB. 8, 1933

COLLECT $524,703 TAX Quarterly Inheritance Fees Are Added to State's Coffers. Coffers of the state treasurer were enriched by $524,703.89 Tuesday through quarterly collections of inheritance tax by Clarence Ulium, state income tax collector. The amount covers the pep.od i from Oct. 1, 1932. to Jan. 1. 1933. , Total for the calendar year 1932 : was $1,883,755.