Indianapolis Times, Indianapolis, Marion County, 5 April 1943 — Page 4

Reveals U. S. Monetary

+ Plans Before Senate

Committees.

WASHINGTON, April 5 (U. P). ~Treasury Secretary Henry Morgenthau Jr., unveiled before a group ‘of senators foday an administration Plan for post-war international money stabilization proposing world restoration of the gold standard. . Mf. Morgenthau outlined what he called a “tentative proposal” to an . extraordinary joint session .of the senate committees on foreign relations, banking and currency, and - postwar economic policy and planning. The meeting was secret, but & preview of Morgenthau’s prepared statement revealed these ‘main pro : 1. Establishment of an inter‘na stabilization fund participated in by all the united nations and countries associated with them, and contributed to in amount and ~ form suited to each nation. © The treasury secretary estimated ~ that the share of the United States would amount to five billion dollars. 3. Creation of an international ‘board to control the fund with participating nations appointing the members and with voting power in * the board fixed according to the|States dollar. * contribution by each country. “The dollar must form the basis 3. Agreement among members not{0f a stable monetary program be- - to engage in competitive deprecia- cause it is the only monetary hitchtion of their currencies. ing post left in the world,” Thomas 4. Attainment of stability by fix-[said. "ing the value of currencies in terms of gold. 5. Retention in full of established channels of international trade and international banking for all inter- ~ national transactions. Keynes Wrote British Plan Mr. Morgenthau’s proposals are ~ the counterpart of the British - monetary plan recently advanced by _ John Maynard Keynes, advisor to the British exchequer, for an international currency union and a world unit of bank credit known as “bancor.” A few hours earlier, Senator Elmer Thomas (D. Okla.) told the United - Press in an interview that establishment of a world bank founded |to address ourselves to the specific on a standard international coin— [program of foreign exchange stapreferably gold—is inevitable after (bility and the common sense way the war, but that no nation dares|of achieving this end.... to commit itself now because of the| “No specific plan has yet been economic uncertainty of the future. |considered by this government, but ‘Senator Thomas was the author of [Preliminary suggestions of our techthe original dollar devaluation leg- nical experts have been formulated .islation in 1933. and has been made available for ¢ Senator Thomas, although con- exploratory study of the experts of tending that it would be impossible other interested governments. . The to get commitments now, thought technical men of other governments it wise 40 plan for post-war mone- have likewise been studying the tary stability. His suggestions for |Problem.” : monetary controls included: Wants Time for Consideration

~ 1. A world bank or series of banks p os Mr. Morgenthau gave two reasons for the treasury’s interest in establishing a monetary program now for after the war. He pointed out that it would take a long time to formulate. specific proposals, and that then they must be carefully considered by policy-making * officials of each nation before a definitive plan for executive or legislative action could be offered. The second reason, he said, was that a plan for international monetary co-operation could be a factor in winning the war. : “It has been suggested,” he said, « . . that the task of assuring the defeat of the axis powers would be made easier if the victims of aggression, actual and potential, could have greater assurance that a victory of the united nations will not mean in the economic sphere a repetition of the exchange insfabil: ity and monetary collapse that followed the last war. That assurance should be given now. ” ) “The people of the united nations must be encouraged to feel themselves on solid ground. They must be given to understand that a victory of the united nations will not usher in another two decades of widespread economic disruption. The people must know that we at last recognize the fundamental truth that prosperity, like peace, is indivisible.”

GOVERN PAY SCALES FOR SEASONAL WORK

. Employers who hire eight or more workers for seasonal work must have war labor board approval if they wish to pay higher wage rates this season than last, Regional Chairman Robert K. Burns of Chicago said today. Chief seasonal work in Indiana covered: by the ruling would be fruit and vegetable canning, but other states in this region would be covered for Great Lakes shipping, ~ gies, colds, the flu or other iliness giten logging, certain types of coal min- = 9 ve funce i SA SISIE, Sort Dy: (oy, consrustion snd Asing, Me

=: person who is opera . 70 ta 75% Neatthy blood creased wage rates for seasonal workers in such industries would be

. .. . .Secretary Morgenthau

in which all nations large and small would hold membership. 2. A world cein, preferably a gold ounce, to which all currencies would be linked. The coin would be valued in each counfry- in terms of its property and its total domestic economic and financial needs. ° 3. Foundation of the international currency system on the United

Seek No Panacea

Mr. Morgenthau, in his prepared statement, revealed that the United States and other united and associated nations are exchanging ideas and preliminary suggestions for coping with post-war monetary problems because he believes international financial stability essential to reconstruction and resumption of private trade and finance. : “Our own thinking along the lines of currency stability,” Mr. Morgenthau said, “has not been addressed tc concocting some panacea that will automatically cure all the economic ailments of g& . post-war world. Rather, we, hau attempted

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House Committee Insists On Reduction in Non-War | Expenditures.

WASHINGTON, April 5 (U, P.).—

The house appropriations committee, in approving a $189,729,400 ap-

propriation to finance the state, justice and commerce departments for the fiscal year 1944, today cut the - state. department’s request for funds for its good neighbor program 25 per cent. ' The state department had requested $6,000,000 for its program to promote. co-operation with the

South and Central American republics for the year beginning July 1, compared with the $1,685,000 appropriated for the current year. The committee approved ‘only $4,500,000 for 1944. J “The committee wishes to state,”

duction . was motivated not by lack of sympathy for the program, but by the realization of the urgent need at this time for a retrenchment in strictly non-war expenditures.”

Increase Diplomatic List

That was the largest reduction made in the budget estimates for the three departments. The total appropriation, although $17,895,155 less than appropriated for them in 1943, was only $6,188,100 less than the budget bureau had estimated for 1944. The committee said that further economies now might impair. the war effort. : The state department appropriation includes a $30,000 fncrease over 1943 for the salaries of five additional ministers, but for “security purposes” the committee could not disclose where the new diplomats will be assigned. : Secretary of State ‘Cordell Hull, in his testimony in connection with th: bill, declared tha’ chaotic conditions would follow the war unless eccnomic safeguaris in the form of trade agreements are made a part of international policy. He said that unless the reciprocal trade agreement act is renewed “we canrot get very far in the peace settlements.”

CAA Given Sharpest Cut

The largest. cut under the appropriation for 1943 was in the section for the civil aeronautics administration which will get $11,027,~ 775 less next year than this. The proposed appropriation, however, was only $500,000 under the request. The committee, however, released testimony by CAA Administrator Charles I. Stanton urging flyirg training for 17-year-old boys. to permit a more rapid training of these youths in the air services when they reached induction age. The biggest increase for 1944 over 1943 was the appropriation for the federal bureau of investigation. The committee approved # fund of $42,768,000 for the FBI—$800,000° under budget estimates but $3,932,000 more than the appropriation for fiscal 1943.

War Increases G-Men’s Work

The committee said the FBI fund: was allowed “in recognition of the tremendous added burden thrown on the bureau as a result of the war.” FBI Chief J. Edgar Hoover testified that special scrutiny is now being given to certain fascist and Japanese organizations. He said there had been 14 espionage convictions with sentences totaling 140 years since July 1, 1942, and 13 sedition convictions since Jan. 1, 1942. He said that 270 such cases are under investigation. * Attorney General Francis Biddle testified that in recent months a fascist organization with more than 100 branches has been discovered, but did not reveal what action is being taken.

MME. CHIANG AGAIN ALMOST COLLAPSES

LOS ANGELES, April 5 (U. P.). —Mme. Chiang Kai-shek, her health seriously threatened once again, returnzd-fo seclusion today under a doctor's care after forcing herself to carry through with her message to 30,000 persons at the Hollywood bowl yesterday. Grim, white-lipped and clutching tensely at the speakers’ table, she declared to the motionless crowd that China was fighting not only for its “homes and hearts” but for the upholding of “pledges and principles” in the’ interests’ of international decency and honor. , As she concluded her speech with the vow that never again would aggression be permitted to “raise its satanic head,” she swayed, stumbled and grasped at the arm of the secretary general of her tour, L. K. Kung. Returning to her hotel, she was placed under the care of a specialist. No statement was issued but it was understood that complete rest was ordered until her condi-

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Soviet officials.

Since then, said the announcement of the Soviet information bureau, the Red army has not only won such major individual victories as Stalingrad but has also cleared an area of 185,000 square miles of Nazis, captured 343,000 prisoners, killed more than 850,000 Nazis and allied troops, and destroyed and captured seemingly limitless quantities of equipment and supplies. The map solves "a number of questions for which the answers have long been sought by observers here. For one thing, it shows that the Red army is now entrenched on the eastern shere and north of the Donets, all the way from Belgorod to a point directly north of Taganrog in the vicity of Voroshilovgrad.

Orel Still Threatening

Orel is shown as perhaps the Joost threatening salient on the whole

powerfully fortified point—one of the hinges of the so-called Todt line which can now be considered to have been broken, except here and at Leningrad—stands in the center of & half-circle with its radius approximately -30 miles to the northeast and south. It was not generally realized here until the .map’s publication how much last summer’s fighting contributed to pinching off Rzhev. The Rzhev-Velikie Luki railroad was not only cut, but the Red Army had pushed about 60 miles south to the outskirts of Velizh. ' This sailent, which was a permanent threat to

front as it stands at present. This|

\nalysi

By DAVID M. NICHOL a Copyright, 1043, by

The Indianapolis Times and The cago Daily News, Inc.

MOSCOW, April 3 (Delayed) —The publication in - all the Soviet press today of a full-page map. gives the first really clear picture of the territorial aspects of the winter campaign and the present front lines, which has been available to any but the highest

? Its appearance followed -the announcement last pight that the wintericampaign is now ended, four months and 20 days after the Red army first struck back hard at Ordzhonikidze, or Vladikavkaz, as it is variously called in the Caucasus.

Moscow, now is completely wiped out. Nazi positions around .Demyansk, which they had held for more than a year, are shown on the map as a rougly shaped arrowhead pointing toward Kalinin, immediately south of Lake Ilmen. The shift of this arrow is hardly 15 miles wide.

Nazis Still Have Rail Toehold

There is the candid picture of Leningrad’s present circumstances. The blockade is broken, but the Nazi lines are not appreciably altered except immediately south of Schluesselburg, where an area about 15 miles square has been cleared. From

‘the map, it appears that one sec-

tion of the important Volkhov-Len-ingrad railroad is still in German hands -

For months, it was also not generally known how far the Nazis had succeeded in their drive to reach the Caspian and cut off the Caucasus. Now it appears that they at one time were within about 45 miles of the great salt lake’s shore, barely 75 miles directly west of Astrakhan, from’ where the line angled northwest to Stalingrad. This area is now entirely cleared except for a roughly quadrangular bit in Kuban valley. From the map, it appears that the Nazis still hold the center of the city of Novorossisk, from where the line bulges to the east and angles northwest to the sea of Azov at a point a few miles east of Temruik.

LONDON, April 5 (U. P.) —Invasion fever increased in Europe today as the axis moved three imprisoned former French "premiers

and two other French leaders to Germany to forestall their rescue by the allies and tightened their hold on the Balkans. A Swedish dispatch said British planes dropped leaflets on occupied Holland promising an invasion in May and Greek War Minister Byron Karapanyiotis in Cairo told a regiment of his countrymen that “it will not.-be many months till an invasion of Greece takes place.” In England, Home Secretary Herbert Morrison declared that axis forces in Europe would be “sandwiched between British and Americans in the west and Russians in the east” after the’ defeat of the axis in Tunisia.

Petain Assails “Rebels”

At the same time, the British and Algiers radio broadcast warnings to French patriots to beware of unsubstantiated rumors of allied landings on the continent. The broadcasts said the Germans were spreading such rumors and might 2ven stage fake landings themselves in order to trick the patriots into revealing themselves. “Youll be told about the beginning of allied operations on the continent at the very moment such operations begin,” the spokesman said. Meanwhile, “Marshal. Henri Philippe Petain’s longest radio address since the fall of France was regarded as a plea for the restless French people to support his collaboration with Germany. Speaking over Vichy Radio yesterday, Petain complained that it was “unjust” to accuse his puppet government of causing France’s misfortunes and charged the nation’s exiled leaders who are working for its freedom with being “rebels.” “I have tried to spare you the

Petain said. “It is unjust to accuse the government of the misfortunes besetting you... .” ;

Hits Raid on Paris

After concluding his address he returned to announce the U, 8S. bombing raid on Paris, which he called “new Anglo-Saxon aggression.” Developments within Europe pointing toward increasing axis con-

vasion or invasions included:

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Invasion Fear Mounts Again; British Planes Drop Leaflets

Blum and Paul Reynaud, former allied generalissimo Maurice Gamelin and former French Interior Minister Georges Mandel from French prisons to Germany because of information that “the British and American governments intended to lay hold of some French personalities , , . in order to use them for formation of a countergovernment and thus create chaos and disquiet in France.”

Report Rommel in Italy 2. Radio Moscow reported that Marshal Erwin Rommel has arrived 'at headquarters of . the newly formed axis southern defense zone, in a southern Italian town. Rommel will be chief of ground forces for the defense of Italy and the Medi-

terranean coast of France, the broadcast said. 3. The Nazi Paris radio said the visits of King Boris of Bulgaria with Adolf Hitler and Hungarian Foreign Minister Johann von Kallay with Premier Mussolini are designed to eliminate all motives of friction so that the Balkans “no longer will be an ideal door for an invasion of the continent.” French Chief of Government Pierre Laval protested the removal of the French leaders, DNB said, and the German government promised that the five will be placed “ggain at the disposal of the French government as soon as circumstances permit.”

Ce

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1. Germany moved former French E

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SUNK, DAMAGED MacArthur’s Fliers Attack Supply Base 3 Times

At Night.

M’ARTHUR’'S HEADQUARTERS, Australa, April 5 (U. P.). — Flying fortresses sank or badly damaged seven Japanese warships and five cargo vessels in three consecutive nights of raiding the enemy’s supply base at Kavieng harbor on New Ireland, a communique said today. It was the greatest toll taken by Gen.’ Douglas MacArthur's bombers since the 22-ship score in the battle of Bismarck sea early last month. The final attack at Kavieng yesterdcy “completely destroyed or dispersed” the enemy concentration, the communique declared. MacArthur's raiders used a lowlevel a:tack technique, in which Leavy :ortresses dipped mast-high to let loose their explosives. One report called the method “skipbombiny;,” with the big planes act-

ing like torpedo-firing aircraft, All 26 Planes Return Safe

The raids were made with the aid of flares in night hours, while assistinz planes blasted at the Kavieng airdrome to prevent enemy interception. All U, S. planes returned safely. The actual score of the raids for April 2-3-4 was: A light cruiser sunk; a heavy cruiser, a destroyer and a 6000-ton cargo vessel left sinking: a light cruiser or destroyer, three d:stroyers and four merchantmen totaling from 27,000 to 30,000 tons damaged. Results on three other ‘varshif)s and a cargo ship could rot be observed, Twenty-six bomber; participated.

Bomlts Mostly Quarter-Tonners

Heav’ anti-aircraft fire caused only sc:ittered damage to the bombers which used 500-pounders mostly. The crews saw explosions and smoke which fold of the effectiveness of their ¢im. One direct hit from mast height exploded squarely on the bov' of a destroyer. “Factors contributing to this decisive v.ctory were the special battle technique developed for this attack, tte neutralization of the enemy’s airfield, utilization of darkness as a screen and accomplishment of initial surprise effect obtained hy the extraordinary extension of gur bomber range fom the attack ond,” the communique said.

INDIANA AUDITOR'S

BROTHER IS DEAD

Times Special PORTLAND, Ind., April 5.— Funera. services were held here today for Nate James, brother of State Auditor Richard T. James, who died Friday at Columbus, O. Mr. James, 50, was employed by the Polk Directory Co. In addition to his wife and daughter he is survived by .two sisters, Mrs. Mildred: Richey and Mrs. Irene Buskirk, both of Leesburg.

WOUNDED HOOSIER CITED FOR BRAVERY

The 2ame of another Hocsier has been aided to the growing list of war heroes. : ' .Pvt. Andrew J. Eeck. North Vernon, was; among 68 officers and men presented with the purple heart at the Percy Jones hospital in Battle Creek, Mich., yesterday. He was wounded in the Pacific

theater.

PLAIN

vans

At Stout Field

By HAMLIN WELLING “Glider to tow ship .. . go ahead for take-off,” said the pilot into his. microphone. \ There was a slight lurch. The glider moved forward slowly. We were becoming the first civilians to receive a demonstration of glider flying by the 1st troop carrier command at Stout fleld—four reporters

and two radio men. We picked up speed. The noisy tail wheel of the glider stopped its chatter as Maj. Mike Murphy gently raised the tail off the ground. I squirmed around the fraction of an inch permitted by the taut safety belt and fingered the rip cord on my parachute. I hoped I wouldn’t have to see how it worked. The wind outside was terrific. The seat under me felt harder and harder. We were climbing fast and I could see the tow ship, still racing along, on the ground. Suddenly, the seat dropped out from under me. Maj. Murphy was diving toward the ground. The slack in the several hundred foot nylon tow rope allowed the tow plane to get off the ground. Then Murphy leveled off. The glider now was about 40 feet off the ground, the mother plane about 20... . We had to about 20 feet above the tow to avoid its backwash. Now,” we were climbing fast. I looked at the altimeter. It said 500 feet. + The wind stopped suddenly and the glider seemed to fall from under us. I glanced around at the other reporters. One of them pointed at his stomach, made a circling sign with his hand. The altimetgr said 2000 feet when Maj. Murphy reached for the release lever and gave it a push. We were on our own. Our speed slowed down from around two miles a minute to half that. We were

qa . ’ ve

Airborne Base

any different, except that the wind doesn’t roar so loud. The radio announcer shushed is. He was on the air, telling his lise . teners what gliding is like. . . . We continued circling the field, dropping gradually, ' We moved forward. {x dh The co-pilot pointed to the seats. He motioned for us to fasten our safety belts. Slowly we dropped to ward the runway stretching ahead of us, My whole body was tense, waiting for the moment we touched ground, . : But I never felt it. Nome of us knew when we stopped being aire borne. They told us before ye started they can haul a jeep and more than a dozen fully armed soldiers in each glider. Too, they said, the glider is considered “expendable”—as is ammunition. I'm glad ours wasn’t expended. : . Next thing we were turning back our parachutes. : “Thank you,” said the soldier to me. I said sincerely the pleasure was totally mine, "

REV. MR. SALMON SPEAKS AT DINNER

The Rev. Donald M. Salmon of Eurega, Ill, will.give the address at the pre-Easter banquet of the Mare ion County Church School associa« tion Friday at the Third Christian church. Rev. Salmon is pastor of the Eureka Christian church and well known throughout the Disciples’-. brotherhood being a mémber of the * board of managers of the Untied Christian Missionary society. In addition to his talk Friday evening, there will be selections by the Foster Hall quartet, the invocae tion by the Rev. Edward E. Ander= son and the benediction, by the Rev,

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