Indianapolis Times, Indianapolis, Marion County, 10 February 1951 — Page 10

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The Indianapolis Times

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‘A SCRIPPS-HOWARD NEWSPAPER Gor

ROY W. HOWARD WALTER LECKRONE HENRY W, MANZ President Editor Business Manager

Saturday, Feb. 10, 1951 ee ER | EE hE Y Price in Matin ©. BLY, 5 cents s copy for dally ani 10 Joos: dnl iy, 10.00% yenr anil. 38"

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Give Light and the People Will Find Their Own Way

‘Engine of Inflation’ THERE is an argument in Washington which many people seem to think too technical for ordinary citizens to understand. Yet ordinary citizens will pay a- heavy penalty if this argument is settled wrongly. The question is whether the Federal Reserve System shall support the market for government bonds at present levels by buying all that are offered for sale and that can find no other buyer. -

President Truman and Secretary of the Treasury Snyder say yes. ; Some Federal Reserve Board members—former Chairman Eccles being most outspoken—say no. Many economic authorities, among them Democratic Senator Douglas of Illinois who strongly supports the administration on most issues, also say no. Mr. Snyder's position, backed by the President, can be stated simply. :

os ” . ~ » ~ HE IS responsible for managing the government's debt, now over a quarter of a trillion dollars. The great bulk of the debt is represented by bonds owned by banks, insurance companies, business firms, organizations and individuals. Holders of these bonds (except for the “E” savings series, which can be cashed only through the U. 8. Treasury) are free to sell them at any time to anybody willing to buy them. Mr. Snyder wants to maintain a ready market for these bonds, and for more bonds if it becomes necessary for the government to borrow more money. He wants to do that without paying more than 21% per cent interest. For a higher rate would boost the government's interest bill, already nearing $6 billion a year. And he wants to keep the prices of bonds from falling. So; he contends, it is the Federal Reserve System's duty to support the market at present bond price levels. Mr. Eccles and those who share his viewpoint contend that the Federal Reserve System's real, and much more important, duty—one given it by law—is to curb inflation by holding down the supply of money and credit whiéh can be used to bid up prices. . ° oe oe.

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Foobar ni ONE < . o

THEY insist that the Federal Reserve cannot perform

thig duty if it must buy all the government bonds offered by commercial banks which would like to get cash to lend at higher interest tian the government pays. For, they say, when a bank exchanges a government bond for cash, that cash becomes the basis for some six times its amount of credit which the bank can extend to private borrowers. This for reasons which are, indeed, hard for most ordinary citizens to grasp, but which practically all authorities agree are true reasons. So, Mr. Eccles asserts, what Secretary Snyder and President Truman want done makes the Federal Reserve System ‘“‘an engine of inflation.” Mr. Eccles and those who agree with him argue that the much better, safer plan would be for the Treasury to pay a somewhat higher interest rate on government bonds, thus making it more profitable for banks and other holders to go on holding them. That would, of course, increase the government's interest bill. But, Mr. Eccles contends, Secretary Snyder's plan would cost the government and everybody else a great deal more in further inflation of prices.

” o ” ‘ TOO MANY engines of inflation already are working busily in this country. There is urgent need for the Federal Reserve System to operate, as it was intended to operate in such times, as an éngine of dis-inflation. We do not question the sincerity of the position taken by Messrs. Snyder and Truman. It credits them with excellent intentions, But there are situations in which it is terribly dangerous for powerful officials to be sincerely wrong.. And the road to inflation, like the road to another inferno, could be paved with good intentions.

It's a Dare

T IS a good budget and a tight budget, President Truman ! said Thursday, and he dared Congress to do anything o it. Now, HST is well known as a fast man with a dare. And he keeps a chip handy for quick adjustment to his shoulder. But this time, as in the case of the gent who kept widening his offer to lick any man in the house, country or state, maybe he’s taken in too much territory. When-Mr. Truman delivered his State of the Union message early in January, he called solemnly on Congress In very general terms to hold down on nondefense spend. ing. He was applauded for that. But when, a wéek later, he unveiled his $71.6 billion budget for fiscal 1952, it fooled nobody. Much of that budget, of course, was for our rearmament, for aid to our Allies, for costs of past wars and for the effort to prevent another war.. But also included was

more money for practically all aspects of the old “fair deal”

program. : So, in effect, Mr. Truman now dares Congress to chop out the padding, waste and extravagances in a flock of votebait items certainly not essential to defense. Okay, Congress. Take it from there.

Drop Dead

Ir YOU can get a yuk-yuk out of the fact that the federal government is selling red ink as surplus, at a time when the national debt is growing bigger by the day, go ahead. Bust a rib. It is wholly in keeping with the way Washington does things.

". But one gripe is: Who named this ink “prosperity

red,” and in the sales notice cynically added that it' was not

“obsolete”? : . It's hard to think of many things more obnoxious in these times than a bureaucrat with a comic-cuss sense of

humor—or more obsolete. 5 . ” w i Cs

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‘He Must Think I'm a Music Critic’

STRATEGIC MATERIAL . : . By Earl Richert

Who's Hidin’ i WASHINGTON, Feb, 10—S8enator Herbert O'Conor (D. Md.) said he intends to keep press-

ing to learn who was responsible for letting

49,062 bales of cotton go to Red China following the outbreak of the Korean War.

What the Senator and his investigating sub-

committee want to know specifically is: Why wasn't cotton classed as strategic material immediately following the Korean

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have shut off. th China shipments? Who in the Commerce Department’s - Inter - Agency Advisory Committee on Export Policies advised against such action? At the moment, the Senator is stymied by the refusal of Commerce Secretary Charles Sawyer to turn over the minutes of the Advisory

Committee meetings on the grounds it would not be in the best interests of the country. What the O'Conor committee is going to do about this’ refusal has not been decided. Sen. O’Conor said data is now being assembled for submission to the full committee so that a de-

cision can be made.

The Senator has reports that one or two members of the Advisory Committee wanted to classify cotton as a strategic matérial as early as last July. He wants to know who overrode

‘them.

Serving on the Advisory Committee are representatives of the Agriculture, State and Interior Departments, the Munitions Board, the Atomic Energy Commission and the Economic Co-operation Administration.

Melted Like Snow

EXPORT controls were placed on cotton on Sept. 8 immediately after the Agriculture Department informed Commerce that there was a world cotton shortage. But this was after the 49,062 bales had been shipped to Red China. The O'Conor subcommittee apparently is satisfied with the explanations of the barter arrangement, entered into on May 10 before the Korean outbreak, whereby the cotton was to

be shipped.

This involved a deal by which 61,851 tons of soybeans were obtained from Red China for use as food in Japan. And, in turn, 49,062 bales

outbreak, an act which would

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time.

Commerce, 1952.

SOSRRINENENTRIR RANI E

TO THE POINT . . . By Charles Egger

Harber Wants Public Spotlight on RFC

WASHINGTON, Feb. 10—W. Elmer Harber, new and as yet® the Reconstruction Finance Corp.

unconfirmed chairman of

slammed the door on “influence peddlers trying to do business

around here,

“As long as I'm running the RFC it's going to do business

in a goldfish bowl. “If I find any influence peddlers trying to work their trade here, they won't get an RFC loan, even if it's a good one.” Mr. Harber, who started out as a bank janitor and became a millionaire smalltown banker and 'oil man in Shawnee, Okla, took over as RFC chairman about Nov. 1 at President Truman's insistence after RFC loan policies~had been sharply criticized. Mr. Harber is not mentioned in the Fulbright subcommittee’s report on favoritism and political influence in RFC activities. Blunt-spoken Elmer Harber believes the government's biggest lending agency can handle its business as is done in a country bank, in Shawnee. “The RFC should be kept” he said, “It's worthwhile. The very people who are clamoring about it now would be the first to squawk if it were abandoned. But it's a business organization and we're going to run it like one.” .

Mr. Harber

++. in the open

He's trying to head off pos-°

sible use of outside influence on loan applications. Le

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“I've ordered no more of these bull sessions, where a former RFC employee comes in to talk things over with his old friends. It's too easy for information about loans and their progress to leak out that way.” Anyone inquiring about a loan application at the RFC now is required to be registered. If he isn't he's sent to Mr. Harber's office to record his name and business association.

” ~ ” ARCHIBALD PALMER was required to register Thursday. He is the New York attorney who handled the defense of Judith Coplon, former Justice Department employee, in her trials hereyand in New York on charges involving espionage. Mr. Palmer objected to Mr. Harber's new rule. But he registered. As he left the RFC chairman's’ crowded waiting room, however, Mr. Palmer shouted at a secretary: “Are you writing your obituaries over here?” Mr. Harber said those who register and are unknown, in the RFC will be “checked up” to make sure they have a legitimate reason to make inquiries. “I figure the least we can do is scare the wrong kind away,” he said. .

» ” ” ‘HE was reluctant to discuss the Benate subcommittee report. He sald: “I don't figure

ation eh

Cotton Bale?

of government-owned surplus cotton was sent to Red China, the shipments being made in July and early August. . There was a surplus of cotton in this country at the time and the soybean situation was - tight with soybeans selling for $3.05 a bushel— a high price. Army authorities estimated they were able to save $700,000 by getting the lowerpriced Chinese soybeans through the cotton barter deal. Exporters arranged the shipments.

outbreak, the eotipn Sa¥8. the

ly, with ‘demand for

. “cotton so great that the huge government stocks _ melted away almost overnight in sales back to United: States industry. Cotton prices soared.

Views on News

By DAN KIDNEY

JUDGING from those “Government by Crony” reports, it would be good if the remodeled White House didn’t have any back doors,

CONSENSUS at the GOP box supper in Washington was that even a Republican can beat President Truman next

ONCE AGAIN, Abraham Lincoln has been chosen as the man most likely to succeed in getting Republican votes in

ALL IT takes to run a modern government is. your money and/or your life.

AS WE get Gen. Eisenhower's report, our side lacks only a couple of things— arms and men.

THOSE NEW A-bomb tests were so terrific that some of the gambling houses didn’t turn a wheel for 10 minutes. :

THOSE “SICK” railroad strikers have taught Uncle Sam a new form of biological warfare—germless.

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EUROPEAN DEFENSE . .

WASHINGTON, Feb. 10—Mark up another

score for the personality and diplomatic shrewd-

ness of Gen. Dwight D. Eisenhower. ow he's got the Germans thinking it might ‘be a good idea, after -all, to join in the defense of Western Europe against communism. Reports trickling into the State Department from. both official and unofficial ‘sources indicate a shift in most Germans’ attitude toward rearmament since lke made his brief stopover in Germany during his recent European tour, Before Ike's visit, they either opposed rearming or were indifferent; but now, the State Department reports, they're beginning to get interested.

Germans Must Be Strong

AS THE strongest indication of this, diplomats here point to Chancellor Conrad Adenauer’s “beware of the Greeks bearing gifts speech the other day. In warning his countrymen to be suspicious of new Russian offers of concessions, he declared the only way Germany can be neutral is to be strong enough to defend its borders, And to attain that strength, he added, Germany should help establish a strong Western “peace front”’-—meaning, obviously, a European army, op A ey maneuvered this shift in sentiment by his casual approach to the German rearmament problem in his statements to German leaders. The General took the attitude that there wasn’t any hurry about the Germans reaching a decision—that there were more important things to do first, such as developing the strength of the present North Atlantic Pact members. Ike emphasized he wanted German participation only if the German people came willingly. Then, he left it at that, He didn’t press them to buy; just said so-long, boys, and left them to think it over. Moving on to other European countries, Ike left the Germans plenty to think over. They saw these other countries showing signs of life for the first time in years—signs that they meant business about this European force. Great Brit-

"I do not agree with a word that you say, but will defend to the death your right to say it."

‘Let's Do It Right’

MR. EDITOR: If we do have to draft 18-year-olds, and I'm

not sold on the idea while there are so many able bodied men who were deferred in World War II around, let's round up these latter men and induct them now. So what if we do disrupt their home lives. Mine was disrupted in World War II and my husband, then 38, inducted. I was sorry to see him go, but knew our country needed him, so that was all right with me. Needless to say, I was hot about the men who were deferred for no good reason in unessential businesses when there were any number of women who could have filled in. Now I say put these draft deferees of World War II in and let them do their share. It’s their country too, or are they some special species? Men were taken into service then and if they could leay Souiyes and children and disrupt their . home fives, why not now. Be

', I don’t mean that World War II veterans,

and especially those with combat service, should serve now. I mean the men who dodged the last time. Another thing that gets me, why do they say the services do not need older men. If older men are able to work at desk jobs, they could do the same in the Army and relieve the younger men for combat duty. No one wants war, but we have it, want it or not, and it's everybody’s country and their duty to defend it no matter whether young or old, rich or poor, or between. The idea of letting college men have some time to plant themselves in defense plants so they won't have to go into service. Talk about class prejudice, that stinks, doesn’t it? Nothing democratic about that.

Mrs. Nina Elson, City.

‘Pay Firemen More’ MR. EDITOR: -

The legislature has met once again, and the first thing it did was pass a few bills giving members and some judges a nice raise. What about the city firemen, putting in 72 hours a week and trying to live on the little bit they are paying them. The firemen’'s wives have to work, or the men have to work on their time off to make ends meet. The chief even turned down a proposal for a 63-hour week two years ago. To get on the Fire Department staff you must pass an IQ test and other screening tests to be sure you're above the average and then they start you out at $2400 a year (83 cents an hour). Garbage men make $1.15 an hour. Out of the $92 every 15 days, you pay out $12 for meals, retirements, deaths, unions. So that doesn’t leave enough for a married man to survive. No wonder they are quitting the Fire Department and taking jobs in defense plants. I did.

—Ex-Fireman, City.

By Galbraith

United States.

Hong Kong today is the

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By Andrew Tully = lke Sparks Western Germany

ain announced an expanded defense budget and so did Petgtum and the Netherlands. And the Germans couldn't help noticing the enthusiasm Ike created wherever he went. ) i As a result, the Germans now are beginning to think the NATO force might be a good club to join—particularly as.a charter member,

vi GIR Le, They're determined not to be Ignored, as Ike's er approach indicated they might be. This time the Germans want to be on the winning side and Ike's tour woke them up to the fact that the NATO countries probably are going to have something good to offer them. Plénty of American officials, of course, in cluding High Commissioner John J. McCloy, have told the Gerhians often that NATO membership is strictly a voluntary proposition—that the Western Allies don’t want to drag Germany unwillingly into their armed force. But somehow it's never had the effect Gen. Eisenhower's statements had.

‘Politics and Police’ MR. EDITOR:

1 inquire, testily, of your readers: Are we as citizens to permit reported attempts to obstruct justice by curious, complex political reasoning, law making, and law enforcement officers to

continue? To be a law maker or law enforce= ment gfficer makes it a great responsibility. Obviously it is, since many so engaged have the additional responsibility of party politics. In a little over 30 days the Indianapolis Police Department made the news in not too good a light. First, the case of a deaf woman. Then on Friday, Feb. 2, 1951, Fred Swego, a detective in the Indianapolis Police Department and chair-

man of the legislative committee of the Frater-

nal Order of Police, had his name along with Speaker, of the House W. O. Hughes (R. Ft.

Wayne) appear in the fourth estate about the

arrest of Speaker Hughes’ 21-year-old son; Da-.

:vid Lee. He was arrested while speeding through

Marion at 52 mph about 2 a. m. Wednesday,

Jan. 31,1951, in a ¢éar with a General Assembly ‘license plate, according to the press.

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REPORTED threat of reprisals against police tegislation pending in the G. A. and pressure turned on only strengthened Marion's Chief of Police, Earl Stephenson, and Mayor Willard Blackman’s fais in .the Constitution and their determination to “stand pat on their policy of ‘no special treatment’ in traffic arrests, despite continuing pressure on them from powerful lobby groups.” Elementary justice demands that Gov. Henry F. Schricker, the state legislature, the attorney general and state police take immediate action in the matter as the name of a state legislator has been mentioned in the case. Likewise, as the name of an Indianapolis city detective has been mentioned in the case, Mayor Bayt, Prosecuting Attorney Fairchild, the Board of Public Safety and Chief of Police Rouls should take immediate action in the case. What became of Mayor Bayt's report on the Huett case? —John Alvah Dilworth, City.

TO MY BABY

SO sweet and cuddlesome to hold . . . refresh Ing and so gay . .. you're pert and most adorable . . . in your cute little way . . . with skin 80 soft . .. and eyes that shine . . , with light that makes them beam . .. you're nothing short of wonderful . . . you really are a dream . . , your smile is touched by God himself . . , and pleases all who see . . . the loveliness it indicates . . . because it's heavenly . . . and when your doll-like hands reach out . . . for things you'd like to own . . . I feel I'd give the world to you... if it were mine alone . . . but some times, baby dear, I pine . .. to think that soon you'll grow . . . and leave me just a memory + + + 88 on through life you go. :

~—By Ben Bwroughs.

CHINA . . . By Clyde Farnsworth

Cold Hyphen Chills British-U. S. Relations

HONG KONG, Feb. 10—The hyphen that once fitted British American relations warmly together is now hung with icicles in this British crown colony. If the worst comes—and that means if the Communists take over—there will be a loud yell that it was all the fault of the

troubles of the world. God in turn asked Mr. Truman and

pon

2:10

COPR. 1981 BY NEA SERVIGE, MC. 7. 4. REG. B. 8 PAY, OFF.

"Why, bewling keeps me in perfect shape—this backache must be from cleaning wallpaper!

in any of it and I don’t know

. enough about what was going

on before I came here to talk about it, s “As far as I know during my short time here, Donald Dawson has not tried to influence a decision. And I've been on the look-out for anything like that.” Mr, Dawson is President Truman’s personnel adviser and among several persons named by the Senate subcommittee as

2

having exerted influence. over some RFC directors, Mr, Truman sald the charge was asinine, Although he would not discuss possible waste and inefficiency in past RFC operations, Mr. Harber told economy moves to save about $5 million a year had been made.

About 1000 employees here’

and in RFC fleld offices have been dropped, and some field offices have been consolidated.

"

point “of greatest divergence between the policies of London and Washington toward Red China. The recent American embargo against shipments to Hong Kong of cargoes. helpful to Red China has put an awful cramp in commerce here. Britain also has reined up on certain exports. of her own to

Hong Kong, but blame for the decreasing trade here is pop-

. uarly laid on Washington.

» ” - NO ONE here blames the Chinese Reds. The feeling against Ameri-

cans is getting down to the

personal stage. Recently a representative of an American company here closed a deal for 30 steel filing cabinets with a British import concern. - The British concern canceled the deal with a lecture on what a dirty trick it was to turn off American shipments to Hong Kong. - The head of thé British firm said he was reserving his filing cases for non-American customers. The situation here can perhaps best be understood by recounting a wry joke being told around the colony. It seems that Winston Churchill, Joe Stalin and President Truman were called before God in an

effort to straighten out the : : ; 0

Stalin what He could do ‘to put the world in order. Mr, Trumar asked for the destruction of communism. Stalin asked that all Americans around the world be sent home.

Sm then turned to Mr, Church-

“What can I do for you?” He asked, ‘I'a like a cigar,” Mr. Churchill replied, “but 80 ahead

and serve those two gentlemen first.”

The Communists here are making the most of the decrgased trade and the unemployment it has caused in the textile and ceramics factories, for lack of raw materials. H ” n THE two million Chinese inhabiting Hong Kong, and the adjacent leased territories considered part of this colony, are almost all anti-Communist, but most of the Hong Kong labor unions have active Communist factions and so the embargo crisis is getting the Grade-A Red treatment. Directors. of the Hong Kong and Kowloon Federation of Labor unions have passed a mani-

_festo against the American em- . bargo.

Right now the Chinese are busy celebrating their new year—the lunar year. of the rabbit-—-but they will be back

among their troubles next week.

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MARRIAG Donald R. |

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Donaid R. Je Fithian, 19, Cosy Fuqua,

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DIVORCE

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BIRTHS

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Hoosier C GOSHEN, An Americal and a Germ topped five 77th annual atorical con Goshen Colle Lary We College won "vision, and DePauw Un They won | to compete i of the Inter sociation at versity next A Winner of was Rosalie Mary’s of the Nancy Gant was second.