Indianapolis Times, Indianapolis, Marion County, 14 March 1951 — Page 16

The Indianapolis Times A SCRIPPS-HOWARD NEWSPAPER Ee

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

PAGE 16 Wednesday, Mar. 14, 1951

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‘Curbing’ Credit HE Federal Reserve Board has asked private lending agencies to help the government fight inflation by curbing expansion of credit. The plan is voluntary. A committee representing commercial and investment banks and insurance companies will operate it. All financial institutions will be urged not to make private loans unless they are necessary to the defense program or essential to the needs of agriculture, industry and commerce. President Truman recently suggested some such plan, and Attorney General McGrath has given lending institutions which co-operate with it exemption from the anti-

trust laws. 2 ” » » .

» » .. RAPID expansion of private credit since Korea has had - a great deal to db Wij ation’s alarming progress. So this voluntary plan 1s an efitouraging step in the right direction. '° But, as the Federal Reserve Board points out, it's no panacea. It doesn’t deal with many other inflationary factors. ; Mr. Truman has promised a vigorous continuing review of government lending and loan-guarantee operations. He has asked federal agencies to report this week on their current activities in that field. And a very big field it is. On that subject, the Institute of Life Insurance has just put out some striking figures, drawn from an analysis by Mr, Truman's Budget Bureay.

” » » ” » ” BY NEXT June 30, loans, guarantees and credit commitments made by wholly owned government enterprises will reach an estimated combined total of $44.4 billion—a - rise of $9.5 billion since just before the Korean War began. A further increase to $48.8 billion in such loans, guarantees and credit commitmehts is predicted by June 30, 1952. wo Logntiag uncommitted funds and added lending power new sought, wholly owned government enterprises will have an estimated total lending authority of $58.6 billion next June 30, and of $61.5 billion a year later. (Combined total loans by the nearly 1500 banks in this country were $61 billion last Dec. 31, according to the Institute of Life Insurance.) - ; Obviously, the government itself is playing a major : part in the dangerous expansion of credit. And, obviously, voluntary restraint of private credit can’t be a fully effective measure against inflation unless the government clamps down hard on its own lending and nondefense. spending agencies. :

” . . = . - . BY THE way, the Republican Policy Committee in the House of Representatives voted yesterday t6 push legislation to abolish the Reconstruction Finance Corp. That's a smart decision.

He Lost, Didn't He? | THE TACTICS used by persons interested in defeating former Sen. Millard Tydings in Maryland are not to be condoned merely because similar tactics have been used time and time again to defeat others. 20 : Nor is it pertinent to argue that the “smear” of Sen. Tydings was not what defeated him—that, really, he defeated himself by his phony whitewash investigation of Commies, fellow-travelers, traitors and ordinary dopes who so handled our foreign policy that we are now engaged in a war in Korea which ought never to have come to pass.

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. . w # * . THE “SMEAR” tactics used against Sen. Tydings were contemptible just the same. But what shall be said about the reaction of Mr. Tydings who was defeated by a thumping 43,000 majority and has not contested the count? We can only recall what was said by another, far superior Senator when he was defeated. It was on the Senate floor, Sept. 11, 1840. Sen. Henry Fountain Ashurst had just heard the sad news that Arizona's voters had given his seat to the man who is now the Senate's Democratic floor leader. Sen. Ashurst didn’t cry “Foul!” He said:

yy 8 n 4» =» “A MAN only moderately versed in statesmanship, and with only a small degree of sportsmanship is bound to admit that in a free republic, in a government such as ours, it is the undoubted right of the people to change their servants, and to remove one and replace him with another at any time they choose, for a good reason, for a bad reason, of for no reason at all. “If we are to remain a free people, it is the duty of public servants not grumpily and sourly to accept the verdict of the majority, but joyously to accept that verdict; and I joyously accept the verdict.” Which sentiment we commend to Mr. Tydings.

Just Terribly Bus THE Pentagon in Washington, heart of the national defense effort, is the world’s largest office building— some 28,000 people working there. It also has the world’s biggest telephone switchboard. Yet, according to Rep. Sabath of Illinois—Fifty per cent of the outgoing phone calls from the Pentagon are personal, ‘with some conversations lasting up to a half hour. During working hours, retail stores and shops in the Pentagon's concourse are filled with employees doing their shopping on government time, The dozens of coffee and snack bars and restaurants in the building do a land-office business at all hours of the day.

- » » » . ». “THERE appears,” said Mr. Sabath, “to be no supervision ‘or control whatever over-this laxity in work hours or personal calls made on government time, over government facilities, at a time when our agencies are supposed to be straining at their utmost.” Significance of these remarks on the House floor is in the fact that Mr. Sabath is a hard-and-fast administration supporter, He's always been a strong friend of government employees. And he's seen federal bureaucracy at its wasteful worst through two world wars. But he gags at what he

see going.on in Washington today.

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FUNDAMENTAL OUTLOOK . . . By Ludwell Denny

Germans ldolize Bureaucrats In

BONN, Mar. 14—A “demokratur,” or demotatorship, is the way West Germans jokingly describe their government among themselves.. It

is in fact a democracy in form and an autocracy

in spirit. Compared with the totalitarian hell in the East German Boviet Zone, it is a heaven of liberty. It was freely elected, operates under representative federal and state constitutions and laws and is not ruled by terror. But by American or British standards the

fundamental attitudes, which give life to democratic institutions, are not widespread either among those who govern or those who are

The rulers of West Germany are. party bosses from old Weimar Republic days. The civil service officials are largely ex-Nazis. There's little pulitic objection to either, . * FOR the moment at least, the threat to democracy here is not from the extreme Left or

Haven't Forgotten Anything, Have You?

DEAR BOSS . . . By Dan Kidney

Hoosier Tells of Visit to Ireland

WASHINGTON, Mar. 14—With no particular thought of St. Patrick's Day being this week, Rep. Ralph Harvey, Republican, New Castle, nevertheless devoted his weekly broad-

cast to Ireland. What occasioned this coincidence was the arrival here of an old - Purdue classmate of Mr. Harvey's, who has just returned from spending a year in Ireland as agricultural advisor for the Economic Co - operation Administration (Marshall Plan) mission there. He is Ronald H. Bauman and was en route to Lafayette to resume his post as professor of agricultural economics at Purdue, as elsewhere, but it was farming in Ireland upon which Prof. Bauman talked

Mr. Harvey « + « hears a friend

on the Harvey broadcast. Among the interesting facts brought out by Mr. Harvey's ‘questioning of his friend was that while Ireland has more farms than Indiana it has fewer landlords. Mr. Harvey, a farmer himself, ‘estimated that about 50 per cent of the Hoosier farms are operated by tenants.

“That is not true in Ireland,” Prof. Bauman reported. “Since the government was- established in 1923, there has been no landlord class as such. Those who till the soil own it. “While Ireland is about the size of Indiana, there are around 380,000 farms there as compared with under 180,000 in Indiana. For while

QUICK DOUBLE DEAL . . .

We Give Supplies To Europe A

Foreign Governments Sell the Stuff All Over the World Including the U. S.

the average size per farm in our state is around 110 acres, in Ireland the average is between 35 and 40 acres. “I would say that farming there is in about the sanie horse-and-buggy stage that it was in Indiana years ago.” Li a year in Ireland with his wife and four children, Prof. Bauman said he will be glad to get back and settled in Lafayette, During his stay in Ireland, he also had a chance to tour the continent of Europe and see how ECA has worked there. He told Mr. Harvey that “viewed objectively, I would say that the Marshall Plan saved Europe both industrially and in its agricultural rehabilitation.” Mr. Harvey was of the same opinion, after he toured Europe with an ECA subcommittee of the House Committee on Expenditures in Executive Departments. He now has transferred to the House Agriculture Committee and two other Hoosier Republicans have been assigned to the Expenditures Committee. They are Reps. Cecil Harden, Covington, and Charles B. Brownson, Indianapolis.

Beat Off Reds

“WE HAD.to do something to save Europe from Russian conquest,” Mr. Harvey said. “And

it was the Republican 80th Congress which set up ECA.” “Unless that action had been taken,” Mr. Bauman commented, “both Italy and France would be Communist countries today. ECA has helped decrease the danger of communism in these and all the other countries of Western Europe.” - Although Ireland was never in danger of going Communist, it has received ECA aid as part of the general program. With its rural economy based on supplying industrial Britain, this aid should no longer be necessary, as Britain has decided to do without it, Prof. Bauman told Mr. Harvey.

By Donald May

Mr. Brenner said a Chicago company, Green Brothers Enterprises, brought in three ship-

.. arbitrary,

gees to desperation. ¢ © @ MEANWHILE, the problem is whether the moderate federal and state governments—only one of the latter, Schleswig-Holstein with its 45 per cent refugee population, has an openly exNazi cabinet—can grow less autocratic. And whether the people can comprehend that democracy is a way of life, and strive toward it. Not much progress is being made, despite American and Allied efforts, On the institutional level, the executive dominates the legislative and judicial branches. The Germans don't like a system of checks and balances or separation of power. The Allies have had a hard time and little success, especially in the states, in keeping the legislatures from being filled with administrative officials. Legislative controls are at a minimum, Legislative investigatory powers are largely unused—for the first time in German history the federal parliament this winter had a public probe of Corruption charges, . . . * POLITICAL bossism flourishes because in the parties the rank-and-file have little voice, organization is from the top’ down and discipline The system of proportional representation ang party lists enables the boss, rather than the voter, to pick the legislator... As stated flatly ‘by the president of a state legislature: “Deputies have no responsibility to voters living in their districts, but must look to their parties for guidance and leadership and must conse‘quently pay their fealty to them.” Most vicious of all is the authoritarian civil service, This is the exclusive caste of permanent officials, It governed under the Kaiser,

under the Weimar Republic, under Hitler. It

still runs the government. . To it the state is God, and it the priesthood. Its loyalty is neither to the people nor to an elected government, but to itself. In administering the law, it makes the law. And under the infamous “insult laws,” a citizen who dares criticize a bureaucrat may be fined and even jailed—and without a court trial. ’ * b> & AMERICANS have been disturbed by the fact that such a large proportion of these civil servants—actually civil masters—are ex-Nazis. The ratio is not known. Since ‘‘denazification” was dropped the Germans have been unwilling

to permit an investigation and the Allies hays;

found it inexpedient to ask. , - ; But even back in 1949, when there was still some pretense of denazification, an official American study in the state of Hesse showed 36 per cent ex-Nazis among upper-grade officials, and in the intérmediate-grade 51 per cent. In key departments the ratio for all grades was even higher: Justice, 62 per cent; education, 70 per cent; finance, 74 per cent. None of these figures includes as ex-Nazis those who were

‘Don’t Call COs Reds’

MR. EDITOR: Some of the conscientious objectors in this war were brave men. My husband was in the Battle of the Bulge. He was in the front lines. Also stayed for six months of occupation after the war. He didn’t carry a gun. . .. I wonder if your State Representatives have ever heard of a litter bearer. A man who carries no gun but will go out under heavy gunfire on the battlefield to help his fellow man. Sometimes giving his own life. To me that is not a Communist, but a man who loves God so much he will help his brother. . . . Sometimes I wonder about people who are so ready to use the brand Communist. Are they really good Americans themselves?

—Irene Bennett, City.

‘We Want a Phone’ MR. EDITOR: Regarding Indiana Bell's case pending with the PSC, I watch with interest: Six months ago we moved to the country and asked for our phone to be moved also. We were told “no service available.” Later we asked again, “engineering problems.” Still later we begged for service because our three

-ehildren had the whooping cough and our oil

furnace chose four times to refuse to run... invariably at night. As my husband works nights, I had to leave the children alone and go to the neighbors to phone (or would you rather I took three sick babies in sub-zero weather to expose my neighbor's children). We were told then unless

nd Then Buy Them

House Committee Wants to Know

and sold them in the U. 8. for $2500 to $3000 apiece. They had bought them for about

How U

This was some

emotatorship’

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Hitler Youth or merely nominal party me bers; all had been pm gee ole It is hardly surprising that, when 27 per cent of the total population were party members and 90 per cent or more of the population sympathetic, the self-perpetuating caste of “of ficials” which served Hitler should survive now, Nor is it unexpected that this caste has been able to ban from jobs the democrats who dared participate in the ill-fated denazification courts, The American government has tried to combat all this at the grass roots, the only place the democratic attitude has a chance to grow. brave beginning has been made. But it is fearfully faint. i The most promising and most important development by far has been in the press, In the early days of the occupation the American government turned over the Nazi printing plants to carefully screened and licensed editors. Two

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years ago, when restrictions were lifted, it looked as though a revived authoritarian press would drive out the democratic newspapers, In some places that happened. ® & ¢

SO FAR, however, most of the publications and radio stations started with American help have gone straight and have held their public «in competition with less reliable media. For instance, in the central state of Hesse, 14 of the original 15 dailies are still operating and hold over 75 per cent of the total circulation of the state. Among the 50 new. dailies, many are venal .or chauvinistic or both and few have reached the professional level of the 14 exlicensees. Of the latter only three have gone sour, : This free press is neither understood nor liked by the party bosses or bureaucrats, nat. .urally; But. despite obstruction by German . officials and intimidation as much as possible

under Allied Occupation, the free press Y eri pe

with public support. v Theréd are few, if any, other signs that the general public understands or cares for a democratic way of life. Perhaps this, however, is

enough to indicate that the German people— especially the "young--would grow toward democracy if given favorable conditions and

enough time.

3 bo — EE Sh

"I do rok agree with a word that you say, but | will defend to the death your right to say it."

they got a rate increase they couldn't even promise us a phone for any definite time in the future. Is it possible for a public utility to refuse service? : : But to prove there are no hard’ feelings, let me offer a solution to our hard-hit phone

to a means to raise funds to install at least a few phones: Discontinue your radio blurbs; the people who: have phones don't care and the people who haven't phones get a pain in the neck,

—Mrs. Plenty-Pain-In-The-Neck, City.

BEAUTIFUL WORDS

company as

THE MOST beautiful words in the world to me . . . are darling I love you .. . for when I hear those tender words . . . there’s nothing I can't do . . . no obstacle is too great . . . for me to overcome . . . and hold it im a tightened grip . . . underneath my thumb . .. those words act like a tonic . . . to cheer me when I’m blue .« . and seem to work upon my heart . . . to make it good and true . .. in fact it makes the difference . . . between the night and day . . « when you say darling I [ove you . . « in that

special sort of way. -~By Ben Burroughs

Back Again

ncle Sam Got Caught in the Deal

WASHINGTON, Mar.

14—The United States has given away—or sold on long-term. credit—billions of dollars, in equip-

ment and supplies for the rehabilitation of foreign countries. At least part of this—said to run into “millions” —is being sold by the foreign governments to individuals all over the world, says Rep. Herbert C. Bonner (D, N. C.).

That includes men back in the United - States. They buy up the stuff we've shipped out and sell it back here, he claims. A House subcommittee which Rep. Bonner heads is trying to find out how much and why. Probers already have uncovered a “million-dollar trade” in U. S. war surplus equipment which was turned over to Western Germany inf 1948. Though the equipment actually was sold on credit, Rep. Bonner says it was part of U, 8. foreign aid. The probe began when the U. 8. General Accounting Office called attention to an advertisement in the New York Times, Jan. 14, It offered for sale 6000 U. 8. Army surplus trucks “as is” in Germany. Most of the trucks were at Kitzengen Field, near Frankfurt. They had been among those turned over to the West German government, Rep. Bonner said. ' ” » . SINCLAIR ROBINSON, New York lawyer and businessman who had placed ths ad, and Harvey Martin Brenner, a

Cleveland truck dealer ‘engaged ‘in the same business, were called to testify before the House subcommittee Mar. 5. 7 Their . records, “ which they freely miade avallable to the

investigators, showed a brisk business. They bought Amer-ican-made equipment from both the German government and the British Ministry of Supply in Germany. They said other operators have traded on a far bigger scale. The 6000 trucks were never actually sold—Mr. Robinson said he only had an option on them. But he had, he said, brought into the country and sold 50,000 smoking pipes and also tooth brushes, mess kits, Halizone tablets, sandpaper. and other items. The pipes were U. 8. Army P. X, surplus turned over to West Germany. ~ » » THEY WERE bought for about 214 cents apiece. They were sold to the Sunray Drug Co. of Philadelphia for 10 cents apiece. Mr. Brenner said he, or companies he is connected with, brought into the country last year 48 U. 8S. made heavy duty trucks which were purchased from the British Ministry of Supply in Frankfurt. In 1948 he bought $225,000 worth of truck engines from

the West German government. -

He told of another shipment of truck motors from the British a few months ago. Both witnesses told the subcommittee they were only small

operators in this business.

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loads of former U. 8. Army trucks from the Philippines

SIDE GLANCES

$250 apiece. time in 1948.

By Galbraith

. COPR. 199 BY NEA SERVICE. WC. T. M. REQ. U. §. PAT, OFF.

"Which is more work, Mom—making your face pretty or keep-

i ing the kitchen stove shining?"

Many of the trucks, Mr. Brenner said, were sold to the Atomic Energy Commission. All of them, he said, were in good condition—at least the ones he saw in Cleveland, » ” » THE WITNESS did not specify the number of trucks actually involved. Earlier, the subcommittee had been told it wis about 900. . Mr. Brenner was asked if he had heard about certain syndicates on the West Coast, supposed to be importing large quantities of heavy -eonstruction equipment. and trucks from Europe. . He said he had. He had heard of a shipment of 1900 White truck engines from the British government in 1949, He had heard of the purchase of 500 half-tracks in Germany recently. About 200, he said, had been sold to the Belgian government. | The rest, he supposed, were offered for sale in the U. 8. He had heard of the purchase in Germany of 1500 more half-tracks. Also, he had heard of 3000 Cadillac engines purchased in Germany by the Open Truck Sales Co. of Pittsburgh. This company, he said, has sold millions of dollars worth of such equipment to the DefFoit Ordnance. y ” 8 = BOTH WITNESSES said that most of the U. 8. Army surplus purchased in Germany came from an organization known as STEG. This is a German government corporation set up to sell German surplus,

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Actually, the U., 8. government did not give the materials to STEG outright, It sold them to STEG, but at a big discount. Furthermore, t he money—about $140 mfillion—is in German currency. The only way to “collect” it is by U. 8S. spending in Germany. This can £0 on only at the rate of a few million per year. So, for all practical purposes, says the subcommittee, it was foreign ald. But at least these two buyers did not buy directly with STEG. They dealt with two

,men—a George Dawson, whom

they identified only as an Englishman' now in Paris, and a George Mitchell, supposed to be an Argentinian. Mitchell and Dawson, they said, had a business which purchased the materials from STEG — and other sources — and offered it for resale in America or in Europe. The headquarters was in Paris. Robinson and Brenner, would buy from Dawson—or take an option, y s .

THE IMMENSE pool of U, 8. surplus transferred to Ger-many-—running into many millions — was supposed to have been frozen by the U. 8. Army last August. The Army wanted to screen it .and use it as a supply source for the defense. program in Europe, Gen. Eisenhower requisitioned -over 6000 trucks in this category. . But the subcommittee findings indicate the freeze was far from effective. —

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