Kankakee Valley Post, Volume 2, Number 47, DeMotte, Jasper County, 6 April 1933 — News Review of Current Events the World Over [ARTICLE+ILLUSTRATION]

News Review of Current Events the World Over

President Scraps. Farm Board and Combines Several Bureaus Into One Agency; Wins First Round With British on Debts.

WHAT the President terms the “farm credit administration” was created by executive order which, if it meets with congressional ap-

proval, as is expected, will become operative May 27. The “farm credit administration” replaces the federal farm board, the federal farm loan board, and the farm credit activities that have been scattered through seven different governmental agencies. The “administration” will be headed by

Henry Morgenthau, Jr., with the title of governor, and an assistant, for the present at least, Paul Bestor, with the title of commissioner. Governor Morgenthau said, after issuance of the order, that the activities of the government in granting loans to farmers and farm organizations will be fully co-ordinated. In the past, with the government making loans through the Department of Agriculture, the R. F. C., the farm board and other agencies, varying rates of interest were charged and different purposes and conditions were set up, and under the new regime, Governor Morgenthau said, unity of purpose and treatment will be observed strictly. He also declared that all employees of the new credit administration will be placed under civil service, instead of under a patronage system as exists in many of the bureaus at present. The executive order issued by the President directed the abolishment of the farm stabilization activities of the farm board which have resulted in losses of three hundred million dollars, except that he provided they should be continued only to liquidate the left over holdings of the board. This consists of thirty million bushels of wheat and twenty-eight thousand bales of cotton. In a message to congress accompanying the order President Roosevelt said his purpose was to “maintain and strengthen a sound and permanent system of co-operative agricultural credit subject to federal supervision and operated on the basis of providing the maximum of security to present and prospective investors in bonds and debentures resting on farm mortgages or other agricultural securities--all for the purpose of meeting the credit needs of agriculture at minimum cost.” The consolidation of these various activities under one head is expected to result in an administrative saving of approximately two million dollars a year.

THE efforts of European nations to cancel or greatly reduce the war debts owed to the United States are on, and it is said President Roosevelt

has won the first skirmish to the extent of considering world economic conditions before any discussion of war debts. As a result of Mr. Roosevelt’s insistence it is reported the British government has backed down from the position announced by Austen Chamberlain, chancel-

lor of the exchequer, when he said that Britain would not swap economic concessions for revision of the debt. The British are now willing to discuss economic concessions before the debt question is taken up. By virtue of this sudden change of front on the part of the MacDonald ministry, the world economic conference is likely to be held in April or May instead of next summer or autumn, as the European powers were planning. The British ambassador, Sir Ronald Lindsay, has discussed with Secretary of State Cordell Hull, the questions to come before the economic conference before the debt question is considered. The French are also willing to discuss economic questions before considering war debts. Following a White House conference between President Roosevelt and M. Jacques Stern, vice chairman of the finance committee of the French chamber of deputies, M. Stern said that he had not discussed war debts with the President; that their conversation had been confined to the economic conference which the deputy thought “it would be very important to hold as soon as can be made possible.” Asked about the debt, he said “it would be very important for France to pay the December installment as a mark of respect to President Roosevelt. Mr. Roosevelt and Mr. Hull have taken the position from the start that the war debts are secondary in importance to the removal of tariff, embargo, quota, exchange and other restrictions on international trade. A preparatory commission named for the purpose of preparing an agenda for the economic conference has listed the following subjects for consideration:

THERE is a growing belief in Washington that the budget will not be balanced during the next fiscal year beginning July 1, regardless of the economies made by cutting the pay of government employees, reorganization of bureaus and departments, and reductions in payments to veterans, amounting to an expected total of some seven hundred millions, and regardless of an added revenue from the tax on beer, estimated at about one hundred and fifty million. The relief grant of five hundred millions provided for in a bill now before congress, and the two hundred millions for the reforestation plans, will alone off-set the economies. It is probable that the more ambitious plans of the President will be financed through new bond issues, but there will be increased interest charges and a sinking fund to provide for which will run into hundreds of millions annually. Along with these things tax yields are falling short of estimates because of the continued prostration of business.

“The original and present weight of debt and interest obligations. “Price of primary commodities and price of manufactured goods, both wholesale and retail. “The existing volume of production in different staple commodities entering in world trade. “The willingness of creditors to make international loans and their unwillingness to receive payment in goods and services. “The distribution in different countries of the available gold supplies of the world. “The disharmony between the stable and fluctuating rates of exchange.” Prime Minister Ramsay MacDonald, of England, will preside at the economic conference and will name the date for its convening. PROGRESS of the farm relief bill in the senate has been slow. Senatorial dignity would not permit of the speeding up of the ponderous machinery of the upper house regardless of the plea of Secretary of Agriculture Wallace for speed and for the passage of the bill as originally written by the President and his advisors. There just had to be hearings on the bill and everybody, for and against, must have a chance to talk, and they have talked. At this writing it seems that “a” bill will eventually pass but whether it will be the bill that passed the house, and is acceptable to the administration, or whether it will be so radically changed as to be unrecognized by its proponents, or unacceptable at the White House, is for the future to reveal. FARM relief in other directions moved along more rapidly. The proposal for refinancing farm mortgages has taken form and the proposition is for the selling of farm mortgage bonds to the extent of from nine to ten billion dollars on which the government will guarantee the interest, but not the principal. It is expected the government’s guarantee of interest will make the bonds marketable at a comparatively low interest rate. Farm leaders have urged a government guarantee of the principal on such a bond issue, but such a guarantee would make them a direct obligation of the government, and mean simply an increase in the national debt of nine or ten billion dollars. Guaranteeing the interest only means that should there be a complete default on the part of the farmers, which is never probable, the treasury would have from three hundred to four hundred million dollars to pay annually until the bonds had matured.

FIVE hundred million dollars to be provided by the federal government and distributed as unemployment relief by the states is called for

in a bill introduced in the senate by Senators Wagner of New York, Costigan of Colorado, and La Follette of Wisconsin. The bill provides that the huge sum shall be given outright to such states as shall apply for aid, and places the responsibility for seeing that the money is given wisely in the

hands of a “federal relief administrator.” This official would be appointed by the President, with the consent of the senate, and carry on his duties independent of any other department, The Reconstruction Finance corporation is given authority, under the bill, to borrow the five hundred million dollars, but will have no powers beyond turning the money over to the relief administrator. Ten days after the appointment of the relief executive, the Reconstruction Finance corporation would cease to have any control over the granting of loans to states or municipalities for relief purposes, and thus all of the government’s relief financing would be under the one jurisdiction.

A NATION-WIDE boycott on all Jewish business and professional men in Germany has been clamped down by Chancellor Hitler’s National Socialist party. The announcement states that it will last “until Jewish life in Germany is paralyzed.” Hitler’s government, while not officially countenancing the boycott, is not expected to intervene. At Nazi headquarters it was said that the boycott “is a purely defensive measure solely directed against German Jewry as retaliation for the antiGerman campaign in foreign countries.” All over Germany Jewish owned shops and department stores closed their doors and were picketed by storm troopers. THE President’s bill providing for the employment of 250,000 men for the purpose of reforestation and other work in government forest reserves and along the rivers, passed congress with some amendments made by the senate. One of these amendments removes the state quota restrictions on the sixty-eight million dollars remaining of the relief funds in the hands of the Reconstruction Finance corporation. This makes it possible for states that have borrowed up to the quota previously provided to continue to borrow until the sixtyeight million is exhausted. In the house the bill was adopted without a roll call, but with the Republican members in opposition. This opposition was not directed at the bill but at the methods of ruling the house by the Democratic majority. It was the first of the administration bills that had not received non-partisan support. The bill was strongly opposed by President Green of the American Federation of Labor. DIRECTOR of the Budget Lewis W. Douglas has completed the task of revising the payment to veterans under the terms of the economy bill giving the President dictatorial powers for such revision. This revision eliminates from the pension rolls all veterans with non-service disabilities, and reduces the payments to those with service disabilities by approximately 15 per cent, the same percentage of reduction as that made in the wages of government employees. The economies that either have been, or are expected to be, effected cover the reduction of 15 per cent in the wages of all government employees made by the President; reduction in veterans’ benefits and administration now made; reorganization of the departments and bureaus in the administrative branch of the government, for which the President has authority, and on which he is now working; postal service economies, now being considered. When all have been completed the following savings will have been effected: Veterans’ benefits and administration $480,000,000 Reorganization of administive branch of the government, including abolition of functions 250,000,000 Reduction in the pay of government employees 125,000,000 Postal service economies 75,000,000 Total $930,000,000 Among the new expenditures that will offset these savings is the appropriation of five hundred million dollars as a gift to the states to be used for non-employment relief, and the reforestation plan of the President which congress has authorized, and which involves an expenditure of not less than two hundred million dollars. MEXICAN Communists Object to Josephus Daniels as American ambassador at Mexico City. Posters captioned “Out with Daniels" have appeared on walls in the capital. They call him “the murderer of Azueta and Uribe.” These men were Mexicans who were killed in the fighting when United States forces landed at Vera Cruz in 1914. At that time Mr. Daniels was secretary of the navy. UNDER the authority granted him by congress the President has ordered a 15 per cent cut in the pay of all federal employees, effective April 1. The order affects the employees in all departments including officers and enlisted men in the army and navy, Post Office department, and all others on the government pay rolls, a total of approximately 800,000. The authority given by congress provided for such cut as reduced living expenses might warrant up to a total of 15 per cent. An investigation of living costs made by the Department of Labor showed a decrease from June 30 of last year to the present time of 21.7 per cent. On the strength of that report the President ordered the cut in pay to the limit of that allowed by the terms of the economy law. It is estimated the saving to the government will be approximately $125,000,000 annually. FEDERAL regulation of new stock and bond issues is proposed by the President. He asks the passage of legislation that will require the organizers, promoters, and sellers of the issues to submit for public information a complete financial statement concerning the stocks and bonds offered. The proposed law would provide that full information be given on every prospectus offering securities for public sale, and similar information be made available at other sources. Bonuses and commissions paid to sellers would also be revealed to the public. No serious objection to the terms of the bill is expected in either the house or the senate. ©, 1933, Western Newspaper Union.

Henry Morgenthau, Jr.

Sir Ronald Lindsay

Senator La Follette