OCR Text |
Show I.Eni FREE pgrgq VreelMiid SEEN- - HEARD National Capital a By CARTER FIELD Probability that will enact legislation forcing every state bank (except mutual sav ings batika) to take out a federal charter Increased considerably with endorsement ef the plan by Representative John W. UcCoruack of Massachusetts. MeCorniack la a member of the houM wayt and lueana committee, which does not deal mitb banking but the tcio nance of his view on this subject Is due not to his committee connection, but to bis own influence 1b the houses, plus the fact that be la very obviously carry Ids the ag for the Treasury department No one In the treasury, from Secretary Morpenrhaa down, and Including Comptroller of the Currency J. F. T. O'Connor. Is talking on this subject at IL It Is not a subject which lends itself to touch open talking, for to ad Tocate such a change Is to antagonize not only the stockholders, officers and directors of all the state banking Institutions, but the 48 state banking offices. The latter see In any move to end state banks a threat at their jobs. And some of them are quite important politically. But down nnderneatb the administration Is strong for a unified banking System, for much the same reasons as rolced by McCormack. And If treasury officials see a chance to get the desired legislation enacted they will come out for It strongly. They have several Influential members of the house and senate talking their arguments without official authority and trying to find out what the chances re. Fer In the nature of things the administration would much rather this particular move originate In congress than to demand It And It Is not vital n enough to President Roosevelt's for him to turn the heat on members whose connections back home would make It politic for them to oppose the change. "The present depression has shown the weaknesa of the present banking structure," Mr. McCormack told the writer. The conflict of laws and of npervlslon Is responsible for much of oar banking troubles. The Idea of having 49 authorities granting charters to banks Is absurd. The Idea of 49 agencies examining banks to see If they are solvent, and are complying with 49 sets of banking laws. Is ridiculous. WahiBton. con-gre- pro-gra- ' Old Age Pensions Pressing Problem later the federal reserve system. "Now the time has come to take the round th i riifi eney currency bill, aoj si T.FHL UTAH next step, aiid make Impossible for the future nation wide troubles due to preventable local dUturbano'. Bunking is not a local function any more. It Is national. If not international So It must be controlled, in toto and not Jut in part, by the strong arus of the fel-ra- J government." Extend Authority to Inof Boeuiployed aged persoas bounds. and crease by leaps ere are other factor. In making of the aged a more dltncult care the to year. The averproblem from year has Increased, but We expectancy age have not; we still the working years and seventy. sixty between retire for peo-r'There are less opportunities of middle age and past to get Jobs. Modern efficiency looks to the young old. It Is workers oftener than to the estimated that of the 2.700.000 to and over 3 turn 000 persons sixty-fivwho are dependent upon others, only In any way about half are cared for agencies. and public by private e e Not only does the administration want to force all commercial Uaf.W to become national banks, a told io a recent but It desires to Lave the authority of the Ketleral Re- V h. serve board over the 12 regiouul bank made a great deal stronger. The fact is the aim of the administration Is not very different from the purpof-- of the late Senator Nelson W. Al'lrii b of Kbode Island, whose central bank ktudies were actually the basis of the federal reserve system. When the came into power in 1913 they rewrote the Aldricli bill, giving him as little credit as possible. They did not change the fundamental features very much, but In several spectacular details they varied it One of the most Important details,. in the minds of the Democratic fram-ersIncluding Senator Carter Glass, then chairman of the house banking and currency committee, and Senator Roliert L. Owen of Oklahoma, then chairman of the senate committee of the same name, was that instead of one central reserve bank they made 12. Carrying their idea of decentralization as far as possible, they gave a degree of Independence to these 12 regional reserve kinks, which has often irked the federal board since, and, for that matter, various Presidents, who found themselves unable to control the policies of the individual reserve banks as much as they would have liked. Bearing In mind that one of the objects of the new system was to get the financial control of the country away from New York, and down to Washington, It Is rather curious that the reserve bank which has given Washington the most trouble ever since has been the New York bank. Headed strong-mindewho by gentlemen knew what they wanted, and had firmly fixed notions of what was best, the New York bank again and again disregarded the pleadings, even, of the federal reserve authorities. d Irks Reserve Board $ -- dun I ! r- ' r"" ' - I LONGEST A Tpi;-- ly completed buildkf railway bridge In the J me Zambesi . provide uninterrupted munication between Nyasa. in East AWcT feet or npriv founded worse. I' , - J - t : ... . t v; A j,; PresidentrPresenting His Economic Security Plan to Congress. soiling annuities to citiEngland be-By WILLIAM C. UTLEY zens In 1S33. and In ISoO France and ONE can guarantee this Belgium set up general old age funds. country against the danIt was in the latter days of the Ninegers of future depressions, teenth century that such pensions bebut we can reduce these become common In Europe. to gan dangers," said President Franklin D. obliged employees and emGermany Roosevelt In his special message to to contribute to a comprecongress, January 17. That was his ployers In 1S89. It la this Gerhensive system for summed-uexplanation of his plan with alterations, man which, plan economic security, prepared by his been adopted by all the nations, has and on economic committee security, and the United Introduced formally to the convened the Scandinavian British the and States empire exlegislators In the form of a bill by cepted. Democratic Senator Robert F. WagSince the turn of the century the ner of New York. of persons inhabiting the earth One of the Important measures of number covered by old age pensions are who his plan and the bill was the proposal six times. Before 1900 for old age pensions. For many years has multiplied for 100.000,000 five nations provided the United States has kept away from citizens. Now 42 governments make with the such pensions establishing provisions to keep (500,000,000 out of sponsorship of the federal government,, although virtually all of the other leading powers and a great many of the smaller nations have, during those years, set up programs for the maintenance of aged and unemployed persons. For the larger part, the other nations have been divided between contributory systems, which require periodical contributions from employees and employers with assistance from the government, and systems, financed entirely by the government Only one nation, Japan, has steadfastly adhered to a voluntary plan, which puts it entirely up to the worker what Is to become of him In his old age. The proposed American plan, of necessity, Is a combination of all three. The first part provides Insurance against poverty In old age for those workers who are now comparatively Dr. Raymond Moley. young, and is the contributory plan. the Three times as many poorhouse. It would compel all workers who make less than $250 a month, as well as countries have contributory insurance insurance. their employers, to contribute. State as have Other nations studied the German and federal funds would assist The second, proposed to care for the aged experiment for about fifteen years benot covered compulsorily by the first fore following her lead. In 1906 Auspart, provides for annuities paid for tria fell in line, although waiting twenty years to extend the benefits to by the federal government; this is especially necessary In the case of peo- the largest share of the populace. The ple who are now old or approaching new nations which appeared In Cenold age and will not have time to pay tral Europe after the war have maininto the fund enough contributions tained and improved the systems of the governments which preceded them. for their care. The third, and volunAH workers in the Soviet union are for is those whose tary, provision covered. earnings place them outside the conSweden's plan Is the one which has tributory requisites; they would be al- been advocated for the United States by the American Association for Old Age Security, Inc., through Its secretary, Abraham Epstein. He favors the method of collection of contributions through the regular tax collecting agencies Instead of through various separate institutions. Sweden makes no exceptions for different classes of work, but obliges workers In all lines to contribute to the fund. . . v Workers Contribute. 1 Ages at which contriliutory pensions are granted vary from fifty in Chile to seventy in Portugal and Yugoslavia, with some nations granting benefits to women five years earlier than to men. In the majority of the systems workers, employers and state all contribute. Denmark established the first system financed by government alone in an p J'i: The President's plan asks for a payroll tax which would start at 1 per cent and Increase by 1 per cent every five years until it reaches a maximum of 5 ier cent In 19o7. Any employee who paid for 200 weeks over a period of at least five years before he became sixty would be eligible for benefits. For the employee who had paid premiums before 1942. the pension would amount to 15 per cent of his average monthly wage If only 200 weekly payments Into the Insurance fund had been mada One per cent more would be added to the benefits for each additions' 40 weeks of payments, up to 400 weeks, and 2 per cent morfc for each 40 weeks up to 800 weeks. For the employee who paid premiums after 1942, the benefit would be 10 per cent of his average monthly wage and 1 per cent additional for each 40 weeks he paid in addition to the first 200 weeks. Senator William E. Borah of Idaho has been the principal opponent on the senate floor. "I am not satisfied to make an outlay of nearly a billion dollars for armaments and $15 for old age," he said, referring of course to the entire economic security proposal. The Townsend Plan. The President is by no means the only one who has proposed an old age security plan. Sweeping the country like wildfire has been the Idea of Dr. Francis Everett Townsend. His more ambitious plan, which claims 25,000,-00- 0 signatures on petitions to congress, also claims to be able to doctor all of the ills of the depression and create a prosperity the like of which the world has never seen. Oddly enough, It is based upon a fundamental of old age pensions. The Townsend Old Age Revolving Pension Plan, acclaimed and supported by 25,000 Townsend scattered clubs throughout the United States, would pay every American over sixty who Is not an habitual criminal $200 a month on the condition that he spend the entire amount in the United States within the month. The necessary $20,000,-000,00- 0 would be raised by a federal tax. They haven't decided what kind. There has been no centralized opposition to the plan, for the simple reason that business leaders, finding an expressive voice In Dr. Raymond Moley, former assistant secretary of state, thought It too fantastic to bear credence. But it has. It would cost $24,000,000,000 a year and the entire national income is only $48,000,000,000. Taxing might lead to an Inflation of prices until the turnover of business could stand a tax of that size In a year. But then the prices would be so high that the monthly dole of $200 would be In value far less, or, as a leading columnist puts it "a sexagenarian meal of bread and milk would cost $5." Based on the premise that money turns over ten times before It is retired the Townsend plan tax on each 0 " j rockTI LriTI Dr. Pierce's Pleasant Pellsti inal little liver pilk put m , - o- iU - IV v. . . t ' 1S91. followed t OOfg. Ray of Ut)& There 13 today more Berioa est In the problems of no., acter and social welfare than J Doctors Kii . . . and they use liquid laxatt You'd use a liquid, too, if yonkJ mucn peuer n mass voa bow J l: :j i laxauve can always aa uquiu taken in the richt amounL Y". nradually reduce the dose. R I dosage is the secret of lealeii reiiejjrom consiipauon. Just ask your own doctor al this. Ask your druggist now pop: liouid laxatives have become.' right liquid laxative gives then; kind ot help and the right it; of help. When the dose is itne instead of more each time, jorJ less. Until the bowels are dm regularly and thoroughly without People who have experience comfort, never return to any Ice help tnat can i be regulated! licruid laxative generally used Caldwell's Syrup Pepsin. Itco senna and cascara. and these I natural laxatives that form do kx It relieves a condition of billon or sluggishness without upset I To relieve your occaaoul tpf safely and comfortably, try S fepsm. ine oxuggisinasiu SYRUP PEPSI They Know None think the great unhai the great CHAPPED' To quickly reliew rbnnninO. rOlrfhllM I.! No -- l.r I cooliny; Menthoiantm. Keen Busy greater crime than lossrf'-- j Exchange. Help O Kidneys Tamil . poorly xancuomn Bladder make yoa au If Up Night. Nervine Pains. ,Stiffpras, Itching-- Cystlex f fcl river, whereas the entire w; the lower Zambesi hH.i.? the water during the whw, A o Baf or 5J SkTb Thafi the Differenct The fool wanders, the f travels. 1 1 Jj Cmcum 'ill' o j on the fc-- two-third- d Tw .Mf fc uell Gate nar-- Difficult Problems. now have pension states Five for their employees, as have a world is the ably the largest in the which has military pension system, cost the government $S,500,000,00O up to the middle of iu:!2. All in all, the have great mass of elderly people cared been adequately not probably for in this country, and depression conditions have made the situation 'J two-third- Iirf , ter. in length. proach spans and 33 the latter being suWk) crete piers sunk in : 5, s funds the Lower Zamlsi bridl! large number of cities. The largest of ail only a total of 2,723 American pension systems and prob- three parate branch Reserve board members still remember with anger the stubbornness of the New York bank In the early days of 1929, when the reserve board was doing its utmost to stop the sensation al rise In prices on the stock ex Require Federal Charter change. This effort, backed by Presl. "I would force every bank doing a dent Hoover, proved futile. What commercial business to take out a fed- would have happened. If the New eral charter. In fact, I would permit York bank had been under the control no bank save mutual savings banks of the reserve board, no one Is sure. to do what Is normally regarded as a But as good an Illustration as any oth banking business. Then all the banks er Is that the federal board began try that loan money commercially would ing to hold down speculation when have similar charters, granted under American Telephone was around 225. Whereas the boom gayly continued , the same laws and by the same agen-- ' y of the government, and all would until this stock touched 310. be examined by the same agency. It Many contend that anything done at Is not jnst a Question of economy. that time would have been futile so That Is Important enough, but the far as heading off the crash is conbenefits of the change far transcend cerned, but the present administration wants to be able to control the reserve that "I am not discussing the central banks to be able to give them orders. bank Idea, nor the authority of the This Is not the same as the central Federal Reserve board over the 12 bank idea about which so much has regional banks. I am considering sim- been heard, and which Secretary Mor- ply the question of granting charters, genthau has advocated. So far there and of examining the banks which Is no Indication that President Roose loan money to our citizens. velt has been convinced of the neces"I am strongly In favor of our dual sity of this. On the contrary, all Insystem ef government, national and dications are that he Is not for It etate, and I would resist strongly the But there Is no doubt that he does encroachment of the federal govern- want more control of the reserve ment on the rights, functions and pre- banks vested In the Federal Reserve rogatives of the states. But times and board. Various plans are being advo conditions change. It Is no longer the cated, one of them being to give the case that what happens to our banks reserve board the rijrht to appoint the in Boston Is confined. In Its effects, governors of the 12 reserve banks. within the state lines of MassachuFor the most part the governors have setts. been the "strong men" of the reserve child knows that bank boards, generally overshadowing "Any If group of banks, or perhaps only the federal agents who generally act one big bank, should close In Chicago, ed as chairmen of tne boards. the rever'eratIons would affect busiThis is Jnst another step In the ness harmfully from Maine to Cali- march of the administration to com fornia. The people of Oregon have a plete domination by the federal govright to have their national govern- ernment of the banking structure of ment protect them from harm, which the United States, federal control of may come to them through reckless credit In the Interest of recovery, banking In Florida. maintenance of prosperity, retarding "I meet men who oppose this change. of speculation, or whatever may be at la defending state rights they ask me the moment the policy of the federal If I would have the federal govern- government ' ment take aver conduct of the schools also. It seems to me that the line Soldier Bonus of demarkatlon Is very clear. Of The very top figure on which the course I would not want to have the administration is willing to compromise federal government take over the conon the soldier bonus is duct of the schools. So that the ficht Is to save more. something like S1.000,000,XX) Would Affect All Friends of President Roosevelt say "Suppose anything Imaginable that the sky Is pretty nearly the limit to might happen In the schools of my city which he is willing to go In ftshting ef Boston a strike of the pupils, or to hold the bonus figure at ?t.2OO.0O0.- the Inclusion of some debatable sub- 00O. ject In the curriculum, or whatnot. If the bill which should pass con ; How could that possibly affect the gress exceeds that amount, the Presipeople of Kentucky? Or Texas? dent will veto It, beyond any doubt. "But If two or three big banks In The next step Is not much In dis Boston failed, every bank In those pute anions those who have canvassed Senator Robert F. Wagner. States, and every other state, would the situation. The house will pass the be affected, seriously, and at once. bonus bill. In whatever form It may lowed to pay of their own volition Into And those failures might be due en be by that time, by more than the nee- - a fund administered by the federal government tlrely to perfunctory, careless, or even essary majority to enact a Total cost of the phtn would be crooked examination of those banks measure over the veto. for the first year and state or the examiners, banking by The only doubt Is as to the senate, for each succeeding year. perhaps by some oversight In drafting Friends of the White House are conthe state banking laws, or any one of fident that they will be able to preNot a New Idea. with vent a dozen things about the set-uOld age pensions are not a new lde.a riajorlty for a bonus which ni one outside Massachusetts bill larger than $1,200,000,000. Bonu? by any means. For centuries the huhad an) thing fo do whatever. advocates think they are fairly sure man race has recogulzvd the neces"Many of ns remember the they can muster the necessary v,ote. , sity of. providing for the time when panic of 1W7. It was started by the -- Any opinion based on the canvasses earning power decreases rapidly or collapse ef the Knickerbocker Trurt Is enly an opinion. It cannot. be any j' when Justice seems to make-I- t fair, to company In New York city. There thing else for the simple reason that '" expect a life of reasonable easa In the was no excuse for a depression at that there la a small number of senators sunset years. The first on record Is time. It was Blmply a money panic who do not themselves know at the that of the French seamen in 17C3; produced by a very local situation. moment what they will do In such an later France extended It to civil servWe learned our lesson from that As ants and miners. Russia extended It emergency. a result, we bad first the AldrlehV to certain rtate employees la 1787. OorrrlghL WNU Srte $1,200,-000.00- Rail . il ' Protect your skin with a is mildly antiBepUc and time fie, f ragrant, orientalthe oUa comprise t ntleurn Taie"- - i by New Zealand In 1S98 and two provinces of Australia in 1901. Great Britain started with voluntary pensions, but In the first 2." yenrs of v........ iMiT'tff'MHijmrm the system's operation only 21,000 persons subscribed; in 90S "the non-coDr. F. E. Townsend. tributory plan was adopted. Canada, the Irish Free State and the Union of turnover of business transactions. It Sonth Africa eventually followed suit. Is c aimed would Increase the natlon- hy However, in all twelve countries which but this Is based have the non contributory plan a total also on of only about GOO.O(X) pensioners rer:s,in;,llra that the physical clt- ceive benefits. Japan in 1010 authorized Its post ofti,nn u h r u fice department to sell annuities to Were rald out In wages, salaries and other form of persons who volunteered to maintain labor In them, and remnins the only nation in eome; yet total retail sales were less than $ the worTd" to' rely- sofrfy on this plan. " 0,000,(H)0.000. Ro In America, the new Industrial trend W0, paid to 10.H00.0HO people Is ex. of the past few years which in so many cases draws the employment .ono paid to line at forty or even at thirty-fiv- e 4o.nno.ouo perSon3 proytara of age, has caused the percentage duced les, than $40,000,000 000 y- aootbinl, healing work protected ngamsi pJ la ed J Pric25c - 1 WOO.-WW.- S;' . 3. 121 TAith querque, 0; fol . . if owing p, and t rr lm I NEED MORE EHBf oi B ioujc, New it kuiii tablrt tie. n, OLD AGE Virrcc ,50 lien1' Clinic, ..nu IUFCE!i PMW'VSr "J JCUGB LEUMAN, llVUW |