Show News Review of Clu Current Events the W Wol World ol ld Over Ovel TI Issues Long Term Bonds Because of Big Deficit Teague Deficit Teague Retires i Federal Farm Board By EDWARD ARD W PICKARD HOUGH BOUGH the Unit Unit- T z t ted ed States Is popularly supposed to ber be bethe bethe the richest nation onearth on earth rth the government go OK- OK IS Is up op up against U- U Uthe lt- lt 49 x w the It IL meaning a 11 j billion dollar d deficit V 1 with the prospect ot of another billion deficIt c during the next fiscal JB year 5 3 ear car The treasury w V therefore Is about to Andrew Issue long term bonds Mellon for SOO bear bear- bearIng bearing bearing ing 3 per cent Interest This Is In lieu of ot an Increase In taxes which probably will not be asked until after next years year's Presidential election It If at atall atall atall all The reason for this course Is obvIous It Is expected that there here will willbe willbe willbe be further bond Issues as well as borrowings on short term certificates ot of Indebtedness The public debt debt which had bad been steadily ste reduced since 1923 now begins to climb up upward upward ward again This bond Issue Iesue announced by Sec See Secretary Secretary of ot the Treasury Andrew Mellon Is the largest peace time offering ot of long term government obligations In Inthe Inthe Inthe the history with the country's exception tion of the 1000 1 bond boud Issue ot of 10 1024 4 which was put out to refi refinance refinance nance orld orld war Indebtedness she 1 he interest rate of ot 3 per cent on this Issue Is the 10 lowest est of any long term gO government financing since WIG Ii That the Issue will be oversubscribed to the extent tent of bun of ot millions of ot dollars even at 8 i per cent Interest Is not doubted partly because use of the prevailing pre cheap cheap- cheapness cheapness cheapness ness of or money and partly because ot of the fact tact that while hIle the treasury may have ha a deficit the credit of the gov government government Is A 1 The bonds will be dated and will bear Interest from June 15 and will mature on June 15 1949 1040 being redeemable at the option of ot the treas treas- treasury treasury treasury ury on and after June 15 13 1940 They will be Issued In both bearer and registered form In denominations of 50 0 oo 1 1000 5 10 and In addition there will bee be registered bonds In the 50 de denomination denomination denomination nomination The federal reserve e banks will be the official agencies tor for the flotation of ot the Issue but all banks will receive e a subscriptions from investors In Investors Investors The bonds will be exempt from ted fed federal eral state and local taxes except In taxes and surtaxes G IDIA 1 S 'S huge flying Hying bolt boat J DO X after long delays and vans arl ous accidents finally crossed the At- At Atlantic At Atlantic lantic ocean successfully It made Uw the flight from Cape Verde Islands to I ernando Noronha oft ocr the coast ot of Brazil In 12 hours and 15 minutes Def Defying Ing superstition 13 persons were aboard the DO XIt X 1 XIt It was announced by the State de department department In Washington that Colonel and Mrs Lindbergh will start before long on a pleasure cruise of ot the OrIent In their I plane 11 flying Ing to Ja Japan Japan Japan pan and China via pia la the North orth Pacific and Russia They probably will follow tollow the route taken by the army flyers in l 1924 1124 24 going to Siberia by way of the Aleutian Islands r OY n OnS of ot about halt the GOVERNORS G GOY J states tates took tool part In the annual conferences at French Lick Lid Ind and Sp cral eral of them disrupted the program of harmless topics by Injecting their own vigorous opinions Into their ad addresses addresses addresses dresses Pinchot of ot Pennsylvania ani a for Instance Insisted on making a hot at attack attack attack tack on the public utility corporatIons Instead of talking about timber and andIn andIn In n the closing session of Mary Mary- Maryland Maryland land criticising the conference for trying to avoid controversial contro subjects urged the return of ot liquor control to the states as a solution of ot taxation problems C CC C C a T TEAGUE AGUE one of ot the original members of ot the feder feder- al firm farm board and Its vice rice Ire chairman chal rm n has re- re resigned re resigned signed ha having haling Ing served one more year than he at first Intended In his letter to President President dent Hoover er tender tenderIng lag his resignation Mr Teague declared k the the board had fully T- T C C Teague justified itself and Its cost to the taxpayers ers lie fIe said that without Its advice and re reoh revolving oh Ing fund many farmers operatives co would have ha gone under and be he warmly de- de defended defended de defended fended the emergency operations of the board In stabilizing wheat and cotton There are two distinct m methods of stabIlIzing markets he be pointed out Probably the one that has b been n em- em emphasized em emphasized most In publicity has been the stabilization operations on wheat and cotton which were entirely emer emergency emergency gency operations undertaken to meet me-et emergency conditions and which I 1 be- be be be- belleve believe lieve leeve are entirely Justified and which will IU have ha resulted In benefits to agriculture culture and business generally far tar out out- outweighing outweighing weighing any cost to the tr treasury However Ho Hoe e eer er In my Judgment the ue Greatest test benefit will come through an- an an nn other type tHe of ot stabilization of ot markets which will come through the long time project of developing de eloping a system of ot co cooperative cooperative operative control of agricultural prod products nets which will sill effect a better control of production and a 11 better control of distribution and thus have ha an nn Important Important Important tant Influence In the stabilization of markets I R D O on the general Jeneral agri agricultural cultural situation the bureau of agrIculture economics of ot the Depart Department Department meat ment of ot Agriculture shows Amer AmerIcan Amerlean lean Ican farmers are arc selling their produce at less than prewar prices but are arepa pa paying Ing about third one-third more than be- be before be before fore tore the w war ar ar for the things they buy The bureau estimates that farmers now receive SO sa per cent of prewar prices and ply pay per cent for goods bought In other respects the outlook Is not bad I I arm crops says the report are arc recovering reco ering from the effects of the continued cool we e ether WInter wheat prospects have hale ha e been ed fruit prospects are generally reported fair to good Live LIe LI e stock growers up appear pear to be keeping up herds and flocks despite somewhat adverse re conditions In feed prospects In se etal sections V VIRGIN IRGIN ISLANDS now hu hue have e only one governor and it that th Is Dr Paul Pear r Peirson rr non bon for Herbert Du Da D u a 1 fK Brown chief of ot the they JB federal bureau of ot eli eh lency his has has baa a spat with the doctor and retired from the cogO co governorship gO he has exercised e e for nearly two years 3 ea s In H D Brown 1 1029 congressional committees asked Mr Bro Brown Bron n to In the Islands with a n view to reducing administration costs Ie He made three long visits there and his recommendations were displeasing to Capt Waldo aldo C Evans Cans ans then naval bOv gov- gov governor ov Also lie he obtained to be expended under his sole direction Last winter he recommended transfer tr ot of the Islands to the Interior department dep and when this was as done he returned to help the new governor gO Doctor Pear Pearson con on whom he had selected for tor the job oun eastern and western estern air lInes FOUR Foun F w whose hose hose planes fly about 12 miles annually have consolidated their management operation traffic truffle and sales and now become divisions of ot the United Air Lines with general offices In Chicago The lines involved lD In this bl big mer merger er are The National Air Transport operating from New York to Chicago and Chicago to Dallas the Boeing Air Transport operating from Chicago to San Francisco the PacIfic Air Transport operating from Seattle to San Diego and the Varney AIr AIrlines AirI AirI lines I Ines operating from Salt I ake CIty to Seattle and the Pacific Northwest P G C Johnson president of ot the Boe BoeIng Boeing BoeIng Ing companies who ho was recently made president of ot the National Air Trans Trans- Transport Transport Transport port and the arney Air Lines Is to tobe tobe tobe be president of the ne new company Tm S po financial troubles were ap lip V preaching a climax during the week with the state legislature preparing to vote onI on ithe I the question of inn inn- i pe the governor gover- gover governor v nor Henry H II Horton Hor Ilor Horton ton ton The 1 he situation In Nash 1 t was as tense Though the foes of ot Gov Horton the executive e were ere apparently In the majority Horton seemed undaunted Most of the eight articles of ot im reported to the legIslature by a committee relate to a main charge of ot conspiracy alleging plots bet between een the governor and Col Luke Luhe LukeI I 1 ca ea and Rogers Caldwell two bank banI bankers bankers ers who ho are arc now under Indictment as a result of ot the bank bant failures of last Noy November oember o ember Congressman Cd Crump the Memphis political boss was as conducting the fight a against the governor o though he kept himself In Inthe inthe Inthe the background The of Senator Scott Fitzhugh one of the Crump faction from the and the election of ot Senator A A B 11 Broadbent of ot to fill his place took toot much of the thunder away from the defense for Senator Broad Broadbent Broadbent bent Is an Independent an anti Crump man and he will be the next gov- gov governor gov governor If It Mr Ir Horton Is la forc forced ed out C CAN AN ANDIA DIA tax payers plyers are hard hit by the first budget presented to parlIament by Premier R n B 11 Bennett lIe He announced a n deficit of ot SO and said new taxes would be re- re required required re required to meet It it It Consequently he proposed Imports as follows Increase In the sales tax from 1 per cent to 4 per cent reIntroduction of ot 3 cent postage Increase of the Income tax on corporations and stock companies from 8 to 10 per cent and a n new ape special special cial excess tax of ot 1 per cent an n all Imports Manufacturers of the United Stat States came off of more easily that hind had b been n expect expected cd Only about OO Items in the ni i tariff against them were ere altered by bythe bythe bythe byI the premier Customs duties were I raised on anthracite coal furniture oranges and the higher priced automo automo- automobiles automobiles biles There w was as bad news however for Americans who ho have hale ln In estment In Canadian companies for Mr lr Ben Bennett Bennett nett ordained that beginning next nest July Julyan Julyan Julyan an Income tax tat of 2 per cent must bo be paid by all forel foreign n Investors In estors receivIng receiving ing dividends dl from Canadian concerns The only bright spot In Canada s financial picture Mr Ir Bennett stated was vas the fact tact that the dominion s con con- conversion con conversion version erslon loan of ot O had been subscribed up to iW He lie em em- em emphasized that during his regime no fever feer than 7 75 American manu manu- manufacturers manufacturers had established 1 plants lants In Canada and made It clear he was as sticking close to his Canada It F attitude Ills His conclusion brought a 11 great grent ovation from his followers Is 11 ex Nth G petting g great r cat benefits to re result from the remarkable meet In at England England Eng- Eng England land of Chancellor HeInrIch Bruening and Foreign Minister 1 Jail JulI us us Curti us with Prime MInister Ramsay Mac Mac- MacDonald Mac Donald Donald and Foreign W Minister Arthur lien Hen Hen Hen- Henderson Chancellor derson Tho The German statesmen went there B Thursday on from the lie Englishmen and the tour four men discussed thoroughly the bearIng of ot reparations on the world orld economic crisis It was as the hope ot of the Germans that this conference would find a way out of ot the present financIal wilderness The meeting aroused the french and led them to reaffirm their contentIon tint that German reparations and the Allied debts to America were ere Inseparably connected by the Young plan As It Is put by A L Jeune In Le Midi of ot Paris Or Or Oc the battlefield ot of International debts where we held the front line so long until the lie Young plan brought us back to the reserve trenches It would be a n great Imprudence Imprudence dense dence to give gh e them diem up THE BHE general assembly of ot the Pres church in session at Pittsburgh rebuked the Federal Coun Counell Counell ell of ot Churches of ot Christ In America for report of or Its committee approving or of birth control and adopted a me- me mo mo- motion motion tion Instructing the council to hold hold I Its peace pe on all questions relating to morality and delicacy until they have been discussed with its constituents LAST MAST June Congressman TInkham ot of Massachusetts issued a state state- statement statement statement ment about the political activities or of BIshop James Cannon Jr which the bishop dared him to repeat without benefit of ot his official Immunity TInk Tink- ham Tink-ham ham harn accepted the lie dare and now the bIshop has sued the congressman for tor OO for alleged libel N A decIsIOn that seems to give ns as assurance I IN that the press of ot AmerIca Is and shall continue to be free tree the Supreme court of ot the United States held unconstitutional the Minnesota statute authorizing the suppression or of orne ne newspapers and other periodicals pub lashing matter which the authorIties deem to be defamatory of ot public officIals officials or other persons or InstitutIons In the opinion of ot five members of ot the court Chief Chief Justice Hughes and As- As As Associate Justices Holmes BrandeIs Brandeis Stone and the Roberts Roberts the Minnesota law In so far tar as It authorizes such suppression Is an an Infringement ot of the liberty of ot the press guaranteed by the Fourteenth amendment Associate Justice Pierce Butler himself a MInnesotan read a dissent dissent- dissentIng dissenting dissenting ing opinion concurred In by JustIces Van De anter and Sutherland Sutherland Sutherland erland asserting that the majority opinion gh gives gibes es to freedom of or the press pressa a broader Interpretation than any that had ever before been recognized D S be between b e R tween Premier Mussolini and the Vatican were strained almost to the breakIng breaking break Ing jIng point and out out out- s ardly It appeared there could be no peaceful settlement settlement of ot the quarrel But efforts at conciliation were been carried on quietly by Foreign DIno ii Minister DIno Grande Grandl Grandion on the lie one bind and Cardinal Gas Gas- Gas parri parri on the other The trouble cen cen- center centers ter In the Catholic Action clubs Mussolini 1 decreed the disbanding or of orall all youth organizations connectEd wIth Catholic Action b because ause of ot al- al alleged al alleged political propaganda and closed the clubs and pIa playgrounds grounds The pope protested n against this both as head ot of the Vatican City and as head of ot the church He lIe made effective his disapproval pro ul by withdrawing his personal e from the Padua cele cele- celebrations cele- cele celebrations celebrations canceling the diocesan cu eu- eu eucharistic cu congress In Rome Home prohibiting church processions and placing the Catholic Action societies under charge ot of the bishops Mussolini gave ave out outa outa outa a statement saying 8 there was nothing temporary about his acts and |