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Show News Review of Current Events the World Over President Starts on His Plan for Managed Currency and Commodity Price Raising Farmers' Strike Under Way Move for Russian Recognition. By EDWARD W. PICKARD COMKWIIKRE bctweeu tlie "sound" dollar ilenuiniled by the banker and the Inflated currencj ui'nod by Senator Klmer Thomas and many -. V I t w t h e r s 1'resldent Itoosevelt takes his stand for a managed man-aged currency and a dollar of fixed value. In a radio mltlress to the nation na-tion he declared he would undertake to raise commodity prices to a satisfactory satisfac-tory level and then would lessen the Prer dent u, conU,t ()f Ule Roosevelt 0 ,, n r mu, ,10g prices and dollars so they would remain re-main In a constantly balanced equation. equa-tion. "Government credit will be maintained and a sound currency will accompany a rise In the American Ameri-can commodity price level," he said ; but be insisted the price level must first be restored before anything like Inflation Is established. estab-lished. For the present, Mr. Roosevelt said, It was important to tighten control over the dollar. He added : "As a further effective means to this end I am going to establish a government market for gold in the United States. Therefore, under the clearly defined authority of ex lstlng law, 1 am authorizing the Reconstruction Re-construction Finance corporation to buy gold newly mined In the United States at prices to he determined from time to time after consultation with the secretary of the treasury and the I'resldont. Whenever necessary nec-essary to the end In view we shall also buy or sell gold In the world market. "My aim In taking this step Is to establish and maintain continuous control. This Is a policy and not an expedient. It Is not to be used merely to offset a temporary fall Id prices. We are thus continuing to move toward a managed currency. "Our dollar Is now altogether too greatly Influenced by the accidents of International trade, by the Internal In-ternal policies of other nations and by political disturbance In other continents. Therefore, the United States must take firmly In Its own hands the control of the gold value cf our dollar. This Is necessary In order to prevent dollar disturbances from swinging us away from our ultimate goal, namely the continued con-tinued recovery of our commodity Trices." Jesse Jones. RFC chairman; Under-Secretary Dean Acheson of the treasury and Henry Morgenlhau. Jr., representing Mr. Roosevelt, were Intrusted with the Job of fixing the price at which the RFC would buy newly mined gold, and the first day they fixed the price at ?:il..".0 an ounce. Agricultural staples and securities Immediately began to move to higher levels, as bad been hoped. For the second day the price of gold was put at $:il..rl. and therefore securities and commodities commodi-ties dropped, to the dismay of the Washington theorists. The RFC pays for the gold with Its own debentures. de-bentures. The President's monetary program pro-gram Is based on the plan of John Maynard Keynes, the I'.iitish economist. econ-omist. Orthodox bankers In Wall street were rather disconcerted by It. Some were skeptical us to the practicability of controlling the Internal In-ternal price level by changes In the gold value of the currency; others thought the plan would give the government a powerful lever will) which to lift prices. If carried to Us logical conclusion, conclu-sion, the program means tho ultimate ul-timate fixation of the value of the dollar with a diminished gold . i-tent, i-tent, the resumption of free trade In gold, and of gold redemptions, doubtless on a bullion basis. TN HIM radio address the I'resl- dent told of the '"relief that In being given to those who are In danger of losing their farms or their homes," and later said : "I have been amazed by the extraordinary degree of co-operation given to the government by the cotton farmers In the South, the wheat farmers of the West, the to bacco farmers of the Southeast, and Mllo Reno I nm confident that the corn bog farmers of the Middle West will come through In the Hauie magnificent fashion." There was. however, nothing In the upeerh that reassured the farmers farm-ers who have embarked on a national na-tional agricultural strike. Mllo Iteuo. prt'iblent of the National Fanners' Ifolidny n "eea-Iat ion, di-Ha red the Slrlkll would eoiilln hv'.plle Mr. If i.o'n-vi'lt 'm niiHuriinre4 of higher farm prices. "Tho President failed to even mention cost of production," he pointed out. "We're not going to stop this battle until we get w' at we want and have demauded cost of production." Mr. Reno reported that the Continental Con-tinental Congress of Worker' and Farmers and tho Technocratic Federation of the World for Industrial Indus-trial Democracy hnd proffered their co-operation In the strike, and said that he was confident the farmers themselves would Join the nonsell-Ing nonsell-Ing movements iu "great numbers." At that time the farm leaders In six states Iowa, North Dakota, Minnesota, Wisconsin, Oklahoma and Nebraska had officially proclaimed pro-claimed the strike, and picketing of the highways had begun In some localities. lo-calities. Here Is what Reno's association asso-ciation called for from the fanners: 1 Refusal to sell any grain, produce, prod-uce, live stock, milk, butter, eggs, etc., except for prices equal to the cost of production, but willingness on the other hand to exchange such products for whatever labor and the unemployed may have to tender. 2 Refusal to purchase groceries, merchandise, etc., except as necessary neces-sary to sustenance and unobtainable unobtain-able otherwise. 3 Refusal to leave their homes, a tantamount defiance of mortgage foreclosures and eviction orders. 4 Refusal to meet capital payments pay-ments on debts until prices reach production cost levels. R Refusal to pay taxes or Interest Inter-est on debts out of money needed for food, clothing and other necessities. neces-sities. Meanwhile the embargo on wheat shipments out of the state of North Dakota, proclaimed by C!ov. William Wil-liam I.anger, went Into effect. MAXIM I.ITVINOV, foreign commissar com-missar of Russia, probably already al-ready Is on bis way to Washington In response to the Invitation extend- V Jr. j ! M. Lltvinov ed to President Kalinin by President Presi-dent Roosevelt to open nogotialions loc king to the recognition rec-ognition of the Soviet government by the United States and to the adjustment of other oth-er matters at Issue between the two nations. Adrnlnls-trvitinn Adrnlnls-trvitinn ,,n;,-i-,iu In Washington believe tin? conversations conversa-tions will take about two weeks and that before the end of the year the President and Lltvinov will announce the resumption of normal relations between the two countries and tho establishment of a large credit for the Soviet republic repub-lic to make purchases In this country. coun-try. Though In giving out the correspondence corre-spondence President Roosevelt said he was not committed to recognition recogni-tion of the Soviet government. It Is said that preliminary soundings hail satisfied him that Russia's do-sire do-sire for American recognition Is a concomitant to Its desire to obtain credits for the purchase of American Ameri-can goods. The admlnlsf nillon Is prepared to Join In the develop meld of reasonable credit facilities for the quick disposition of accumulated accum-ulated surpluses In cotton, meat products, copper and other raw materials. There are oilier problems prob-lems that must first be solved, such as the czarlst debts ami the Communist Com-munist propaganda, hut the administration admin-istration believes these can be speedily cleared up. The Kngllsh press hailed (lie move towanl a Itusso American accord ac-cord as a great force for world peace, and said London could not do heller than copy Washington. In Japan olllclals expressed pleasure pleas-ure over tho news, though Ibis may not have been entirely sincere. plt. 111,'CO FA 'K FNIOIt piloted the Craf Zeppelin on another visit to tho United Stales. The big airship came up from Iirii7.ll. slonollnr brlellv at Miami. Akron Chicago and again at Akron, anil then started on Its return trip to ( Jerma ny. ' I M I A T code for retailers so long In the making was finally completed com-pleted and signed by the President. It seeks to Insure fair practice and to protect the small tradesman, the consumer and the farmer with bis low commodity prices. Retail employers em-ployers wllli fewer than live per sons fin (lie payroll are exempt from the code. Those In com luillill les of less than 2. M0 population are exempt ex-empt from any mink up requirements. require-ments. Local tribunals are to ho established to hear complaints of retail profiteering. Child labor H forbidden. "Lien lenders," widely uv.ed by chain stores to ntfnicf cii-:loiuer!4, are absolutely prohibited ''j,, l-,,.r to prevent iinruir compel II Ion a en I n ;t loca I mei eha lit t " Under a couipreheriMlve plan for woil-.liig hours and w:i:; :i, stores may choose to operate In one of three groups, having a choice of remaining re-maining open for from t2 to f0 hours a week; from 5(1 to 0.'! hours a week; or for more than (i.'t hours a week. Employees In the first group will work not more than 40 hours a week ; In the second group, 4-1 hours a week; in the third group, 48 hours a week. Minimum wages range from $15 for a 48-hour week In cities of more than IWO.OOO population down to a requirement for a 20 per cent raise and minimum wage of $10 a week In places with less than 2,r00 population. popu-lation. "COMMUNISTS were blamed for ' wild disorders that prevailed In Havana and In the Cuban provinces prov-inces of Orlente and Matanzas. Rakers, butchers and truck drivers carried on their strike In the capital, cap-ital, and the condition was so serious seri-ous that President Grau's cabinet was ready to resign. An attempt was made to assassinate Carlos Mendleta, Nationalist leader. A bomb was exploded at his residence, resi-dence, shattering the front part of the building, but Mendleta, his wife and his daughter escaped Injury. In-jury. PRKMI10R KDOUARD DAT.A-dler's DAT.A-dler's government In France was overthrown by the chamber of i deputies and he and his ministers R Edouard Daladier resigned at once. Opposition to the premier's economy program that included in-cluded cutting the salaries of government govern-ment workers and reducing war pensions pen-sions caused his defeat, which came on a motion for a vote of confidence on tho budget. The vote was IiL'0 to 241. Really Daladler's downfall was brought about by an outbreak of political and personal enmities that hjid been held In abeyance abey-ance for a long time. In his flnnl speech before the vote wns taken Daladier spoke frankly of the danger the franc Is already facing from bear raids which have drained many millions of dollars worth of gold from the coffers of the Hank of France. Albert Sarraut, who was naval minister In Daladler's cabinet, was given tho task of forming a new government by President I.ehrun and succeeded In gathering together togeth-er a ministry that may or may not survive for a time. He hecamo premier and retained the marine portfolio, Daladier taking that of war. Other holdovers were Paul-toncour, Paul-toncour, Chautemps and Cot. M. Sarraut announced that France would not enter separate disarmament disarma-ment negotiations with Germany. All French policy, he said, would bo ! based along the Ideas of the late Arlstlde P.rland on full cooperation with the League of Nations. WALTF.R JOHNSON, chief post office inspector In Chicago, announced an-nounced that the federal operatives had broken up a nation-wide ring of mall robbers who used Chicago for (lie dumping ground of stolon securl- ties, and that $."i(MI.II(KI of the loot I bad been recovered out of $i'i."iI.IXH) j taken In three robberies. i The recovery Includes $u0.)0 In j Italian government bonds of the j $l'Jfl.iKHI stolen from the Hloamer j Leviathan several months ago; about $'ji Kl.t MM) taken In the mall j robbery In Chlcico I ember (I, j l!i:i2, and part of the loot taken In i a Sacramento robbery. In roniiec- j linn wllh the last named affair "Gloomy Gns" ScbaelTer, a member mem-ber of the Touby gang under nr-rest nr-rest In St. Paul for kidnaping, and George W. ("lied") Kerr, arrested In Chicago, have been Identified. NA.I propaganda In the United Stales Is to be Investigated by a subcommittee of the house com-mlllee com-mlllee on Immigration, according lo Represenla I Ivo Dlcksleln of New York, chairman of the I'timiiiltlim. "If we did In Germany onetwen-tlelh onetwen-tlelh of wdiat they are doing here, we would he shot," said Dlcksteln. German societies In New York were refused a pormlt to bold a celebni-lion celebni-lion meeting by Mayor John P. O'l'.rlen, on tin- ground Hint It was arranged lo spread Nazi propa-ga propa-ga lulu. Ii' RAILROADS, merchants, hotel men and otherH vitally Interested give Kulllclent evidence of support In the way of guarantees, A Century Cen-tury of Progress, the big World's fair In Chicago, may be opened next spring. Then" has been much talk of such a step, and now It Is urged by 1'renldent Roosevelt In a letter to the inanageineiit telling of Ills enjoyment In his brief vl.tlt lo the exposition. lie wrllcH: "There seems lo bo a very considerable con-siderable demal thai, you reopen next spring, and since thorn Is every reason lo believe that there ant many, many thousands who were unable un-able lo afford the trip lo Chicago Ibis year, but hope to he In a bettor bet-tor poMlllon next summer. I am Inclined In-clined to agree wllh you that It would be a very fine thing lo keep open. "In the event that you and your board decide It Is iidvl'iable to re open next year. I rilmll n'i:uro you Hint I will recommend to emcro'iH that an appropriation be made sufficient suf-ficient to maintain the government hiilbilng and exhibits there." ffl. HIKI. WmiliMh Ni'wu.niM.i PmImii. |