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Show LEW FREE PRESS. LEHI. IT AH Diplomats here aay that de of Austria ana Hunrefusal the spite In sdvance gary to commit themselvej sanctions Italy, this against to league d:rust of Italy's ability to pay will' dry up these fburces of supply. too good. SEEN and Economic High Jinks in Germany u She any have to around the NATIONAL CAPITAL; Field T world. wer given large orders for goods for both pur poses aud more workers went back to because he has to do something Manufacturers (hat tie does not like at all, something that Is distinctly contrary to bis own work. tetter Judgment He Is still more Carter pj because the fortunes of the peoShe did these thluss when tier gold ple of the fatherland he loves so well reserves were nearly exhausted rtie r directly concerned with what he is mark even now U ouly 2 '4 er cent doing, and be is sure it is not the covered by gold. We, too, pushed pubfccst thing for them lic works programs with money we Washington. With the President and congress botb away. Washington Is a hotbed of rumors, most of which bare absolutely no basis whatever, but all of which are interesting. For Instance, there is t!ie one about secreHenry Slorgeuthau. Jr. The holia is enjoying of the treasury tary seriday in Spain, whereuimn there Is is he that the circulated story ously to be eased out of the treasury, and is to become ambassador to Madrid. Several details are added, for example that the administration is most anxious to have Claude G. Bowers, now ambassador to Spain, back in this country for the next campaign. He is spellbinder of parts, and has been keynoter on many big Democratic occasions. Now it is beyond denial that certain very Important figures in the New Deal are convinced it would be an excellent thing If Morgenthau were sent to Spain or to the Fiji Islands anywhere out of touch with Washington. They regard him. to put It milduntil . iitt r si ,,.;, ww ly, as a flop as secretary of the treasGermany has literally spent billions which did not exist to rearm, and ury. this activity Is one of the f actora which have started her on the way to But to anyone who has watched recovery. Center: Part of the fleet which Is being augmented by more Roosevelt It Is simply unthinkable that and more vessels. Right: Hitler reviewing troops. Left: Dr. Hjalmar Morgenthau would be thus humiliated. -! Schacht, president of the relchsbank. v. .'He went to extreme lengths to avoid billions entire Import trade. It clamped tha humiliating William H. Woodin. who spent possessed. Germany . lid down on unnecessary Imports. It was a far worse secretary from the that did not exist! That alone would have stamped based trade with foreign countries White House standpoint than MorNazi economics as unstable If not upon exchange clearing and compensagenthau. Woodin disagreed distressdisastrous. She went bityond that, tion agreements. Other nations, in or- ingly with most of the New Deal poland. In 1M.7, the government ordered der to sell goods In Germany, had to icies. Ills personal loyalty to Roose3 Industrial employers to put men back Import German goods. Doctor Schacht velt prevented his resigning, for a v. ' to work whether they needed them put 'over the plan In a degree sufficient long time, despite the excellent ex' ' or not They were ordered to use for the country to weather the storm. cuse of his health, but he actually had less efficient machinery If that were Germany Is soiling enough goods now nothing to do with formulating the r necessary. Cries of protest were In to meet her own requirements for raw more important phases of treasury . policy. vain. Ruin seemed to men like Do- materials. j ' ctor Schacht, Inevitable. Hut, no, the Whereas Morgenthau has been the , In another drastic government Inof additional money for terference with business, home Indus- Ideal "Yes Man" to the President His spending inr.rt'.ii.aimii j .,...-..w. ii..n.m j wages created new purchasing power. tries were burdened with a levy which first thought at all times Is to do just ! DTad only an occasional factory been was to subsidize lie is successful because he Is doin export Industry. precisely what the President wants, this thing he does not believe la ex- forced to return men to work, it would Capital did not like this step very and to tell the President that any traordinarily well, better perhaps than have got back mighty little of the new well, either, and It was protested. Rooseveltlan Idea Is simply swell. He in purchasing power created. But when While It Is still early to predict the has never sought any other living man could do it Besides being a man v(ho wears a they all had to do It, an actual stimu- result, it seems to' have been working the public prints, and has not Joined j In any conspiracies to unseat .Presiderby hat, nose glasses, a mustache lation of business resulted, so that In a manner fairly smooth so far. action no dential favorites"Trom their p'laces and a worried look. Doctor Schacht Is by 1934. such seen that the It will readily be near the throne. president of the Relchsbank. He is a longer had to be resorted to. financing of all these governconservative man and believes In tho Priming the Pump. ment expenditures depended In large Will Stay theories of lalssez falre In The billions of marks which had measure upon the confidence of the Morgenthau So this observer believes that Mr. business. Confronted with the Institu- been poured Into the public works and German people In the nation's finanas secretary of serve will Morgenthau tion of Nazi principles of economics rearmament programs went through cial stability. adDoctor Schacht which are so abhorrent to hlra because the circle of trade. Industry was able mitted this himself In a speech at the treasury as long as he wants, and, when his time comes to go, will get a they are so unprincipled, Doctor Schacht to make good Its frozen credit with the Koenlgsberg. send-off- , wonderful and with no such went to Chancellor Hitler and tried to banking system. Banks were enabled The circle of money circulation must to recover their frozen bills from the not be broken. If the people were ever lame excuse as "promoting" him to be resign. So Important were these novel depar- Rejehsbank. The finnnclng of public gripped with- fear and besan hoarding ambassador to Spain. tures In economics to the security of works was put on a reasonably sound money If for any reason at afl the Then there Is the story about Herthe Nazi party and state socialism, Der basis because treasury bills had slowly, money failed to return to the banks bert Hoover's motive in attracting so Feuhrer told Doctor Schacht that If he but surely, replaced the frozen com whence H came these banks would much limelight. This Is that Hoover resigned he would be sent to one of the mercial bills. No Inflationary measures be .unable to lend the treasury any really has no Idea of being a candi' dreaded concentration camps. It was were necessary to protect the relch's more funds. date, but intends to hold the limeImportant that the New Deal for Ger- overwhelming deficit. There was no light and make no statement which Two Alternatives. v. man business have an able leader to return to the dark days of would take him out of the apparent .dozen " In this case the would government race before, say, next February. The manage It Doctor Schacht kept the years ago. find two courses It could conJob. The budgetary high jinks of ;tfte Nazi tinue Its financing open. explanation given for this is that works of and public Hoover wants to shield any othy posLoyally and efficiently, he has ad- government causes no trembling of the rearmament by Inflating the currency, ministered the financial lcgerdthaln confidence of the people, with its subsible Republican nominee from being on down them. or could It begin cutting which has made German recovery pos- sequent general business delapldatlon put on the spot as to the soldier bonus. on would be public works sible. It Is one of the wlerdest tales In simply because the German people do To cut down By February, Washington believes, the the goose that began laying 11 the history of business. Yet Ger- not know much about It If the deficit killing bonus will have passed Into history, To rearmament curtail man' recovery Is a fact although it Is Is tremendous the German people never golden eggs with its passage over Roosevelt's veto, kullt on methods so nnorthodox that read about It In the papers or hear It well, over Adolf Hitler's dead body! and hence will no longer be an Issue. There Is little likelihood of a loss ane slip might easily crumble It discussed over the radio. The comThis writer still believes, and on ex of German confidence, however, the Hitler Faced Panic plete authority of the state forbids It cellent authority from close lieutenants Not like observers of authority say. the forn.er President, that he craves What happens when the treasury there Is In "France, When Hitler cama Into control In where people' are of A exa vindication, that he would like to un additional concrete needs Germans funds? were 6,000,000 there 193 never sure of thes,o.Udity .of the govemployed. The country was suffering ample Is available In the record of ernment that happens to be In power have' the nomination forced on him, but that with very little urging he The people were January of this year. The government at the time. German Industrial rickets. people have every willing to give state socialism a try to merely helped Itself to the resources confidence In the stability of their gov- Would step out actively and go after It Most of the stories going around get back on their feet. This was Hit of the savings banks and the Insur- ernment. " The of the press ler's chance. Hla entire future and ance companies. Both were required and radio makescensorship are Just as silly as that one now exfor It critidifficult that of NazIIsm depended, not npon Ger to take over loans of SOO.0OO.0OO relchs-tnarks- . cisms of government actions and poli- ploded about Roosevelt's shelving Although the resources of these cies to nan military prestige, but upon re Garner and putting up some one for creep In. ' eovery. Unless Germans got their Jobs Institutions were hardly unlimited, the Vice President next year who would school one Which There Is , of thought back, nitler would not keep his very money was spent Immediately and draw strength In some state or secso with Germany spending soon ran the ordinary economic coursn holds that, long. more tion doubtful than Texas Is exmuch money and having so small a Today there are less than 2,000,000 and was returned to the banks. With to be. pected relchs-marof devaluation the reserve, anemployed Germans. It makes no the upturn In business the banks' sav- gold might result which would surely No Real Conflagration difference If you take the word of the ings deposits have actually Increased German government for It The re-- so far this year by more than the wreck public confidence In government-' Belief that Italy will eventually have Ival of German Industry and trade Is amount commnndeeered from them by finance. Doctor Schacht merely points- to yield to economic pressure Is very the government. This looked so good out that depreciation of the currency I strong In diplomatic circles here. The obvious. On last January SO, the second that Hitler ordered them to take over In other countries has had exactly fhe opinion of the diplomats, perhaps the opposite effect Indeed, he says. It. best Informed of his coming Into power. another 500,000,000 last August persons as to actual Hitler told Germany: "The nntlonal Dark, evil things have been pre- has served to curb panics in Japan, conditions. Is that there will not be United .States. the Great Britain, the nation dicted for the Nazi hew deal by the old ocialtst regime has lifted up any real conflagration. They do not Union of South Africa and Belgium, j that had wasted away In dull despera- guard" to whom such- - practices are believe, for example, that Britain will German The state does socialism not They are sure this sort of tion and has filled It with strong faith ever actually blockade Italy, which and confidence In the Innate values and economic pent"nl motion machine aim at government ownership of fac- - dire possibility would lead to tremenof or means of of torles. the proany own life. , . which develops Its own fuel will fall creative powers of Its dous consequences. ductlon. tt is Rather built around a j' If, on January 80, 19.1.1, I demanded apart ot. be slowed down' by .'friction They point out, however, that, conwith of the policy private ownership So of execution the sooner It later. has not. of The far four years' time for to popular opinion, Germany Is relchsmnrk has maintained Its position, utmost In federal control of industry trary the first labor program, then not sympathetic with Italy, but anxof this program has already has even ; appreciated from, time to and business In the public .Interest ious to go along with Great Britain. .The own doesn't government business; first half of tlirie. Internally German recovery has been fulfilled during the ' but when conditions approach a state They do not believe, therefore, that thla period P progressed even beyond the hopes of of will certainly Germany will supply Italy with the the Is government more panic words Mzl his of extremists. many of the Today the truth needed munitions using munitions In Into the managerial post than ever apparent to the ' German peoExternally, the outlook Is not nearly step On the other hand." Industry Is far- - thj broad sense of things necessary . so mlfeht and bad be works Public as from the expected ple. In time of war, and not confining It bare given Impetus to industrial ac- shameless manner In which Germany therithan ever from controlling the as the' United States neutrality act or the state socialist party. government an Is her There has treated creditors. foreign By tivity. consumer-deman- d for the products of defaulting her dehts Germany of conrse The movement,, it Js true, was financed I does, to "arms, ammunition and ImBanks have been able to ruined her credit abroad, and couM no by Industry In a desperate attempt to plements of war. Industry. -Several liquidate the major part of the frozen longer buy without laying the money avert communism or socialism.. But diplomats out the monster of hands the' In on of Its 1034 were got the line. credits which resulted from the panic the revived Gerquestioned by this writer as to now the maker Is Its slave. what they thought Germans man purchasing power began to be .so maker, and f 1931. , anxious How will German recovery affect the to sell goods would do If felt that a shortage of raw materials What has brought all this about? they saw a woild's for Industry began to he feared. Also, peace? chance to make a nice profit by Hard on Foreign Creditors. selling Some say the more prosperous Gerto go up. This was bad f to Italy especially as it has become Some of It la due the factor whtch prices began the able many better becomes, for she export trade. Increasingly difficult for Germany to stimulated recovery In many of the will be to speed np her armament nntll market goods she Hitler Intervene Again. would like to export eatlons of the world the snspension she Is enough to attempt to reInvariably the answer has been the f the gold standard by the United - A few factories found If necesary gain thestrong she bad before the war. aame that German merchants power 6tates. But by far the lion's share to reduce their output because of the Others contend would that once she reaches not hesitate to go against the policy f It has resulted from Hitler's utterly raw material shortage, bnt Hitler will she risk hardly losing of their country If they could conscienceless economic and financial nipped this In the bud by forbidding prosperity, turn a It In the uncertainty of war. Rood deal for themselves, but factories to let workmen go because of policies. that to Needless the first say, It premise they would hesitate a long time before eeklng Internal recovery, Germany shortage of materials. more popular one. the elllng anything to Italy on credit Government asiumed control of the began by simply canceling her foreign C WMttra Nwipfcp- Union. Ul!' credit tt the moment, is not .vs,.,., A v.' f :i w.j , X ! 1 ! X Ll Ll VJ '1 te hlffh-hande- time-prove- " Italy Short of Gold didn't debts, worry about more let, her creditors thoee worryl To restore employment. Klie bejao cient stride a very unhappy and very successful man. lie huge public works schemes and a rearmament program which startled the U Dr. Iljalmar Schacht. lie Is By WILLIAM C. UTLEY ELY down Unter den Linden there walks with a brisk, effi d d ' k 1 j two-thir- ; . i I g j well-inform- - MORE NEFnp -- 1.U Don't let a proverb The gold reserve of the Bank of la the Italy has thruiik tremendously to down now Is She months. IS la't In $3UO,0..0,000 gold something like terms of American dollars. Roughly this is $100,000,000 less if calculations are made in terms of the American dollar before devaluation. not genImportance uf this last la save this in country, erally realized Euin traveled have who persons by But actually devaluation. rope since the purchasing power of the lira has. not changed in the meantime, either In Italy or on the continent of Europe. deal of Italy always bu.vs a great food from across the Adriatic, cattle not. especially. The Vngoslavlans do like Italy at alL Neither do the Greeks. They are afraid of Mussolini's imperialistic dreams. Washington believes that Italy has been compelled to pay cash for merchandise, with credits closely held, and that this Is the really Important explanation of the drop of three billion lire In the gold holdings of the Bank of Italy. To the contention that Germany was able to go on fighting for years while under virtual blockade, diplomats answer that the cases are very different. Within the central powers was a stretch of territory from the Baltic to the Black seas, and extending beyond the Black Into Asia. This territory has tremendous diversification of products, Including those essential for war metals, oil and food. Moreover, Germany was able to buy from Norway, and Holland Denmark, Sweden, Switzerland. Italy must buy virtually all her metals and oil, and a great deal of food. After effects of the World war demonstrated rather forcibly what could happen to credits. Conviction that Italy will take a ghastly economic beating In the present war, no matter what military glories she may achieve, lends point to this. And her gold supply does not promise long continuance of cash payments. Do You Ever ! Wondetl Whether the"pJ Remedy You . is SAFE?. . Ask Yout iov Doctor arid Find "101 Out C Once -- Neutrality Act A fight to broaden the neutrality act so that the President would be authorized to prohibit export to belligerents not only of "arms, ammunition and Implements of war," as the present act reads, but "munitions," so as to Include cotton, copper, chemicals, acids, in fact, all materials, ranging from foodstuffs to mules, usually regarded as war supplies, will start with the tap of the gavel when congress convenes In January. The administration is embarrassed now by the lack of authority In the neutrality law, but will be even more embarrassed when the fight In congress conies especially because of the political pressure against even the grant of authority to ban cotton and copper. At the time the neutrality act passed, President Roosevelt expressed only one regret that the act did not ban foreign loans for war purposes. The narrowness of language in the neutrality act defining war supplies was not at once noticed by officials. It was assumed until very recently, for example, that the President could add cotton, or copper, or chemicals and acids used for explosives, etc In fact, there was a broad Inference in official quarters after the .President's proclamation that items would be added from time to time. Watch Shipments Don't Entrust ! ii Vitami Your J noa Own or Your FamilVi Well - Being to UnW " Hit ftw tl this F of 'THE person to ask whether if So fy preparation you or your W morning the rclief headS si rVffejS to use regularly is SAI-us a: ticn; family doctor. Ask him partial fcody-babout Genuine BAYEH ASPIr dish He will tell you that befna j?fStart: discovery of Bayer Aspirin bi "pain" remedies were aki" against by physicians as bad fori i rory, stomach and, often, for the her , Tply Which is food for thought if n seek quick, sqfe relief. Scientists rate Bayer AaW CiVITi among the fastest methods pet J covered for the relief of headadj and the pains of rheumatism, i ritis and neuralgia. And the expo ence of millions of users has proj it safe for the average person to regularly. In your own intaatu member this. . ( You can get Genuine Bay; Aspirin at any drug store simph' t vher by asking for it by its full aaa BAYER ASPIRIN. Make it and see thatjs; point to do this get what you want. We have t u 'ok Bayer Aspirin t ' But That'll Change start life with string and now not have even tt A man can 58, 1 .nten I 3 If You Eat Starches Meats, Sweets Read Will pla ar v h owi Tftii -- They're All Necessary Foodt But All Acid - Formint. Hence Most of Us Have "Ad& Stomach" At Times. Easy Note to Relieve. - ri V tvri THE D , ! t I Mo Doctors say that much of the fork called "indigestion," from which 1 many of us suffer, is really acid digestion . . . brought about bya foods in many modern diet. And that there is nwi way to relieve this . . - . often t . minutes! . Milk Simply take Phillips' Magnesia after meals. Almost i mediately this acts to neutralize stomach acidity that brings on 'rouble. You "forget, you, havt stomach .'v Try this just once! Take eithcrft familiar liquid "PHILLIPS' now the convenient new IPhilli? Milk of Maenesia Tnhlpts. Riiti ;ureyouget Genuine "PHILLIPS"; acid-formi- The government does npt Intend to hamper export trade unduly In. seeking to discover If shipments to neutral countries are Intended for belligerents, officials Insist, but they point out that they have been catching such violan tions, with respect to wars, "every week or so," and say the same sort of watch will be kept on shipments to any country which might Also In Tablet Form: pass them on,' either to Italy or EthiMilkof Magnesia Tablets Phillips' opia. Which of course means primaare now on sale at ail drug stores wnere. rily Italy; liny ?very is thetacn equivaFor Instance, If there should be a lent of a teaspqonful of Genuine Phillips' heavy shipment of explosives or guns Milk of Magnesia. to Germany the government may require substantial proof that the shipment is not going any further, or is not going to' replace similar supplies sold to Italy. ' I ftl Newspapers, according to officials, have enormously exaggerated the amount of raw materials Italy bought Use in anticipation of this war. mi They do not deny that Italy has laid In a sup1 raw of ' ply materials, but Insist that In 1 S3: most Instances the amounts purchased Relieve Irritation Helps are not greatly in excess of normal And assists in keeping your purchases. On the other hand Is the tremendous skiq in goQd condition. Coshrinking in the Bank of Italy's gold emoc ntaining super-cream- y supply. esc llient and medicinal Which would seem to indicate, espeproperties! cially as unofficial information is that Cnticmra Soap, used reg the gold supply has been i coming down larly, Booties and protects Uu sharply since Setember 20, that Italy skin. has been buying heavily, despite official reports to the ", Price 25 cents ' contrary. Which brings np the wholequestlon 1 of credit Leaving out the dire possiV bility that Great Britain may declare war on, Italy, and blpckade her, win 1 Italy be able to buy American cotton copper and other "war supplies" other than "arms, ammunition ami imi- that, nients of war?" Certnlniv t e plenty of political pressure to AJc your doctor. Asl the M en GARFIELD TE- Aexpert. . MAW P I courage mis. but would American .LnwT oiren aocs bankers be willing to extend your ilcln and complntioiit'"i. credit to-- Writ lib cotmttkl. Expel clopofj eolybody FREE out mmnce sucn sales after t that JJ Italy's gold we apt and eventually """"S supply has been strlnned SAMPLE pom dy, blotchy, erupted ikm. Ay GARFIELD TEA danger mark wherever that Is? of thla Internal beauty CO., Dpt SI will aironhh you. Bcfln tuj Germany fought' the war without Brmakbm. H.V. A I vnur ttrur touch credit from neutrals, but she had tremendous supplies of the vital war requirements. A JLaxatir itrin r Latin-America- -' Phillips' oH Daily tye CUTICURASOAP! T J T is more skin deep : ; I Copyrlf ht W1TU StrTio Splendid |