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Show THURSDAY,' JANuauv PAGE TWO News Review of Current" Events the World Over Edward VIII Becomes Ruler of tlie British Empire; Substitute for Unconstitutional AAA Rejected by Senate Subcommittee. PICKARD By EDWARD W. Unloa. ' W.itnNtw)ppr The original house bill did not king of Great emperor of India, died m Sandringham house, peacefully and palnleasly, tn hla eeventy-flrs- t year. Immediately GEORGE V, on hla panslng, provide a method for paying the coat of the bonna, which la estimated at $2,337,000,000. The senate suggested the Issuance of the $50 "baby bonds which will bear Interest at 8 per cent annually until 1045 If the veteran electa to hold on to them. Each veteran will receive the 1943 value of his adjusted compensation certificate In $50 bonds with a government check for odd Interest owed by vetamounts, erans upon loans unpaid on their certificates Is canceled, but there will be no refund of interest paid upon inch loans. hla eldest son, Edward Albert, who had been prince of Wales, succeeded to the throne, which by British law, U never vacant-Nt- t morning the' state council, consisting of the queen and ber four sons, which had been created by a decree which George signed a few hoars before bis death, proclaimed the accession of the new rnler aa Edward VIIL Ills first official act was to notify the lord mayor of London of hla fathers demise. e -- esie-clall- THE unconstitutionalsubstitute AAA, a New Deal's federal relief prodepending principally on work relief, OCG and public works, la alons coating approximately aa much as tba fourfold program which went before and which embraced these three Items plua direct relief which has now been returned to the states, according to a study of the relief problem and the government finances by Kendall K. Hoyt In the Analyst. For immediate purposes, at least, there la no prospect of much reduction In the rate of federal expenditure, according to Mr. HoyL In order to prevent the states from trooping back for more relief funds the government must keep Its pledge and to employ tbe.jirbJtraCT-threone-humillion persona which hava been carried since last November principally under WlA and COG. In dollar terma this means that, according to budget estimates, the outlay for recovery and relief for the fiscal year ending 'Jnne SO, 1930, will be almost the same as that for the preceding fiscal year, namely, three billions In round numbers, or an average of 250 millions per month. It la within expectancy, therefore, that costs to the country a 111 reach a new high unless economic conditions Improve more rapidly than can now be foreseen. present THE gram, King George, who had been on the throne almost twenty-fivyears, was the best loved and moat democratic of the worlds monarch, always JuL solicitous for the welfare of hla subjects, and living a simple and almost faultless domestic and official Ufa. Tha new king, a confirmed bachelor, knows bis vast empire Intimately, having visited practically every part of It, soma regions many times. ' Decidedly different from hla father In hla tastes and ways of life, he still, aa the prince of Wales,' baa been a great favorite of the pro--, pie, and tn recent years, realising that ha would soon have to mount the throne, he steadied down and took an Increasing Interest tn the affairs of the empire, lie la liked by the laboring classes. In whose welfare ha often has shown deep sympathy. That he never married has been a dlaapiolnt-men- t to the British people. Now for the first Ume since the reign of William IV there la no prince of Walea. Next In the line of succession Is the kings brother, the duke of York, and second cornea the duke's little daughter, Brlncesa Elisabeth. There will be six months or more of official mourning for George's death, and Edward VIII will not be crowned for about one year. The body of the dead ruler waa removed from Sandringham house to the little church of St. Mary Magdalene In Sandringham. Thence It was to be taken to Westminster abbey, there to Ue lo state. Interment la to be In the Albert Memorial chapel at Windsor, beside the toutlm of George's father and mother. It was believed the state funeral would not take place for two weeks. y e lf authentic sources are credited, according to Democrats In con gress, with a reiort that Jesse Jones, RFC chair- APPARENTLY man, One man, congresswho keeps abreast of develop- co-ope- Marvin Jones, become may of the secretary was It treasury. said that Henry Morgenthau, present secretary of the treasury, may be made confidential adviser to the President, for d, aalea of automobiles In the United States rose to 407,304 In December, bringing the year's total to 4,009,-48the Department of Commerce reports. The total compares with 2,753,111 In 1934. At the same time the department reported an Increase of $7,483,914 In exports of authe tomotive products daring month of November from the preceding month. November auto exports reached a valuation of This la the peak figure for any corresponding month since 1929, when the export total amountFACTORY 8, $22,-403,72- 2. ence with the staggering (for those times) national debt of $75,483,000. That waa to pay for the Revolutionary war, and up to the present day great rises In the national debt have been the result of wars (acof cepting the theory of one school spendthe which regards thought, enoring that caused the present dea necessitated by mous total as redirect was the which pression sult of the World war). The War of 1S12 sent the debt up In 1818, In 180G to the debt reached a new high of following the Civil war. In 1915 It stood at the comfortable but the total of $1,190,000,000, to the It World war skyrocketed $28,594,000,000 of total alarming four years later. By conscientious g during the next $127-334,033- .74 udget-balncin- $3,169,-000,00- $30,000,-000,00- have gone heavily agatnat Italy's aspirations for African conquest Of four major actions taken by the assembled powers, led again by Anthony Eden of Great Britain, two definitely were antagonistic to Italy, one was a draw and one waa somewhat In'. the Fascist state's favor. They were: L The tear aa Anthony Eden cound, t0 move against an oil embargo against Italy. A committee of experts was appointed to ascertain If oil sanctions could be made effective. 2. Britain announced a military alliance with France, Greece, Turkey and Jugoslavia, and these nations pledged aid should Italy att tack Britain because of sanctions. Rumania and Chechoslovakia promptly Joined this group, making seven nations pledged to combined action against Italy should war come over efforts to stop the conflict 3. The league declined to send a neutral Investigating body to Ethiopia, which Ethiopia asked and to which Italy consented. 4. The league conciliation committee published a report that no new peace proposals are possible at the present time, and that the league should pursue a policy of watchful waiting. ments In government financial cir- cles, said he waa reasonably sure the change already has received aome consideration from President Roosevelt Another added that It was "a llXVto-- shot that It Is under consideration. The reports were discounted to some extent however, by the fact that the President has Just renominated Jones foY two years as chairman Sf thb Reconstruction Finance corporation. One Democratic representative argued that on the basts of his past record Jones could carry Into the treasury the respect and confidence of both big business and the man In the street," lie described the RFC chairman as sufficiently liberal to command the support of liberal elements and yet not leaning so far In that direction as to alarm conservatives. 1 of the reign of THE opening VIII of Great Britain, waa marked with an'act of mercy. Arthur Charles Mortimer, under sen- tence of death for running down and killing a girl bicyclist with an automobile, received a Teprieve commuting hla sentence to penal servitude for life Mortimer's crime, murder by motor car, waa described as the first of Its kind la England. LONG'S lieutenants, HUEY the victory of their primary slate In Louisiana, declared that the late senator's fight on the Roosevelt administration would be pushed, with the program as the spearhead of attack. Returns on the primary Indicate a majority of more than 100,00) for senator, governor and other state officers. Nomination la equivalent to election. share-the-wealt- h - negotla-.lojusfalL-ih- e. British corodderthelr ke hands will be free and will vise their Egyptian policy. re- question rights. as federal versus state 00 stabilization fund; Secretary a year and a half ago announced that this aum would eventually be turned into revenues and would contribute toward reducing the national debL It la Mor-genth- yilS 'TplIE senate munitions which participated commlt-te- la a e sen- sational controversy recently by re- flecting on the war feeord of President Wilson, has decided to request an additional of appropriation $7,500 to complete Its Investigation and make Its Anal report. Many Democratic senators have declared that they would not vote another dollar for the Inquiry, but Senator Nye, chairman of the committee, believes the additional turn will be forthcoming, I British Imperialists, died la London following an operation for perforated ulcer of the atoinach. He was seventy years ef age and In recent years had written very little except as a propagandist. He was a vigorous 'and bold writer and a k master atyllsL Ills waa done long ago'when he wrote numerous poems and stories about In dla. Its natives and the British soldier there. e the cost of carrying the $21,000,000,-00- 0 of 1933, and la actually less than carrying the war debt of 1919. While the debt has risen 70 per cent since the 1931 fiscal year, the cost of carrying It ha risen only 84 per cent This 1 what the President was referring to In hi budget message when he said that the governments credit was never higher. WHERE THE GOVERNMENTS DOLLAR COMES FROM. Recent court decisions would cancel the column labelod Processing Taxes and that taxes will have to bo returned by the govemmenL Both tho charts on this page are based on budget estimates. 1935-193- 6 decade the debt reached Its postwar low of $10,200,000,000 In 1930. When President Roosevelt delivered hla budget message to congress on January 6, the national debt was higher than It had ever been before. It waa well over $30,000,000,-000- . He predicted that on June 30, fis1937, at the end of the 1930-3cal year, It would be $31,351,000,-00or more than $1,000 for every family In the land. The present record national debt ta the direct result of the administration's policy of priming the pump" to aid business In effecting a recovery from the throes of depression. It Is not as large as President Roosevelt had predicted It would he six months ago. Two years ago he said: The debt would amount to $31,834,000,000 on June 0, 80, 1935." Rut the President also said then, tn his first annual budget message to congress, "My estimates for the coming fiscal year (ending June SO,' 1935) show an excess of expenditures over receipt of $2,000,000,-00We should plan to have a definitely balanced budget for the third year of recovery (ye preeent fiscal year) and from that time on seek a continuing reduction of the national debL" ' Balance Not In SlghL Yet such a balance haa not been effected or even forecast for the 1937 fiscal year. Ue estimated that for that year the government would collect $5,651,000,000 In revenues, and would apend $6,752,000,000 plus a aum for work relief still to be determined. The deficit then F&UldJhar ebeeaat-Ileat-IJJOS,-000,000 plus whatever amonnt had to be added for relief. Unfortunately there were Immediate pending Issues which would throw the Presidents estimate out of whack. On the very day of his message the Supreme court declared the AAA Invalid, and a later ruling decreed that the government would have to pay back the processing taxes. Also It was virtually certain that the $2.0tX), 000,000 soldiers bonus would pass congress. The situation waa aerlous enough for Secretary of the Treasury Morgenthau to predict that the country might face a national debt of $35,500,000,000 by th cfthelt93T flacatycarr'""'"' The balancing of the budget has been complicated In recent years a '1 character y of by the annual budget deficit estimates, as the following table reveal. The first three deficit estimates were had been borrowed U bad not yet been spenL With the aum thus held In the general fund deducted, the debt In December was actually only a little over $28,000,000,000. But there are also complications not so rosy in nature. During the last years the government has embarked on some extraordinary financial venture. Many critics of the government financial policy would add to the $30,000,000,-00- 0 debt the contingent liabilities taken on by the treasury. How the Treasury department's financial ventures stood on October 31, 1935, la shown In the following Combined Statement of Assets and Liabilities of Governmental Corporation ,d Credit Agencies of the United States." Figures are In millions of dollars: half-doze- u . Recon. Fin Corp Commod. Cred. Corp Public Wk. Admin.' 0. rrr.WELL artificial Breed Anlficitl Lint C retch n, Home Loan Banks Fed. Dep. Ins. Corp. AU others Grand Total 1LI49 4,04 4,4T Like so much of the New Deals financing, the value or the danger of these liabilities depend entirely upon recovery. If business returns to Refunding Debt Cheaply. If the low rates for money continue, and economists right now can see little reason that they shouldnt, the government will find Itself getting out from under the great part of the debt dirt cheap," f since about of It matures within, the next five years. - Refunding should be possible at low cosL One evil of cheap money Is the temptation to spend more, tit encourages Irresponsibility. The world hold plenty of precedent to show that It la budgetary Irresponsibility that leads to Inflation. The estimated $5,564,000,000 .In revenues for the 1937 fiscal year. If It proves accurate, would mean the ldu Arf, n... ( p Kxtenuon Shore Eitabliihrd in Salt Lak, h ug 42SI Sati'fartwa fX Hi W. Thud 8o. t Salt -t, Cunat Cj, l- CHEVItOLETS-FOR- t If we dont hive the car yoe arid net, get it for you. 1930 CHEV. Sedan 1929FORD Sedan 1933 CHEV. Sedan 1933 FORD Coupe 1934 CHEV. Sedan 1934 FORD Sedan uc .are- - don USED TRUCKS one-hal- I IG GOOD TRUCKS SMALL TRUCKS uc 2unei i he TRUCK STAGS e-e- fore Wort Streator-Smit- h CHEVROLET i em roc DEALER il USED CAR DEPT. aw 505 SO. MAIN P ' Salt Lake City largest federal tax receipts In history, with the exception of the year 1920, when wartime taxes were at their height, but Incomes were up, too. How some of the tax rates have been Increased to make up for the difference in Income today is readily seen: Maximum surtax on personal Incomes has grown from 20 per cent In 1929-3to 75 .per cent; the maximum rate on estate taxes from 20 per cent to 70 per cent, and the maximum corporate income tax from 11 per cent to 15.17 per cenL There has actually been a decline In the amount of federal taken from the c!tlxena dollar, however. In 1932 It waa 20.7 per eent; in 1933, 19.5 per cent, and in 1934, 19.8 per cenL The 20 cents out of every dollar that the citizen pays Into the federal treasury Is reflected In almost every article he buys: ate w. rerearewre 1st as U. S. Certified Pullonm r Tested Chicks Tant Wl ,mt( at ii tr the pe tr JtAMSHAW SIST U S. SUU Sk nr It HATCHIXIE1 Salt Uk OO. Ind Iftts, TIMPANOGOS HATCBllT Senth Ttk Xaat Sej Dont be Don't give upl Fiithful use of Glovers Mange Uedidstund Glow'! food, gasoline, telephone service, to- -' bacco, theater tickets, electric power, etc. But It Is admitted that the sew financing depends entirely upon for revenues to Increase. If times get worse Instead of better Medicated Soup for the then) poo hu weed may from Btldoe-Kill- s Dandruff semi; p eacosiwe Fullin Hir. promotes aoJP hctlA. Ask joot Bstbet ry 'fc ij A. N best-wor- That estimates were eo far away from the actual totals may In most " r.-Z""L"rd,K.TA' .. . taormal or prosperous times the asset will be gradually realized, as were those of the War Finance corBut If times do not get poration. better and stay better the assets will bp virtually Impossible of In continued depression they might become an extremely embarrassing burden. The liabilities of $4,491,000,000 are not a claim on the taxpayer bnt only they are d re rs,M ,,n" v u rv well, the Wall Street Journal bas said: "The question how much debt the country CAN carry 1 incorrectly posed. It should be bow much debt WILL the country carry?"" ' IF spending continues and IF federal receipts do not awing up, only two courses lie ahead: More and higher taxes, or Inflation. w ! Htwrotw Unlaw. sp; rt th WMte Urhorna, Rht4 ' Barred Plrmrath Katka, tar dalirerr. Headquarter ter natural, ertUelal, hreadera, ran St ed anywhere An IM, Sal-B-et Radiant, rhena. wre rer wire friere nnd mmtl 0 1 ;nei ' -- . bant i Pickups ind Hyd. Dump loftf Prices ind terms to suit yoei $ kl nUDYARD KIPLING, poet and story writer who best embodied In hla literary work the Ideas of au $30,000,-000,00- over-optimist- ic compromise bill providing payment of the soldier bonus, whipped through congress by crushing majorities, was passed on to the President, who is expected to veto It Congressional action of the measure was completed when the house voted 846 to 69 to accept the for tba bill it had previously passed. The aenate vote was 74 to IS. Leaders of both houses claimed they have sufficient votes to override a veto. ! a CUam, into that $1,000,000,000 will be collected from the $10,000,000,000 of war debts. At aome time In the future revenues from the Social Security act passed in August, 1935, may be reckoned on the asset aide. No administration in .history has borrowed so much money as the present one. No administration has borrowed It so cheaply, either. The 0 cost of carrying a debt of today Is little more than RECENT League of Nation Anglo-Egyptia- n because we have the responsibility to pass It." " But only $37,51. .05. that was exactly 100 years And for each of 1338. In ago those 100 years the debt has multiplied almost I'M.) times. The United Stales began exist- over and above the national debt of more than $30,000,000,000 Further Moral" Obligation. . Moral obligations of the treasury are outstanding liabilities of tho Federal Land Banks, Home Loan Banks discount functions. Federal Deposit Insurance corporation. Federal Savings and Life Insurance corporation and the real estate loans to the Federal Housing Administration. These implied liabilities total another $2,000,000,000 or so. Painting the blackest aide of the picture, It la seen that If times go utterly bad. If these actual and Implied liabilities have to be worst met and If Mr. Morgenthau fears are realized, the national debt might reach $40,000,000,000 or or even more. There are some Intangibles on the asset side, too. There la about $4,473,000,000 which the government may realize from equities If all, the debtors to RFC and HOL(J pay up. There la $2,000,000,000 (not an Intangible but a real asset) of "gold profit" now belngheld tn the barely-possibl- nd Wailacer-M- THERE case be laid to the total Inability the of the Treasury department, to In general the and people banks the depresof estimate the duration When Incomes slumped, so sion And when the "primrevenues. did workto failed get the pump ing" prebeen had as ing aa quickly to failed grow revenues dicted, tax to expected proportions. From Wall Street money marts have rumbled accusations of deliberate overstatement In the more recent budget esIn January, 1934, Presitimates. dent Roosevelt estimated that the deficit six months later would be $8,044.000.000j It turned out to be 0 $2,830,000,000. Ad estimated 1935 for the first half of proved to be an actual $1,875,000, Wall Street says the treas000. too smart to make inch misIs ury takes unwittingly. The Real National Debt For other reasons It la difficult to estimate the real national debt The 0 gross debt of more than 1935 actually at the end of represented the proceed of December borrowing added to the exiting debt But though the money ed to $27,129,903. Democrat, Texas. The bill was referred to a senate subcommittee. The members of the subcommittee doubted the constitutionality of the new measure and directed Secretary of Agriculture Wallace to write a new bill. The bill rejected by the committee F 1NDERSECRETARY of the stated as Us purposes: Thomas Jefferson Treasury L Preservation and Improvement Coolldge resigned his position sudof soil fertility. denly and unexpectedly, because he 2. Promotion of the economic use did not agree with all the pollcle of land. of the administration. At the tame S. Diminution of exploitation and time Assistant Secretary Lawrence unprofitable use of national soil reD UEM1ER NKSSIM I A S II A, W. Robert resigned. President sources. rOTled-- . .ioth.jeslgaa.-tlona- . for-amalntemractr Jj?arLoLbl.tJyU8incetha-autIt was understood there was riots- started November 13, British of a continuous and stable supply no connection between the two of agricultural commodities ade- has handed the resignation of hla withdrawals. Mr. Robert had been to cabinet Fuad L The resigquate to meet domestic and foreign nation was King expected for aome Ume to quit 'hla accepted. consumer requirements at prices posL Nassim found It exhausting to fair to both producers and conIn his position Mr. Cooan equlllbrium.butween keep the lldge, longtreasury sumers. a New England banker, conflicting forces of the throne, the bas been In 5. Reestablishment and maincharge of such governtenance of farm purchasing power. British residency, the nationalists ment financial affairs as the huge and their compatriots. But the final borrowings of money to meet heavy Secretary Wallace was requested to write a new act that would pro- blow, dealt him by the British govgovernment expenditures, lie was ernment at London, waa the thinly understood to be In accord with vide a plan of with most Roosevelt policies but felt he each of the 43 states, and set up veiled ultimatum to Egyptian Naa permanent program on AAA poli- tionalism, in the form of vefbal In- was unable to give hla full aupport cies, Chairman Smith, Democrat, structions for negotiations for an ,to the general New Deal program. It was not learned 4hat specific treaty. The sting said. Saying he speaks for the to Egyptian pride was in the wordobjection were raised by Mr. Coocommittee. Smith explained: lldge but they were believed to We said In effect to Secretary ing that If the present t By UTLEY was a time when the States bad a national WILLIAM-C- T Italo-Ethlopl- bill empowering the secretary of agriculture to pay farmers who ta voluntarily In a program of soli conservation, was Introduced In congress by Senator John li. Bank-heaDemocrat, and Representative several months of Premier stability Pierre Laval has banded to Albert Lebrun, president of France, tba resignation of the entire cabinet. Tha radical Socialists: Minister of State Edouard llerrlot. Minister of Commerce George Bonnet, Minister of Mercantile .Marine William Bertrand, and Minister of Interior Joseph Paganonx, composed a letter of resignation, condemning tha domestic and foreign policies of Laval. Their colleagues,' Minister of Finance Marcel Begnler and Minister, of Pensions Maupoll, refused to sign, declaring they would resign only with the cabinet aa a whole. The Nationalist Minister of State, I)uls Marin, also dissented from the resignation. Laval, Informed of what waa going on, handed the president the resignation of the entire cabinet. AFTER worId ness. Cuticura battikef ' Afte,", T,aSr JSapons, rashes causedskin Cuticura Ointment 25c. y . |