Show v 1 T V ar ind he the NATIONAL CAPITAL CAPI TAL Carter CarterField Field Washington With the President and congress both away awa Washington I Is a hotbed of rumors most of which have absolutely no basis whatever but I IaU all aU of which are Interesting I For Instance there there Is fa the one about Henry Jr The mere secre tart tary of ot the treasury Is enjoying a holiday holi bolt day In Spain whereupon there Is seriously seri sent circulated the story that he Is ls to be eased out of the treasury and Is II to become ambassador to Ma Madrid Several details are added for example example example exam exam- that the administration Is most anxious to have Claude 0 O. Bowers now ambassador to Spain back la this country for the next campaign He lie Is a spellbinder of parts part and has been keynoter on many big Democratic Democratic Demo Demo- Democratic cratic occasions Now It Is beyond denial that cere tain tala very Important figures In the New Deal are convinced It would be bean bean bean an excellent thing If It were sent Bent to Spain or Spain or to the FIJI Islands Islands- anywhere out of touch with Washing ton They regard him to put It mild ly 17 11 as a flop as secretary of ot the treas treas- pry ury But to anyone who has watched Roosevelt It is simply unthinkable that would be thus humiliated He ne went to extreme lengths to avoid humiliating William II II 11 Woodin who was a far worse secretary secretarY from from the White House ouse standpoint than standpoInt than Mor Mor- Woodin disagreed distressingly distress l with most of the New ew Deal pol pol- Idles His personal loyalty to Roosevelt noose Roose- velt prevented his resigning for a along along long Jong time despite the excellent excuse ex cuse cuso Of his health but he actually had nothing to do with formulating the themore themore themore more Important phases of treasury policy Whereas has been the ideal Yes Man to the President Ills ITis first thought at all times Is to do Just precisely what the President wants and to tell teU the President resident that any Idea is simply swell lie He e ehas has never sought sett In Inthe Inthe inthe the public prints and has hils not Joined In any conspiracies to unseat unsent Presidential Presidential favorites from their places near the throne Will Stay So this observer believes es that Mr will serve as secretary of the thA treasury as long as he wants and when his Ills time comes to go will get a wonderful send off and with no suc such lame Jame excuse as promoting him to be ambassador to Spain Then TIlen there Is the story about Herbert Herbert Her lIer- bert Hoovers Hoover's motive In attracting I so much limelight This Is that Hoover really has no Idea of being a can candidate candidate candi candi- l- l date but Intends to hold the limelight limelight lime Ume- light and make no statement which would take him o out t of the apparent race before say next February The explanation given for this Is that Hoover wants to shield any other possible possible pos pos- possible sible Republican nominee from being put on the spot as to the soldier bonus bonne By February Washington believes the bonus will have passed Into history with Its passage passage over Roosevelt's veto and hence will no longer be an Issue This writer still belle believes and on excellent excellent ex ex- ex authority from close lieutenants of ot the former President that he craves a vindication that he would like to have the nomination forced on him b but t that with very little urging he would step out actively and go after It Most of ot the stories going around are Just as silly as that one now exploded exploded exploded ex ex- ex- ex about Roosevelt's shelving Garner and putting up some one for Vice President next year who would draw strength In to some state or sec section section see sec tion more doubtful than Texas Is expected ex ex- to be i r Real Conflagration Belief that Italy will eventually have to to yield to economic pressure Is very strong In diplomatic circles here The opinion of the diplomats perhaps the best Informed persons as to actual conditions Is that there will not be beany beany beany any real conflagration Th They y do not believe for example that Britain will willever willever ever actually blockade e Italy which h dire possibility would lead to trem tremendous tremendous n. n dous consequences They point out however that that contrary contrary contrary con con- to popular opinion Germany Is not sympathetic with Italy but anxious ious Ions to go along with Gr Great at Britain They Thel do not believe therefore that Germany will supply Italy with the needed using s s using munitions In Inthe Inthe inthe the broad sense of things necessary In time of war and not confining It as the United States neutrality act does does to arms ammunition and implements Implements Im of war I Several well-Informed well diplomats were questioned by this tide writer as a. to what the they thought Germans anxious to sell cell goods would do If they saw sa a chance to make moke a nice profit by selling to Italy especially as 81 It has haa become Increasingly difficult for Germany GermanI to market goods she would like to export Invariably the answer has been the that same that German merchants would not hesitate to go against the policy of their country If they thel could turn a good deal for themselves but that they thel would hesitate a long time before selling anything to Ita Italy 11 on credit I c credit at the moment is not too good Diplomats here bue say sal that despite despite de de- de- de spite the refusal of ot Austria and Hungary Hun gory gary t to commit themselves in advance to J league sanctions against Italy this distrust of Italy's ability to pay will dry up th these se sources of ot supply Italy Short of Gold The gold reserve resene of the Bank of Italy has shrunk tremendously In tn the thelast thelast last 18 months She Is now down to to something like Uke gold Int in fn t terms of ot American dollars Roughly this 1 Is le less Jeu If calculations calculation are made In terms ot of the American dollar doUar before devaluation Importance of this last is not generally gen len generally realized In this country save BAve b by persons who have tr traveled In Europe Europe Europe Eu Eu- rope since devaluation u But nut actually the purchasing power power ot of the lira has bus busnot hun n not t changed In the meantime either I In Italy or on the continent of Europe Italy always buys buy a frett t te del deal e l of food from rom across the Adriatic cattle especially The Yugoslavians do not like Uke Italy at nit all Neither do JIo the Greeks They Thel are afraid of ot Mussolini's Musso Musso- lini's linis Imperialistic dreams dream Washing Washington ton believes that Italy has been compelled com coax to pay pal cash for merchandise with credits credit closely held and that this Is le the reaU really Important explanation of the drop of three billion lire In th the gold holdings of the Bank of Italy To the contention that Germany was able to go on fighting lighting for years while under virtual blockade diplomats answer an an- ewer that the cases cUel are very different Within the central powers was wa a stretch of territory from tram the Baltic to the Black seas and extending beyond belond the Black into Asia lla This territory has hat tremendous diversification of products Including those essential tor for war- war metals oil and food Moreover Germany Oer Ger man many was able to buy bUl from Norway Sweden Denmark Holland and Switzerland Italy must buy bUl virtually all aU her metals and oil on and a great deal of food After effects of the World war ar demonstrated demonstrated demonstrated dem dem- rather forcibly what could happen to credits crE Conviction that Italy will take a ghastly economic beatIng beat beat- Ing tag in the present war no matter what military glories she may achieve lends point to this And her gold supply supply sup sup- ply does dols not promise long continuance of ot cash payments payment Neutrality A Act ActA t tA A fight to broaden the neutrality act so that the President would be authorized author author- zed bed to prohibit export to belligerents not only of ot arms ammunition and implements Implements Im of war as al the present act reads but munitions so as to Include In in- clude elude cotton copper chemicals acids In fact all materials ranging from foodstuffs to mul mulls s 's usually regarded as war supplies will start with the tap of the gavel when congress convenes convenes convenes con con- venes in January Januar The Tho administration is embarrassed now flow by the lack Jack of authority In the neutrality law but will be even more embarrassed when the fight In congress especially especially because of the political political po po- po- po 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 regret that the act did not ban foreign loans Joans for war purposes The narrowness of language In the neutrality act defining war supplies was not at once noticed by bi 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 ete In fact there was a broad inference in official quarters after the Presidents President's proclamation procla matron mation that items would be a added ed from time to time Watch Shipments Shipment The government does not Intend to hamper export trade u unduly in seeking to discover if It shipments to neutral countries are intended for belligerents officials insist but they point out that they have been catching such violations violations viola viola- with respect to Latin American wars ware every week or so 10 and say the same sort lort of watch will be kept on shipments to any country which might pass them on either to Italy or Ethi Ethi- opia Which of course means primarily prima rily illy Italy For Instance if It there should be a heavy shipment of explosives or guns to Germany the government may require require require re re- re- re quire substantial proof that the shipment ship ment Is not going any further or Is not going to replace t similar supplies sold lold to Italy Newspapers accor according to officials have enormously exaggerated the amount of raw materials Italy bought boughtIn In n anticipation of ot this war They do donot donot donot not deny that Italy has laid in a supply supply sup sup- pl ply of raw materials Insist that In Inmost Inmost inmost most Instances the amounts purchased are not greatly in excess of normal normaJ purchases On the other hand band Is the tremendous ous shrinking In the Bank of Italy's gold supply Which would woul seem leem to Indicate especially espe espe- cia as III unofficial Information Is II that the gold rold supply has Jias been coming down sharply since Ince 20 that Italy has haa been buying heavily despite official official cial reports to the contrary Which brings up the whole question of credit Leaving out out the dire possibility bully that Great Britain ma may declare war on Italy and nd nd blockade h her r will Italy be able to buy American cotton copper an and other war supplies other than arms ammunition and Implements meats ments of wary war Certainly there would be plenty of political pressure to encourage encourage en en- courage this but would American bank bankers rl be willing to extend credit to finance such luch sales ales after arter Italy's HaJts gold rold supply has been ben stripped down to the danger daner mark wherever mark wherever that is 1st Germany fought the war without much credit from neutrals but she had tremendous supplies of the vital vita war requirements Copyright aorta nIM r |