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Show News Review of Current Even Is the World Over Senate Passes Farm Bill Willi tlie Inflation Amendment Roosevelt to Ask Authority to Deal With War Debts llerriot Enters Conversations. Ry EDWARD W. PICKAUD BACKED by the administration, by the big Democratic majority In thy senate aiul apparently ty the (nvnr of large part of the population of the s-"v i)!ssn n country, the Thomas I Intlatlon amendment to the farm relief bill won an easy vie- , 1 tory In the senate. s Willi this most por '1 lentous addition th 1 1, farm hill was passed i ami sent back to the I house for concurrence. i The autl Inllationists, .-asSj llHl b' Senator l'"vkl - ,.. A. Heed of Peunsyl Sen. Thomas , , vania, made a desperate des-perate but hopeless fight, arguing that while "controlled" Inllatlon, as prom ised by the amendment's sponsors, might temporarily restore a measure of prosperity to the nation, previous erperience here and abroad showed that control could not be maintained and that the ultimate results would be disastrous. Reed. Tydings of Mars-land, Mars-land, a Democrat, and others seemed terribly dismayed by the prospects for the future and their sincerity could not be doubted. Senator Thomas ot Oklahoma himself him-self led the debate for the ntlirnmtive, -opening with the startling statement that the amendment, if It prevailed, should transfer value to the extent of almost $200,000,l00,(.iOO from the creditor cred-itor class to the debtor class. Of course, the effect of this assertion Is greatly weakened when one realizes that our people cannot really be divided Into such classes. There is scarcely a creditor cred-itor in the land who Is not also a -debtor, and vice versa. But this point and many another were ignored by the proponents of inflation. Senator Tat HarrisoD of Mississippi, for instance, on the second day of the debate, confined con-fined his efforts mainly to taunting the 'Mellon-Mills-Reed" group for Its alleged al-leged failures during the Hoover ad ministration. The Wheeler-King silver coinage amendment was accepted by the senate. sen-ate. It would enable the President to fix the ratio between gold and silver and to provide for unlimited coin age of both metals at the ratio so fixed. JUST what Inflation, even If "controlled." "con-trolled." will do to the nation and its business is a question on which economists and financiers are as far apart as the poles. For the present the prospect of its adoption and the abandonment of the gold standard have served to create almost a boom in certain lines of business, and the prices of commodities have begun to rise. But bow this will In the long rnn benefit the ordinary citizen has not been shown to the satisfaction of most of us. An especially dangerous clause in the Thomas amendment Is the one giving giv-ing the President power to devalue the gold dollar to the extent of 50 per cent Senator Borah, an inflationist, argued that this would be declared unconstitutional. un-constitutional. It may be this power will never be exercised by the President, Presi-dent, but If it is it will be followed by sleps to abrogate the gold clause in bonds, mortgages and other contracts. con-tracts. Provision for such action is made in the pending Goldsborougb bill which provides that existing contracts shall be satisfied by payment of their face amount in legal tender, that after its enactment, gold clause contracts cannot be made legally and that any profit made from exchanging gold for legal tender would be subject to a 100 per cent tax. . Some experts are of the opinion that the inflation bill may never be used; that it Is "a mere bluff Intended to have the very effect It is now having arresting and reversing the downward course of prices," and giving the President Presi-dent a better position in the economic conversations with foreign statesmen, as did the abandonment of the gold standard, which also was inflationary. WAR debts and reduction of armaments arm-aments came to the fore in the White House conversations as Prime Minister MacDonald concluded his part of the parleys and yjgwawM prepared to depart for p 1 , . 2 home, and former Premier Edouard Her-riot Her-riot of France begao his sessions with the '2$ 'C President. These three , ' gentlemen met togeth cr, and after an In- formal dinner, Mr. ' Roosevelt took up the SW ' disarmament question f:, with them, his evl- ,, , dent purpose being to bring France Into line at the Geneva conference. French demands for guarantees of security against attack, which have blocked all agreement bltherto. were discussed by the President, Presi-dent, and it was said he Indicated that he was "searching sincerely for means -of associating the United Stares" with international efforts to check aggressor aggres-sor nations. Such association might take the form of consultation with s.'natories of the Kellogg peace pact in tue event of its violation. And In addition there Is the administration bill authorizing the President to Join other nations In declaring embargoes on arms and munitions. As for the war debts, they were first brought up by Mr. MacDonald, who let Mr. Koosevelt know that Groat Britain would like a downward revision; re-vision; and their communique said that the basis was laid of u clearer understanding of the situation affect-ing affect-ing the two nations, though no plan or settlement was under way yet. This encouraged M. llerriot and his expert associates to press the arguments of France for cancellation. Then Mr Koosevelt let the correspondents corre-spondents know that he was planning to ask congress for authority to reopen re-open the war debt settlements Hnd negotiate a reduction of the 11 billions bil-lions which I'nropean nations owe the United States. If he were vested with this power the United States would enter the London conference prepared to bargain for stabilization of enrren cles on n modified gold basis, re-monetizutlon re-monetizutlon of silver, lowering of tariffs and other trade barriers aud adoption of measures to raise commodity com-modity prices and restore purchasing power. Members of the French delegation said the President had promised .Mac-Donald .Mac-Donald and llerriot that he would ask congress for authority to postpone the debt installments due June IS, and that in return llerriot would ask the French parliament to pay the defaulted default-ed December 15 payment of J 10.000,-000. 10.000,-000. As Mr. MacDonald said good by to the White House, he and Mr. Koosevelt announced that they had agreed on the following ; An Increase In the general level of commodity prices. Re-orientation of commercial policies. Reduction of tariffs, quotas and ex change restrictions. World expansion of credit Capital expenditures by governments to stimulate business. Re-establishment of an International monetary standard. Improvement of the status of silver. PRIME MINISTER RICHARD B. Bennett of Canada was already In Washington to talk with the President; Presi-dent; Finance Minister Guldo Jung of Italy and Hjalmar f . Schact of Germany U.t were on their way, B? and Japan announced f ' that Viscount Kikujiro I. Ishil would arrive ; May 23. Mr. Bennett fV -. " , , told the newspaper Si . ' mn that Canada LvJ" 1 stands ready to dis- i J cuss any proposals I -' 1 ,nat 'ooli tnwar( c'os' n er commercial rela-R. rela-R. B. Bennett ... ., Hons with the United States, and said the Ottawa agreements agree-ments do not affect these trading possibilities. pos-sibilities. In a prepared statement he used these emphatic phrases: "We have reached a point where it Is certain that nothing but united action ac-tion can avert world disaster." "Immediate action Is Imperative." "The world is in tragic trouble and distress." "If we do not soon defeat the forces of disruption and discord, they will defeat us." "We must act boldly and unselfishly, otherwise we shall be certain witnesses wit-nesses of the wreck of our civilization." civiliza-tion." Asked whether Canada really had gone off the gold standard, as had been asserted by Finance Minister Rhodes, the prime minister replied: "Canada is as much off the gold standard and as much on the gold standard as the United States." REFUSING to accept the Norris senate bill as a substitute, the house passed the McSwain bill for the operation of the Muscle Shoals development, devel-opment, the vote being 300 to 91. Seventeen Sev-enteen Republicans and five Farmer-Lahorites Farmer-Lahorites voted with the majority. The house version Is regarded as a less drastic measure than the Norris bill. The principal -jlnt of difference between the two Is that the house bill provides an appropriation of S10.000,-000 S10.000,-000 and a bond issue of So0.000.IX10 for starting the development program, while the Norris bill simply authorizes "all appropriation necessary." The Nebraskan's measure Is likewise more rigid with regard to government construction con-struction of power transmission lines. WHEN the world disarmament conference con-ference resumed Its sessions in Geneva the French plan for an antiwar anti-war pact of consultation was presented present-ed by" Rene Masslgll. It excluded the American continent on the ground that it was Impossible at present to make the pact universal. Massigli suggested sug-gested the creation in the capital of each signatory pocer of a commission which would determine violations of the Briand-Kellogg pact and the rights of a victim to assistance. Concrete measures to prevent misuse mis-use of civil airplanes for military purposes pur-poses were presented by the United States, Canada, Argentina and Japan. MUSSOLINI'S four power peace plan 1h causing a lot of excited discussion In various European countries. coun-tries. Great Britain and Germany might gladly agreu to this, but Franco still asserts the Handily of treaties must bo respected, anil In this she Is of course supported by all the nations of tho llltle entente, and by Poland. In Czechoslovakia especially sentiment was aroused, and Foreign Minister Edoiini'd Bonos told th parliament In Prague that whoever desires to clmngo the boundaries of that country must bring an army along with him. Ho criticized tho Mussolini plan as u "great backward step," and added: "History shows that surrender of territory ter-ritory always Is connected with the bloodiest wars." CO VIET Russia was on tho verge of n quarrel with Japan over the equipment of the Chinese Eastern railway, rail-way, and In that connection It was Interesting to note that a new alignment align-ment was bringing Russia and Franco together, the former drifting away from Germany and the latter beginning begin-ning to lake sides against Japan. Already Al-ready the French nnd Russians have arranged for exchango of military Information In-formation nnd military Instructors. Before long the situation on the European Euro-pean continent may be pan-German-Ism against pan-Slnvlsni, with France on tho side of tho latter and Italy with the former. CONTINUED Chinese resistance nenr Kupelkow pass on the road to Pelplng so enraged the Japanese military mili-tary command that It announced the early occupation of all strategic points In the North China area. With this In view, the Japanese launched a general gen-eral attack south of tho Great Wall designed to open the way to the old Chinese capital. As usual. Japan finds a ready excuse for offensive movements already planned. The Manchukuoan government has announced that only nations recognizing recogniz-ing that state will benefit by Its promise prom-ise of an open door trade policy. THE Nazi campaign against the Jews In Germany continues with vigor. Dr. Joseph Goehbels, minister of propaganda, speaking at Cologne, said: "We consider the Jews our enemies, but hitherto have exercised a clemency which the Jews do -not deserve. de-serve. If they believe that this clemency clem-ency Is weakness we will quickly teach them differently." Goehbels proclaimed May 1 as the "festal day of national labor." to the disgust of the Communists, who have long considered that day sacred to their cause. Students of Kiel university asked the rector to compel 23 Jewish professors pro-fessors to resign. The anti-Jewish movement also was manifested In Rumania, where a ten-day ten-day boycott of all Jewish shops In the province of P.ukovlna was ordered by a Fascist organization. FORMER Gov. Nellie Tayloe Ross of Wyoming finally has been placed In a federal position. The President nppolnted her director of the mint. Obviously Mrs. Ross was entitled to a good place, for as vice chairmnn of the Democratic national committee and head of the party's women's organization or-ganization she has been very active and valuable. (( r EPUBI.ICAN Federal Associ-ates" Associ-ates" Is the name given an organization or-ganization Just formed by men prominent promi-nent In the Hoover administration to ... aid the party In re- ' turning to power In f the lO.'U cougression- nl elections. Walter F. Brown, former t 'f' postmaster general, y" f . ; Is Its president, and : Ogden Mills, secre- ' tary of the treasury ""l. ; under Hoover, is j chairman of the v' board. Arch Coleman, who was first assist-Ogden assist-Ogden Mills nnt postmnster glner. al In the Hoover administration, Is In charge of Washington headquarters, and W. Irving Glover, who was second assistant postmaster general, is director di-rector of organization. Mr. Coleman said the organization was primarily to keep together those who have been active In Republican circles for the last twelve years; to keep tbem advised of what is going on, and to bring back to the party fold those Republicans who supported Roosevelt last year. Ernest Lee Jahncke, the Hoover assistant as-sistant secretary of the navy, is first vice president; Mrs. Nicholas Long-worth, Long-worth, second vice president; Charles J. Moos, third vice president; William R. Castle, treasurer, and Coleman, general secretary. Six of the Hoover cabinet members are represented on the board of directors di-rectors Mills. Brown. Roy D. Chapin, Arthur M. Hyde, William N. Doak and Ray Lyman Wilbur. Others include Walter E. Hope, former assistant secretary sec-retary of the treasury ; James J. Patchell, Union City, Ind. ; Mrs. Long-worth, Long-worth, Castle, Moos. St. Paul; Jahncke, Harry Culver, Culver. Calif. ; Coleman, Glover, John Richardson, Boston ; Ferry Fer-ry K. Heath, former assistant secretary secre-tary of the treasury, and Mrs. Albert G. Sims, New Mexico. WISCONSIN has the honor of being be-ing the second state to ratify the prohibition repeal amendment to the Constitution, and the first to do that by unanimous vote. Fifteen delegates, assembled in the Capitol building In Madison, were addressed by Governor Schmedeman, and in eight mlnut thereafter the resolution of rat illation illa-tion had been drawn up and adopted to the accompaniment of cheers. . 1933. Western Newspaper Union. |