anaheim-gazette 1922-09-14
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RIGID ECONOMY MUST
MARK PUBLIC AFFAIRS
"I say frankly to you that I will not send to the congress estimates exceeding the probable receipts of the government, and I must warn you unless you use your pruning knives the executive will be compelled to cut deeply the estimates presented.
"Our country is one of the few in the world which is now paying its way as it goes, and I must regard with disfavor any tendency to interfere with this condition or to increase the taxes."
In these words President Harding, addressing a meeting of all of the executive officials of the departments and bureaus in Washington, warned them that economy must be practiced during the present fiscal year as strictly as it has been during the last fiscal year. The meeting was the third of its kind in the history of the United States. The two others were held during the last fiscal year. Those present embraced the cabinet officers, their assistants, chief clerks, bureau heads, executives of all independent commissions and other administrative officers of the government who have to do in any capacity with the expenditure of public funds and the preparation of estimates of public expenditures.
The first two meetings were called at the suggestin of former Budget Director Dawees. They were so successful in securing co-operation of the executive officials and resulted in such tremendous savings that the practice will be continued at least during the life time of Republican control of the government. President Harding took occasion to introduce to the administrative officials present the new budget director, General Lord, and informed them that General Lord would have the same unqualified support of the president that General David had.
railways and ultimate state socialism. Their maneuvers must be interpreted with this thought in mind. Whatever they can do to cripple and handicap private business enterprise and to embarrass and discredit the Harding administration these leaders believe will help along the cause in which they are most interested.
Hence the "no compromise," "no arbitration' attitude of these politicians posing as labor leaders. A peaceful settlement of the trouble would not be to their liking. They are ready to tie the country in a bow knot and starve and freeze the people of this country in order to improve the campaign prospects of the men and things they stand for in politics.
There is reason to believe that these politicians do not correctly guage the temper of the American people. When ten or twenty per cent of the American people declare war on the remaining eighty or ninety per cent, the outcome is not sure to be that the tail will wag the dog. There is a growing impatience in this country with the subordination of industrial to political ends by misfit labor leaders of a certain arbitrary and ambitious type. Instead of beating the administration and the American people into submission they may find the situation reversed before the trouble they have incited and are egging on is over.
President Harding and the national administration are not partisans of either side in the connection. The president has sought to induce both sides to submit their cause to tribunals, representative of the government and of the whole people. Failing in this he will do his sworn duty by protecting the public in its rights. If there are those who do not intend to mine coal or run trains until they have imposed their will on the public, let them step aside and permit others to do the work, if they can be found. These others must and will be pro-
that the protection American prices national level products.
According to off commission, kept the wool ruin. Its report short, the whole try including that supporting it, Under these con-tariff act gave
The assertion the emergency would not benefit were not ments. There since its enactment that American been higher than products in other
The Democracy mistaken rega- as to the effect upon the price can consumer. issued by the L paring retail pr 1921, and April was one month tariff went into was eleven months been in effect a been getting betuicts.
According to prices of foods on the whole n in April, 1921, and cereals, tha greater than tha es of foods. B in price from ni butter declined made from whe flour, 10 per cent cereals made declined from 14. These facts re
President Harding recalled that at the first meeting called by General Dawes last summer it was predicted the fiscal year would close with a deficit of approximately $24,000,000. Instead, it closed with a surplus of $313,000,000. The president attributed this to the hearty and intelligent co-operation of the administrative officials with the budget bureau, and he impressed upon them the absolute necessity of a continuation of such cooperation in behalf of rigid economy throughout the coming fiscal year. He said:
"We must here resolve through our efforts that expenses will be kept within incomes. There must be the utmost economy. There have been established those business principles and procedures which are capable of bringing further economy during the current year and I look to the government's executives for still closer scrutiny of their activities and attendant expenditures. Ig in your jurisdiction you find activities and expenditures that can be curtailed or eliminated I admonish you to do it. If the laws do not leave it within your power to do this, submit it to the president for recommendation of congressional action. The business head of the government does not and cannot contemplate or expect that expenditures this year will exceed income."
Every one of you needs to realize that your services belong to the government as a whole and not to a subordinate part of it to which you happen to be attached.
In a way it may sound prosaic and some times a little wearying to be talking about economy, but you are engaged in the most important work that can be pursued for government. No less than a score of citizens of foreign governments have said to me, "We are watching your work of reducing your expenditures in order to apply the system to our country," but more important than this is the effect it is having in setting an exam administration are not participants of either side in the connection. The president has sought to induce both sides to submit their cause to tribunals, representative of the government and of the whole people. Failing in this he will do his sworn duty by protecting the public in its rights. If there are those who do not intend to mine coal or run trains until they have imposed their will on the public, let them step aside and permit others to do the work, if they can be found. These others must and will be protected in their right to work by state and federal governments. The issue involved is fundamental. The duty of government is clear, and there will be no dodging of duty at Washington.
THE EMERGENCY TARIFF
The emergency or farmers' tariff was one of the first laws enacted by the present congress when called into special session by President Harding April 11, 1921. An emergency tariff had been passed by the Republican congress immediately preceding, only to be vetoed by President Wilson. The law as vetoed was practically identical with the bill which was re-introduced in the special session of congress and became a yaw May 21, 1921.
The farmers' tariff became effective at a time when farm products were bringing higher prices in Canadian and European markets than they were in the United States. Democrats who opposed the enactment of this law claimed that the price of American farm products was determined by the world markets rather than by home markets. They asserted the enactment of a protective tariff would have no effect whatever upon farm prices. They asserted the only effect it would have be to advance living costs to the consumer.
Within thirty days after the enactment of the farmers' tariff the price of wheat in Minneapolis and Chicago was higher than the price of like wheat in Winnipeg, which was a reversal of conditions existing prior to the enactment of this tariff. Since that time the price of wheat in Minneapolis has been consistently higher than Winnipeg prices.
After the enactment of the tariff the difference in the price of live stock between Chicago and the Canadian markets increased very materially in favor of the Chicago market. Before the bill became a law the difference in favor of Chicago was only $1.30 per hundred. Since the bill became a law
PLAYING POLITICS WITH INDUSTRIAL PROBLEMS
That there are political motives behind some of the important moves being made in the industrial field by certain so-called labor leaders who habitually think in terms of politics, is undoubtedly true. It is not entirely an accident that there is an attempted tie up of industry at this particular time, in the middle of the Harding administration, with election day approaching, and with a revival of industry in evidence which, if permitted to continue without interruption, would interfere seriously with the opposition's prospects of success.
The leaders conspicuous in the attempted industrial tie-up are now and have long been committed to the task of discrediting the Harding administration. Their publications have reeked with abuse of the president, of congress and the federal courts. These leaders are enlisted in the cause of government ownership of mines and versal of conditions existing prior to the enactment of this tariff. Since that time the price of wheat in Minneapolis has been consistently higher than Winnipeg prices.
After the enactment of the tariff the difference in the price of live stock between Chicago and the Canadian markets increased very materially in favor of the Chicago market. Before the bill became a law the difference in favor of Chicago was only $1.30 per hundred. Since the bill became a law the difference in favor of Chicago has never been less than $2 a hundred. Commenting upon this, the United States tariff commission says: "The average price of cattle in Winnipeg was $2.28 cheaper than in Chicago from January to May, 1921 (prior to the enactment of the emergency tariff) and $4.20 cheaper from June to December, 1921 (under the emergency tariff)."
The passage of the emergency tariff benefitted the dairy interests in the same fashion. Prior to its enactment butter, for example, was being imported and sold at a price lower than American dairy interests could produce it. Before the enactment of the tariff the difference in the price of butter in favor of foreign products was eight cents a pound. By the first July after the passage of the tariff, American butter was selling at a higher price than foreign butter. The same compaisorns might be cited regarding other dairy products, potatoes, sheep, amb and lmutton and fresh beef.
Figuers publishes by the United States tariff commission show that while there was a world decline in the price of beef duiring 1921, the decline in the United States amounte dto only eight per cent, whiel the decline in Canada amounted to over 20 per cent, in England to 29 per cent and in South America to 28 per cent. This shows
To facilitate been a consolidation of markets with the formerities. The newly known as the economics began July 1. The new emblem emphasis used farming. On bring the constrict more intelligent touch with the This will eliminate between the price his product and er pays for it. branch offices at large market try, of which thie more important delphia, Boston leans, Kansas o apolis, Galvester kee, Buffalo, Ple San Francisco.
One of the buis is to prevent any overloaded with kind. In this porting agencies play a very sort of service rated within the stock reporting monthly situation on fa United States. be obtained from farms and state conditions at least which form the southern states.
ANAHEIM GAZETTE
that the protective tariff did keep the American prices higher than the international level of prices for like products.
According to the United States tariff commission, the emergency tariff kept the wool industry from absolute ruin. Its report says in part: "In short, the whole wool-growing industry including the financial institutions supporting it, was faced with ruin. Under these conditions the emergency tariff act gave immediate relief."
The assertions of the opponents of the emergency tariff that its passage would not benefit the American farmer were not sustained by developments. There has been no month since its enactment 16 months ago, that American farm prices have not been higher than prices for like farm products in other countries.
The Democratic leaders were equally mistaken regarding their assertions as to the effect the tariff would have upon the price of food to the American consumer. A bulletin has been issued by the labor department comparing retail prices of foods in April, 1921, and April, 1922. The first date was one month before the farmers' tariff went into effect. The latter date was eleven months after the tariff had been in effect and the farmer had been getting better prices for his products.
According to this bulletin, retail prices of foods in April this year were on the whole nine per cent less than in April, 1921. In such foods as meats and cereals, the decrease was even greater than the average for all classes of foods. Beef and pork declined in price from nine to sixteen per cent; butter declined 19 per cent; bread made from wheat flour, 16 per cent; flour, 10 per cent; corn meal and other cereals made from farm products declined from 13 to 21 per cent.
These facts regarding the decrease in the cost of food products are com-
furnish reports less frequently, because of the difficulty in getting complete information for monthly dissemination.
One of the first results taken in this new nation-wide live stock reporting service wa sa forecast recently issued showing that approximately 103,000 head of Arizona cattle were ready for the market. This sort of service stabilizes the live stock market and meat industry, preventing a congestion of receipts at an yone point which results in a loss to the producer without any gain to the consumer.
The new bureau will also keep a very accurate tab upon conditions of grain and live stock in foreign countries, taking into account not only the visible supply, but the demand, the cost of production and the possible competition which these foreign products will offe rto the American producer.
CASE AGAINST IMPORTERS
Senate document entitled, "Imported Merchandise and Retail Prices," 67th congress, second session, has been made public. If you have not possessed yourself of a copy ask your senator or member for one. It is a revelation on the subject of importers' profits: It explains as nothing else can the prime reason why the importers' combination has been spending money like water to defeat the pending Republican protective tariff bill.
To quote from the letter of the secretary of the treasury, submitting the data from which the document was prepared:
"This data was prepared in the office of the appraiser of merchandise at the port of New York from invoices and entries on file in the customs office at that port. Each sheet submitted bears an identification letter and number corresponding to the letter
THE EXAGGERATED EGOS AND POLITICAL PARTIES
It is becoming quite a fad these days for men who have come to public place through party support, to play to the galleries with declarations of their own independence of party doctrine and organization, one their election has been brought about.
The right of any man to be independent in politics is unquestioned, but the courageous and consistent public man will assert his freedom from party allegiance before an election as well as after it.
There is not a man in public life in this country today who could get into office running on his own personal merits without party endorsement of some sort. But it is not difficult for many politicians to get it into their heads, once elected, that what took them to Washington was their own overwhelming personal popularity. They then proceed to make a virtue of their own unwillingness to go along with their party when it comes to voting on public measures.
The greatest menace in public affairs today is the complete breaking down of political parties and with it the breaking down of responsible government. Those who are helping along in this process of dissolution are not only demonstrating their own ingratitude toward the party which made their public service possible, but are contributing toward the creation of chaotic conditions in politics and government.
Party men and women of the rank and file must begin to take note of the names of those who appeal to them as Republicans on election day, and the next day begin to try to work both sides of the political street with loud professions of their freedom from party trammels. The motive of such men does not rise above the low
The emergency tariff was a Republican measure. Practically every Democratic leade rln both branches of congress opposed its enactment and are pledged to its repeal in event the Democrats secure control of congress.
EMPHASIZE BUSINESS
SIDE OF AGRICULTURE
Formation of Bureau of Economics Bring Farm in Touch With Markets
It is one of the dominating policies of the department of agriculture under the administration of Secretary Wallace that the department keep abreast with developments in the business world and give particular attention to the strictly economic need of agriculture. Secretary Wallace is getting away from the old stereotyped idea that all the department of agriculture should do is to give elementary advice as to how to plant crops and kill insects.
More and more the success of farming depends upon the economic handling of farm produce after it has been raised. For that reason the department of agriculture under the present administration is laying stress upon farm management, warehousing, marketing, competition from foreign countries, co-operative buyong; in short, all of the features which might be termed strictly the business side of agriculture.
To facilitate this work there has been a consolidation of the old bureau of markets and crop estimates with the former office of farm economics. The newly consolidated bureau, known as the bureau of agricultural economics, began its legal functioning on the whole nine per cent less than in April, 1921. In such foods as meats and cereals, the decrease was even greater than the average for all classes of foods. Beef and pork declined in price from nine to sixteen per cent; butter declined 19 per cent; bread made from wheat flour, 16 per cent; flour, 10 per cent; corn meal and other cereals made from farm products declined from 13 to 21 per cent.
These facts regarding the decrease in the cost of food products are commended to the Democrats who predicted that the price of food products would advance as a result of the farmers' tariff. They are commended to the consideration of those "economic experts" who claim that a tariff always advances prices to consumers.
The emergency tariff was a Republican measure. Practically every Democratic leade rln both branches of congress opposed its enactment and are pledged to its repeal in event the Democrats secure control of congress.
The data in question give country of origin, foreign cost, charges, duty (rate and amount), and total landed cost of one hundred and twenty-two exhibits—imported articles coming into New York, where 75 per cent of our imports are received. These articles embrace things found in the kitchen, the dining room, the parlor, the brie-a-brac on the what-not, things used for the toilet and for personal adornment, lingerie, hats, pipes, canes, and many other classes which enter into the life of the American citizen. There are 60 illustrations of various exhibits accompanied by the sales slips showing the prices paid by American consumers over the retail counters, with the names of the firms from which purchased.
Here you will find importers' profits—the difference between the landed cost of the article in question and the price at which disposed of to the purchaser at retail—ranging from 157 per cent in the case of a hand-painted, gold medallion China vase, to 2370 per cent in the case of a German carved wooden clock. "These articles were manufactured in more than a score of different countries," declares the preface to the document, "including China, Japan, England, France, Italy, Germany, Czechoslovakia, Jugoslavia, Hungary, Belgium, Spain, Holland, Denmark and Switzerland, where the cost of production and labor are far below similar costs in the United States, due to a variety of conditions, from depreciated money to lower standards of living and sanitation, longer hours of work and child labor."
In submitting the report to the senate, the finance committee calls attention to several facts, among them
farm management, warehousing, marketing, competition from foreign countries, co-operative buyong; in short, all of the features which might be termed strictly the business side of agriculture.
To facilitate this work there has been a consolidation of the old bureau of markets and crop estimates with the former office of farm economics. The newly consolidated bureau, known as the bureau of agricultural economics, began its legal functioning July 1. The new bureau places particular emphasis upon the marketing end of farming. One of its purposes is to bring the consumer into closer and more intelligent and sympathetic touch with the producer on the farm. This will eliminate some of the spread between the price the farmer gets for his product and the price the consumer pays for it. Under this bureau branch offices are maintained in all of the large market centers of the country, of which the following are the more important: New York, Philadelphia, Boston, Chicago, New Orleans, Kansas City, Omaha, Minneapolis, Galveston, Memphis, Milwaukee, Buffalo, Pittsburgh Portland and San Francisco.
One of the bureau's important tasks is to prevent any one market being overloaded with produce of any one kind. In this connection the crop reporting agencies of the department play a very active part. The same sort of service has also been inaugurated within the department for live stock reporting. This service shows the monthly changes in the live stock situation on farms throughout the United States. Monthly reports will be obtained from 70,000 to 100,000 farms and state reports of live stock conditions at least in those states which form the corn belt and the southern states. The range states will
BETTER GET BACK
With the breakup of the rail peace negotiations, the strikers are described as "more determined than ever." Meanwhile come reports from the roads that they are taking on scores of new men and rapidly bringing their shop forces up to normal. The strikers can be as "determined" as they please so far as the public is concerned. All the people are interested in is the assurance of ample protection to the men who are ready and willing to work.
IRRESPONSIBLE AND RESPONSIBLE GOVERNMENT
Mr. Gompers declares, in connection with the course of President Harding in the stirke situation, that "we are rapidly drifting toward irresponsible government."
Irresponsible government is not that government chosen by and responsible to the people: It is usurpation of the functions of government by persons represtnting certain special interests. We have had a good deal of that in the past few years. There is nothing of record to show that Mr. Gompers was elected president of the United States or otherwise commissioned to conduct national affairs. On the contrary he ardently championed the cause of a presidential candidate who was snowed under b ya plurality of some seven millions. Despite this Ms. Gompers issues pronunclamentos and ukases from his headquarters in Washington with a tone of authority indicating that he suffers from the delusion that he, and not the Harding administration, is the national government.
We did suffer from irresponsible government at a time, under the Wilson administration, when Mr. Gompers was being permitted to have his own way in governmental affairs in exchange for the big voting bloc he was supposed to control. The election result in November, 1920, raised some question as to the exact extent of that control. But there is responsible rather than irresponsible government at Washington now and the situation is one to which Mr. Gompers seems to find it difficult to accustom himself.
J. E. SCHUMACHER CO.,
Opp. S. P. Depot, W. Anaheim.
Phone 794.
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Forty-three years ago between San Francisco and San Jose the first long distance telephone line on the Pacific coast was constructed.
Today every city, town and hamlet has long distance service, and, more wonderful, long distance service with practically the whole United States.
The telephone directory gives full information as to rates and classes of service available.
Every Bell telephone is a Long Distance station.
The Pacific Telephone And Telegraph Company