anaheim-gazette 1933-12-21

THE ANAHEIM GAZETTE HENRY KUCHEL, Editor and Publisher ESTABLISHED 1870 ISSUED EVERY THURSDAY SUBSCRIPTION PER YEAR $2.00 SIX MONTHS $1.00 Entered at the Anaheim, California Postoffice as second-class matter. WE CAN'T STOP NOW There are unmistakable signs everywhere of improvement in economic conditions. More men are at work, millions of them. Farmers are getting better prices. Retail business is good. Many of the big industries report more orders on hand than for some years past. Prices are rising. The bank reports for October showed that money, in the shape of checks, changed hands at a rate 25 percent higher than in October of 1932. That is perhaps the most encouraging sign of all, for it is not the volume of money but the speed with which it moves from hand to hand that counts. If everybody had a million and nobody spent anything we would have hard times; but if everybody had only a hundred dollars and spent it quickly, knowing where the next hundred was coming from, we would have immense prosperity. Much of the present recovery is due to such governmental activities as the public works program and its latest offspring, the civil works administration; much to the loosening of credit and the pressure on debtors through federal assistance to banks and mortgagors. Much of it is due, too, to the distribution of huge sums to growers of various commodities as a premium for reduced production. Those are only temporary measures, of course. If they were all to be abandoned now, they probably would have no more permanent effect than a "shot in the arm" has upon a dope fiend. They are, however, laying the foundation for business and indus- Much of the present recovery is due to such governmental activities as the public works program and its latest offspring, the civil works administration; much to the loosening of credit and the pressure on debtors through federal assistance to banks and mortgagors. Much of it is due, too, to the distribution of huge sums to growers of various commodities as a premium for reduced production. Those are only temporary measures, of course. If they were all to be abandoned now, they probably would have no more permanent effect than a "shot in the arm" has upon a dope fiend. They are, however, laying the foundation for business and industry to build upon, and probably will tide us over the emergency and set us well on the road to recovery. It looks to us as if the thing for everybody to do now is not to gum the cards, but to give the New Deal a chance to prove itself. Everyone has a right to his private opinion as to whether the end result will be beneficial, but nobody with sense would want to stop it now in the middle of the stream. STREAMLINING THE BUSINESS STRUCTURE We have seen a lot of pictures and read a great deal about the proposed "streamlined" trains which some of the Western railroads are planning to put into service. They are expected to make 100 miles an hour or more by the elimination of unnecessary dead weight and the removal of external obstructions which catch the wind and retard their speed. We have also read a lot of the things which are being printed about streamlined automobiles. Like the new railroad trains, the tendency is to shapes which look queer, at first glance, to the untrained eye, but which, we are assured, will run more smoothly and faster than the old familiar shapes. All of which makes us wonder whether what the administration in Washington is trying to do is not, in effect, streamlining the business structure. The obvious purpose of all that is being done is to make business and industry move more rapidly, with less obstruction in the shape of unnecessary external excrescences, and carrying less dead weight. The proposed changes in the business structure give it a queer appearance in the eyes of those who have all their lives seen business being done in one particular way. It is human nature to distrust whatever is unfamiliar. We have got so accustomed to watered stock in big business and industrial concerns, holding companies piled up on each other in public utilities, heavy commissions, exorbitant profits and private graft, unfair competition and outrageous trade practices that, to many people, these things seem a natural and unescapable part of business, without which it could not be conducted. Just so the old-time railroad men look with distrust on new-fangled schemes to make the train weigh less and go faster. Our fathers, in the old horse-and-buggy days, looked askance at the automobile. It looks to us as if we were going to have to get used to some new ideas in business. THE CODE OF 1633 The Boston Transcript has discovered by delving into New England history, that codes and regulations of prices and conditions of labor are not new in that section of America at least. The this argue in favor of as a means of improv But the present w charged to a collapse power in the western under either socialis to which socialism le Beyond this effect political ownership oerty and enterprise, a systems, are the ch enterprise. It is not go ahead full steam busily engaged in try just ahead. In western Europ vism, money was wil sands of cases and w demagogues and doc their outward party threatening all bus stringing it whereve destroy by socialist handicap to the point those international method to kill off all may gain profits not ers. The interests o national socialists run them working together to the destructive co much of which Ameri now control. Socialist politicia tions for a political parties, a name which principal worries at bring this nation is o the United States in Australia, which for politician. As a re of bankruptcy. The vide jobs for politica public payrolls, crea ment which has fille The failures of dictatorships. Soc i It hands over to th e liberties of the peop for the hand of dict Just so the old-time railroad men look with distrust on new-fangled schemes to make the train weigh less and go faster. Our fathers, in the old horse-and-buggy days, looked askance at the automobile. It looks to us as if we were going to have to get used to some new ideas in business. THE CODE OF 1633 The Boston Transcript has discovered by delving into New England history, that codes and regulations of prices and conditions of labor are not new in that section of America at least. The Transcript has found that back in 1633 the price of turkey in Boston had been fixed by law, and the General Court had ordered that "no person should sell to any of the inhabitants any provision, clothing, tools or other commodities above the rate of four pence in the shilling more than the same cost." At the same time, the editor-adds, the Boston innkeeper in the autumn of 1633 was "forbidden by law to ask more than six pence for a meal or more than a penny for a quart of brown, October ale, drunk out at mealtime." Here is "code" regulation with a vengeance, and one can only speculate on whether anything was done to regulate tipping. Perhaps those thrifty colonists had not yet arrived at the stage where they could afford to parade their affluence, by leaving a quarter under the plate. Limiting the retail price of brown, October ale at a penny a quart will strike the modern American as decidedly modest, but it will be remembered that internal revenue taxes in those times were not quite as prolific as they are today. But the Transcript editorially continues: "Nor was this all. Though nobody in Puritan Boston in his wildest dreams envisioned the NRA of 1933, the General Court of Governor Winthrop's time had already set metes and bounds to the pay of tradesmen. Carpenters, joiners, bricklayers and men in other crafts were all required to subscribe to a certain schedule of wages. Long hours of labor were prescribed and the government of the colony solicitously directed the employment of leisure: No person, householder or other, might spend his time idly or unprofitably under pain of such punishment as the court might see fit to inflict." THE FAILURE OF SOCIALISM Persons socialistically inclined — of whom there are a vast number in this country—often point to the present world-wide depression as "a failure of the capitalist system," that is to the system of private ownership of property and liberty and from SCHOOL DAYS — By DWIG DON'T YOU WASH MY FACE, NOW, HARRY WILSON! ILL TELL - THE TEACHER ON YOU! NOW YOU GUIT! YOU HORRID BOY! THE DOOR SIMP'S STUCK ON HER THE WAY OF A MAID WITH A MAN this argue in favor of fundamental changes in the economic order as a means of improving the lot of the people. But the present world-wide breakdown could more properly be charged to a collapse of the socialist system. Every important power in the western world today, except the United States, is under either socialist parliamentary control, or that dictatorship to which socialism leads as in Italy, Poland, Germany and Russia. Beyond this effect of direct socialist control, the menace of political ownership of property and destruction of individual liberty and enterprise, and the meddling with the established monied systems, are the chief factors in the slowing down of business enterprise. It is not to be expected that productive enterprise will go ahead full steam when enemies of all private enterprise are busily engaged in trying to tear up the tracks and burn the bridges just ahead. In western Europe, under the threat of socialism and bolshevism, money was withdrawn from productive enterprise in thousands of cases and went into hiding. In this country political demagogues and doctrinals who are at heart socialists whatever their outward party profession, have been busily engaged in threatening all business enterprise, and hampering and hambstring it wherever possible. What they cannot immediately destroy by socialist legislation, they try to tax and restrict and handicap to the point of extinction. In this they are joined by those international adventurers of capitalism who seek by this method to kill off all independent enterprise in the belief that they may gain profits not only through national but world-wide mergers. The interests of the international capitalists and the international socialists run parallel up to a certain point. Thus we find them working together to expose the smaller American industries to the destructive competition of foreign cheap labor production, much of which American international bankers and industrialists now control. Socialist politicians in this country are now laying the foundations for a political party along the lines of Europe's socialist parties, a name which will hide their socialism being one of their principal worries at this time. To what plight such a party will bring this nation is easily discernible. A country comparable with the United States in earlier high standards of wages and living is Australia, which for several years was ruled by this type of politician. As a result, Australia has been almost on the point of bankruptcy. The bureaucracy built up in that country to provide jobs for politicians, and kill off private payrolls to build up public payrolls, created a condition of depression and unemployment which has filled Australians with despair. The failures of socialism in the Old World are resulting in dictatorships. Socialism centralizes all power in the politicians. It hands over to them complete control of the life, property and liberties of the people. Thus it builds up a giant machine ready for the hand of dictators. Will we venture into such chaos? Communists Active In Cuban Trouble Some of the recent trouble in Cuba was due to communist influence, according to Walter L. Reynolds, secretary to Congressman Hamilton Fish, Jr., who writes interestingly on the subject under the caption, "Moscow's Hand in Cuba." By way of beginning his article, Mr. Reynolds says: "A year ago the drive of the Communist International for world revolution was centered in Germany. Most of its best trained available revolutionary forces were then concentrated there in an effort to wipe Germany to communism and add that nation to the World Union of Soviet Socialist Republics under the control of Moscow. But for the patriotism of the vast majority of the German people, who finally became fully aroused to the situation with which they were confronted, it is possible the Reds would have succeeded. Communism, which had grown to a force of over five millions in Germany, was repulsed, however, and hos since been stamped out or driven underground in considerable disorder, many of its agents taking refuge in France, Moscow and Great Britian. "A new front of the so-called proletarian revolution has now developed—in Cuba—where the communists, organized and led chiefly by their Anti-Imperialist League, with headquarters in New York City, a branch of the Red International, have begun another desperate struggle to carry on in Cuba from wher they were forced to leave off in Germany. The communist revolutionary movement always thrives where conditions such as exist in Cuba permit them to stir up discontent, leading to strikes, riots nad bloodshed. The Anti-Imperialist League has been preparing the way for the active revolutionary movement over the past five years, in accordance with instructions from Moscow, illustrated by the following extract from the program of the Communist International adopted at its Sixth World Congress: "When the ruling classes are disorganized, the masses in a state of revoluntary ferment, when the middle classes incline to join the proletariat and the masses have shown themselves to fight and make sacrifices, it is The United States in earlier high standards of wages and living is Australia, which for several years was ruled by this type of politician. As a result, Australia has been almost on the point of bankruptcy. The bureaucracy built up in that country to provide jobs for politicians, and kill off private payrolls to build up public payrolls, created a condition of depression and unemployment which has filled Australians with despair. The failures of socialism in the Old World are resulting in dictatorships. Socialism centralizes all power in the politicians. It hands over to them complete control of the life, property and liberties of the people. Thus it builds up a giant machine ready for the hand of dictators. Will we venture into such chaos? Q. E. D. What with the N. R. A. at odds with the A. A. A., and the C.C.C. troubled with memberfs being A. W. O. L., and the "brain trust" down on the I. C. C., and A. E. S. giving the C. W. A. a KO, and the farmers complaining that their SOS to the F. H. O. L., marked R. S. V. P., P. D. Q., has been passed on to the F. C. A. and thence to the R. F. C. with the notation N. G., and F. D. R. using the R. F. D. to send his OK to the E. C., and several M. C.'s troubled with B. O. applying to the S. A. B. for an M. D., is it to be wondered that things are not altogether duck soup in D. C.? P. S.-Wow about O. M. W. S.-New York Herald-Tribune. England and Italy are going to send us token payments on the war debts but France will be content with shipping us a lot of sour wine, c.o.d. Bootleggers are said to be leaving the moonshine liquor game and going into the gasoline business. Well, we don't know which would be the worse to drink. The blind side of the stars can be photographed with the use of a new aluminum mirror device. What we really need is something that will photograph the blind side of the average politician. An Italian the other day flew at the rate of 393 miles an hour in his airplane. The only person who can beat that is Dame Rumor. The reason they call it hard liquor is that it takes a hard man to be able to drink it successfully. When the ruling classes are disorganized, the masses in a state of revolutionary ferment, when the middle classes incline to join the proletariat and the masses have shown themselves ready to fight and make sacrifices, it is the task of the proletarian party to lead the masses in a frontal attack against the bourgeois state. This will be attained by the propagation of gradually intensified slogans and by the organization of mass action. "Such mass action includes strikes, strikes in connection with demonstrations, strikes in connection with armed demonstrations, and, finally, the general strike combined with the armed rising against the government authority of the bourgeoisie. This highest form of the struggle follows the rules of warfare, and necessitates, as a preliminary plan of campaign, an offensive character in the fighting and unlimited devotion and heroism on the part of the proletariat." In Cuba the unsettled conditions, unstable government and fractional discontent have afforded a fertile ground for the fermentation of revolution, and the communists have seized the opportunity afforded to ply their trade of murder, sabotage and civil war. The strike stage was passed during the Machado regime, and the 'highest form of the struggle is ready to follow. Since their recent decisive defeat in Germany, the communists cannot afford another such failure in Cuba. The 'workers' of the world have been promised by the soviets ever since the Russian revolution some definite accomplishments toward the establishment of a World Union of Soviet Socialist Republics and Cuba, they believe, now offers the best immediate opportunity. Then, too, sovietization in Cuba would permit the establishment of a perfect base on the Western Hemisphere for the dissemination of their revoluntary propaganda in the United States, Panama and all Latin-America." THIS WEEK IN WASHINGTON The program which the next session of Congress will follow, according to those who have made the most careful study of the probabilities, will be mainly one of smoothing off the rough edges and stopping up the gaps in the President's program which was enacted into law last Spring. Of course, there will be an exceedingly large volume of hot air spilled by orators on both sides and in both houses. Most of it will be for partisan political purposes or to get even with somebody. Not much of it will have any real effect on legislation, though it may make startling headlines. One of the first things on the Congressional agenda is a measure for the regulation of stock exchanges. Nothing very drastic is expected, for it is recognized that it is essential to keep an open market for securities. But some trade customs of brokers are under suspicion, and the effort will be made to set up bars against the dishonest and unscrupulous without hampering honest business. Closely allied to that will be some minor amendments to the Securities Act. As passed last Summer it is so drastic in the possible penalties for honest mistakes that most distributors of securities have refused to take a chance under it. It is recognized here that one of the important things necessary for recovery is to provide new capital for industry. The customary way of getting new capital is by the sale of bonds or new issues of stock. There is plenty of capital ready to invest as soon as the financial skies clear, but the present law makes it too risky to undertake the flotation of new security issues. This is expected to be remedied. Bank Deposit Bill Some amendments probably will be made to the bank deposit insurance bill, to make it simpler and safer. Now that bankers have had a chance to study it, many useful suggestions have been made. It will take effect on January 1 and a minor bank crisis in some Reconstruction Finance Corporation. Income Tax Revision There are due many revisions of the income tax law, designed to close some of the loopholes through which wealthy men have escaped paying taxes. Recent investigations showed the need of that. There was nothing illegal about the tax evasions of the Morgan partners, Albert Wiggin and others, but the idea is to make such evasions illegal. Plans are afoot for a municipal bankruptcy bill, so that communities which cannot meet their bond issues, interest and principal, when due, can get a breathing spell and an extension of time. There is expectation of large appropriations for Government financing of housing, both through building homes of the "subsistence homestead" type in the suburbs of industrial cities, and in slum clearance in large cities. Four billion dollars is the figure most talked of. That is about what is spent every year, in normal times, for private building enterprises. It would stimulate the lumber and building materials industries and put a million or two artisans in the building trades back to work. This is the sort of "capital goods" expenditure which economists agree is necessary to complete recovery. Money Harmony Brewing Economists are beginning to agree on some things on which they disagreed sharply only a few months ago. One of these things is the money question. One by one the outspoken opponents of the plan to devalue the gold dollar are coming around to a realization that, so long as the Federal credit is good, it will have no effect on the value of the dollar of commerce, but will have a good effect on foreign trade and lead to the early return to a modified gold standard by all the world. Another monetary subject which was bitterly opposed a few months ago is silver. The taboo against silver arose from the fact that the free coinage of silver was a major partisan issue of TODAY AND TOMORROW By FRANK PARKER STOCKBRIDGE LIBERTY ... in new hands A good many years ago a colored man who served as doorman in a popular New York store, and whose courtesy and unfailing smile made him popular with all the customers, told me that he had taken a Federal Civil Service examination for the position of elevator operator. A little latter I saw him and asked him about that Government job. "They done appointed me to go 'way out West,'" he said. "an' I can't do that. nohow. So I turned the job down." "Whereabouts out West did they want you to go?" I asked. "Fort Wood, wherever that is," he replied. He was chagrined when I told him that Fort Wood was the official name of Bedloe's Island in New York Harbor, on which the gigantic statue of Liberty stands! What reminded me of the incident was the announcement a little while ago that Liberty has been taken out of sale of bonds or new issues of stock. There is plenty of capital ready to invest as soon as the financial skies clear, but the present law makes it too risky to undertake the flotation of new security issues. This is expected to be remedied. Bank Deposit Bill Some amendments probably will be made to the bank deposit insurance bill, to make it simpler and safer. Now that bankers have had a chance to study it, many useful suggestions have been made. It will take effect on January 1, and a minor bank crisis in some communities is expected because some state banks have so far been unable to qualify for membership in the insurance agreement. The RFC is watching these however, and the purpose is to let no bank close its doors, unless it is too far gone to be saved. There is a proposal under consideration by Administration-leaders for some form of Government sharing in bank loans, until the financial structure is on a firm final foundation. Nothing very definite has been worked out on this line. It seems to be on the cards that the RFC will be given authority to make direct mortgage loans to individuals. The scheme of setting up local mortgage companies to operate with RFC funds is not working satisfactorily. In some cases there has been evident too much greed on the part of local middlemen, too many attempts to squeeze the borrower, too large a rake-off for those who negotiate the loans. The purpose is to have each mortgage borrower directly responsible to the Government, through its agency, the bearer has been studying the silver question intensively for three years and passing our conclusions on to men in a position to do something about it. Today, whenever the subject of the international monetary situation is publicly discussed, almost everyone who is regarded as an authority includes the rehabilitation of silver as a part of the program of recovery. I think the case for silver has been won, and that the white metal has at last been lifted from the political degradation into which it was cast by the defeat of Bryan, to its proper place as a partner with gold in the thinking of economists and the monetary systems of the world. LOTTERY ... the idea grows The French Government lottery is making poor men rich and pulling money painlessly from the pockets of millions for the Treasury. Iceland is about to set up a State lottery. Inculding classes are classes in a state of when the middle proletariat known themselves take sacrifices, it is civilian party to lead a general attack against this will be attention of gradually by the organization includes strikes with demonstration with armed usually, the general armed rising at authority of the highest form of the rules of warfare, preliminary plan passive character in devoted devotion and of the proletariat' bottled conditions, and fractional dissociation a fertile ground of revolution, and seized the opporation their trade of civil war. The end during the Mahout's highest form of to follow. Since defeat in Germany, not afford another The 'workers' of promised by the Russian revolucomplishments to grant of a World List Republics and now offers the best city. Then too, we would permit the perfect base on the for the disseminatory propaganda in Panama and all HOUSES...another rooom "One more room for every family in the United States with an income under $2,000 a year,' is the slogan suggested by Professor O. M. W. Sprague, as a means of stimulating the building industry. I agree with Professor Sprague, that there are plenty of houses for people who have incomes above $5,000 a year, but not enough, or not good enough, houses for people who have to live on a lower scale. To carry out such a project will mean more economical method of building, but I have been surprised to discover how many great business organizations are at work on ways to solve the problem of cheap, attractive and durable homes. I expect to see the day when a completely modern five-room or six-room house, with land enough for gardening, can be bought in the vicinity of any big city for $4,000 or less. SILVER...gold's partner This is probably the last time I shall refer to silver in this column. Two and one-half years ago I predicted that silver would come back to its former monetary status and rise from the then price of around 26 cents an ounce to somewhere near its average price for the past forty years, of around 60 cents an ounce. A little group of which I am a memthink the case for survey won, and that the white metal has at last been lifted from the political degradation into which it was cast by the defeat of Bryan, to its proper place as a partner with gold in the thinking of economists and the monetary systems of the world. LOTTERY...the idea grows The French Government lottery is making poor men rich and pulling money painlessly from the pockets of millions for the Treasury. Iceland is about to set up a State lottery. In Italy last year I saw vendors, mostly women, on almost every corner selling lottery tickets. In Cuba, Mexico, most of the Latin countries, lotteries are established means of raising revenues. The proposal has been made by men who are to be taken seriously, to establish a modified form of lottery under Government auspices in this country. Frank A. Vanderlip, famous banker, suggests a scheme whereby there would be no losers, but the winners instead of cash, would get a life income and all the others would get credit toward the purchase of Government bonds. I dont imagine public sentiment in America would approve of anything which savored of taking chances; yet the people of this country are more ready to gamble in stocks and in other ways than those of almost any other nation. It's a queer world. MUSIC...its appeal There is only one universal language, and that is music Music does not need to be translated. Even though the words are unfamiliar anybody with musical perceptions can enjoy a song in a foreign language, if it is well sung and the tune is appealing. I went to a concert in New York the other night where one young woman, Winnifred Cecil, held a large audience entranced for nearly two hours singing songs in Italian and German. We didn't care what the words meant; it was the beauty of the music and its perfect rendition by the singer that enthused us. To me, the finest service the radio can render is its power to bring the best music into every home.