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February 25, 1932 - Image 3

Resource type:
Text
Publication:
The Michigan Daily, 1932-02-25

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FEBRUARY' 25, 1932

~ THE MICHIGAN

DA LY

F....

S PST 9FE
w A.'+ nal Public D ebts M ore
Than Overbaiance Amount
Cut From Budgets.
SINKING FUND IS BIGGER
Secretary Mills Declares Debt
Retirement Fund Increase
Accounts for Outlay.
WASNNGTON, Feb. 24. -GP)--.
Many millions of dollars carefully
culted from next year's operating
costs of the Treasury and Postofice
departments ,are more than over-
balanced by additional public debt
requirements and the Federal build-.
ing program, in the annual supply
bill reported today to the House.
In the bggest regular appropria-
tion measure, $1,059,09,000 has been
set aside to operate the two depart-
m* hts, and $1,161,68',000 for public
debt retiremiaent, interest and other
permanent outlays. These sums to-
tai nearly half of the $4,600,000,000
biddt submitted by President Hoo-
ver.
The Appropriations Committee
cut $2,677,000 off the budget esti-
mates for the operating expense
bill, reducing this $44,688,000 below
current expenses. The Postoffice
Department received $805,586,000 or
$7,972,000 below the budget and
$37,297,000 less than this year. The
Treasury was allowed $254,311,000,
or $14,704,000 less than the budget
and $7,391,000 below current out-
lays. Th Dinocratic economy knife
paredl a net 2 per cent savings from
the direct appropriation measure.
Sifking F und Swells.
An increase of $118,666,000 in the
p e r m a n e n t 'outlays was caused
largely by increases to $426,489,000
in the siffkinig fund to retire the
public debt, and to $640,000,000 in
interest and by -$69,000,000 charged;
off on cash payments by foreign
governments..t
$ecretary Ogden L. Mills explain-
ed to the committee this was "due
to an increase in the amount of the
public debt outstanding, resulting
from the issuance of bonds to meet
the Treasury's deficit." Mills said
the surplus $3400,000,000 paid into
the sinking fund since the WorldJ
War above legal requirements had
nearly been counterbalanced by a
$3,000,000,000 increase in the public
debt.
"You have drawn on your reserve
fund, and when we approach the
fw a year 1933 there are only twot
things to do, and to do just as vig-
urously as we know how," he told
the committee. "Cut, expenditures
to the. bone and raise taxes until
the American people and the rest of
the world can be assured that for
the fiscal year 1933 current reven-
ues will balace current expendi.-
tures, and that, while we cannot re-
duce our public debt in 1933 through
the operations of the sinking fund,
t under no circumstances will the
public debt be increased after JuneY
30, 1933."

Ex-Motorman Directs
Chicago Surface Lines
CHICAGO, Feb. 24- (P)--Thirty-
one years ago Guy A. Richardson
twirled the controls of a Boston
elevated street car-a motorman's
cap the badge of his rank.
Tuesday he wa's elected president
of the Chicago 'surface lines-the
owners say it's the largest tram
system in the world.
The position was vacated by the
recent death of Henry A. Blair.
BILL TILL HATED
Disagreement Blocks Enactment;
Expect Early Solution
in Conference.
WASHINGTON Feb. 24. - (P) -
Disagreement today still blocked
final enactment of the Federal Re-
serve credit expansion bill, but an
early solution in the House-Senate
conference committee was expected.
New light on the country's bank-
ing situation was given by the
latest monthly report of the Fed-
eral Reserve Board, showing mem-
ber" bank credit declined $550,000,-
000 during January in leading
cities, this downward movement
fallowing on a, billion and a half
decrease in loans and investments
during the quarter immediately
preceding.
This was taken by some in Con-
gress to bolster the argument made
there that bankers generally, far
from needing expanded credit fa-'
cilities, were not using fully those
now available to them.
Conclusion of hearings on the
home loan discount proposal-it is
a part of of the Administration re-
construction program-left banking
committee leaders determined to
push the legislation, but doubtful
that it would be enacted. Very stub-
born opposition has shown itself.
year; Internal Revenue Bureau,
$33,650,000, or $26,312,000 below 1932;
Industrial Alcohol Bureau, $4,725,-
000, or $89,000 less; Public Health
Service $11,421,000, a cut of $697,000.
Postal Deficit Large.
Postmaster-Gen. Walter F. Brown
estimated for the committee that
the postal deficit for the current
year would reach about $200,000,000,
due to a decline in revenues, which'
he said, would total about $60,000,-
000, compared to $656,000,000 in
1931. .
The committee noted in its report
that about $58,500,000 of the deficit
was due to ocean and air mail sub-
sidies and other non-postal func-
tions and said the only substantial
increased item was that for trans-
portation of foreign mails, from
$36,600,000 to $38,816,000 due to con-
tracts entered into in an effort to
build up the merchant marine.
While the committee c'ut the do-
mestic air mail appropriation from
$20,000,000 to $19,000,000 for next
year, it left unchanged the $7,000,-
000 for foreign air mails transpor-
tat'on. It noted that revenues of
$6,210,000 from the domestic air
mail service were $11,383,000 below
txpenditures and said Postmaster-
General Brown would seek further
decreases in the contract rates paid
air mail operators..

CHINESE REFCES
F 1,L LI T L FEL I
Non-Comtnatants Flee Shambles'
of Capei District, Cowd
International Zone-.
SAN FRANCISCO, Feb. 24.-oP)),
A horde of panic-stricken, -starving
Chinese pouring in almost arVun-
ending stream into the Interna-
tional Settlement provide , greater
danger to foreigners in Shanrhai'
than chance shells from artile'ry
of combatants, passengers arrivlng
here on the President McKinley
report.y
Forced trom their homes in the
Chapei district by the Japanese and
Chinese bombardmCnt, t by haveI
come into the foreign settlement to
sleep in pushcarts, begging food
from all passersby.
"It is war, with no declaration of
such having been made," said Lieut.
.E. Howard,Vzho is returning toI
the Great Lakes Naval Training
Station after three years with the
American Yangtze River patrol.
"Press accounts of fighting there
have not been exaggerated. Along
the streets of the settlement the
white man shares the sullen stares'
of Chinese with the- Jap'anese. To
the Chinese all foreigners are bad,
but the Japanese are worse."
Joe Rock, Los Angeles motion pic-
ture company employe, told of the I
refugees.
"Families were broken up, men,
women, children wandering around
without any means ofsustenance.
Many were so near starving they
lived from garbage cans. The real
peril to the settlement lies in a
rush on the part of this desperate
horde."
The Rev, Francis J. Moehringer,
Brooklyn, N.Y., who spent six years
in Xiangsi .ovince, declared he
found the trouble with Japan hadc
united China.
"It was surprising to those grown
used to the political disunion of the
country to see this sudden flare of1
nationalism," he said. "I am con-c
vinced the Japanese have a diffi-
cult task if they intend to centure
Shanghai. The Nineteenth Router
Army, which is defending the city,
dil splendid work in Kiangsir
against bahdits and Communists."
Mr. and Mrs. M. J. Rosenblat,
New York, from the roof of ther
Cathay Hotel, witnessed the open-
ing bombardment of the Shanghai
North Station.

PUBLISHERS DISPUTE WITH CURT

Marxkian College W ill
Conduct Debate Here
Under the auspices of the Exten-
sion Division of the Marxian labor
college, I. Paul Taylor, former com-
missioner of the City of ighland
Park, and Alfred Renner, Director
of the Marxian Labor College will
debate here. The question is, "Can
Unemployment Be Solved Under
Capitalisin."
The debate will take place Sun-
day, February 28 at 8:00 o'clock in
the auditorium of the Ann Arbor
high school. The public is invited.
Admission is free.-

-. . __

VIEESETf TALK
ON. GE} NATS
Albrecht Durer, Greatest Ger-
man Artist, Is Subject of
Dr. Tietze.
Dr. Hans Tietze,,professor of fine
arts at the University of Vienna,
will speak at 4:15 o'clock tomorrow
ii the main gallery of Alumni Me-
morial Hall on "Albrecht Durer, the
Greatest German Artist."
Durer lived in Nuremberg between
the late flseenh and early ,ix-
teenth centuries and was a painter,
draftsman, woodcutter, and engrav-
2r of renown.
Dr. Tiete, brouglit here under
the auspices of the'Ann Arbor Art

Associated Press Photo

James A. Mthews (left), publisher, and Howard C. Anderson
(right), editor of the Aberdeen, S.D., American-News, faced a 30-day
jail sentence for contempt of court after they rejected a suspended
sentence offered if their paper would cease its criticism of a circuit
judge. Mathews and Anderson said they would carry their fight to the

New Technic Presents
Water Power Article
The February issue of the Mich-
igan Technic,.appearing on campus
today, contains several interesting
articles and some attractive illus-
trations.
The principle article is "Water
Power Development at Louisville,
Kentucky," by A. S. Hoefflin, '23E.
It is a detailed description of the
new hydro-electric plant at the
"Falls of the Ohio." Due to pecu-
liarities of the Ohio river, certain.
unusual problems were encountered
in the construction of this power
plant and adjoining dam.
Another article composing the
magazine is by I. K. Pond, '79A. It,
is called "Function and Scale in
Archictecture" and treats of var-
ious problems of form and function.

:'ASSlation, , began his career as
chiei collaborator of the official in-
ventory of historical and artistic
monuments in Austria. His book,
"Methods of History and Art,"
stands unrivaled as a profound his-
tory of art.
He has lectured in many parts of
Europe. le speaks English and sev-
cral other languages fluently.
At 90 J. B. Chapman filed suit at
Gadsden, Ala., for divorce, alleging
his wife abandoned him.

Supreme court if ne'essary.
Moratorium Has Money Piling
up so kapidly That It Can't
Go Around.
BUDAPEST, Feb., 24. - (/P) - A
paradox as puzzling and contradic-

To help support Missouri state
parks, a fee of 25 cents a day will
be charged visitors remaining long-
er than one day.

I

II1

Ma.ior Edwards Will
- Remain Another Year
Major Basil D. EAdwards, head of
the University R. O. T. C., stated to-
day that, contrary to campus ru-
mors, he will stay at Michigan an-
other year to complete his four-
year detail here.
During the summer of 1933 Majoi
Edwards expects to go to Washing-
ton, where he will be assigned to
work in the office of the assistalt
secretary of war. He stated that he
expects to be employed in co-ordi-
nating industrial mobilization.
R.O.T.C. Pistol Teams
Being Organized Here
Organization of R. O. T. C. pistol'
teams started Tuesday night. Drill
will be l4eld three nights a week.
Six of the new Colt "Ace" .22 cali-
bre automatic pistols have been
purchased by the military depart-
ment. This is the first time that
any, gallery pistols have been Used.
Besides the R. O. T. C., Scabbard
and Blade and Pi Tau Pi Si;ma
plan to organize teams'.

i
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tory as anything that ever grew out
of an economic crisis faces Hungary
as a result of the transfer morator-
ium declared in December.
It is briefly this: The money
Hungary cannot pay to foreign
creditors is piling up so rapidly that
unless someone finds a place to in-
vest it there will not be enough
money in Hungary to go around.
This state of affairs is due to the
moratorium and the accompanying'
control of foreigne exchanpge.
By declaring a transfer morato
rium on about 250,000,000 pengoes
annually due on foreign loans, the
governmen' shut down on all ef--
for-ts to buy foreign exchange to
make th&2e payments in the cur-
rencies called for in the various
bond or notes.
But it did not release fndividuais
or municipa ities from paying the
obligations in pengoes. It provided
that the money was to be paid to
the Hungarian national bank, the
bank's function being to hold the
cash as trustee for the foreign cred-
itors.
Under this arrangement 250,000,-
000 pengoes would pile i1p in the
Hungarian national bank within 12
months and, if the moratorium
should last two years, the pile
would grow to 500,000,000 pengoes,
or about $87,000,000.
But the entire note circulation of
Hungary is only 400,000,OO pengoes.
So in two years all tC legally cov-
ered banknotes in Hungary would
be lying in the nat in1 bank, in
trust for foreign creditors.
Then there would be no pengoes
to circulate among the Hungarians
themselves-unless they chose to
inflate the currency, and the mora-
torium was designed to protect
against inflation.
The average wage of women
workers in St. Louis is $75 a month,
a survey indicated.1t

Rt. Hon. Winston Churchill

"The Most Interesting Man in England"

-- .-~

ORATORICAL ASSOCIATION

Presents

II

-!w -6 ~r 1r . s es " . .: . .

Tuesday,

March

Hill.Auditorium

Tickets $1.00

On Sale Room 3211 Angell Hall

All Seats eserved

IV

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3 ;

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.5t: ,

f

91

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We are taking real pride in building up a very high class fiction and non-fiction department, which will be in
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Good books are permanent
of our two spacious stores.
to yourspecial orders.

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