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April 22, 1945 - Image 4

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The Michigan Daily, 1945-04-22

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Fifty-Fifth Year

Durr Might Have Headed RFC

Friedrich Hayeks 'Road to Serfdom'




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Edited and managed by students of the University of
Michigan under the authority of the Board in Control
of Student Publications.
Editorial Staff

Evelyn Phillips
Margaret Farmer
Ray Dixon .
Paul Sislin
Hank Mantho
Dave Loewenberg
Mavis Kennedy
Ann Schutz
Dick Strickland
Martha Schmitt
Say McFee

* . .Managing Editor
. . . . Editorial Director
. . . . . . City Editor
Associate Editor
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. . . Associate Sports Editor
. . . Women's Editor
. . Associate Women's Editor
Business Staff
. . .. Business Manager
. ssociate Business Mgr.
* . . Associate Business Mgr.

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for re-publication of all news dispatches credited to it or
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publication of all other matters herein also reserved.
Entered at the Post Office at Ann Arbor, Michigan, as
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Member, Associated Collegiate Press, 1944.45
National Advertising Service, Inc.
ollege Publishers Rep restative
Editorials published in The Michigan Daily
are written by members of The Daily staff
and represent the views of the writers only.
........ W ar Debt
OVER TEA-CUPS and cocktails, on street c tm
ners and park benches, the subject Qf the
post-war debt is being hashed and rehashed.
Dowagers recoil in horror and Rotarians sshake
their heads gravely at mention of an estimated
300 billion dollar debt. Congress, catching the
mood of the tea-cup tipplers and cocktail cod-
dlers, this month put a ceiling on the debt, boost-
ing the limit from $260 billion to $300 billion.
What is this oh-so-frightening debt? Who is
the creditor? How is it to be paid? Is there
cause for alarm?
First, the government owes money to its citi-
zens, those people who have bought and are
buying bonds. At the same time these citizens
owe money to their government in the form of
taxes. In other words, with one hand John Q.
Citizen pays taxes and with the other hand he
collects on his. bonds. We as a nation are
neither richer nor poorer for payment of the
debt. As individuals we are richer or poorer
only inasmuch as we have bought more or less
war bonds.
The war debt is not like the debt of a business.
If a business cannot pay its debts, it goes bank-
rupt. Before the government can go bankrupt
it must exhaust not only its capacity to tax but
its capacity to borrow and moreover, as a last
resort, to print money.
The burden of the war is something w cannot
postpone; we are enduring the "sacrifices" now
in the form of the things that we must do with-
out - the automobiles, the butter, the refrigera-
tors, the high-quality clothing. The payment
of the debt can only distribute the burden.
Alvin Hansen, among other noted econo-
mists estimates that the nation may rest easily
so long as the debt does not exceed a figure
roughly three times the annual national in-
come. That is, the real burden, the interest
burden, now approximately six billion dollars,
can be borne relatively easily so long as a high
level of income and employment is maintained.
If the dowagers and Rotarians could see over
the rims of their tea-cups and cocktail glasses,
they would find that the real issue is not the
muttered "war debt. . . war debt.. . war debt ..."
but full employment.
Practically and realistically, limiting the debt
in time of war is about as effective as building
more and bigger prisons to stop a crime wave.
More vigorous pressure for 60 million jobs
would be much the sounder course.
-Betty Roth
Negro Education
T HIS WEEK Americans will be asked to sup-
port another worthy campaign - the 1945
United Negro College Fund drive for $1,550,000.
Thirty-two accredited Negro colleges represent-
ing twelve states and the District of Columbia
will open the campaign.
This second drive will attempt to raise money
for the adequate support of Negro educational

institutions. According to a report in Newsweek
magazine, higher education for the 13,000,000
Negroes in this country has been always sadly
neglected. During the best pre-war years, fewer
than 50,000 Negro students were enrolled in col-,
leges at any one time. Teacher salaries in white
institutions in the land-grant colleges nearly

W ASHINGTON - Various important decisions
were left hanging in the balance when Presi-
dent Roosevelt died, some being decided in re-
verse afterward. One was the appointment of
John W. Snyder to fill Jesse Jones' old job as
Federal Loan Administrator.
In a significant conversation at Warm
Springs a week before he died, Roosevelt indi-
cated that the new Loan Administrator might
have been Federal Communications Commis-
sioner Clifford Durr, who formerly served un-
der Jones in the RFC.
"I have been thinking of appointing- a fellow
named Durr as head of the RFC," the late Presi-
dent told one of his assistants. "But I have
received word that he's a Jesse Jones man and
I don't want any more of these reactionarie
around me. I had too much trouble with Jesse.
So I don't think I'll take a chance."
"But, Mr. President," protested his aide, "you
have Durr all wrong. He's a real liberal and 100
per cent supporter of yours. Did you know that
he is Hugo Black's brother-in-law?"
Roosevelt said that being a brother-in-law
didn't mean anything - even the brother-in-law
of a liberal member of the Supreme Court. He
said he knew what family relations meant in
terms of ideology.
In the end, however, an aide who was return-
ing to Washington told the President he would
send detailed documentation on'Durr's record
as a liberal. The President replied that if this
proved to be a fact he would nominate Durr
when he returned to Washington the following
Monday (April 16).
And, that is how Clifford Durr missed the boat
as head of the all-powerful federal loan agency.
Note - Despite this twist of fate, Durr was one
of the first to pay tribute to John Snyder. The
two men served together in the RFC under Jesse
Jones, and Durr is strong in his praise for the
new Loan Administrator.
Rowed with Jesse ,,,
BANKER John Snyder's appointment brings
to light some hitherto little-known facts
about the days before Pearl Harbor. Actually,
though serving under Jesse Jones and generally
known as a Jesse Jones man, Snyder was fre-
quently in conflict with him.
Snyder was brought into the RFC by Emil
Schram, who lived across the Mississippi in East-
ern Illinois. Together with Cliff Durr and Wil-
liam Livingston, they formed a little group which
in 1940, before the war hit the U.S.A., tried to
loan money for defense plants to prepare the
country for war.
There was conflict inside the RFC over this.
The examining division which followed the
Jones philosophy believed these defense plants
were a waste of money. Jones himself seemed
to think the United States would not get into
the war and leaned against the idea. That was
one reason why he bucked the building of
synthetic rubber factories.
In 1940, however, he was busy at the job of
being Secretary of Commerce, and the Defense
Plants Corporation was formed by Schram,
Snyder, Durr et al without too much Jones con-
sultation. It was this group also which pioneered
the first airplane engine factory for the Packard
Motor Company to make British engines in the
summer of 1940 just before France fell. Many
inside the RFC were opposed, but Snyder and
his friends pushed it through.
Snyder also fought against Jones regarding
the lush. contracts signed with the Aluminum
Corporation of America, and which originally
gave Alcoa control of prices, permitted Alcoa an
Keephing the Peace
rTHE PROVISION in the Dumbarton Oaks plan
that all of the Big Five must be in favor
of the use of force against an aggressor nation-
even if one of the five is involved - to secure a
recommendation of such action, divests the pro-
posed World Council of any power over the
policies of major nations.
It says, in effect, that aggression by a small
state will be suppressed if the Council sees fit;
aggression by a great power will be put down
only if that nation gives its gracious permis-

sion. The State Department's analysis of
Dumbarton Oaks admits that it has no pre-
ventive for this, "but measures for" improving
economic and social conditions and discussing
security are designed to cut down the chances
that a big Ally would go on the rampage." (
This vague statement sounds like a plan for
continuous appeasement. If a little nation tries
to enlarge itself, it will be suppressed, but if a
big one does so, it will simply be bought off. By
repeated and exorbitant demands it can obtain
what it wants by a series of "compromises." The
Czechoslovakians would recognize such tactics.
In considering this provision, we must decide
whether the future World Court is really to be
an instrument for planned peace or simply an
excuse for the erection of more grandiose
buildings and more groundless hopes. We must
choose between freedom and security for every
nation, large and small, and the pre-war atti-
tude of the great powers: "Peace, yes - as
long as we get ours!" -Marjorie Mills

additional five years lease after the first five
years, and even gave Alcoa the right to throw
aluminum production into their plants, while
closing down government plants. Due to later
opposition, this contract was slightly modified.
Cabinet Resignations . . .
CABINET MEMBERS consider significant the
by-play occurring at the first Truman cabi-
net meeting when the new President asked all
the Roosevelt cabinet to stay on.
Secretary of State Stettinius, who is next in
line to become President if anything should hap-
pen to Truman, immediately replied that he,
would be glad to stay.
Veteran Secretary of War Stimson, who has
served in three cabinets, said he was a soldier
and would remain for the duration. One or two
others agreed, when Secretary Morgenthau in-
"Mr. President," he said, "we all know how
you feel, but I hope I speak for all of us when
I say you will have our resignations at'once."
"Well, that is very nice of you," Truman said,
"but I want you all to stay."
"Now just a minute," Morgenthau stopped
him again. "Just a minute now. I don't think
that is fair to you. You have a tough job
and you are entitled to a free hand and our
support. And we want you to have it. But you
are entitled to make a clean start."
Claude Wickard chimed in and said, "Mor-
genthau's right. He's absolutely right. You are
entitled to a free hand."

Friedrich A. Hayek. University
Chicago Press.

THERE are many students of con-
temporary affairs who have ex-
pressed concern at the rapid growth
in the government control of eco-
nomic activity during the past twen-
ty-five years. Their warnings, how-
ever, have had very little influence
on the trend of events or on popular
opinion. The economic planners have
been holding the limelight. In this
atmnosphere "The Road to Serfdom"
is a disturbing influence for it pre-
sents a point of view that the most
ardent planners will find it difficult
to refute.
The author is an eminent econo-
mist, a native of Austria, now at
the London School of Economics.
He had lived in his native country
through the period leading up to
the establishment of the Nazi re-
gime. Since then he has lived in
England and traveled extensively
in this country. Incidentally, his
appearance at the Economic Club
in Detroit Monday, April 23, is of
particular local interest.
His observations of certain phases
of the intellectual development first
in Austria and later in England and
the United States furnished the back-
ground for the thesis of the book. He
suggests that, having heard for a


second time the same opinions ex-
pressed and governmental measures
proposed as a means of alleviating
economic distress that he had heard
twenty-five years earlier, they may
be taken as symptoms of a definite
trend. There is the probability, al-
though not the necessity, that de-
velopments will take a similar course.
Thus, he warns that "it is Germany
whose fate we are in danger of re-
peating." He hastens to point out
that conditions in England and the
United States are still so remote from
those in recent years in Germany
that it is difficult to believe that we
are moving in the same direction. It
is essential, however, that the danger
of becoming engulfed in the trend
of ideas be recognized in time to
avert a comparable outcome.
His emphasis on the inherent
conflict between liberty and a
planned economy will, of course,
be challenged by many of the lib-
eral economists. It is the antithesis
of the views of such economists as
Keynes and Hansen. It would be
inaccurate, however, to charge him,
as some have done, with proposing
that a return to a complete laissez-
faire economy is the only means of
averting the consequence of a com-
pletely planned economy. He recog-
nizes the need for certain types of
control. He draws a sharp distinc-
tion, however, between the frame-

work of general laws within which
productive activity is guided by in-
dividual decisions and a planned
economy in which economic activ-
ity is directed by a central author-
The inevitable end to the exercise
of central authority in the direction
of economic activity, in the opinion
of Mr. Hayek, is the exercise of arbi-
trary power. This cannot be pre-
vented by the presence of democratic
political organization of government.
He contends that the mere presence
of, democratic control does not pre-
vent such power from becoming arbi-
trary. In fact, if democracy under-
takes a program which involves the
use of power which cannot be guided
by general fixed rules it becomes ar-
This book does not purport to
sketch a detailed program for an
ideal order of society. It does pre-
sent a logical argument in support
of one view as to the probable road
we are now traveling. Furthermore,
it emphasizes the importance of
freedom for the individual in a
truly progressive and liberal policy
in a democracy. It is a book that
should be read by all regardless of
their personal opinions on national
economic planning.
-R. A. Stevenson
Dean of the School of
Business Administration




Note - President Truman has told friends
that he is anxious to continue the Roosevelt
cabinet as is for the time being, in deference
to Roosevelt's memory, but indicated he will
make certain changes later.
(Copyright, 1945, Bell Syndicate, Inc.)


SUNDAY, APRIL 22, 1945
VOL. LV, No. 128


Dominic Says
WHILE THE WORLD, delegates are conven-
ing at the Golden Gate, a fresh glance at
our theories of human destiny should have at-
tention. One man will look upon this struggle
of governments with its conflict of ideologies
and a weighing of influences as mundane and
will consign the Conference to the low level of
mere worldly interest. For him, the Cause
of Christ, alone, is superpersonal, superhuman
and supernatural. If he prays for this effort at
world order he will ask God to save those dele.
gates and himself out of an evil world. With
deep sincerity the evangelist will cast man's
burden on the Lord.
Two very different exponents of world peace
will come close in our thinking, for both will
find all life to be sacred. . However the form
of their cerebrations will differ dramatically,
the Hindu, whose "Thou-shalt-not-kill" leads
him to include grass, insects and cows as well
as human life in its consideration, will see this
great Conference as an event remote, im-
perialistic and irreligious. His companion in
the belief that all life is sacred is the humanist
or scientist. This devotee of life as it is,
lured daily to new discoveries, looking con-
stantly for more accurate predictions and
eager to practically bless mankind, will rest
back upon his critical faculties hoping that
eventually a social order as glorious as that
of the stars and atoms may be evolved.
The traditional churchman, crediting any.
mind, whether Within or without the fellowship
of the Church, with ability to comprehend nat-
ural law, will be broadly alert to all the forces
involved, lament the centrality of man-made
government, pray with faith for every partic-
ipant. He will do so believing that eventually
by repentence and God's grace after travail,
pain, and experience, man will arrive at the
Kingdom of Heaven either here or beyond the
The sorrowing Jew, weighted by the conscious-
ness that over four millions of his brothers have
been extinguished in Etlropean countries, will
approach this great Conference still believing
that Divine will is echoed in man's yearning for
justice and ,his ability to trust God though he
slay me, as did the ancient Job. This world
citizen will be praying as have- his progenitors
throughout the long long past, for the conquest
of good over evil, "that righteousness may cover
the earth as the waters cover the sea."
Thus one could continue to present specific
shades of belief as to human destiny. How-
ever, since in this Conference there is more
hope for the beginning of a workable peace
than has ever been attempted, and since San
Francisco combines the stern realities of
armies, the subtle human desires of responsible
men of action and the Utopian dream of the
millions who have seen their loved ones sacri-
ficed, every man will do well to visit whatever
altar he knows and there register sincere
petition for the men and women, civil or mil-
itary, who seek to build a just order for our
children's children.
-Edward W. Blakeman
Counselor in Religious Education

Publication in the Daily Official Bul-
letin is constructive notice to all mem-
bers of the University. Notices for the
Bulletin should be sent in typewritten
form to the Assistant to the President,
1021-Angell Hall, by 2:30 p. m. of the day
preceding publication (10:30 a. m. Sat-
Schobl of Education Faculty: The
April meeting of the faculty will be
held on Monday, April 23, in the Uni-
versity Elementary School Library.
The meeting will convene at 3:15
To the Members of the University
At the meeting of the University
Council on April 16, 1945, the follow-
ing communication was approved at
the suggestion of the Standing Com-
mittee on Public Relations:
To the University Council:
Your Committee on Public Rela-
tions submits the following report:
1. The Committee recognizes the
importance of the Extension Division
in increasing and building up the
services of the University to the com-
munities of the State. The Committee
also calls attention to the action of
the Regents who have recently made
a more adequate provision for the
administration of this Division by
creating an Executive Committee to
advise and to share with the Director
the responsibilities of administration
and the determining of its policies.
This Committee recommends that
all schools and colleges take a greater
interest in the program of the Ex-
tension Service and also suggests that
the college accept a larger responsi-
bility for the selection of teachers
for these extracurricular courses, also
that members of the upper staff be
encouraged to take a more active
part in the giving of these courses
in order to release the burden on the
junior staff members who are at pres-
ent carrying most of the teaching
2. The Committee recommends
that plans be made in the immediate
future for the construction of suit-
able quarters for married students.
Louis A. Hopkins
Secretary of the Uni-
versity Council.
Orchestra Rehearsal: The wind
section of the University Symphony
Orchestra will rehearse in Room 506
Burton Tower, at 4 p.m. Tuesday,
April 24.
University Lecture: Dr. John Gaus,
Professor of Political Science at the
University of Wisconsin, will speak
on the subject, "Social Science Divi-
sions as General Staffs" at 3:15 p.m.,
Tuesday, April 25, in the Rackham
Amphitheater, under the auspices of
the Division of Social Sciences. The
public is cordially invited.
University Lecture. Mr. Thomas
Whittemore, Director of the Byzan-

tine Institute, will lecture on the sub-
ject "The Mosaics of S. Sophia" (il-
lustrated) at 3:15 p.m., Tuesday, May
1, in the Rackham. Amphitheater un-
der the auspices of the Departments
of Greek and History. The public is
cordially invited.
Academic Notices
Students, College of Engineering:
The final day. for DROPPING
be Saturday, April 28. A course may
be dropped only with the permission
of the classifier after conference with
the instructor.
Students, College of Engineering:
The final day for REMOVAL OF IN-
COMPLETES will be Saturday, April
28. Petitions for extension of time
must be on file in the Secretary's
Office on or before Wednesday, Ap-
ril 25.
Playwriting (English 85 and 150):
The laboratory production of the
bill of one-act plays will be at 8
Monday evening, April 23, University
High School Auditorium. The dis-
cussion on the plays will be at 7:30
Monday evening, April 30, 3217
Angell Hall.
College of Architecture and Design,
Schools of Education, Forestry and
Conservation, Music and Public
Midsemester reports indicating
students enrolled in these units doing
unsatisfactory work in any unit of
the University are due in the office
of the school or college by April 28th
at noon. Report blanks for this pur-
pose may be secured from the office
of the school or college or from Room
4, University Hall.
State of Michigan Civil Service an-
nouncement. for Railroad Industrial
Inspector It, salary $230 to $270 per
month, Dental Health Consultant I,
salary $180 to $220 per month, Prac-
tical Nurse Trainee C. salary $105
per month during training program,
and Public Health Dentist IV, $360
to $420 per month, have been re-
ceived in our office. For further in-
formation stop in at 201 Mosan Hall,
Bureau of Appointments.
Late Permission for Two Late Ex-
aminations which will be given this
term in Professor John F. Shepard's
course, Psychology 83, may be grant-
ed to women students taking the
course by their house directors.
Faculty College of Literature, Sci-
ence, and the Arts:
Midsemester reports are due not
later than Saturday, April 28.
Report cards are being distributed
to all departmental offices. Green
cards are being provided for freshmen
reports and white cards for reporting
sophomores, juniors, and seniors. Re-
ports of freshmen and sophomores
should be sent to 108 Mason Hall;
those of juniors and seniors to 1220
Angell Hall.
Midsemester reports should name
those students, freshmen and upper-
classmen, whose standing at mid-
semester is D or E, not merely those
who receive D or E in so-called mid-
semester examinations.
Students electing our courses, but
registered in other schools or colleges
of the University should be reported
to the school or college in which they
are registered,
Additional cards may be had at
108 Mason Hall or at 1220 Angell
E. A. Walter.

April 15, will be heard at 3:15 CWT,
Sunday, April 22, in Hill Auditorium.
Dorothy Ornest Feldman, soprano,
and Kathleen. Rinck, pianist, orig-
inally scheduled for 7:30 p.m. CWT,
Sunday, April 22, in Lydia Mendels-
sohn Theater, have postponed their
recital until some time in May, the
exact date to be announced later.
Mary Stubbins, organist, scheduled
to play in Hill Auditorium Sunday,
April 22, will be heard at 3:15 CWT
on the following Sunday, April 29.
Stduent Recital: Bernard Lee
Mason, violinist, will present a re-
cital in partial fulfillment of 'the
requirements for the degree of Mas-
ter of Music at 7:30 p.m., Tuesday,
April 24, in the Assembly Hall of the
Rackham Building. A student of Pro-
fessor Besekirsky, Mr. Mason will
play compositions by Corelli, Chaus-
son and Brahms.
The public is invited.
Events Today
Prof. Arthur E. Wood will speak on
New England at the International
Center at 6:30 p.m. CWT, Sunday,
April 22. The lecture will be pre-
ceded by the March of Time film,
"New England". Open to the public.
At 4:00 p.m. the Congregational-
Disciples Guild will meet at the First
Congregational Church. Beginning
at 5:00 p.m. after the supper Rev.
Eugene Zendt will speak on "Mar-
riage and Homebuilding" the third in
the Guild series on "Love and Mar-
riage." Dwight Walsh will lead the
closing Worship Service.
Michigan Christian Fellowship:
Michigan Christian Fellowship will
meet today at 4 p.m. at Lane Hall.
The speaker will be Rev. C. R. Gerig
and his topic will be, "What the Bible
Says About Sin." Come and enjoy an
afternoon of Christian fellowship.
Coming Events
Ann Arbor Bird Club: Monday,
April 23 at 6:30 p.m. at the Univer-
sity Museum of Zoology. Dr. J. Van
Tyne on Kirtland's warbler.
Postponed from last meeting, when
Dr. K. Merry's bird-song records were
Deutscher Verein: There will be a
meeting at 7:30 on Tuesday, April 24,
at Burton Memorial Tower.
There will be a meeting of the
Graduate Council on Tuesday, April
24 at 6:30- p.m. in the East Lecture
Room' of the Rackham Building. All
members are urged to be present.
Alpha Kappa Delta: There will be
a meeting on Wednesday, April 25,
at 7:30 p.m. at the home of Prof. A.
E. Wood, 3 Harvard Place. The topic
"Sociology in Education" will be in-
troduced with remarks by faculty
members and a student, and then
thrown open for group discussion.
New members who have not yet
been initiated are invited to attend.
Phi Beta Kappa. The Annual In-
itiation Ceremony will be held in the
Michigan League Chapel on Wednes-
day, April 25, at 3:15. Professor Her-
bert A. Kenyon will address the
initiates. All new members are ex-
pected to be present.
Phi Beta Kappa. The Annual Ad-
dress of the Alpha Chapter of Michi-
gan will be given in the Rackham
Amphitheater on Thursday, Apil 26,
at 7:00 p.m. Dr. Howard Foster
Lowrv President of The Coege of



By Crockett Johnson

Remind me to send my old pants to
Henry Kaiser, Barnaby. Let me see.
. . Here's a nice modest little ad ...
"Cuttaway & Sons, Ltd., Gentlemen's
Tailors"f.. . Probablv need business

How do you usually get
your clothes, Mr. O'Malley?
Mail order. But I
wfunf *hi~ *,'ejm re ~

Yes, Mr. O'Malley, we can make them for you in no time.
There's merely the matter of investigating your social
references, a complete physical examination, a personal
interview, six or eight fittings, a' try-on or two . .. Your
trousers. if all aoes well. will be all ready by next mrrin.-




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