THE MICHIGAN DAILY
J: J
[ichigan Daily
Established 1890
sent to Hoosier university heads at the direction
of the legislative committee. If Illinois could save
22 per cent, some legislators evidently feel that
Purdue, Indiana and the teacher colleges could get
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Published every morning except Monday during the
University year and Summer Session by the Board in
Control of Student Publications.
Member of the Western Conference Editorial Associa-
dn and the Big Ten News Service.
7fBiit OF THE ASSOCIATED PRESS
nlThe Associated Press is exclusively entitled to the use
for republication of all news dispatches credited to it or
not otherwise credited in this paper and the local news
p'ublilshed herein. All rights of republication of special
dfsta ches are reserved.
°'ntered at the Post Office at Ann Arbor, Michigan, as
cond class matter. Special rate of postage granted by
'hiMird Assistant Postmaster General.
Subscription during summer by carrier, $1.00; by mail,
$1.50. During regular school year by carrier, $4.00; by
fai1, $4.0.
.ffMces: Student Publications Building, Maynard Street.
Ann br, Michigan. Phone: 2-1214.
Representatives: Littell-Murray-Rutsky, Inc., 40 East
Thirty-fourth Street, New York City; 80 Boylston street,
Mn, ass.; 612 North Michigan Avenue, Chicago, 1l.
EDITORIAL STAFF
Office Hours: 2-12 P.M.
ditorial Director......................Beach Conger, Jr.
City Editor...............................Carl S. Forsythe
State Editor .............................David M. Nichol
News Editor............................Denton Kunse
TeTgrApi Editor......................Thomas Connellan
Sports Editor,..........................C. H. Beukema
Assistant City Editor.....................Norman F. Kraft
BUSINESS STAFF
lllflce Hours: 9-12; 2-5 except Saturdays
isel s Miaager...................Charles T. Klline
A ttafit Business Manager............Norris P. Johnson
Cfrcufation Manager ..................Clinton B. Conger
SUNDAY, AUG. 7, 1932
~ Of Revivig
Thade and Business . .
The more talk about the depression, the more
we lo'e confidence in ourselves. When business
men point to renewed activity, their statements
are too often regarded as publicity. Yet during
the past week, encouraging news has come from
several points in Michigan.
!ailrciad freight ladings have been picking up
during the last few months. Railroads are usually
tie first to show signs of an upward trend in
Business, so there at least is one good sign.
State department releases for the last week
indicate that more new cars have been regis-
tered during the past six months than for the
first six months of last year. And, curiously
eniough many of these new cars, according to
automobile dealers, have been paid for with the
old, lai'ge-sized currency. Hoarding, apparently,
ias to some extent ceased, and more currency
whIch has been lodged in stockings and home-
mdade banks is coming out into circulation.
Friday saw a sudden up trend on the stock
market, many shares going up four points. While
this may be a drop in the iucket as far as 1928
values are concerned, at least it shows that Mr.
Average Investor has confidence enough in busi-
]iess to buy, and to compete to buy. Gold exports
haVe ceased, although it has been pointed out
~hat the flurry caused by these exports was be-
Cause many were ignorant of the fact that this
gold never belonged to the United States.
With these signs of prosperity, every citizen
should do his bit in getting around the well-
known corner. It isn't as black as it looks, if
we're looking only for the dark clouds. If such
indications mentioned above will start confidence
in business on its way, it will not be long before
we have nothing to worry about.
itorial omment
RECKLESS SLASHING
(Indianapolis Star)
.nobody supposes for a minute that Purdue, In-
diana and the two teacher colleges will close their
iors, no matter how radically their operating
revenue may be reduced. These institutions must
'ontinue even if judgment and discretion are
pgnored in the attempts of legislators to make a
s'how of economy. The Hoosier public, which be-
lieves in . education, should pause to consider,
however, whether serious harm may not result if
extreme budget cuts are forced on these institu-
tions..
The bill which carries the name of Representa-
tive Crawford would slash appropriations for
these educational institutions 20 per cent. Previ-
ously it had been the intention of House members
to apply a 10 per cent reduction. Others favored
15 per cent. The controlling faction apparently
is determined to apply the maximum figure, re-
gardless of how it may cripple the present higher
educational program. In addition to that, it is
propos6d to repeal the special ten-year building
fund levy.
Legislators should show sufficient courage to lop
off burdensome taxes fo political sinecures rather
than follow the apparent line of least resistance
in hampering the state's educational program.
1Purdue and Indiana would be particularly hard
hit, since they require the services of technical
along with a cut of 20 per cent.
The fact is that Illinois university has been re-
ceiving for years more than the combined totals
of Purdue and Indiana. If these Hoosier schools
could have the resources of their neighboring uni-
versity for one year, they probably could produce
a saving of even more than 22 per cent. Another
factor which should not be overlooked is the tax
collapse of Chicago, which enforced economy on
that state university. It would be a gross injus-
tice to penalize the Indiana schools on a mistaken
conception of what has taken place elsewhere.
Economy of a type which forces a 20 per cent cut
on these institutions just prior to the opening of
another term is demoralizing and unstatesman-
like.
WAR DEBTS AND THE NOMINEES
(Toledo News-Bee)
While the two presidential nominees dodge the
war debts, one clear voice speaks. The voice is
Borah's.
The Hoover administration has insisted, up
to now, on excluding reparations, war debts and
tariff revision from any world economic confer-
ence. That is like excluding the pulse, tempera-
ture and the lungs from an examination of a
pneumonia case.
Franklin D. Roosevelt deals with the war debts
by saying, "We shall not have to cancel them if
we are realistic about providing ways in which
payment is possible through the profits arising
from the rehabilitation of trade." And that is
just another way of evasion.
Thus both party leaders dodge, while Borah
meets the issue with this:
"If the policies initiated at Lausanne are car-
ried forward, there will come a time when it will
be distinctly to the interest of the people of the
United States to reconsider again the question of
these debts. The debts due are just debts. There
can be no reason therefore for urging a reduc-
tion or cancellation other than it would be to the
interest of the people of the United States to
do so. Upon that theory, and that alone, it seems
to me is the subject open for discussion.
"The stakes are tremendous, delay is harz-
ardous. Sixty days of 'depression in the latter
part of 1932 will be more devastating than six
monhts in the latter part of 1930."
So the country knows what Borah thinks. But
it is more entitled to know what the nominees
think. The question is too vital to be evaded, as
it is being evaded, for reasons of political ex-
pediency.
Everyone who has spent even the slightest
amount of time on the subject knows that this
is a problem which must be dealt with if the
world is to regain its economic equilibrium; that
to deal with it is a matter of conference with
the other nations involved; that there is no
solution, ready-made, at hand; that one must
be worked"out. And time is vital.
Since the two great parties met in convention
and phrased their platforms, the developments
at Lausanne have occurred. They have changed
the whole picture. Yet from the two high places
to which we are justified in looking for leadership
we have nothing but artful generalities.
On Aug. 11,rHerbert Hoover will discuss the
issue of the world crisis. Between now and No-
vember he and Roosevelt will make many ad-
dresses.
It is unthinkable that, in light of Lausanne,
they will continue to skirt around the edges of
this mighty problem. Let them speak.
INSTEAD OF BARBARIC REVOLUTION
(The Daly Trojan)
What to do and what not to do with this thing
called Man-this beast with certain inhibitions.
For the moment let us forget the absurd ideal-
ism and damnable pragmatism of the so-called
minority which is responsible for our public opin-
ion. Let us, instead, seek a "way out" of our
present political and economic difficulties.
In Russia we see a system of state planning
(State Socialism) as the fundamental element in
the success of the Soviet republics. But in the
actual working out of the planning we find, theo-
retically at least, Communism.
As we all know, Russia is discarding the princi-
ples of extreme Communism for a modified and
controlled capitalism. In other words, the Com-
munists realize that they must give due compen-
sation to the worker if they are to hope for ful-
fillment of their plans.
This type of a financial set-up might readily be
termed a benevolent capitalism.
Here in the United States we face a drastic
change in our economic system. We know full
well that we can produce far beyond our present
rate of consumption, and, unlike the Russians,
our problem is one of consumption rather than
one of production.
Russia gained freedom as a result of her revo-
lution, but she still lacks the liberties of the Amer-
cans. Here in the United States we have our lib-
erties (such as they are), but our economic struc-
ture destroys the essential elements of freedom.
At first thought we might say that freedom, as
an essential element in any entity, is confined to
the relatively new state. But we can well see that
lack of freedom is due to poor and inadequate
social and economic institutions.
Rather than advance the immature and bar-
barian policy of the Russians in precipitating
change, it follows that we must take advantage of
our superior position. We have agencies, such as
they are, which if welldirected, can bring to us
the desired economic and political changes.
Right now we have many well supported groups
that need only leaders. The mass of people in this
country seem to lack only this to advance the best
interests of the people.
Instead of the childlike revolution of the Rus-
sian Communists, we advance the product of their
experiment. Everyone will agree that we must
have state planning.
A benevolent capitalism seems to be the only
system desirable and in the least bit probable in
this country. Should we not give everyone his just
compensation, thereby increasing both production
and consumption, as well as the best interests of
both country and people?
AS A CITY, COMMIT SUICIDE?
(Detroit News)
It becomes pertinent to recall that time was in
Detroit when, in the present sense, we had no fire
department, no organized police, no paved streets,
no sewers, no garbage collection, no lighting, wa-
ter or transportation systems. Each has its history.
Once Detroit decided it could afford several queer
new contraptions for fire fighting. You built a
wood fire in a box under the boiler. Hauled to
former generation turn in the grave became the
rule in the next. It was a long evolution and the
presence of these vitalities of city life are now
taken by most of our people, until they stop to
think, as matters of course.
In getting to the bearings on Detroit's existing
case, we meet factors almost as simple and obvi-
ous. The abuses and the hard times enter. With
the hectic boom years came over-reaching and
overdoing. Visionary promotions and foolish or
corrupt politics piled up the costs. The hard times
forced politics to cut out the frills, the super-
numeraries and, to a gratifying extent at least,
its publicly paid henchmen and favorites. For
the radical reductions actually made, we refer
readers to the many reports on recent issues of
The News and especially to the articles by Blair
Moody. It is enough here to say that the general
operating costs of the city this fiscal year, under
Mayor Murphy's plan, are to be more than
$20,000,000 under the same costs two years ago.
The question thrust up by the special election
on the $61,000,000 plan therefore is whether, in a
fitful reaction instigated chiefly by a selfish real
estate interest, the reduction enforced shall be
fully twice that undertaken by the Mayor and
shall mean the virtual destruction of the public
services. While having no doubt of the average
citizen's decision, we think it interesting and
clinching to go back to the beginnings and pause
with both the tangibles and intangibles which
adequate maintenance of city government in-
volves. Besides the inconveniences, imagine the
effect on values if services laboriously built up
through years are let disintegrate! Then, as to
genuine economy, reckon the inevitable extra costs
of rebuilding them later, when the economic emer-
gency has passed!
THANKS-AND GOODBY
(Detroit Mirror)
We regret to announce that with this issue
it is deemed wise to discontinue publication of
the Detroit Mirror.
The management has been forced to the con-
clusion that there is not room in Detroit for
two morning newspapers.
Though we have put all the power that could
be put into the upbuilding of The Mirror, and
have succeeded in largely increasing both the
paper's circulation and its advertising linage,
the prospect of the paper's making a profit still
seems remote after more than a year of operating
at a loss.
Able to realize only 1 cent per copy from the
retail selling price of 2 cents, and able to charge
only very modest rates for advertising, the paper
has been unable to climb out of the red. The
capitalist system being one under which a profit
must be made by any enterprise that is to keep
its head above water, we are forced to call off
the fight in this case.
It is a matter of extreme regret to us that this
action will cause some of the best newspaper
workers in the United States to be out of em-
ployment for a while.
Because they are such excellent newspaper
workers, we hope and believe that they will be
able to find other employment within a reasonably
short time.
And so, we say goodby to the readers who we
believe have enjoyed and approved the Mirror,
and to the advertisers who have bought space
on its pages. In saying goodby, we want also to
thank all these friends of ours for all the interest
and goodwill they, have shown us. Goodby.
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A Washington
BYSTANDER
By Kire Simpson
WASHINGTON, Aug. 6.-(IP)-The Roosevelt
plan for a decentralized presidential campaign,
with each state running its own show, may seem
just a new political fashion to some, but to Royal
Johnson of South Dakota it is dark and sinister.
It is deliberately designed, the South Dakota
Republican holds, to "permit a campaign of de-
ception never before possible in national politics
and so tricky that responsibility for its deception
will be difficult to establish."
If that is true, the wonder is that nobody ever
before saw these advantages in doing away with
the old custom of a centralized campaign man-
agement.
SUMMING IT UP
Yet Representative Johnson insists that the
plan to conduct such a campaign was conceived
prior to the democratic convention, and that
the party platform was shaped with that in mind.
He does not seem to take all the convention rows
between rival candidates and their partisans at
face value.
He pleads with Democrats "who are thinking,
responsible citizens" not to permit the plan of
"Chairman Farley and his advisers to continue
through the campaign, because a aay ;of reckon-
ing must come."
"They may not believe in a campaign which
will permit 48 different sets of promises to get
votes," Johnson says of these "thinking, respon-
sible" Democrats.
Coming down to cases as to how it may work
out, Johnson says:
"This unnautral, disorganized national cam-
paign will make it possible for the distinguished
and able senator from Nebraska, Senator Norris,
and other honest progressives, to support in their
own states and territories Messrs. Roosevelt and
Garner, and allow that eminent statesman, Hon.
John W. Davis, in the industrial east, to support
the same men under different state auspices.
"With 48 state democratic organizations con-
ducting 48 different state campaigns, each on a
different basis and claiming a different state of
facts, further disorganization of political thought
is made possible."
HARDLY 'AMATEURISH'
If "Big Jim" Farley saw this Johnson estimate
of the possibilities of the decentralized campaign
for Governor Roosevelt's election in which he,
the governor himself, and Louis McH. Howe are
about the only central cogs, he could take this
satisfaction out of it.
Farley has been derided in some quarters as
an "amateur" in national politics. Certainly, if
Mr. Johnson's forebodings are any criterion and
if Farley is, as Johnson seems to think, the pat-
entee of the plan, there is not anything very
It will still be worth one hundred
cents. . .true enough.. .but the chances
tre thai 0t won't buy as miruch in mer-
ehandise in the near future as it w.ll
right ow . . . today. Some time soon
prices are going to start climbing and
when that time comes we are going to
wish that we had laid in a good stock
o -nearly everything at the low prices
wlich prevail now.
GOODS ARE WEALTH...
NOW IS THE TIME TO BECOME
WEALT'HY
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