THE mirnIi xx DxTiV
SATURDAY, JULY 18, 1939
I -~-~-- .
THE MICHIGAN DAILY
Official Publication of the Summer Session
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-
tion and the Big Ten News Service.
MEMBER OF THE ASSOCIATED PRESS
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for republication of all news dispa1ches credited to it or
not otherwise credited In this paper and the local news
published herein. All rights of republication of special
dispatches are reserved.
Entered at the Post Office at Ann Arbor, Michigan, as
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Subscription during summer by carrier, $1.50, by mail,
$2.00. During regular school year by carrier, $4.00; by
Offices: Student Publications Building, Maynard Street,
Ann Arbor, Michigan. Phone: 2-1214.
Representatives: National Advertising Service, Inc., 420
Madison Ave., New York City. -400 N. Michigan Ave.,
MANAGING EDI'TOR ..............THOMAS E. GROEHN
ASSOCIATE EDITOR ..............THOMAS H. KLEENE
Editorial Director ..................Marshall D. Shulman.
Dramatic Critic ........................ John W. Pritchard
Assistant Editors: .Clinton B. Conger, Ralph W. Hurd,
Joseph S. Mattes, Elsie A. Pierce, Tuure Tenander, Jewel
3,eporters : Eleanor Bare, Donal Burns, Mary Delnay, M. E.
Graban, John Hilpert, Richard E Lorch, Vincent Moore,
Elsie Roxborough, William Sours, Dorothea Staebler,
BUSINESS MANAGER ......GEORGE H. ATHERTON
CREDITS MANAGER ....................JOHN R. PARK
Circulation Manager................J. Cameron Hall
Omce Manager........................Robert Lodge
Letters published in this column should not be
construed as expressing the editorial opinion of The
Daily. Anonymous contributions will be disregarded.
1IThe names of communicants will, however, be regarded
as confidential upon request. Contributors are asked
to be brief, the editors reserving the right to condense
all letters of more than 300 words and to accept or
reiJct letters upon the criteria of general editorial
importance and interest to the campus.
Power Of The Press
To the Editor:
The word "Olympiad" means an interval four
years long and, in spite of the way it has been
abused, does not mean anything else. The athletes
may sail for a week and still reach Berlin in time
for this year's Olympic games. They may sail for
a month and have a pleasant holiday. You used
this morning the heading "Athletes Sail for Olym-
piad in Berlin." Do you not see that- you have
thus condemned a number of excellent people to
spend four monotonous years in a boat upon the
The headiine writers who use "Olympiad" be-
lieving that it means Olympic games should be
made to pass an examination upon the contents
of A. P. Herbert's What A Word!
Jolly Old Airplane
To the Editor:
Recently, oh say about last Sunday or so, I read
in your highly interesting paper a letter writtenf
by a chap who signed himself "The Pilot Over
Commencement," in which the fellow apologized"
profusely for interfering with President Ruthven's
Commencement address by flying his airplane
over Ferry Field.
. Allow me to state, for myself and hundreds of
other poor fish who sat under the blistering sun
Commencement afternoon, that "The Pilot" need-
ed to offer no apology to us, and that the only
bright spot in the dullest ceremony most of us
ever witnessed was the good old Pilot flying his
jolly old airplane low enough to break up the
President's address, which otherwise, combined
with the heat and the very hard cement-wooden
seated bleachers might have proved fatal to
"There," murmured several people, as the Pilot
wheeled his ship into the proper range to inter-
fere with the address system, "is a public-spirited
citizen." Our only regret was that the Pilot did
not arrive on the scene earlier and remain in action
-Joseph Gies, '39.
-government Biy Law
To the Editor.
The following article is by J. A. Spender, former
editor of the Westminster Gazette:
"Our free government, as we enjoy it, is the
substitution of law for force, of argument for
physical strife. It is an achievement of many
centuries; it rests on the belief that free discussion
is the likeliest way of doing justice and reaching
sensible conclusions about policy. But it has rules
of its own which must be observed. It requires
THE ADOPTED CHILD, by Eleanor Garrigue
Gallagher (Reynal & Hitchcock).j
THERE IS NOTHING new in the idea of adopt-
ing children, nor is there very much new to
trained social workers in a book by Eleanor Gar-
rigue Gallagher called "The Adopted Child."
But many will find the book extremely helpful.
Mrs. Gallagher is a mother and a grandmother.
She has taught both in kindergarten and high
school, and she has been concerned with the adop-
tion of children for 15 years, in which time her ex-
perience has brought her in touch with 3,000 cases.
So that what she has to say about adoption is
tempered by knowledge acquired from widely dif-
fering sources, and tested by experience as thor-
oughly:as such matters well could be tested. Adopt-
ing a child is a normal and generally a rewarding
experience, she believes, and under proper modern
conditions, one which may be undertaken with
quite the same confidence as the acquisition of a
child by the usual method-sometimes even more
Mrs. Gallagher tells what those adopting a child
should know. She describes the method of acquir-
ing the child, and sketches briefly the laws in-
volved. She tells, what various and helpful tests
are made with babies ,so that adopters may knowj
they are receiving a normal child. She goes deep-
ly into the matter of what can be learned about
ancestry, and especially details her opinions and
those of many others on the matter of illegitimacy.
But what probably will be of most service to the
reading public Mrs. Gallagher is trying to reach is
her intimate discussion of intimate matters-for
one example, whether a child should be told he is
adopted and when. And it should be added that
although this reader has no intention of adopting
anything, and thus no direct interest in Mrs. Gal-
lagher's subject, he read her book eagerly for the
light it sheds on a complicated and serious prob-
lem. -J. S.
tolerance and mutual * forbearance. It requires
that minorities shall submit for the time being,
when they are outvoted by Parliament; and be
content to work for a future in which they will
have made their views prevail by reason and argu-
ment. If any of these assumptions fail, if our
feelings become literally too strong for words, if
minorities will not submit and fly from words to
blows or majorities so abuse their power as to
drive minorities to physical resistance, then it is
all up with liberty. Whichever party is physically
the stronger will and must crush its opponents.
The Revolutionary inscribes Liberty on his ban-
ner ,but if he succeeds, he is bound to become a
The state of this old world is such that a-dir-
igible cannot fly across any country without pass-
ing directly over an arsenal, a fortress or a mu-
nitions factory. - The Evening Courier.
Italy's first skyscraper apartment is now underl
construction in Genoa. Owners of the building plan
to sell, rather than rent, the apartments.
°4 T THE ANNUAL MEETING of th
LiAutomobile Manufacturers Asso-
ciation Thursday, Alvan Macauley, president of
this group and of Packard Motor Co., expressed
what might be termed a "typical idea."
Asserted Mr. Macauley:
"We must prepare ourselves to meet the great
burdens of more government regulation and su-
pervision . .. Many of the factors acting today as
a deterrent on business and industry are social-
istic in form and character. Contrasted with these
conditions is the automobile industry's success in
stimulating buying, increasing employment, stab-
ilizing employment, raising wages and sharing
other benefits with all employees . . . The auto-
mobile industry's record may be pointed to as
one implicit with the system which has given
this country prosperity and its high standard of
"It is once again demonstrating the aims of in-
dustry to treat fairly and humanely with its fac-
Which reminds us of a story. 'Twas a warm-
ish, baseball-ish afternoon in July. The green
lawn fronting the Jones' house was straggly from.
long neglect, and from afar came the boisterous
cries of juvenile "'big leaguers."
"Johnny, you must mow this lawn before you
can go out and play. We're having company
for dinner," insisted Mrs. Jones, and after the in-
evitable period of vehement and tearful protes-
tations, the whirr of the mower sporadically in-
vaded the sleepy air.
The task was done. Johnny was hot and mad.
He flung himself into the house, hurled a vicious
"Hope you're satisfied" at his mother, pickel up
his glove and stormed out.
At the sand lot the gang greeted him with a
chorused "Where've 'ya been?" "Why," said
Johnny, "I decided the lawn needed mowing, and
boy, you should see the job I did. Looks just like
bent grass, and say, it didn't take any time at all."
Well, Mr. Macauley, you've done a pretty fine
job on your industrial "lawn." And we'll admit,
too, that your petulant outbursts against a "ma-
ter"-nalistic government are no more than "hu-
Man," albeit the symptoms of a somewhat tender
But, Mr. Macauley, to pretend rationality, to
pretend maturity, and at the same time almost
slap the government in her face when she is
only trying to get everyone to cooperate in mak-
ing the Jones' residence the pride of the neighbor-
hood-that is, on your own plane, spank-able;
on the pretended plane, socially inexcusable and
And this is not theoretical nonsense. Practically
.every competent and unbiased economist in the
country will say that the action of government
in making reforms financially or otherwise neces-
sary (witness the tremendous impetus to safety
drives given by workmen's compensation laws,
the nation-wide adoption of employee representa-
tion plans occasioned by the NRA) have been in-
estimably important to the progress of our "Amer-
True, Mr. Macauley; you have stabilized, you
have raised wages, you have stimulated buying,
but how much of this has been due to your "en-
lightened selfishness" and how much to the con-
tinued admonishments and vigilance and mother-
ly persuasion of us, the public.
And the moral of the story is: How would the
Jones' lawn appear if we did away with mother,
and left its care entirely with Johnny-and the
weather is warmish and baseball-ish, and from
afar come the boisterous cries of juvenile "big
The Louisiana senate has passed a bill that lob-
Place advertisements with Classified
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Box numbers may be secured at no
Cash in advance Ilieper reading line
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Telephone rate - i5 per reading line
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10% discount i' paid within ten days
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10c per line to above rates for bold face
j aThe above rates are for 7% point type.
VOL. XLV No. 16
SATURDAY, JULY 18, 1936
Excursion No 6: Ford's Greenfield
Village, Wednesday afternoon, July
22. Round trip $1. Busses leave
from in front of Angell Hall at 1 p.m.
Party returns to Ann Arbor by 5 p.m.
Fee of 25 cents will be charged at the
Village. Reservations must be made
in the office of the Summer Session,
Room 1213 Angell Hall by Tuesday
afternoon at 4:30 p.m.
Excursion No. 7, Saturday, July 25,
General Motors Proving Ground at
Milford. Reservations must be made
and round trip bus tickets must be
obtained before Friday, July 24,s4:30
p.m. in Room 1213 Angell Hall. The
party leaves at 8 a.m. from in front
of Angell Hall, returns to Ann Arbor
about 3 p.m.
Teacher's Certificate Candidates:
All candidates for the Teacher's Cer-
tificate to be granted on recommen-
dation of the Faculty of the School of
Education at the end of the Summer
Session are required to fill out ap-
plication blanks available in the of-
fice of the Recorder of the School of
Education, 1437 University Elemen-
tary School. These blanks should be
secured and filled out immediately.
The attention of students in the
Literary College is called to the fact
that this application is in addition to
the application made to the Commit-
tee on the Teacher's Certificate of
The University Bureau of Appoint-
ments and Occupational Information
has received announcements of Unit-
ed States Civil Service Examinations
for Legislative Reference Assistant,
Social Security Board, salary, $2,300;
Extension Specialist in Parent Edu-
cation, Extension Service, Division' of
Cooperative Extension Work, Depart-
ment of Agriculture, salary,. $4,600;
Junior Home Economics Specialist,
(Optional Subjects: Foods, Nutrition,
Clothing, Textiles, Economics, House-
hold Equipment), Bureau of Home
Economics, Department of Agricul-
ture, salary, $2,000; Fire -Prevention
Officer, Forest Service, Department of
Agriculture, salary, $3,200. For fur-
ther information concerning these
examinations call at 201 Mason Hall,
office hours, 9 to 12 and 2 to 4 p.m.
There will be a meeting of the Men's
Education Club at 7:30 p.m. Monday,
(Continued on Page 4)
State and Liberty
Watch Repairing l
YOUR RENT PROBLEM
Rents will continue to rise and de-
sirablehouses to besold, foicing
you to move again. Solve this piob-
1em by buying this charming seven-
room house located between cam-
pus and Tappan school. $8,000 with
$1000.00 down, $50.00 per mo. Avail-
able one week only. If not sold will
be rented to present tenant. Oril
Ferguson, 721 Church St., Ph. 2-2839
LAUNDRY 2-1044. Sox
Careful work at low price.
FOR RENT: Furnished and unfur-
nished apartments. One block
fromlcampus. 614 Monroe St. Tele-
phone 8507. 13
Am interested in obtaining an old-
fashioned lantern of the type used
on horse and buggy carriages. Reply
LAUNDRY WANTED: Student Co-
ed, Men's shirts 10c. Silks, wools,
our specialty. All bundles done sep-
arately. No markings. Personal sat-
isfaction guaranteed. Call for and
deliver. Phone 5594 any time until
7 o'clock. Silver Laundry, 607 E.
TRUCK AND STREET CAR CRASH
DETROIT, July 17.-()-A truck
driven by Ralph Tolles of Grand Rap-
ids caught fire after it collided with
a street car here Friday. None of
the street car passengers suffered in.-
jury. The fire was extinguished
Credit Where Credit Is Due
-Different Ways Of Looki ng At The Reserve Increase -
(From the New York Times)
NO MORE FAMILIAR accusation has been
brought against the Roosevelt Administration
than that it is incompetent in money matters,
haphazard in its fiscal policies and indifferent to
the dangers of inflation. In this connection it is
fair to note that the action taken on Tuesday by
the Board of Governors of the Federal Reserve
System-action taken specifically to reduce ex-
cess bank reserves and thereby to avert the risk of
future inflation of credit-was possible only be-
cause of a measure sponsored by the Roosevelt
,Administration last year and enacted over Repub-
As matters stood, when the Roosevelt Admin-
istration entered office, no power existed any-
where in the Federal Reserve System. to raise or to
lower reserve requirements. The only legislation
on this point was the original act of 1913 creating
the Federal Reserve System. This act required
each member bank to carry with the Federal Re-
serve Bank of its district a reserve equal to not
less than 3 per cent of, its time deposits and not
less than 7, 10 or 13 per cent of its demand de-
posits, depending upon the financial importance
of the city in which the member bank was situated.
No provision was made for any change in these
requirements ,and none seemed necessary when
the System was established, since it was not fore-
seen that a day would come when enormous ex-
cess reserves would pile up (over and above the
amounts required), thus laying the basis for a vast
potential inflation of credit.
The first alteration named in the law in this re-
spect came in 1933, shortly after Mr. Roosevelt
entered office. Curiously enough, it took the form
of a "deflationary" provision incorporated in the
otherwise highly "inflationary" Thomas amend-
ment. This provision ,little noted at the time or
subsequently, gave the Federal Reserve Board
power, on the affirmative vote of not less than five
of its members and with the President's approval,
to declare that an "emergency exists by reason of
credit expansion," and to increase reserve require-
ments during the period of such emergency.
This makeshift legislation was revised last year
by a new act sponsored by Mr. Eccles, with the en-
dorsement of the President. The new act dis-
pensed with the proviso that a state of emergency
must be declared, and gave the Board of Govern-
ors of the Reserve System explicit power to change
reserve requirements "in order to prevent injurious
credit expansion or contraction." This proposed
grant of power was fought on the floor of the
House of Representatives by Republican members:
(From the St. Louis Post-Dispatch).
HE FEDERAL RESERVE BOARD, acting under
powers grantd it in the Banking Act/passed last
year, has announced sharp increases in the reserve
requirements of member banks, to be effective a
month from now.
After the close of business on Aug. 15, reserve
requirements on member bank demand deposits in
New York and Chicago, central- reserve cities, will
be increased from 13 to 19 per cent. Reserve re-
quirements at banks in reserve cities will be in-
creased from 10 to 15 per cent and at other member
banks from 7 to 101/2 per cent. At the same time,
an increase of 1% per cent will be placed in effect
on time deposits ,to raise the rate to 4/2 per cent.
The purpose of this action was succinctly stated
by Marriner S. Eccles, chairman of the Federal
Reserve Board. It is to reduce the gigantic reserve
excess which has accumulated in the banks of the
country. As Mr. Eccles admits, there is danger in
the present situation. Existing excess reserves
could be made the basis of a large credit expansion
which might be disastrous.
As it happens, there are critics who think that
the administrations' spending and borrowing mea-
sures have already forced the banks to bring a cer-
tain measure of inflation to the country. They
argue that the banks, already heavily loaded with
Treasury bonds and notes, cannot, for the present
at least, do other than take up each new issue
and thus open the way still wider for credit expan-
Increasing the reserve requirements reduces the
reserve excess, not by any reduction of the reserve
itself but by fixing a larger share of the reserve
against further use. As Mr. Eccles well says: "It
is far better to sterilize a part of these superfluous
reserves while they are still unused than to permit
a credit structure to be erected upon them and
then to withdraw the foundation of the structure."
What effect will this action have on business and
commerce? That is, will the increase in reserve
requirements hamper industry? Mr. Eccles says
it will not, and there is good reason to believe him.
As he points out, the excess reserves thus removed
as a possible basis of credit expansion are over
and above present demands for commerce, industry
and farming. If this is so, then there is no reason
to believe that the change cannot be made without
changing the rates on money.
There is a twofold significance in this impending
change. The first is that a check is being applied
in a situation of potential danger . After Aug. 15,
the excess reserves will amount to approximately
$1,900,000,000. This is substantially lower than
7 - 9 P.M.
Also - COMEDY
TRAVEL - NEWS
2-3:30 - All Seats 25c
^ ._-.-d __ _
[|||OMAN PROGRL5S7ro441k AGE& 1
1' 4 1
WHENCE OUR A B C 'S?
WHERE did our Alphabet come
from? From signs of things--hiero-
glyphics, symbols? From the six-
teen letters of the Phoenicians car- i
ried into Greece, thence to Rome and
on to Britain? No doubt it is the
result of the combined efforts of
many peoples striving toward a
common means of communication.,
The Associated Press, which sup-
plies the world's news, holds the
keynote of efficiency in the use of
the A B C's. An army of 80,000 re-
porters gathers the news for an army,
of printers, that the public may
quickly read vital, accurate news of
world-wide activities. Read
in the Singing. Dancin-r
I T h Ass~iodirlb vrrsjI rg1