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July 19, 1946 - Image 4

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Michigan Daily, 1946-07-19

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L5 J

Fifty-Sixth Year

On The British Loan





A /

Edited and managed by students of the University of
Michigan under the authority of the Board in Control
of Student Publications.
Editorial Stafff
Managing Editors .. Paul Harsha, Milton Freudenheim
City News ................................ Clyde Recht
University ............................ Natalie Bagrow
Sports .................................... Jack Martin
Women's .................................. Lynne Ford
Business Stafff
Business Manager ........................ Janet Cork
Telephone 23-24.1
Member of The Associated Press
The Associated Press is exclusively entitled to the use
for re-publication of all news dispatches credited to it or
otherwise credited in this. news~paper. All rights of re-
publication of all other matters herein also reserved.
Entered at the Post Office at Ann Arbor, Michigan, M
second-class mail matter.
Subscription during the regular school year by (ar-
rier, $4.50, by mail, d5.25.
Mlember, Associated Collegiate Press, 1945.46

IT APPEARS that isolationism is not as dead
as many of us would like to think. It seems
that there are still those people who feel that
America is the only )country beset by unsolved
problems. Accordingly, they contend that our
resources be turned fully to our own ends, and
"let the rest of the world go by".
The country's awareness to the dangers of
isolationism -was demonstrated when Congress
sent the British Loan Bill to the White House
last week. And more locally, this policy has been
denounced in the defeat of Senators Shipstead
and Wheeler in their bids for re-election.
The American economy cannot be described
as self-contained, because of its dependence on
world trade. If this is to be continued, and
it must if we are to reach a period of pro-
longed prosperity, there must be ready markets
open to the sale of our goods. The revival of
a strong Britain is essential to the continued
development of world commerce.
The loan received much of its support from
those who felt it was needed to cement relations
of the English-speaking peoples as a bulwark
against future aggression. That is probably the
least significant of all reasons to be found in
advocating this measure.
The question of repayment has assumed un-
due importance to many business-minded per-
sons. If we suppose that the .loan will never be
repaid in principal, by the terms of the agree-
ment America stands to benefit to a greater ex-
tent than the actual value of the loan. It will
abolish the "dollar pool" set up during the war
which has restricted the trade of those countries
within the Sterling Area with the United States.
Further, it provides for the withdrawal of bi-
lateral trade agreements which Britain had ar-
ranged in the event that the loan would not
be granted, and no real defense can be made for
the restriction of free trade.
Of vital importance is the fact that this loan
was necessary to prevent Britain's withdrawal
from the World Bank. Had this occurred, the
effectiveness of this organization would have
been seriously impaired.


Editorials published in The Michigan Daily
are written by members of The Daily staff
and represent the views of the writers only.
Draja Mihailovic
GEN. DRAJA MIHAILOVIC is dead. Condem-
ned as a traitor to his country the 50-year-
old royalist and conservative was in reality a
traitor only, to the new Tito-headed "Red Repub-
lic" of Yugoslavia.
Only five years ago, in 1941, the Chetnik
forces of Mihailovic were hailed as among the
first group to resist the German armed aval-
anche. Readers of a popular American magaz-
ine voted him the second Jiggest war leader
after Stalin. It is indeed ironic that the latter
was indirectly the cause of Mihalovic's death
before a firing squad July 17.
Mihailovic took a gamble in politics when he
set his forces against Marshall Broz-Tito's Par-
tisans following their entry into the resistance
movementlate in 1941. He believed that he could
stamp out the rising Communist movement in
Yugoslavia, a movement which gained the ulti-
mate support of the majority of the people.
Another cause for his strife with Tito was un-
doubtedly a matter of personal rivalry.
Prof. Preston W. Slosson recently suggested
a third cause for friction between the two when
he said that sectionalism of the Serbs repre-
senting a Greek Orthodox culture and the Croats
and Slovenes of Roman Catholic civilization
may have added to the controversy. Mihailovic
wanted a Serbian state; the Croats and Slovenes
rightly feared their own subjection in such a
Mihailovic lost the great gamble in 1945 when
Tito's forces were declared victorious and a new
republican-dictatorship was born under the
shadow of the hammer and sickle. The former
Chetnik leader was forced to surrender to a
country which he could no longer recognize as
his own, or take to the mountains.
When he was finally apprehended by govern-
ment forces after a year during which a man
of less moral fibre would have fled the country,
the' Yugoslav court set out to prove his guilt
as a traitor and Axis collaborator. The court,
however, refused to hear the evidence of Ameri-
can airmen whose lives Mihailovic had saved;
such evidence was charged to be irrelevant. The
court was out to get him and they did.
The General's defense before the court was
that he was true to the Yugoslavia he knew
and whose regular army he commanded. He
scorned surrender either because he refused
to play ball with the new government or be-
cause he knew that it would only mean his
death. And so he admitted to letting the Chet-
niks fight the Partisans and to help Germans
to escape.
The proof against Mihailovic as far as the
press has been able to report is inconclusive.
Perhaps most tragic of all reports is that by
Stoyan Pribichevich in the New York Herald
Tribune of April 8, 1946 which says that Mihailo-
vic listened too much to the counsel of those
British and American forces who told him that
the Germans would be defeated by the three big
Allies anyway, and that he should mobilize
his force and attention to prevent a Communist
from seizing power.
Likened to Hamlet as a victim of fate, the
tragedy of Gen. Draja Mihailovic will not soon
be forgotten by the American people who owe
him so much.
-Cindy Reagan
Paris Conference
The blunt talk at Paris during the final four
days of the Council of Foreign Ministers did
much to clear the international air. Even though
Rrptorv Rvrne hs-, mp hm ithout a set-


It is true that the pressure of inflation in this
country will be increased by the new demands
on our resources. However, the loan extends for
a period of five years, during which time our
productive capacity should be able to exceed the
present demands upon it.
This tendency does not appear of too serious
nature, for Secretary of the Treasury Snyder,
in announcing the first installment of Brit-
ish credit, declared that he saw "no indica-
tions that British purchases would add to in-
flationary pressures in this country".
The ultimate goal of the government is to
provide continued employment for our workers,
and the passing of the British loan represents
a long step in that direction. The isolationist
can present no argument in the face of that
-Ken Herring
A-bomb {Still News
OS ANGELES-There is no shortage of news
bulletins from the atomic energy front. First
official reports from Bikini show that the test
bomb "damaged more ships than have ever be-
fore been damaged by a single explosion" even
though the assigned target was missed by about
a third of a mile; and test animals are now
reported to be keeling over from radiological ef-
fects, leaving observers who tried to minimize
the blast with the funniest expressions on their
Simultaneously, a new book by William C. Bul-
litt, former American ambassador to Russia, ap-
pears, in which Russia is told that we have
the power, in the form of the atomic bomb, to
destroy her; and we Americans are advised that
we ought not to hesitate to use the bomb to stop
"Soviet imperialism." Mr. Bullitt makes a poor
contribution at a time when we are trying to
reassure Russia sufficiently to make her give
up her veto power in this field.
Meanwhile, the chief counsel of the House
Committee on un-American Activities has de-
scended on our atomic energy installation at
Oak Ridge reservation in Tennessee, to study
several organizations which have been set up by
atomic scientists; and he reports that these or-
ganizations favor some form of world govern-
ment and are, apparently, therefore, a menace
to the security' of the United States. It is hard
to see how young men who favor world govern-
ment and order, can be considered a menace
to security and the Russians will notice how the
one group in American life which has done
most to fight for atomic order, namely the atomic-
scientists themselves, are being held up as ob-
jects of distrust by a committee of Congress.
Meanwhile, also the House Military Affairs
Committee moves to restore at least a part of
that military control over the atom which was
rejected by the Senate.
The proposed House move will also make it
just a little harder to draw Russia into a gener-
al system of atomic security. And that is one
reason why there is no such thing as a minor
controversy with Russia any more.
(Copyright, 1946, N.Y. Post Syndicate).

CONGRESSIONAL sanction was given Satur-
day to a $3,750,000,000 gift-loan for Great
Britain. According to its proponents, the grant
is intended to rehabilitate British world trade.
The loan would be made on a 50-year basis re-
payable by the year 2001, with interest of 2% be-
ginning in five years. The British will not be
required to submit collateral or security of any
type. One of the stronger arguments in favor
of the bill was that it would check Russian in-
fluence and bolster "our only ally-Britain."
It angears to us that sound business dic-
tates that a nation swallowed in debt would
not even make secured, short-term loans, let
alone astronomical gift-loans, similar to a
"lend-loss" policy previously pursued. It is
argued that the loan is necessary for British
trade and goodwill. But if we must purchase
British goodwill at such an exorbitant price,,
we could do without it. And since when have
other countries taken over the responsibility.
for maintaining British trade and profits?
And in particular, why the United States?
The prodigious sum of money needed here at
home would seem to overrule foreign loans at
the present time. "Charity begins at home." Our
vast, inadequate educational system needs mil-
lions of dollars for improvement of rural, one-
shack schools in which a great proportion of fu-
ture Anerican citizens are "educated."
Scientists warn that unless immediate and in-
tensive irrigation steps are taken in the South-
west, another "dust-bowl" will sandblast the
continent with gigantic clouds of windborne
sand. Millions are needed for the control project
as well as for forest conservation. But Congress
hands billions to England on a golden platter.
Veterans' college funds; huge grants for shin-
ing nationwide highways, titantic housing pro-
jects-not the usual tarpaper shacks the Gov-
ernment usually erects, but permanent beauti-
ful brick structures such as one existing on East
Warren Avenue in Detroit, are needed. When a.
great portion of the national population dwells
in disease-breeding, squalid slums, adequate
funds for assisting these Americans cannot be
granted: Billions for British world trade!
While cancer and infantile paralysis attack
millions, funds for research must be begged by
sympathy from the taxpaying public. At a time
in our national history when great hospital
centers need to be contructed over all the nation,
there are no funds. When the Constitution states
that Congress is to "provide for the general wel-
fare," presumably it means American welfare,
not British.
The policy of granting gift-loans without
collateral is an outrageous infringement upon
the rights of American taxpayers, who will
not forget when November and 1948 elections
arrive. Britain, who has never paid her debts
to the U.S., cannot be expected now to re-
verse her nonpayment policies, especially when
there is no collateral at stake to force her to
do so. The loan is, as Senator Robert A. Taft
once so aptly phrased it, "pouring billions
down a rathole."
We should like to make our position on the
matter clear. We reject as pellucid deception the
contention that the gift loan is a check against
spread of Russian ideology and that British trade
should be fostered by American funds. We hold
no animosity for the great English people, nor
yet even for their socialistic government. What
we do denounce is the Administration's policy
of throwing taxpayers' cash around like water.
Let us not allow ourselves to be deceived again.
A fool and his money are soon parted.
-Richard W. Fink
T HE WILD FLOWER, billed as Dolores Del
Rio's greatest artistic triumph, opened in
Rackham Amphitheatre yesterday under the aus-
pices of Art Cinema League.
With a story which, I believe, would be char-
acterized in Romance Language circles as a his.'
torical romance, The Wild Flower seemed to me
the worse for Miss Del Rio's triumph. After two
thirds of the picture during which I attempted
unsuccessfully to reconcile Miss Del Rio and art4

I resigned myself to accepting the film for what
it is: a very fine piece of photography. With this
slight but important adjustment, The Wild
Flower becomes well worth seeing.
Those' who understand Spanish, or who can-
not resist reading the "titles" will be hampered.
It seems that Miss Del Rio, characterized by her
grandfather as "so good, so pure," marries above
her peasant status. Don Jose Luis, heir to a
great estate, disobeys his patrician father and
masculine-looking mother to marry Miss Del
Throughout the first reel or two, everyone in
the film performs a sort of ritualistic duty of
coming to Don Jose and Dolores and begging
them in the name of the caste system to break
up their marriage. After this wears off, Don
Jose goes off to revenge his father who has been
killed by bandits. It is about at this point that
the fine photography which runs throughout the
film makes itself felt. Our heroic friend manages
to get himself into some neat camera angles. As
for Miss Del Rio ---
-Milt Freudenheim


(Continued from Page 2)

to interview any women graduate
students or senior undergraduates
with sociology, group work, or health
and physical education majors. They
have openings for teen age program
director, business and industrial,
health education, and executive direc-
tor. All those interested should call
the Bureau of Appointments, 201
Mason Hall, ext. 371 for an appoint-
ment to see her.

to 10:30. Star clusters, Venus, and
Jupiter will be shown if the night is
Children must be accompanied by
International Center: The Inter-
national Center in conjunction with
ANCUM announces the renewal of
the Friday afternoon tea dances in
the Center. Music will begin, on rec-
ords, at 4 p.m. and all interested
persons are invited to attend. An
opportunity to meet foreign students
as well as' American students is of-
fered to all interested.

I 1- 'a

ill I

Oil Interests



cnx etter~i
Jo 3w'k0
To the Editor:
Who is Henry Kowalczyk? Frank-
ly I don't care! But evidently Mr.
K. is very much interested in the
identity of a writer, for he prefers
to criticize his person rather than
his arguments.
Mr. K's letter did not refute Mr.
Freudenheim's editorial. Instead it
consisted merely of name-calling. His
"Russ-Zionist Government in War-
saw" lelninds me of a story of a
poverty stricken Jew, who had been
an avid reader of Hearst's "Ameri-
can". He later read Father Cough-
lin's "Social Justice" for he was no
longer interested in being called a
communist but preferred being called
a banker.
Does Mr. K. imply that the hand-
ful of Jews in Poland, who are strug-
gling for their lives, are responsible
foir any legal executions which may
be taking place? Does Mr. K. wish to
forgive mob violence by stating that
since Poles are being legally executed
Jews should be murdered in pogroms
to maintain a balance?,
As to Cardinal Hlond, I am certain
that he has been a source of inspir-
ation to those Poles who resisted Nazi
oppression. Because of his position
of leadership it is very dangerous for
him to condone mob violence. Let us
hope that he realizes the responsibil-
ities of his position.
J. M. Genst

Colton Storm, Curator of Manu-
scripts and Maps at the Clements
Library will give three lecturesonI
the Collecting of Rare Books, July
22, 23, 24. In the Rare Books Room,i
Clements Library, 5:00 p.m.
There will be a lecture by Verner
M. Sims, Professor of Psychology,
University of Alabama, on Friday,1
July 19 at 4:05 p.m. in the University
HighSchool Auditorium. The topic
will be "The Role of Motivation in
the Achievement of Students." The
public is invited.t
Academic Notices
History Final Examination Make-
Up: Friday, July 19, 3 o'clock, in
Room B, Haven Hall. Students must
come with written permission of in-
Political Science 2 make-up final
exam will be given Thursday, July1
25 at 1:00 p.m., Room 2037 Angell
Graduate Students: Courses may
be dropped with record from July 8
until July 27.
By a recent ruling of the Executive
Board of the Graduate School,
courses dropped after July 27 will
be recorded with a grade of E.
Yves Tinayre, baritone, will pre-
sent the first of two recitals at 8:30
Sunday evening, July 21, in the First
Presbyterian Church. A well-known
interpreter of vocal art, Mr. Tin-
ayre has planned a program to in-
clude medieval and renaissance sacred
and secular songs. A guest lecturer
in the School of Music, he will be as-
sisted in the program by Emil Raab
and Margaret Detwiler, violinists,
Elisabeth Lewis, violist, Mary Oyer,
cellist and Frieda Op't Holt Vogan,
organist. The second program will
be given the following Sunday, July
28, in the same church. .
The general public is invited.
Events Today
Association Coffee Hour will be
held Friday from 4:30 to 6:00 in the
Lane Hall Library.
The Third Clinic will be held at
the University of Michigan Fresh Air
Camp, Patterson Lake, Friday, July
19. It will begin at 8:00 in the Main
Lodge. Emphasis will be put on the
sibling relationships. Dr. Patterson
will be the visiting psychiatrist.
Visitors' Night will be held at the
Main Observatory, located on the
corner of East Ann and Observatory
Streets, Friday, July 19, from 8:30

Picnic Supper for women veterans
will be held Friday, July 19 at the
Island. Those planning to attend will
meet in the League lobby by 5:45
p.m. Make your reservation by call-
ing Florence Rosenberg, phone 8598.
The Classical Coffee Hour will be
held in the West Conference Room
of the Rackham Building on Friday,
July 19, at 4:00 p.m.
There will be a meeting 1f Epsilon
Chapter of Alpha Phi Alpha fratern-
ity, Friday, July 19, at 7 p.m. in Rm.
321 Michigan Union. All members
wishing to participate in the dance
are urged to be present.
Coming Events
Saturday Luncheon Discussion
group will meet at Lane Hall at 12:15
on Saturday. Reservations may be
made by calling Ext. 2148 before Sat-
urday morning.
The Graduate Outing Club has
scheduled an afternoon of sports and
a picnic for Sunday, July 21. Grad-
uate students planning to attend
should pay the supper fee of 50c at
the checkroom desk in the Rackham
building, before Friday night and
should meet at the club rooms in the
Rackham Building at 2:30 p.m. Sun-
day. Use the northwest entrance.
Conference on Photographic Aids
to Research, July 19:
Faculty members and students in
the Summer Session are cordially in-
vited to attend the public lectures
on Friday, July 19, which will be
given in connection with the Confer-
ence on Photographic Aids to Re-
"The Economy of Photocopying"
by C. Z. Case, Vice-President -of
Eastman Kodak Company, 4:10
Rackham Amphitheatre.
"Photography and Research-Post-
war" by V. D. Tate, Director of Pho-
tography, the NationalArchives.
8:00 p.m. Rackham Amphitheatre.
An exhibition of microfilm, micro-
print, lithoprint, readers and projec-
tors will be open for an hour after
each lecture in the East Conference
Room of the Rackham Building.
Michigan Sailing Club. All mem-
bers, officers, and those who have
applied for or have shown their in-
tention of applying for membership:
There will be an important meet-
ing Saturday, July 20, at 1 p.m. at
the Michigan Union. All members
of pre-war standing must show their
intention of maintaining their mem-
bership on or before this time. M-m-
bers from last- semester will be ex-
pected to pay their summer session
dues of five dollars at this time or
they will be dropped from the, roil.
Applicants and those who have
shown their intention of applying
must be at this meeting if at all
possible. An excuse for absence will
be honored only if received on or be-.
fore this time. Any messages should
be left at the Union desk in care
of the Michigan Sailing Club.

THE SENATE and the House of'
Representatives seem to be putting
on an Alphonse and Gaston act for
the benefit of the oil interests.
The House could not pass fast
enough the bill denying to the United
States any right, title or interest in
or to the oil deposits of the Contin-
ental Shelf that underlie the waters
of the Pacific and are reputed to be
fabulously rich. The Senate has not
yet passed this bill despite the gra-
cious curb service of certain of its
members to the oil companies, but it
has passed the euphoniously entitled
S.1236, "a bill to promote the de-
velopment.of oil and gas on the pub-
lic domain and for other purposes,"
the "other purposes" being the fur-
ther enrichment, at the public ex-
pense, of those who do the country
in oil.
Under the present law, royalties
on much of the oil produced on Fed-
eral lands are authorized on a slid-
ing scale with a minimum of 121/2
per cent so that on such leases the
average royalty is 13.6 per cent. The
bill passed by the Senate would make
12 ? per cent the flat rate, thus en-
tailing a loss to the Government of
perhaps several million dollars a
year. The Senate even proposed to
make this lower flat rate retroactive.
So far as the, people of the United
States are concerned there is no
sense to such an arrangement, par-
ticularly when oil operators pay pri-
vate land owners and states at least
121/2 per cent in royalties, plus, in
many cases, a bonus.
Some Senators and Representa-
tives who, in other respects, are zeal-
ous for the honor and welfare of
their country are "pushovers" when
seductive Miss Petroleum flashes her
gold teeth upon them. They vie with
each other for her sticky favors.
Apparently the Senate has allowed
itself to be kidded into the belief
that some special inducement has
to be offered to persuade oil men to,
prospect for oil. As if a rabbit had
to be "induced" to eat lettuce in the
garden! State and private interests
that own oil lands do not have to
hold out an "inducement",to a pros-
pector. It is only credulous Uncle
Sam who is expected to play Santa
Claus to oil men in order to "induce"
them to drill wells and so add to
their fortunes.
Oil influence on the Hill is such
that there are instances when. it can
actually dictate, not only domestic,
but foreign policy. It would seem
that this present session of Congress
will not be happy unlesss it enjoys
the luxury of an oil scandal.

"You'll have to cut out smoking and filibustering."


It is time to decide whether the
oil industry is running this country
exclusively for its own benefit or
whether the people are to be paid
a decent return for the oil that be-
longs to them. The royalty rate
ought to continue to be on a slid-
ing scale and it' ought to be high-
er, rather than lower, than it Is.
Although the Senate may not be
able to cover up those who are
responsible for this shameless at-
tempt to enrich the oil interests
at the people's expense, it is to be
hoped that the House will expose
this conspiracy against the public
welfare and by a roll call let it be
known who there may be among
the Representatives who are will-
ing to squander oil income that is
due to the Federal Government.
We will desperately need oil in this
country in the event of another war,

Our town
What's the name of our councilman?
town councilman, Pop? His name
My Fairy Godfather is Henry
1wanttknow 0I! nrl.-,,

By Crockett Johnson

Mr. O'Malley's going to put
up a tent city on the village I
green. For the people who
haven't a place to live. But
£.AL La e . - - a -

It's amusing. And instructive.
Ever since I bought Barnaby a
tent he's been thinking abou$
housing. In a childish way...

Mr. O'Sodumn ... ? This is the
architect and builder, J. J.
O'Malley. What are you doing
about housing? Nothing, eh?,
T1.n. lif-, --n.ith,#R m

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