THE HONGKONG"
TELEGRAP
VEDNESDAY, FEBRUARY
PREVENTING DEPRESSION
FRUITS OF TEN YEARS' STUDY- COMMANDEERING FINANCES
Washington, Jan; 28. comprehensive plan to pre- vent future depressions com- plated by a distinguished federal scientist kas already. won sympathetic support from bankers, economists, new dealers and congressional quartora.
The schemo was devised by Dr. H. C. Dickinson, of the governmont Bureau of Standards, after a 10- year study. He plans to submit it to high administration authori- ties when it is perfected.
Under Dr, Dickinson's plan, most of the new deal projects would be scrapped. In their place. would be substituted a new scal framowork which embodies a modi- fod plan of a central bank. This, briefly, is the Dickinson plan:
If the Treasury could call upon all banks throughout the nation to turn into the federal coffers all accumulated deposits which, for reasons of timidity on the part of Industry, lack of confidence or other causes, are remaining idle. The government would fix and guarantee the interest paymenta i on this monoy which would remain always subject to immediate with- drawal by depositors through their local banks,
With this vast reservoir of cash reserves, the government would nek all of American industry to increase its production 10 per cent. a year. Federal credit would be made available for this expansion. Dr. Dickinson estimates it would involve $2,500,000,000 a year. Ho figures that the industrial budget! -production and consumption- could be balanced in two years.
ROOM FOR ALL
F
Death and destruction come whan two trains, Cleveland bound, loaded with Christmas passengers and mail, crashed three miles north-east of Delaware, O., three engineman being killed and 13 passengers and trainmon injured. This pietura shows four coaches piled in a tangled mound of wreckage across the tracks at the junction of ibe mala fine and the spur from Delaware.
BANKER'S WARNING
TO AMERICANS
U.S. GOVERNMENT WORK RELIEF ERROR
San Francisco, Jan. 31.
a
Mr. Winthrop W. Aldrich, chairman of the Chase National-the nation's biggest bank-delivered luncheon address before the Commonwealth Club of San Francisco in which he sounded a warning against continuing the government's policy of work relief.
Mr. Aldrich and a group of his New York bank as- sociates had completed a tour of the country studying economic conditions. Arriving here they reported find- ing "a real upturn in the trend of business and a re- covery from the pessimism which had existed during the summer months."
Virtually all of the nation's 10,- 000,000 unemployed, Dr. Dickinson stated, would be absorbed within a yeat. After stability has re-
"Estimates seem to indicate that much as the cost of home relief, turned, the government would use the money still accumulating in work relief costs anywhere from and my own opinion is that ordin- the treasury under the plan, as twice as much to four times asjarily work relief costs are at least reserves available for Instant use
of last summer where, in spite of possibility of determining at this the terrible conditions which have moment the precise measures which existed, trade has been active and savinga bank and other bank balance have Increased, ́ ́.
must be adopted to bring about the desired result, or of prophesying at life time the date upon which that end can be accomplished.
He emphasized the value of the recent rapprochement between bankere and the administration and Unemployment relief he sees a expressed relief that "this co-opera- the principal obstacle to a balanced tion and this attitude of under-budget. But the relief, he be- standing will unquestionably con- tinue.
In saying this, I do not intend to imply that differences of opinion may not still exist nor do I mean to say that, where such differences of opinion do exist, criticism of government policy will not be ex- pressed in the future."
fioven, ahould be administered by local agencies which understand the problems involved.
"We
are all agreed," he said,
that, in the last analysis, unem ployment can be brought to an end
only through private initiative and the reestablishment of private in- dustry on a sound and profitable
baela."
He said he regretted the govern ment devaluation of the dollar, but content of the dollar early this
He based his discussion of relief found good in the fixing of the gold
on the assumption that none of his year and the recent removal of
change the foreign exchange restrictions as laying the basis for eventual inter-listeners "wishes to
fundamental character of our in- national stabilization,
stitutions, $0 that we will be obliged to look to the central gov-
BALANCING BUDGET
"I believe further." he added, ernment to take care of the people three times as much as home relief."that until measures have been under any of the many forms of When vast public projets are taken by the Federal Government paternalism which have developed in quickening the economic pulse
which always brings higher prices, volved, as has been the case in which convince the people that the in other parts of the world." when it shows signs of faltering.
He indicated that unemployment the difference the federal budget into balance This would be done through a the Treasury fund would be pro- many of the PWA expenditures, government is determined to bring permanent pubile works program-tected by a federal sales tax. Dr. am satisfied that
with regard to government credit,menon, although there were argu- me. To protect ile position in the Dickinson explained his plan calls must run very much higher than there can be no definite certainty might not be a temporary pheno-
stock for no regimentation of industry this."
He would take relief out of the and therefore that the, confidencements on both sides. What appear- willed sure was that it would be some event of another era of speculation Auch
existed or the Individual. It would be prior to the depression, the supported by social legislation hands of the professional, welfare necessary for ultimate recovery wil plan
for recommenda- which would care for the aged, workers, eliminate the political be lacking. I appreciate, however, time before it could be sharply tions from the treasury for imposi. although Dr. Dickinson feels that phase, and set up a new instrument the tremendous difficulties with reduced, and hence the rellef pro- higher wages which would be paid allty in each locality "which will which the government is fuced in blem was a paramount one.-United tion of tax on capital gains.
Similarly in the event huge with- under his proposal would permit study the situation, follow its de-balancing the budget, and the im- Press. drawals are made to expand and the individual to finance his own velopment daily and see to it that relief is adequate, and economic- increase the efficiency of Industry security-United Press.
ally administered.
calls
48
Qualifying a bridegroom by winning the London-Melbourne air derby, teamed with C. W. A. Scott, the British flier, T. Campbell Black, takes luncheon with his fiances, Florenza Desmond, the actress,
This model of a prehistoric monster doesn't feel the cold
In the Berlin Zoo Dai
Increased government expendi ture (involved in the government work relief programme,) through the ordinary channels of trade, based on borrowed money, will in itself have a tendency to make for Increased general business activity, but where the government borrow ing is on so vast a scale us to gener- Ate fears regarding the budget, fears regarding the future of the currency, private enterprise hesita. tes to make long time commitments, husitates to undertake new ven- tures, and the net result is to de- press, rather than to stimulate, private business activities.
"The government's activities in connection with new power develop- ments which create a tremendous excess supply of power for which no present demand exista undoubt- edly do give orders to certain of the heavy industries, but fears running through the public utility field as to the extent of the con- sequences of these activities of the government have means an almost total cessation of orders from the. private enterprises in this field to those same bidustries, and the net result, I have no doubt, is that the heavy industries are very much less active than they would be if the government had not been in the field at all....
HOME RELIEF .
"I submit that if we, in this country, concentrate on direct home relief and eliminate work relief as far as possible, the budgets of the municipal, county, state and federal governments can be brought into balanco, and that if this is not done we will soon be faced with a situa tion the seriousness of which can- not be exaggerated."
On the trip from New York to San Francisco Mr. Aldrich and his associates visited Chicago, Mil- waukee, St. Paul, Minneapolis, Seattle and Portland. From here they are going to Los Angeles and back to Now York by way of Texas and other southern states,
Reporting on his findings in the cities visited, the banker sald:
BUSINESS SENTIMENT
"Business sentiment as a whole is distinctly better, and I bellove that it might be said truthfully that confidence la rapidly being reestab Ushed In those communities, were it not for the fact that there is a fear on the part of many men that the recent increase in business activity has been caused and sus tained to too great an extent by. the expenditure of government. money. This is particularly true In the areas affected by the drought
This photo taken in Dublin shortly before their marriage, shows Lady Moira Forbes granddaughter of the late Mr. Ogden L. Mills, U.S. mining magnate, and Count Loule de Brantes, whom she was despite suit instituted on the sva of the ceremony by Princess Nadeada Sherbatov, Russian emigra who named the count as father of bar child and asked 1,000,000 franci damages.
do then thick-coated 'brown bsars, ready for sweet,
weather,
NOTICE
WE BEG TO ANNOUNCE THAT WE HAVE REDUCED OUR PRICES BY
20%
Off all Sports Goods, owing to the higher value of the dollar. This will remainin force until further notice.
Further reductions will be notified in the event of the dollar further increasing in value.
MAMAK & CO.
SPORTS OUTFITTERS
10, Peking Road, Kowloon,
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