Detroit Free Press from Detroit, Michigan • Page 2

it THE DETROIT FREE PRESS TUES DAY. JANUA 18, 19 3 4 Roosevelt Asks Congress to Authorize 40 Per Cent Cut in Value of Dollar Cold Is Fatal JJrges Widening of Powers Plane May Fly Roosevelt's Message would be made to be catapulted like the early Wright machines, and its fuselage would be shaped for landing, preferably on water. Projecting surfaces which cause wind I v. Now Vested in Treasury State Auto Tax Cut Demanded Constitution Changes Sought by Club Denies, at Preas Conference, Inflation Is Contemplated by Move i i ji Continued from Page One i Thomas Amendment Imposes a 50 per cent limitation. Technically and essentially It that the amount of gold legally defined as the equivalent of i will be fixed at Polnt be" tween 11.61 grains of pure gold r-nd 13.93 grains as compared with the present legal content of 23.22 grains.

The President's plan is that, after having been revalued once, the gold content can be changed from time to time as the general price level recedes or advances for the pur-1( pose of giving the Country, as he 1 phrased it today, a dollar with a "less variable purchasing power." Internal Stabilization 'i-i Revaluine the dollar by the Government still planned to borrow $10,000,000,000 for meeting recovery costs, but explained that profits on gold devaluation could be employed to meet Governmental expenses. Morgenthau revealed tonight that plans for commandeering the Nation's monetary gold and devaluing the dollar had brought no change as yet in arrangements with the huge refinancing operations of the next 5'4 months. He figures the Treasury's profit on gold from devaluation at of which $2,000,000,000 will be set aside as the stabilization fund, which Is to be kept Intact. An earlier estimate at the White House had placed the profit at This will leave a margin of which Is to be paid into the Treasury's general fund. Whether currency will be issued against this, Morganthau could not say, although at the White House It had been said earlier that none of the gold profit would be used as currency backing.

Morgenthau said that he considered the Roosevelt plan as signify at 544 M. P. H. New Design earing Speed of Sound LANGLEY FIELD, Jan. 15 -t A PI Th.

rionlcm 9 .1. i 1 1 airplane to fly 544 miles an hour, uiubc iu uib Bjiecu ul Buuna ana 121 miles over the world's record, bllt URinc eYfRtinc Bnirina. nraa made public here today. ine design aeais with air which gets "hard" under the compression of a great speed. Present-day planes are said to stand already at the threshold of this obstacle to super-speeds.

The new mnri1 rnmna frnm v. aeronautical authority. The author juun ouick, engineer nere for the National Advisory Committee for Aernnntitirn ni.n ia lished In the first issue of the new Journal of the Aeronautical ociences, organ of the Institute of Aeronautinfll RMpnaa tv, is Dr. J. c.

Hunsaker, head of the jueparcment of Mechanical Engineering, Massachusetts Institute of Technology. This hypothetical plane meets the hardened air by slight refinements in streamlining and cleaning its surfaces of even small projections. In shape it differs only slightly from the transport planes now used on transcontinental airways. It is a mid-wing, cantilever monoplane, having a fuselage of circular cross-section and slightly tapered wings. A wing is 29.1 feet wide and its area 141.2 square feet.

The fuselage diameter Is 40 inches. Landing gear would be com-pletely retractable, or the plane future should require an Increase In the amount of gold designated as a dollar. The title to all gold being In the Government, the total stock will serve as a permanent and fixed metallic reserve which will change in amount only so far as necessary for the settlement of International balances or may be required by a future agreement among the nations of the world for a redistribution of the world stock of monetary gold. Would Defer Value Fixing With the establishment of this permanent policy, placing all monetary gold in the ownership of the Government as a bullion base for Its currency, the time has come for a more certain determination of the gold value of the American dollar. Because of world uncertainties, I do not believe it desirable in the public interest that an exact value be now fixed.

The President is authorized by present legislation to fix the lower limit of permissible revaluation at 50 per cent Careful study leads me to believe that any revaluation at more than 60 per cent of the present statutory value would not be In the public interest. therefore, recommend to the Congress that It fix the upper limit of permissible revaluation at 60 per cent. That we may be further prepared to bring some greater degree of stability to foreign exchange rates in the interests of our people, there should be added to the present power of the Secretary of the Treasury to buy and sell gold at home and abroad, express power to deal in foreign exchange as such. As a part of this power, I suggest that, out of the profits of any devaluation, there should be set up a fund of two billion dollars for iwiouiuto wuuiu ue aone away with. Officers Installed by Traffic Group A.

P. Bruss, freight solicitor for the National Carloading was inducted Into the office of president of the Motor City Traffic Club Monday night at the annual banquet at the Hotel Statler. Other officers who formally tnnk office at the same time were William J. Morden, first vice presi-dent; Alden Smauder, second vice president; Joseph R. Downey, secretary and treasurer, and Percy G.

Mahon, assistant secretary and treasurer. Mr. Bruss presented a traveling bag to the retiring president, H. A. Doerne.

Former Gov. Wilber M. Brucker spoke. W. Cowling, general sales manager of the Ford Motor was toastmaster.

Show People Are in Gist of Mdivani Princes' Trial LOS ANGELES, Jan. 15 (A. A tentative jury including seven women was selected today to deride whether the handsome brothers Mdivani Princes David and Serge stole $30,747 from the Pacific. Shore Oil which they organized here in 1930. The brothers vigorously deny charges of defrauding stockholders by transferring company funds into their own personal accounts.

Among the 40 witnesses were Pat O'Malley, movie actor; Robert Vig-nola, director; Rose Adler, secretary of the oil company, and John Clark, an actor. Patterned STARTING TODAY method outlined would have the result of an internal stabilization, "economists explained, which, they thought, bore little If any relation 1 to stabilization on an International basis, a step which Mr. Roosevelt hopes eventually may be under-' --taken but which he believes lies in the future. "There is still much confusion of thought which prevents a world-' wide agreement creating a uniform monetary policy," said the Presl- dent "We hope that despite present world confusion, events are leading t0 Bome form of general agreement." And he gave those prone to on future developments In his monetary program a hint on which to ponder in the sentence: "The title to all gold being In the 'Government, the total stock will serve as a permanent and fixed reserve which will change "in amount only so far as necessary for the settlement of International balances or as may be required by "a future agreement among the na-- of the world for a redistribution of the world stock of monetary gold." A suggestion for such a redistribution, coming from the leader of a nation holding more than one--nfi of the world's entire gold was regarded in many quarters as distinctly significant. Alms at Federal Reserve Gold In nationalizing the Country's -gold stocks, the President aimed particularly at the more than $3,500,000,000 to which the Federal Reserve system holds title.

the dollar would make this gold worth 80 to 100 per cent more than at present, according to the amount of devaluation. If It still reposes in the Reserve Banks, these privately-owned institutions would receive the profit: owned by the Clayton's Semi-Annual SALE The Automobile Club of Michigan will promulgate two "tax relief" amendments to the Michigan constitution, it was announced Monday, following a meeting of the directors. One amendment will seek to limit the license weight tax to 35 cents a hundred, a reduction of about 30 per cent. The other will seek to limit State gasoline taxes to two cents a gallon. The present State levy is three cents, to which there are added Federal excise and the State retail sales tax.

"Automobile taxes In Michigan are unjust," Richard Harfst, general manager of the club declared. "Last year they amounted to 21 per cent of the value of the property involved. Thousands of cars remained out of use because their owners could not pay the exorbitant exactions. 'Killing the Goose' "The State Is engaged in the age-old fallacious policy of 'killing the goose that laid the golden egg' and Michigan, the acknowledged center of the automobile world, is paying the penalty Industrially and commercially." Regardless of the movement being fostered in the Legislature for action at the forthcoming special session to reduce the weight tax to a nominal basis of $3, $6 and $9, depending upon the class of car, the Auto Club plans to go forward with its proposed constitutional changes to prevent new and substitute Impositions, once the present objectionable taxes are removed. A statewide organization will be established to circulate petitions, which will require about 125,000 names.

They will be available as soon as they can be printed. The petitions will filed with the Secretary of State and the issue presented on the November ballot $38,000,000 Tax "Michigan motor taxes totaled $5,750,000 in 1920," Harfst said. "By 1925 this had quadrupled. Automobile taxes continued to increase, and in 1933 totaled more than $38,000,000. It Is not planned to eliminate road building, highway Improvements nor road maintenance, the automobile club pointed out.

In the face of a proposed smaller income, Michigan can still maintain an adequate road-building program, keep its existing highways in first-class condition and make such wid-enings and alterations as are necessary. "A reduction In the gas and weight taxes does not necessarily mean that a proportionate decrease will be recorded In automobile tax income," Harfst said. "Reduced taxation encourages wider use of the motor car, the sale of more automobiles; and consequently the portion of the State income loss from decreased fees will be repaid through a larger gasoline consumption and the sale of more license plates. Levies Unfair "Unfairness has crept Into automobile taxation. From a small beginning, automobile levies have gradually swelled, until today we find the State gas tax of three cents per gallon, a weight tax fee of 55 cents per hundred pounds, drivers' licenses and title fees.

State sales tax, Federal excise tax, Federal gas tax, taxes on accessories, parts, oil, tires and tubes. "One of the most flagrant injustices Is diversion of automobile tax moneys, and Michigan can be included among the states guilty of this practice. Millions have been 'borrowed' from the road fund for various purposes. There is doubt this ever will be returned to the State highway fund; thus the motorists have not only been compelled to maintain the highway system but have been forced, through this system of double taxation, to provide deficiencies in various other funds already provided for by law." A distinctive HURT AND PAJAMAS AT SHARPLY REDUCED PRICES WASHINGTON. Jan.

15 (A. The text of President Roosevelt's monetary message to Congress In conformity with the progress we are making in restoring a fairer price level and with our purpose of arriving eventually at a leas variable purchasing power for the dollar, I ask the Congress for certain additional legislation to improve our financial and monetary system. Bv making clear that we are establishing permanent metallic re serves in the possession and ownership of the Federal Government, we can organize a currency system which will be both sound and adequate. The issuance and control of the medium of exchange which we call "money" Is a high prerogative of Government. It has been such for many cen turies.

Explains Gold and Silver Use Because they were scare, because they could readily be subdivided and transported, gold and silver have been used either for money or as a basis for forms of money which In themselves had only nominal Intrinsic value. In pure theory, of course, a Gov ernment could Issue mere tokens to serve as money, tokens which would be accepted at their face value if it were certain that the amount of these tokens were per manently limited and confined to the total amount necessary for the daily oash needs of the community. Because this assurance could not always or sufficiently be given, governments have found that reserves or bases of gold and silver behind their paper or token currency added stability to their financial sys tems. There Is still much confusion of thought which prevents a world wide agreement creating a uniform monetary policy. Many adovcate gold as the sole basis of currency; others advocate silver; still others advocate both gold and silver whether as separate bases, or on a basis with a fixed ration, or on a fused basis.

Hopes for General Agreement We hope that, despite present world confusion, events are leading to some future form of general agreement. The recent London agreement In regard to silver was a step, though only a step, in this direction. At this time we can usefully take a further step, which we hope will contribute to an ultimate worldwide solution. Certain lessons seem clear. For example, the free circulation of gold coins is unnecessary, leads to hoarding, and tends to a possible weakening of National financial structures In times of emergency.

The practice of transferring gold from one Individual to another, or from the government to an individual within a nation, Is not only unnecessary, but Is in every way undesirable. The transfer of gold In bulk is essential only for the payment of International trade balances. Therefore It Is a prudent step to vest In the government of a nation the title to and possession of all monetary gold within its boundaries and to keep that gold In the form of bullion rather than in coin. Because the safekeeping of this monetary basis rests with the Gov ernment, we have already called in the gold which was In the possession of private individuals or corpora tions. There remains, however, a very large weight In gold bullion and coins which Is still In the pos session or control of the Federal Reserve Banks.

Asks Congress Action Although under existing law there is authority, by executive act, to take title to the gold in the pos session or control of the Reserve Banks, this Is a step of such Importance that I prefer to ask the Congress by specific enactment to vest In the United States Govern' ment title to all supplies of American-owned monetary gold, with provision for the payment therefor in gold certificates. These gold certificates will be, as now, secured at all times dollar for dollar by gold in the Treasury gold for each dollar of such weight and fineness as may be established from time to time. Such legislation places the right, title and ownership to our gold re serves in the Government itself; It makes clear the Government's ownership of any added dollar value of the Country's stock of gold which would result from any decrease of the gold content of the dollar which may be made in tne Dubllc interest. It would also, of course, with equal Justice, cast upon the Government the loss of such dollar value if the public Intereat In the A A00 ing a managed currency rather than what is termed a "commodity dollar." Robbery, Says Hastings Comment on the President's proposals ranged from an abrupt one-word statement "robbery" from Senator Daniel O. Hastings, Delaware Republican, to that of Rep.

John Rankin, Mississippi Democrat: "It will do more to restore prosperity to the American people generally and to the American farmers and home owners in particular, than everything else that has been done up to now." Senator Carter Glass of Virginia, co-author of the Federal Reserve Law and Secretary of the Treasury under Woodrow Wilson, made this cryptic remark: "Humanitarians can And some excuse for a man who steals when he has to, but what excuse is there when there is no need." Speaker Rainey said that the plan was not surprising and "a step that does not materially affect the dollar, now about 62 cents." Senator Elmer Thomas, Oklahoma Democrat, a leader of the inflationist bloc, said: "It Is exactly in line with what I have been advocating and what I think had to come." Terms of Bill WASHINGTON, Jan. 15 (A. Chairman Fletcher, of the Senate Banking Committee, today made public the text of the tentative draft of the monetary legislation submitted to him by the White House. Here is the gist of the bill: Title to all Federal Reserve gold would pass to the United States and the reserve system would be given "credits In equivalent amounts In dollars. The Secretary of the Treasury would be given power to regulate the conditions under which gold could be held, acquired, trans ported, earmarked or used.

Illegal gold would be subject to forfeiture by the Government and the holder subject to a penalty of twice Its value. All gold coin would be withdrawn from circulation and coinage of the metal would be abandoned. No currency would be redeemed In gold, except gold certificates owned by Federal Reserve Banks in such amounts as the Secretary of the Treasury decided were necessary "to maintain the equal purchasing power of every kind of currency. The Secretary of the Treasury would be authorized, with the ap proval of the President, to purchase gold in any amounts at home or abroad. He could also anticipate the payment of Interest on the public debt by not to exceed a year and sell gold at Home or abroad.

To stabilize exchange, the Treas ury Secretary could purchase, sell. or discount drafts, checks, bills of exchange, acceptances, or other evidences of Indebtedness. A $2,000,000,000 fund would be created to permit the Secretary or me to stabilize the exchange value or the dollar, in eluding the purchase of direct obligations of the Government 1.65 s2.45 1 i i 'i i I 1 1 il 1 i GEORGE E. MILLER George E. Miller Dead in Mexico Former News' Editor Was on Trip Continued from Page One four years, returning to Detroit In 1900 to become managing editor of The Detroit Tribune, then published by James Scripps.

Mr. Miller's next tour of duty for the News commenced again in 1905, when he returned to Washington to take charge of that newspaper's bureau there. In 1918 he was brought back from Washington and made editor of the News, in which capacity he served until his retirement last Dec. 1. Mr.

Miller was one of the organ izers, in 1922, of the North American Newspaper Alliance and was president of the Alliance at the time of his death. He also figured prominently in the organization of the American Society of Newspaper Editors, of which he had been vice president and director. He was a member of the Gridiron Club and of the National Press Club. Mr. Miller is survived by his wife, Grace, two sons, Tom of Ish-peming, and Karl of The Detroit News Washington Bureau, and two daughters, Helen W.

Miller and Mrs. Alma E. Carey, wife of Stephen J. Carey, assistant Wayne County Prosecuting Attorney. Gambler Executed Face to the Wall NEW YORK, Jan.

15 (U. Angelo Pezzulo. small-time gangster and gambler, was taken from a poker game today, forced to stand with his face to a wall, and "executed" by gunmen. Pezzulo's brothers and the other players in the game were lined up against the same wall, but were spared. The murdered man was said to have been in the "policy slip" racket.

He had a long police record. Man and His Dog PARIS, Jan. 15 (U. A watchdog at Messinghausen, Ger many, died in his master's burning house after arousing the family last night. At almost the same time a French shepherd was killed by a motor car at Avignon while i saving his dog.

achievement 00 TTERE it is, men! The big shirt sale of the year! Clayton's entire stocks of fine Manhattan Patterned Shirts at sharp reductions Collar attached, collar-to-match, tab collar styles all sizej and sleeve lengths With higher spring prices a certainty this is your one chance to buy these fine shirts at big savings Now at Clayton's! Manhattan shirt headquarters in Detroit! Note! Manhattan Pajamas are also included at these same reductions. J3.35 1.95 Extra Added Feature! MANHATTAN WHITE SHIRTS Government, the margin would go to the Treasury. Many carefully studied the phrase relating to the purchase of Gov- ernment securities and maintenance the Government's credit. Some said legislation putting this into law would empower the Treasury to pay off the public debt with de-ovaluated dollars backed by the gold derived from devaluation. However, at his press conference.

Mr, Roosevelt told reporters that the gold profit Is not to be used as a basis for currency. The object of. buying Government securities out of the stabilization fund was explained as simply to safeguard the price of these securities against any ulterior depreciated move by private holders of the securities. Treasury to Make Purchases The President 'regards the fund itself as a means of uniting and certain powers and functions that the Government is now pursuing in a clumsy way through the foreign gold purchases by the RFC. He indicated that the Treasury in the future would be the instrument by which the gold purchases are carried out.

The gold purchasing began in late October and throughout November was confined almost exclusively to domestic newly-mined gold. During that month foreign exchange rates fluctuated wildly. In December foreign purchases on a large scale were begun, and since then variations In foreign exchange rates have been within a narrow range. Chairman Jones of the RFC announced today that the Corporation had bought a total of worth of foreign gold, of which was bought after Jan. 1.

Domestic purchases, he said, have aggregated $22,898,735. The gold purchased abroad Is at present earmarked for this Government In London and Paris, he indicated. Secretary Morgenthau said the Annual f''': i' Mancord White Broadcloths Collar attached. Reduced to. such purchases and sales of gold, roreign exchange, and Government securities as the regulation of the currency, the maintenance of the credit of the Government and the general welfare of the United States may require.

Urge Amendments Certain amendments of existing legislation relating to the purchase and sale of gold and to other monetary matters would add to the convenience of handling current problems in this field. The Secretary of the Treasury is prepared to submit information concerning such changes to the appropriate committees of the Congress. The foregoing recommendations relate chiefly to gold. The other principal precious metal silver has also been used from time immemorial as a metallic base for currencies as well as for actual currency itself. It is used as such by probably half the population of the world.

It constitutes a very important part of our own monetary structure. It Is such a crucial factor in much of the world's international trade that it cannot be neglected. On Dec. 21, 1933, I Issued a proclamation providing for the coinage of our newly-mined silver and for increasing our reserves of stiver bullion, thereby putting us among the first nations to carry out the silver agreement entered Into by sixty-six governments at the London conference. This agreement is distinctly a step in the right direction and we are proceeding to perform our part of it.

All of the sixty-six nations agreed to refrain from melting or debasing their silver coins, to replace paper currency of small denominations with silver coins and to refrain from legislation that would depreciate the value of silver in the world marketa. Those nations producing large quantities of silver agreed to take specified amounts from their domestic production and those holding and using large quantities agreed to restrict the amount they would sell during the four years covered by the agreement. Sees Increase In Silver Use If all these undertakings are carried out by the Government concerned, there will be a marked Increase In the use and value of silver. Government can well, as they have In the past, employ silver as a basis for currency, and I look for a greatly increased use. I am however, withholding any recommendation to the Congress looking to further extension of the monetary use of silver because I believe that we should gain more knowledge of the results of the London agreement and of our other monetary measures.

Permit me once more to stress two principles. Our National cur rency must be maintained as a sound currency which, in so far as possible, will have a fairly constant standard of purchasing power and be adequate for the purposes of daily use and the establishment of credit The other principle is the inherent right of Government to issue currency and to be the sole custodian and owner of the base or reserve of precious metals underlying that currency. With this goes the prerogative of Government to determine from time to time the extent and nature of the metallic reserve. I am confident that the Nation will well realize the definite purpose of the Government to maintain the credit of that Government and, at the same time, to provide a sound medium of exchange which will serve the needs of our people. Stickles Is Selected to Succeed Steck The Rev.

Calvin F. Stickles was elected Monday at the Hotel Statler to succeed the Rev. Charles F. Steck. as president of the United Lutheran" Pastors' Conference.

Mr. Steck's recent retirement from the active ministry, because of conscientious objections over what he contended was "commer cializing of the Christian Church," drew no comment from his tellow pastors Monday. Mr. Steck was pastor of Christ Lutheran Church at Third and Philadelphia Aves. until Jan.

1. He had been president for the last two years. The Rev. Thomas F. Weiskotten was chosen vice president The Rev.

Claudius E. Jensen, of Olivet Church, was elected for another year as secretary-treasurer. Kiwanis Club Will Sing Mickey Cochrane' Song A song composed by Mickey Cochrane will be sung Tuesday noon at the luncheon of the Detroit Kiwanis Club No. 1 In the Hotel Statler where the new pilot of the Tigers will be a guest. With him will be Frank Navin, owner of the baseball club, Charles Gehringer, Bill Rogell, Harry Hellman, and other players.

Tod Rockwell, Free Press sports writer, will be master of ceremonies, Sale Holeproof Hose 39c 49c 59c (Discontinued Lines) Sale Fine Neckwear 69c 1.15 1.55 IMELHOCH'S No iv in Full Swing! JANUARY OVERCOAT SALE 22 75 28" QUICK action means big savings 1250 of this season's handsomest overcoats from Hart Schaffner 8C Marx and other quality makers dress coats, street coats, motor coats are now put on the spot for immediate disposal Higher costs under the new conditions mean double savings for those who are quick to buy now! Group of Our Finest Overcoats 35.75 Pure Silk KNITTED TIES January Sale of 7 hi HB Si INTER COATS brings greatest values of the season at To the best of our knowledge it has been ten or fifteen years since silk knitted neckwear cf this character was available at such a low figure. See these ties in our show window. Available in solid shades of blue, red, brown, black, and in distinctive stripes. Exclusive Showing in Detroit I. COMPANION SUIT SALE Hart Schaftner Marx and Fine Clayton Quality Suits OO'J OQ'J at the same big savings Coats all new late winter models, made to sell at much higher prices 50 from a spectacular "Special Purchase" and the balance reduced from our own stock! Grand "buys" in styles good for next year! Furs include Pointed Black Fox, Persian, Kolinsky, Marten, Galyak, Caracul, Kit Fox.

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