First Army Goes Into ‘Action’ in South Carolina
For weeks to come, the country made famous by Stonewall Jackson will see thousands of troops engaged
in simulated warfare, during maneuvers of the First army near Camden, S. C. At left, troops of the 13th
infantry charge over a haystack. Center: Planes of the “enemy” swoop down with machine guns wide
•pen. Right: First assault boats arrive on “enemy” shore after crossing the Watcree river.
Wind and Rain Divide ‘Honors’ in Southwest
An airview of the eastern part of Kansas City, showing damage done by a tornado, is shown at left.
Wreckage of the recently completed Arlington Methodist church, with only the portals remaining, can be seen.
Right: Torrential rains flooded rivers and creeks in Oklahoma, inundating thousands of acres of farm land
and forcing people from their homes. Scene shows a farm near Pryor, Okla., much of it under water.
U. S. Repairs H.M.S. 4 War spite’
A general deck scene from the bow of the British battleship, Warspite,
hero-ship of many naval battles of the present war, as she was put in
ship-shape at the Bremerton navy yard, near Seattle, Wash., before
venturing on the high seas again. The tubes shown on deck are for
air conditioning for the men working below.
‘Baby’ Legislators Honored
A delegation from the United Youth for Defense organization pre
sented Sen. Joseph Ball of Minnesota and Rep. William Stratton of Illi
nois, two of the youngest legislators in congress, with medallions of the
organization. Photo shows No. 1 New York debutante, Miss Betty Gor
don, pinning a medal on Senator Ball, who is 34. Representative
Stratton (shown) is 27.
‘Seeing’ London
Pretty Kathleen Harriman, daugh
ter of W. Avcrell Harriman, head
of the U. S. lend-lease war mission
in Moscow, is being shown the
sights of London by a steel-helmet
ed policeman, who seems to be en
joying the “job” to the utmost.
Plea for Charity
President Roosevelt called npon
every American citizen to contrib
ute to his local Community Chest.
He Is shown as he made his plea
for charity to the nation.
Hitler’s Elite Troops on Eastern Front
The men shown jockeying this field gun into position on the Russian
front are described in the German caption as troops of the police divi
sion—Hitler’s elite troops. The man shown on the right—foreground—
is a runner of the cycle corps. Berlin predicted the final collapse of
the Red military power, basing their prediction on the understanding that
the Russians had marshaled their last material reserves before Moscow.
—Soundphoto.
Nazi Spy Ship Arrives in Boston
Under heavy armed escort, tly captured Norwegian vessel, Busko,
and 20 Norwegian Nasis, were brought to Boston. Coast guard patrol
ship Bear and two patrol boats brought her to the dock. The Nazis,
bound for Greenland to establish a radio base, were taken by a U. S.
navy patrol boat.
Air Plant Strike
Bergen county police seise a strik
er who violently protested the ar
rest of three pickets outside the
huge Air Associates plant at Bendix,
N. J. The pickets were taken in
custody after a hail of stones rained
down on a car bringing workers to
the building. A defense mediation
board proposed a settlement.
Discuss Jap Crisis
President Roosevelt cancelled his
regular cabinet meeting and called
in army and navy heads to discuss
crisis in Japan caused by resigna
tion of Konoye cabinet. Photo shows
Admiral Stark and Secretary of the
Navy Knox talking on White House
steps after conference.
Press Conference a la Berlin
Berlin has its press conferences, too, but how free they are Is another
matter. This radiophoto sent to New York via radio and to Chicago
via soundphoto shows Dr. Otto Dietrich announcing military achievements
claimed by the Germans on the eastern front, to foreign correspondents
in Berlin. Note large-sized war map.
Congressional Leaders Confer With F.D.R.
A delegation from Capitol Hill confers with President Roosevelt on
changes in the neutrality law. L. to R., back row: Sen. Tom Connally
(Texas); Sen. Charles L. McNary (Oregon); and Rep. Luther A. Johnson
(Texas). Front row: Rep. Sol Bloom (N. Y.); chairman, foreign affairs
committee, and Rep. Charles Eaton (N. J.).
Trouble in Panama
Dr. Arnulfo Arias, who was oust
ed from the presidency of Panama,
in a coup which placed a regime
more favorable to the U. S. In
power. lie fled to Cuba to save his
life, he claimed. Dr. Ernesto De La
Guardia assumed the presidency.
Chiefs Meet
First meeting of the U. S. and
British commandcrs-in-chief in the
Far Fast. British Air Marshal Rob
ert Brooke-Popham (left) flew to
Manila, P. I., to discuss Far East
ern questions with Lieut. Gen. Doug
las McArthur (right), U. S. chief In
the Far East.
NATIONAL
AFFAIRS
Rtvitwtd by
CARTER FIELD
Freezing of Farm
Prices and W ages Seen
Necessary to Prevent
Inflation ... Tax Issue
Looms as Important in
Local Elections . . .
(Bell Syndicate—WNU Service.)
WASHINGTON. — Anyone who
thinks that inflation—and unbridled
inflation at that—can be prevented
without freezing farm prices and
wages should read one of two, pref
erably both, recent observations.
One of these was the testimony
on Capitol Hill of Bernard M.
Baruch. The other is a pamphlet
issued by the Brookings Institution
entitled "Effects of the Defense
Program on Prices, Wages and
Profits.” The latter is by Dr.
Meyer Jacobstein and Dr. Harould
G. Moulton. Dr. Moulton is head
of the Brookings Institution.
They are interesting chiefly be
cause they demonstrate, emphatic
ally and without heat, that nothing
the government is doing or proposes
to do will prevent runaway prices,
and partial destruction, through this
cutting of the value of the dollar,
of all savings accounts, life insur
ance, social insurance benefits—in
fact all forms of savings which are
measured in dollars and not in
goods.
It hits the government bond and
the sock under the mattress equally
in proportion. It hits the very de
fense bonds the public is being told
are a good investment.
Issued on the Secretary of the
Treasury Morgenthau’s proposal of
a boost in the social security tax
from 2 to 6 per cent was announced,
the authors of the Brookings pam
phlet could not have been meaning
to hit it. But they did. One of the
admitted reasons for this proposed
tax boost was to cut private pur
chasing power as a partial check
on inflation.
Brookings' Statement
Say Drs. Jacobstein and Moulton:
"The price advance cannot be
directly attributed to the increases
in mass purchasing power. If the
general rise in prices had been due
to competitive bidding by consumers
possessed of increased Incomes, one
would expect to find retail prices
increasing at least as much and as
rapidly as the prices of manufac
tured products and raw materials.
The facts show, however, that the
increase in retail prices has been
relatively small. The price rises
began at the producing and not at
the consuming end . . .
"The facts clearly show that the
active forces leading to price ad
vances in the present situation have
been operating on raw materials
and manufactured products, gradu
ally spreading from there to the
retail end . . .
“The prevailing belief in govern
ment circles that price rises could
not occur so long as there remained
a large volume of unemployed labor
and capital goes far toward explain
ing why no deep concern was mani
fested until fairly recently over the
price question, and why the Office
of Price Administration was not
set up until the spring of 1941. Had
the nature of the price inflation
process been clearly perceived,
steps would doubtless have been
taken at a much earlier date to
control the sources of price disturb
ance.
No Control Provided
"The Office of Price Administra
tion has no authority over the farm
price program and no authority
over wages . . . The price control
bill now before congress does not
provide for any control of wages,
and control of farm prices cannot
begin until 110 per cent of parity
is reached. Since as this analysis
has shown, the upward movement
of prices is chiefly due to increases
in the prices of agricultural prod
ucts and in wage costs, it is obvious
that the Office of Price Adminis
tration has no effective control over
the price system as a whole.”
Tax Issue
And Local Elections
Joe Martin’s conclusion that the
folks in the West are keenly worked
up about the new taxes, and his hope
that the G.O.P. may win the next
house as a result, may be dis'
counted by the possibility of an ap
' peal by administration leaders not
to give the world the impression
that the American people are not
i in sympathy with the war against
Adolf Hitler. But if Martin is right
about the interest in taxes, as would
seem very logical, look out for pri
mary upsets next spring and fall!
Outsiders aspiring to seats in the
house and senate are likely to find
taxes a heaven-sent issue. There is
hardly a senator or representative
who will not be pitifully vulnerable
to a sharp attack by an opponent
who studies the sitting member's
record on appropriation roll calls.
Remember that these will be
local contests. The sitting mem
bers will always be attacked for
voting for appropriations in which
their own constituents are not in
terested, but which can be made to
appear heavily responsible for the
boost in taxes.