davidaulloa/AmericanStories huggingface dataset:
Evening star., 1922-07-09
American Exporters Are Urged
to Use Ships Under U. S. Flag

the United States when the world
trade returns to normal
OF course it has been found to be
expensive to ship by these vessels,
but the Shipping Board is making
every effort to cut expenses, to the
end that these vessels can be used
as cheaply as the foreign vessels,
which are slowly establishing for
themselves a firm foundation on the
sea which will be difficult to meet.
These vessels have been operating at
a loss, due, to large extent, to the
fact that there has been a general
depression in ocean shipping and a
general falling off in the rates.
Many of the routes maintained by
the Shipping Board. upon examina-
ton, were found to be operating at a
loss. This was due to the fact that
the routes were overtonnaged: in
other words. there was not enough
business at the time to furnish the
ships with full cargoes. For instance,
a service was maintained between
continental European ports and the
hlver rate On which losses were be-
ing incurred Of between $4,000 and
$4,000 on each monthly sailing. This
service was. Of course, discontinued
in the interest of economy.
In some cases it was found that
American operators were competing
with each other and steps were taken
to materially reduce or discontinue
services. The whole idea
has been te reduce lines to prevent
duplication and make it profita Bile
and at the same time protect the
berths of loading. In other places
vessels Of larger capacity were sub
stituted for those already on the
routes, which. resulted in great econo-
mics.
As against 500 steamers engaged in
general cargo service at the begin
ming Of the present admintstration OF
the Shipping Board. there are now In
operation s3I stsamerA
Evening star., 1922-07-09

Necessity of American business firms
which expect to take a prominent part
in the expected boom in foreign trade
when the world finally gets back to
normal using vessels flying the United
States nag is pointed to as being i'm
perative at this time. Competition in
the foreign trade field will be exceed
ingly brisk when trade does pick up.
and unless the American firms now
throw their shipments to American ships
in their time of need they may not find
ships for them when they are really
needed.
A weak merchant marine means a
weak Navy. for every sea power de-
pends on its merchant vessels to a
large extent in time Of war for ships
to augment combatant ships Of the
Navy. Such ships are used as raiders,
supply ships, troop ships, etc Unless
there is a strong merchant marine ex-
listing, when a war does break, it is
necessary for the government at great
expense to go out and commander YES
sells or get them in any way 1t can.
Fortunately, during the recent world
war. the government had at its disposal
many German ships which had been in
termed here. and it promptly seized
thep.
Every effort is being made to main
tain as nucleus for a big Amer
lean merchant marine the numerous
vessels owned by the United States
Shipping Board. But even these ves-
sells are finding it dificult to gain
the support of the American busi-
ness men who are out looking for
foreign trade. They have been ap-
pealed to on many occasions to use
these vessels now and thus give them
the support which will enable them
to keep running and be ready to fur
pish transportation for sxDortsrs ef
Evening star., 1922-07-09
Brazilian Armed Revolt
Reported As Not Serious

The Brazilian embassy announces
the receipt of advices from the home
government saying that the military
outbreak which occurred in Rio de
Janeiro on the nights Of July 4 and s
was confined to group of soldiers
and subalterns in one Of the forts
and to- a small number Of cadets from
the military school.
Tho disturbance was easily sup
pressed and perfect order has been
restored. the advices stated. The con-
gress, by unanimous vote OF both
parties. supported the government in
the. measures which 1t adopted and
as further precaution placed the
federal district and state of Rio de
Janeiro under martial law, It was
added.
Evening star., 1922-07-09
Patience of President Harding So Tried
That Clash With Congress Is Possible

it can be worked out to satisfactory solu-
tion. safety first" is controlling thought
with some of the politicians in the party, and
it will be their effort to convince the Presi-
dent of the advisability of postponement.
= y X X X
The hackers of the bonus bill in theNSen-
ate seem to be still cherishing the hope that
they can turn President Harding from his
determination not to accept bonus bill un-
less it carries taxing feature to raise the
funds. 1t is somewhat difficult to under
stand how they can think that they can sue
ceed, for the President has repeatedly in the
past three months stated to friends in Con-
gress that he stands by his statement to
Chairman Fordney and is not likely to back
down. If the bonus hackers find they can
not move the President they may pass bill
of their own making, leaving out the taxing
feature, in which event, it is believed, the
President will veto it.
There is considerable discussion in con-
gressiona1 circles of the possibility of raising
enough votes to pass it over the executive
disapproval. There is also the possibility
that the bonus bill may be left over until
the next session. This is being seriously
discussed.
X X X
The next big rumpus in political affairs
will be the fight over the direct primary sys-
tenn. 1t is noted that the two sides are going
to extremes in raising the issue One school
of thought is for further extending the sys-
tenn to include the nomination of candidates
for the presidency by direct primaries. The
other school wants to abolish the whole
thing and return to the old convention plan
There appears to be no middle ground
On the one hand the system is held-to be so
bad that it should be allowed to go by the
board and on the other it is contended that
it is so good it ought to be elaborated.
The reactionaries fairly froth at the
mouth at suggestion of nominating Presi-
dents by this. to them, pernicious plan, and
the progressives see red at the hint that
nomination can again be placed in the hands
of political bosses in convention assembled.
Evening star., 1922-07-09
Reform in Banking Laws Affecting Washington
Intended to Protect Both Banks and Customers

the then Attorney General. speaking
to M. E. Allies, who appeared for the
Lowry National Bank OF Atlanta. said:
II guess you are right. Allies, but policy
needs an adverse ruling"
Washington has seen national
bank go about assimuiating branches
first by the purchase through in
terests of state bank with branches.
then nationalizing the state institu-
ton, then the purchase of one (the
Hamilton, NationaD by the Riggs Ma
tional.
Down in St Louis the First Ma
able opinion from its lawyers and
has started branches in sections of
the city.
Not Opposed by Controller.
D. r. Crissinger, controller of the
currency, imbued with a desire to
hold national banks in the system,
to give them advantages. is not OPP
posed to branch banks, but insists
that each applicant must secure per-
mission, must show that there will be
no impairment of capital or weaken
ing of resources through the expan-
sion. and also some measure of need
for the branch Office or offices sus-
gested.
1t is likely that a bill covering
branch banking will be introduced
before long.
Six per cent of the capital of all
national banks and all member banks
in the federal reserve system is in
vested in the stock of the federal re-
serve banks.
On this the member banks have re-
ceived per cent annual dividends.
But the great reserves which the
banks are required to carry entirely
with the system do not earn one cent
interest or dividends
These reserves, amounting to many
millions Of dollars, when carried in
trust companies and with national
banks in New York. as under the old
national bank act provisions, earned
an average Of 2 per cent per annum.
1t Is now proposed that the earn
ings Of the federal reserve banks be
divided more equftably, 50 as to
give the member banks IL per cent
on their stock, which would be equiv
alent to fair return also on their
reserves. Such a. bill is now before
Congress.
Evening star., 1922-07-09

as we'll The democrats in the Senate have
done their best to spread the scare among
the republicans. Every day or two some
democrat finds occasion during debate to
toss frecracker across the aisle and startle
the republicans with statements about sad
ding the overburdened people with thirty
or fifty millions, the estimated cost year
of the bill for the first ten years. These
pyrotechnics are explained as only sample
of wharf.-the democrats will say and do when
the bill actually comes up.
There seems to be no doubt that the dem
ocrats have succeeded in afrighting many
republicans very effectually and thoroughly.
During this week the republican leaders will
confer with the President, and, it is thought
will attempt to dissuade him from insisting
on the passage of the bill at this session.
X X X
President Harding has committed himself
so emphatically in support of the bill and
has pointed out so plainly the urgent neces-,
sity for some kind of remedial legislation
that he is likely to find himself in perplex-
ing position between his stand for the bill
and the Senate leaders opportunities for
non-action.
The opposition to the bill, or rather the
ground upon which delay in action is urged,
is entirely for political reasons. The leaders
fear that the democrats will make it an issue
in the campaign. President Harding has all
along insisted that Telief for the merchant
marine is business proposition and not
political question.
X +
There are a number of republican Sena-
tors who are conscientious objectors to
ship subsidy, and their opposition, of course,
strengthens the hands of democrats, who are
also opposed to it in principle and realize
antagonism to the subsidy to have value as
political asset in some of the phases in
which it is possible of being presented to the
voters.
1t is very knotty problem for the repub-
licans in Congress and President Harding to
handle, and nobody knows at this time how
Evening star., 1922-07-09


ter of the enormous num-
ber of checks that they have been
compelled to handle daily returned
from clearings with the discard. vart-
ously labeled, but generally bearing
the legend, Not sufficient funds,
although not infrequently it would
read, mo such account in this bank.
The handling of these checks has
been an expensive matter. as they all
REQUIRE a second and even a third
presentation in the return after clear
ings to the depositing bank RESPONSE
BILE for sending them through the
clearings.
Many of these dishonored checks
have been drawn with the anticipa-
tion Of sufficient delay in clearing in
order to permit the drawers to make
deposits against them, but the process
Of daily clearings is not slow.
Some are the result of personal neg
lect in keeping records of deposits
and withdrawals.
Let Banks Do bookkeeping.
Too many people permit the banks
to keep books for them, and will take
chances that their accounts have a
credit of about SO much"
There is yet another class of dis
honored checks-the kind that are
absolutely bad, frequently represent
ing the cleanup Of systematic
scheme to establish a reputation for
credit and veracity, through building
of accounts among banks. perhaps
making tho final check for several
hundreds or more with request for.
SAY, $500 cash and put the rest to
my credit" Then a withdrawal from
all banks and a departure for parts
unknown.
Washington has tho reputation OF
being the easiest town for credit on
the continent. The twice-a-month
payday for the great army of civilian
and Army and Navy employees has
probably brought about this condition.
The competition for deposits be-
tween banks in the District-and
there are more than fifty Of them
Is another reason for making it easier
to put across questionable checks.
The task of making bad check only
is a huge one, and unless an uninten-
tional overdraft or check against a
deposit of a day later, the difficuity
Is serious indeed.
Sought Bad-Check Law.
Local bankers for years have sought
to secure the enactment OF bad
check law that would give them re-
dress-a law that would give an hon
est man a chance to make good an
error in an overdraft and punish an
Intentional culprit who failed to
make good.
Within the last few weeks the Dis
trict Bankers Association, Credit
Mems Association and other organiza-
tions have secured the enactment by
Congress and the approval OF the
President to q law the salient fea-
lures Of which are these: The maker
Of check that has been dishonored
has five days from date OF dfshonor
to make good. Failure to do so Will
make the drawer Of the check liable
to hne or Imprisonment. or both, at
the discretion of the court.
During the last few years very
large number Of small banks have
opened in Washington. institutions
Fof restricted capital, neighborhood
banks. as they are termed. Most OF
them have real. legitimate excuse Tor
their being, serve their. communities
ably. and are progressing into usefni
Matitltionk s
Evening star., 1922-07-09

Some few have been organized for
the profit In organization to the pro-
fessional organizer. All have so far
one time trouble was feared, but the
sore spot was cauterized in time to
prevent loss.
Safeguards About Organization.
National banks cannot organize in
the city without 100000 capital, and
trust companies are required to have
a capital of $1,oo0,ooO before they
may do a trust business
A banking bill is now before the
House, sponsored by Representative
Millspaugh, which makes 1t obliga-
tory that all banks starting in Wash
ington secure permission from the
controller of tho currency, have
100000 capital, and with tho proviso
that banks now doing business with
less than that capital shall increase
to the minimum within the next two
years.
1t is probable that the proviso with
regard to existing banks will be
desire 10 force any Of the smaller insti-
tutions to.kncrease capital beyond nee
essary proportions.
A law was recently placed in the
statutes which places in the hands
of the controller of the currency the
matter of granting the right to any
organization contemplating the opening
Of bank, and henceforth minimum
capital of 100000 is requisite.
Restricts Use of "Bank."
The Millspaugh bill proposes a
larger measure of protection to the
banking fraternity. in that it pro-
hibfts the use of the term bank" or
banker" save by institutions receiv-
ing deposits payable on demand. and
conformed to the banking laws Of the
District.
The Millspaugh bill is really a broad,
constructive measure in its other fea-
lures, and both the bankers and credit
men are anxious for its passage.
As at present constituted. state banks
operate under charters granted by this
or that state. While these banks are
actually under the supervision Of the
controller Of the currency, his authority
only begins when his examiners disclose
a condition that should not exist.
II the proposed measure is enacted,
he will hold exactly the same control
over state institutions as he does ma
tional banks and trust companies.
Its provisions. II enacted. will stop the
forpation Of small banks or large
banks. for the promoters profit SO much
share on the capitalization.
Joshua Evans, jr., president OF the
District Bankers Association, holds
that the Millspaugh banking measure
is one of the most important con-
structive banking bills brought before
Congress since the enactment Of the
federal reserve act. He believes that it
will make for stronger. better, more
lasting and more serviceab1e community
banks.
He gives great credit to the Credit
Mems Association for assistance in ad-
vocating the measure and has small
doubts of it's enactment. with perhaps
material notifications.
Extend Banks.
During the present session of Con-
gress another measure affecting
banking was enacted. The charters
of national Institutions were given a
life or existence Of ninety-nine years.
Originally twenty years was the limit,
and renewal of charter, with the per-
mission Of the controller Of the cur
rency, was necessary.
Under the provisions OF the federal
reserve act nsttonal banks ars given
Evening star., 1922-07-09

chile Copper reports for quarter
ending March 81 q deficit. after inter-
est, depreciation and other charges.
Of $1,1o3,fos, n against deficit Of
81. .oss.2ss TOR corrssponding period Of
|1s41
Evening star., 1922-07-09

authority to act as trustees. execu-
and other trust company functions.
provided that in doing so they do not
conflict with local laws.
1t was the contention of national
bankers that because Of the twenty
year charter provisions they would
be handicapped in handling estates
and trusts that might run for longer
periods. The new law obviates any
handicap in this direction.
1t was felt that the absolute power
in the hands Of the controller in the
twenty-year charter extension might.
in the event of controversy. lead to
refusal to renew.
Federal Reserve Aid Changes.
Many changes to the federal reserve
act are contemplated by bills now
before Congress which have not been
acted upon as yet.
The American Bankers Association
and some of the federal banks off,
amendments. some of which are cal
culated to weaken the importance Of
the system and to bring 1t more un-
der control of politicians and make
it less an independent system not
amenable to political or outside in
fluences of any character.
The measure has stood the nation
in good stead. Without it the fiota-
tion of $17.ooo,ooo,ooO liberty bonds
and the victory notes would have
been next to impossible. The making
of loans to the allies would also have
been a harder matter than 1t was.
Thus it made possible winning of the
war without imitation Of currency and
deep depreciation thereof.
= Congress has enacted a bill au-
thorizing the President to consider
AGRICULTURAL interests in increasing
the personnel Of the Federal Reserve
Board by ono, but refused to include
labor interests"
would Abolish Controller.
One measure now before Congress
would abolish the ofiice OF the con-
!. troller Of the currency and place that
bureau under the control Of the Fed
eral Reserve Board
Because of certain advantages OF state
over national banks In many ways,
there is a disposition to make condi-
tions more favorable for the latter,
State banks and trust companies
are given practically the same service
as members of the reserve system
through member banks. They may
take advantage Of par collections. the
transfer Of money free of charge, the
shipment of gold even from New York
to San Francisco free OF cost, where
in the olden days the cost varied. but
was at all times very expensive
operation. Exchange between Chi
caso and New York was often at $50
premium or discount, as the case
might be, on each $1,000 transferred.
the express charge for the transfer.
Exchange was long an important
item in banking, but today 1t Is not.
The reserve system works through
the revolving gold fund in the Treas
ury, crediting the amount to this or
that bank, payable through the near
est regional reserve bank by wire
free, but no actual gold Is exchanged.
Braneh Banks an Issue.
Branch banking is q subject that is
a live topic today.
state banks may have as many
branches as desired. Trust COM
panies may locate branches at the
pleasure Of the management.
Former Attorney Generl Wicker
sham once ruled that national banks
could not operate branch institutions.
It Ii = tact tha4 on that occasion
Evening star., 1922-07-09
Prohibition Enforcement
Not Taken Seriously.

The greatest difficulty, apparently.
in the enforcement of the prohibition
laws IN this country Hes in the fact
that In the United States itself. these
laws are not taken seriously. For
many years-probably ever since Gus
tom duties were first imposed-wom-
en- have had a propensity-accordi
to reports-for smuggling. They liked
to smuggle-at least, some Of them
Just for the sake Of smuggling. and
not so much for the sake of saving the
duties they otherwise would have paid
This may be an injustice to enfran-
chised women Of today. But whatever
may be said Of the propensity Of women
to smuggle lace and what not into this
country, they, the women. are mere
ptkers alongside Of the men since the
prohibition law went into effect.
The smuggling of liquor into the
United States is coming to be re-
garded almost as one of the inalien-
able rights of man, about which so
much is said in Fourth Of July ad
dresses and on other occasions. The
number of convictions and sentences
for violation of the law. when COM
pared to the number of gallons, or
even cases. of liquor smuggled into
the United States, is said to be in
intestinal. The smuggling industry
keeps up, even though the dry forces
now have an anti-rur, running navy
of their own. And 1T is to aid the
authorities In their efforts to cut
down this traffic that Senator Sterl-
Evening star., 1922-07-09

q. In q Biographical dictionary Of Chi
iiese art OF twenty-four volumes tour
arc devoted to the lives Of great
woman arust4
Evening star., 1922-07-09
LIOUOR.DRINKINGSCANDAL
HANGS OVER THE CAPITAL
Violation Of Law by Officials Alleged to
Make Prohibition Enforcement
Much More Difficult.
BY G.. GOULD LINCOLN.

= TR1kING at the bootleggers who
run whiskey, brandy. gin and
wine in great quantities along
the coast, lowering just outside
the three-mile limit and considering
themselves safe from search, until
their cargoes are loaded on to swift
power boats and taken ashore, Sena-
tor Sterling of South Dakota, republic
can, has offered an amendment to the
tariff bill, giving the United States
authority to search vessels within
six marine leagues of the American
coast for liquor. whether they fly the
American flag or the flag of some
other nation.
1t Is the contention of Senator
Sterling that the United States has
perfect right so to legislate and to
make inspection and seizure Of liquor
il 1t is destined for the dry shores
and drier throats of the United States.
The right of the United States to
entry and search within the three
mile limit-the distance from shore
in which any nation has jurisdiction
over craft in it's waters. recognized
by international law-the South Da-
kota senator declares is certain. He
maintains also that this country mas
a perfect right to extend the distance
farther to sea-into what is COM
monty known as the high seas.
Precedent Established
BY Other Nations.
In support of his contention Sena-
tor Sterling calls attention to the
fact that existing law gives the Gus
toms authorities of the country the
right of entry and search in vessels
coming to this country matter OF
ten or twelve miles from the shore.
He calls attention also to the fact
that Norway has law which per-
mits her to enter and search vessels
a dozen miles from her coast line and
that the right to do so is recognized
by other nations.
OF course, other nations may object
to such a law enacted and enforced
by the United States. but the sup
porters of the plan ask. What are
they going to do about 1t? The sooner
the other nations realize that Uncle
Sam is in earnest in regard to the
eighteenth amendment to the Con-
stitution and the Volstead prohibition
act. the better, say the prohibition
lists
Evening star., 1922-07-09
Both Parties yexed
By the Seniority Rule.

By the Seniority Rule.
The problem OF whether the senior
ity rule should be followed in the
selection Of committee chairmen has
already been brought to the fore. In
retiring as chairman of the republi-
can congressional committee Repre-
sentative Fess pointed out that II the
democrats should gain control the
twenty-five most important commit,
tees OF the House. under the seniority
rule, would take their chairnen from
Evening star., 1922-07-09
BY I. A. FLEMING.

" 7 AsHINGTON bankers have
M been patient and certainly
" " long suffering in the mat
Evening star., 1922-07-09

TINE elders are passing out oi
Congress, emphasizing the
need for special care on the