Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-10
Senator's Bill Would Prevent
Reserve Members Borrow
ing on Own Notes,
HIGH MONEY RATES SEEN
IF MOVE is SUCCESSFUL
Suggestion Is Made That Install
ment Paper Be Made
Eligible.
BY JOHN F. SINCLAIR.

BY JOHN +. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, August 9.-When Con-
gresS meets again, Senator Glass of
Virginia, one-time Secretary of the
Treasury, is expected to push his bill
to prevent member banks of the Federal
Reserve system from being allowed to
borrow on their own notes, as they have
been doing since the war.
Should Federal Reserve member banks
be prevented finally from borrowing in
this way many observers believe that
an expansion of the definition of
eligibility will be necessary, If contrac-
ton of credit is not to be exceedingly
drastic"
Since the Federal Reserve was or
ganized in 1913, great corporations have
changed their own methods of financ.
lng. Today many of the larger COM
panies issue very little paper. Com
mercial paper is hard to get. Fifteen
years ago the larger companies were
accustomed to issuing their notes with
out security for period of go go and
80 days. These notes were attached
10 statement Of the company and sold
by commercial paper houses to hundreds
OF banks, which needed quick, Short
term investments for their protection.
But this plan of operation is barely
followed today. Commercial paper is
becoming harder and harder to get. So
what will take the place of the banks
note, should it be disallowed at the
Federal Reserve? Some say that finance
company paper should be made eligible
in word, installment paper. Up to
date 1t has not been allowed, except in
case of certain farm paper. Should In.
Stallment paper be eligible, it would put
the stamp of approval on a form Of
financing that 20 years ago was prac-
tically unknown.
Health VS.. Wealth.
J. B. S. Haldane, English scientist and
philosopher. in recent article puts
health far ahead Of wealth in the i'm.
portance of its social implications.
We have got rid of physical starva-
ton, he says. I'VE still have intel.
lectual, aesthetic and spiritual starva-
ton, which, to my mind, are greater
evilS than any mere economic inequali-
ties. Until our educational system is 50
altered as to give fair deal to every
boy and girl who desires a first-rate
education and is capable of benefiting
by 1t, my political views are likely to
remain as they are now, on the left"
On the problem of health and busi-
ness, Prof. Haldane brings out the
fact that since 1921 the death rate
of Americans from the age Of 80 up
ward has been increasing steadily, but
not in England.
Whether as the result of hustle,
prohibition or the spread of medical
cults, which reject the results Of
science, America is at present heading
for death and not for life"
This is why he believes it is a mis-
O MI - u.
considerations before biological, and
wealth before health.
Reorganization of Turkey.
Donald c. Blaisdells admirable work
on European Financial Control in the
Ottoman Empire" is one of the clear
est and most interesting books yet
written on Turkish financial problems.
1t was in 1907, after the European
financial powers had taken over the
Ottoman Empire and had put a per
cent customs surtax on Turkey to get
their money back. that the world
realized that Turkey was but cats
paw for European flnancierS.
1t was this crisis, reached % years
ago, at a time when the rising spirit
of Turkish nationaliSm had begun to
show itself, that probably had as much
to do with the reorganization OF Turkey
as anything else.
The rise of Renal Pasha. the vigor-
Gus handling of their own internal
problems, the elimination of European
control within their own boundaries,
and finally, in 1923, the conclusion Of
a treaty with European powers, by
which Turkey again becomes head OF
her own house, is told in a most
graphic, attractive and scientific way
by DR.. Blaisdell.
To those students who like to fol-
low the history of the development of
this amazing story, the Blaisdell work
will be found indispensable.
Thirteen Largest Cities.
The Is largest cities in the
United State, In the order of their i'm
Philadelphia, Detroit, Los Angeles,
Cleveland, st. Louis, Baltimore, Boston,
Pittsburgh, San Francisco, Buffalo and
Milwaukee.
The first four maintain their rating
of 1920. Los Angeles moved up from
tenth to fifth place. But outside of
that, the relative positions of the 10 are
almost the same as they were 10 years
ago.
AS a matter of fact, these IS cities
were the largest 10 years ago and they
are the largest today.
But the small cities-those of 5000
population and up-are not showing
any loss, as was expected A check
was made of the first 5000 towns. with
populations of 5000 or less It was
found that 1895 of them showed gains,
,608 showed losses. But together, the
net gain for the 5000 towns was 1861
000
Copyright 1890. by North American News