Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-17
STRUGGLE FOR OIL
TARIFF IS STARTED
Independent Producers Are
Determined to Obtain Pro-
tective Legislation.
BY JOHN r. SINCLAIR.

Special Dispatch to The Star
NEW YORK, February 1.-THE vet
terans' certificate loan bill, which raises
the loan privileges on the certificates
from their present rate to so per cent,
experienced no difficulty in passing
the House of Representatives yesterday.
Neither will it have difficulty in
passing the Senate. So. unless the
Senate decides on long-speaking
campaign for and against the bill.
it should be laid on the Presidents
desk in the next 10 days
How much money the Government
will have to raise depends upon how
many veterans ask for loans. Possibly
$3.50. 0O0.0 is the outside figure.
What will the President do? He
sees a deficit of $500, 100000 staring
him in the face in this years budget.
ending June 80, and Secretary Mellon
has told the country that any such
loan arrangement as is not contem-
plated would disrupt the orderly
financing of the Treasury.
So there is general belief that the
President will veto the bill, and the
question will then be, can it be passed
over the Presidents veto by the nee
essary o-thirds vote of both houses?
At this writing, it looks doubtful.
Fight for Oil Tariff.
The skillful and experienced hand
of Ralph Arnold, New York and Cali
fornia oil geologist, is seen in the
fight which the oil independents are
making for a tariff on oil.
Few oil men in the world have the
theoretical knowledge plus the practi-
cal experience, which he has in this
field He has discovered many of the
richest oil fields. He has visited nearly
Eall 81 ia hn
world.
Just now, he is writing a monu-
mental work on the oil industry of the
world--a work to which he has given
large part of his spare time during the
last 10 years. He has lectured on the
subject of oil at many of the leading
universities of the country. including
Harvard. Chicago, and the Massachu-
sets Institute of Technology.
Some weeks ago, Secretary Wilbur
of the Department of the Interior. an
nounced his opposition to any tariff on
oil imports. A few weeks later he
changed his position and announced
that he was in favor of plan of pro-
rating oil imports-another way of
levying a tariff: Many oil men believe
that this change of front was the work
of Ralph Arnold.
The fight for a tariff on oil has all
the appearances of a monumental
struggle. 1t involves hundreds of mil
lions of dollars.
Mr.. Arnold believes that from his in
innate survey of the oil fields of the
United States. there is no danger that
We will exhaust the oil supplies for CEN
turtles to come and that tariff on oil
must be put on if the industry Is to
keep on sound and healthy basis.
Stock Price level
David Friday, well-known American
economist thinks the average stock
prices will not fall to the level attained
in 1921.
He points out that in 192O-21 the
February, 1920, to g. in March and
April, in 1921. Whereas. the present
decline was from peak of 1877, in June,
1929. to 81, in June, 1880.
But DR.. Friday, while admitting that
unemployment is fully as bad now as
1t was 10 years ago. thinks that the
figures for 1880, based on profits and
dividends, show up very much better.
He concludes that those investors who
are waiting for stocks to drop to the
1921 levels are going to walt a. long
time.
Col. Leonard p. Ayres. Cleveland
economist. while not as specific as DR..
Friday, says, for the first time since
last Summer. some of the composite
indexes are pointing to stiffening and
even an advance in industry and trade.
He believes that the bottom Of the
depression has been reached, even
although the decline in the prices Of
commodities at wholesale still con-
tinues.
While the great fall in prices of
securities has been the most spectacular
feature of the depression in the United
States, Col. Ayres believes that 1T Is
the long drop in the prices Of COM
modities here and abroad that has
made the depression truly serious and
brought stagnation to business.
This constant dropping in the price
level is what worries not only the
economists, but bankers and business
men.
It probably is not too strong TO say
that the business recovery will not be
permanent until the wholesale price
level has become stabilized.
downright 1881 by North American News
paper Alliance