The midland journal. (Rising Sun, Md.) 1885-1947, 1931-10-16

rowing at lowest interest rates In
many years. The interest rate on the
public debt, it was pointed out, is
much higher than the rate that can be
obtained on treasury paper at the
present time.
On Tuesday it was announced that
Mr.. Hoover had decided to eliminate
the naval building program laid out
for the 1888 fiscal year and. in addi-
ton. to cut down the destroyer pro-
gram, already appropriated for, from
eleven ships to five. Reductions for
the navy over the next three years, it
was stated. stand TO run as much as
one hundred million dollars.
This certainly will be terrible blow
to Senator Frederick Hale of Maine,.
chairman OF the naval affairs commit
tee, and those of his colleagues who
belong in the big navy" class. Wheth-
err they can do anything about it re
mains to be seen. Navy officials. with
out wishing to be quoted, point out
that if Mr.. Hooyer's economy plan is
carried out. our navy will sink to
third place by the end Of 1882. when
it will rank below that Of Japan in all
but capital ships. 1t may be re-
marked. too. that 1t doesn't do much
good to the steel concerns, the ship
yards and their employees.
CENATOR JAMES e. WATSON Of
- Indiana, majority leader of the
senate, has called to the attention of
President Hoover the fact that higher
tariff rates may be necessary to pro-
tect American industries from the de-
preciated currencies of nations that
have abandoned the gold standard.
these now including Denmark, Nor
way and Sweden. Mr.. Watson says
he believes that if the deprecated cur
rency program continues for any
length of time. the tariff rates Of the
Hawley-Smoot tariff act will be abro-
gated and it will be absolutely neces-
sary to raise the rates from 20 to %
per cent to overcome the lower pro-
Guction costs in countries now on the
double currency standard. Canada al
ready has taken such action.
There is still lot Of agitation for
the sales tax which Senator Reed OF
Pennsylvania advocates. but treasury
officials are quoted as saying there is
small chance for congressional ap-
prevail of the plan this winter, though
they admit it might be workable. The
treasury is opposed to balancing the
budget through borrowing over any ex-
tended period Of time, or to even tenn
porary suspension Of the sinking fund,
which provides for an orderly retire
ment" of the public debt.
FOLLOWING the example of United
4 States Steel and other big corpora
lions, the Aluminium Company Of
America announced a 10 per cent re-
duction of salaries and wages effec-
tive on October 1. throughout the COM
pany and all its subsidiaries. This
concern is owned almost wholly by
the Mellon family. Secretary of the
Treasury Mellon, still stakeholder.
Is said not to have been informed that
the cut was coming. He declined to
make any comment.
This action by the Aluminium conf
pany further aroused Congressman
Wright Patman of Texas, who already
had announced he would seek during
the next session of congress to have
Mr.. Mellon removed from Office be-
cause of his stock ownership In corr
porations. Patman says he has been
working all summer gathering data to
support his resolution for the impeach-
ment of Mr. Mellon. The secretary,
he asserts. is directly interested in
the business of trade and commerce.
within the meaning of the old law he
will cite.
MIR. Mellon relinquished his posi-
ton on the board of directors of the
Aluminium company" Patman said,
hut. as a stockholder. he directs the
board. His brother represents him. .
Among the other large concerns that
have just reduced salaries or wages
or both are the Delaware. Lackawun.