Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-09
BANKS ARE BLAMED
IN BUSINESS SLUMP
British Labor Chief Demands
That Financial Houses
Be Mathematical.
BY JOHN F., SINCLAIR.

NEW YORK. June 9.-The demand
that Great Britain nationaliZe its banks
grows more insistent in the ranks OF
the Labor party. Naturally the partys
heads are not likely to press the point
at the present time, unless some great
crisis forces the issue, but w. H. Hutch.
inson, president of the Amalgamated
Engineers Union, has come out IN favor
of the move.
In seeking reasons to explain the
new support this idea is receiving in
Great Britain today, one comes inevi-
tably to the depression. 1t is widely
held that the banks have been found
wanting. Their credit policy is under
fire. Chained by caution and self-in-
terest, according to their critics the
banks have starved business and In
dustry of the credit resources which are
the life-blood of business.
For this reason, many business men
are to be found joining hands with
labor. These men probably do not seek
outright naturalization. but merely
want to frighten the banks into a more
liberal credit policy. Among the Labor
ties. of course, the motive is plain So
cialiSm George Bernard Shaw recently
told a labor group that tinkering with
socializing industry was futile for the
bankers are the ones who rule the roost.
Even in the United States, there has
DSeT HluCH SIuulDIlllS dDOuJ IliC ACaNy
mortality in banks and the ultra CON
servative policy Of the Federal Reserve.
What banking needs today. and what
every other industry is crying for, is
vital leadership.
New Fiveyear Plans.
The Russians are formulating sched-
ules for a series of five-year plans to
follow the present one, which ends
officially in 1888. Vice President Lmov
of the state planning commission sees
Soviet Russia supplanting the United
States as the premier producer OF coal,
electricity, steel and other heavy indus
trial items by 1910.
The huge Dnieperstroy hydroelectric
power plant, which is being constructed
under the supervision of the American
engineer. Col. Hugh L. Cooper, is near
ing completion and will be the largest
in the world. But the Soviets are draw
ing specifications for similar project
on the Volga River which will dwarf the
Dnieperstroy. BY 1910 they expect to
be generating. 100000 kilowatts-
10000 900 more than the output in the
United States today.
The electric power system of the
Soviet Union is probably the most vital
part of its industrializaton drive.
Electric power is the bedrock. of the
present industrial age. Lenin himself
once represented the idea in the form
of an equation, "Electriflcation plus
Soviet power equals 100 per cent Social
ism"
While still taking the United States
as their technical model, the Soviets
have swung their electrical machinery
orders to European countries, where
they receive more favorable credit terms.
The more continental equipment is
used, the harder it will be for Amer
lean manufacturers to recover this huge
market later. Since the Russian cleo
trif1cation plans call for huge expendi-
lures over the next 25 years. the loss
to America in this field is incalculable.
Silver Problem.
It looks as though the nations linked
with the silver problem are going to
adopt a policy of passing the buck"
so far as doing anything about it is
concerned. A resolution passed by the
International Chamber of Commerce
calls upon the governments involved to
convoke a silver conference, but fails
to specify which one is to call it.
The United States, despite its extern
sive interests in the question, due to her
being great silver producer and Asiatic
trader, has consistently taken nom
committal stand. Great Britain fears
repercussions in India, where her finan-
cial tactics are deeply resented. and
France, while interested in Indo- China
Is not likely to take the initiative.
One country in the world is eager and
willing to start the ball rolling, but she
can't, because she hasn't sufficient
weight in world councils. That country
is China
Nevertheless, this vital problem can
not be lost in the international diplo-
matte shuttle forever.
Rock Production
After years trial, mass production
of loW-priced books, and advertising
policy. came up for review recently be-
fore the American Booksellers Asso-
citation In the main, the dollar books
are looked upon as successful.
Long intervals between the issue Of
the original standard priced edition and
the dollar reprints were asked, with
from one to three years suggested. With
enough time in between. the dollar books
would actually be bought by those who
would or could not pay more.
A lively attack was made on the
publishers and sellers method of ad-
vertising by Maj. I. D. Carson of N. w.
Aver g. Son.
Your Advertising" Mai. Carson said.
should appeal to the girl in the sand
10-cent store as well as to the intel
lectua!. If you will disguise your copy
HlOIe, a larger DOOy OF readers Will
notice it. Now they pass it by. recog-
nizing 1t as a typical book advertise
ment."
stand by" Periods.
Doldrums in the shipping industry
has resulted in an interesting innova-
ton considerable part of the losses
sustained by passenger steamship COM
panleS in slack times is due to the
stand by" periods. AS such times the
ship lies idle at the wharf. eating up
money in maintenance and deprecia-
ton, with no income to offset losses.
The Cunard Line, therefore, is al
ready busy with its week end cruises
from New York out into the Atlantic
and back. The fees are quite moderate.
This move has been followed and elab-
GRATED upon by the French Line with
series Of siX-day cruises during the
Summer. from New York to Bermuda,
to Halifax. and return. This new fea-
ture has proven good business. for the
public has responded enthusiastically.
The SoundneSS of the scheme has not
escaped the attention of the British
maritime leaders. and similar cruises
are planned for the English Channel.
via London and stops at French ports.
Thus, line operating between Ameri-
can and British ports would be able
to put the stand by" time at either
end to a profitable use. At the same
time. lots of people are going to get
great deal of benefit and fun out of
this new form of travel"
(copyright. 1881. by North American News
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