Evening star., 1932-10-11


join an uncle who was In the business
of promoting the sales Of Western lands.
It was IN the office Of this land specu-
lator that Mr.. Hoover's experience with
farm mortgages began. His deep SYM
pathy for the farmer and his horror Of
farm mortgages can hardly be attributed
to his 12-month residence on his uncle's
Iowa farm. We are much more likely to
find the cause Of his bleeding heart in
his anxiety to get the farmer vote.
The body of Mr. Hoovers speech Is a
series of incorrect statements and un-
juStifiable deductions. But there is one
thread which runs through it all.
namely, that 1t is the duty OF the
United States to sustain the financial
and economic structure CT the world.
That is not a new theory Of Mr.. Hoover
as will show-it has existed for many
years. It is naturally the view OF q
man who spent % years Of his adult
life abroad. who exploited corporations
in Australia. Russia, China, New Zea-
land and Great Britain: who was .
member of more than a score of foreign
syndicates, whose house and home was
in London, who was registered as
qualified voter there whether he voted
or not do not know, who never voted
in the United States until he was 45
years old. who made his fortune In these
foreign lands, who came here with
scheme to reduce the price Of American
farm products and who. without au-
thority of law. carried his scheme into
effect and thus laid the foundations for
agricultural bankruptcy.
See Bent to Foreign Lands.
Just as naturally as the crow flies
home to roost, as the fox returns to his
hole, as the coyote, catching the scent
of the sheep pen where he has often
fed-so Hoovers thoughts turn to the
lands where he spent his manhood
wears, accumulated his fortune and
| where reside his friends and his VIC
| tims-just as he there organized his
! syndicates and sold his watered stock to
| the people. telling them wcndrous tales
of riches to be gained. he now promises
the country financial prosperity through
the loaning of the national credit to big
! banks. big syndicates. big trusts, upon
| the theory that those who have ex-
plotted the country will take care OF the
people.
Let us turn to his principal state
ments. He recites the battles he has
made in secret He said: They had
| to be fought in silence because
the very disclosure Of the forces op-.
| posed to us would have induced
panic" He speaks Of three OF these
! invisible and secret perils, but in fact
only discussed two.
| I quote: Three of the great perilS
we're invisible except to those who had
the responsibility of dealing with the
situation
The first of these secret and undis-
closed perils he names as the re-
moval of billion and a half dollars
of gold and currency by foreign cred
! itors and the withdrawal of a billion
/ and a half dollars from the banks by
our own people. Mr.. Hoover tells you
! that was a secret locked in his trou-
bled breast.
Asserts Facts Were Known.
There was not a newspaper in the
land which did not publish these facts
as. and when, they occurred.
| Second, he painted the great danger
Of these Withdrawals and expressly
stated that we were within two weeks
of being forced of the gold standard.
regret to say that that statement was
absolutely untrue. The fact is that we
were never within $2.700,00O 900 of the
lawful suspension Of gold payments.
For that have the authority of a great
economist who specializes on the sub
ject. Mr.. Hoover'S assertion was
promptly denied in the New York
Times, in the following language:
quite inexplicable is the Presidents
report that the Secretary of the Treas
off the gold standard in two weeks I'M
less something we're done instantly to
remedy the situation. The Federal Re-
serve authorities never feared they
would be unable to meet every strain
and demand made upon their gold re-
sources"
No man in the United States Govern
ment has a broader or more intimate
knowledge of our finances than Senator
Glass. former Secretary Of the Treas
Try, distinguished statesman and more
than any other man the author OF the
Federal Reserve act; he has continu-
ously kept his finger upon the flnan-
cial pulse.
Glass View Quoted.
Amongst other things. he declares in
statement to the press. that the only
danger to the gold standard was from
unjustif1able measures proposed by the
administration. among which was the
proposition to permit the unliquid and
ineligible assets of the banks to be
dumped into the Federal Reserve sys-
tenn, and to make eligible for rediS-
count millions of dollars of foreign Sc
curities which had been unloaded on
thousands of interior banks by the high
pressure salesmanship of great banks
which assume the overlordship of our
financial structure.
The fact is that the drain upon our
gold reserve was largely occasioned by
the mismanagement of the Federal Re-
serve Board, and also that the system
has been greatly strengthened by the
Democratic Glass-Steagall bill. But the
astounding thing Is that at the very
time efforts are being made all. over
the country to restore confidence In the
financial 5ystem, Mr.. Hoover is willing
to spread false rumors about the Fed
eral Reserve Banks In the effort to win
an election. His statement has done
infinite harm and If credited will send
a shiver Of fear throughout the finan-
cial and industrial world.
Gives Market Figures.
The immediate effect of such
speech as Hoover made is shown in the
stock and grain markets the following
day. Here are some headlines:
From the Chicago Journal of
Commerce
Cotton in Chicago of II to 10 points.
Stocks move downward steadily under
prolonged selling pressure.
New York bonds soft-of about q
point.
Chicago stocks-Heavy selling de-
presses list.
New York stocks - pivotal shares
sharply lower
Long list of active issues register de-
cline of from four to six points.
Now you in Iowa may not be greatly
interested in cotton, but you are in
terested in wheat. Here Is the headline:
Wheat prices drop sharply-close
down two to four and half cents
Corn and oats likewise lower-Gn
fact. corn dropped to the lowest point
In 36 years..
From the New York Evening Post of
Saturday, October 9th:
| The depression continues