The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-04-21
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National Topics Interpreted - fT1TTTTSR
by William Bruckart ASM1T3nH
National Topics Interpreted
NO AiSSApASeSo
by William Bruckart

WdSlllllSlOu.- Lie diiiNdi VI thS
first of the foreign missions here for
confere noes with
Washington President Roosevelt
Conference provides some ink
ling of how he is
going about the job of seeking
an answer to the world economic
problems. OF course, the Washington
conferences are said to be preliminary
only to the world economic confer
ence, but the methods which the
President has adopted make it appear
that he is about to capitalize the
very thing about which foreigners
and many Americans, too-complained,
namely economic and political isola-
ton of America.
Authorities here characterize his
move as a bold stroke. They see al
most a transplanting of the main con-
ference to the United States. But
they see also many possible pitfalls
in the Presidents plan. In calling
the heads of the governments of Great
Britain, France, Italy, Germany, Japan.
China, Argentina, Brazil and Chile to
the American capital, the President
may be said to have caught oppo-
sition plans off first base, If one may
refer to baseball for a parallel play.
Information available In high quar-
tiers here is to the effect that few, If
any, of them expected such move.
Amy analysis of the policy on which
the President has embarked must
needs include reference to the certain
benefits that come from knowing all
Of the facts. The President has set
out to learn them. He believes the
procedure in the later world confer
ence will be made simple.
But, according to expressions being
banded about, one ought to look be-
hind the scenes. In such conferences
as are being held, there must be un-
Outstanding of tradition, of past links
or breaks between peoples. There
might be tOuchy spots, or there might
be points susceptible of being put to
good use in the relations between ma
lions. 1t seems that the danger lies,
therefore, not so much in what is hap
pening now, but what has happened
in years gone by.
European statesmen have played
their own games of international poll
tics for years. They
Know All know all of the
the Tricks tricks, and they use
them. 1t seems not
unreasonable to assume they will use
their old methods, those with which
they are best acquainted, in their
dealings for the big stakes that are
involved in the economic and debt
parleys. 1t is unfair to say in such an
analysis as have attempted to make
that everything put forward by the
Europeans will be for Interior pur-
poses, but the opportunity is there.
the diverse interest of the various
peoples is there, and therein lies the
threat to the Roosevelt policy.
The economic conferences basically
involve something Of readjustment
of advantages gained, some fairly.
others by force, as result Of and
since the World war. Every one
agrees the conferences concern not
only a solution of the problems of the
depression but they reach far into the
future.
Apparently everybody needs and
wants foreign capital. We all want
to borrow from one another, and all
want to trade with one another, but
each wants a prior advantage in do
ing it. It constitutes an exaggerated
glamor upon which the eyes Of all
nations are set, and to think each one
is going to give up something Of i'm
portance is to expect an early arrival
of millennium.
Nevertheless, in the opinion Of stu
dents of international affairs, the move
by President Roosevelt to capitalize
our hitherto economic and political
isolation has some chance for success
in that its very holiness may partial
ly disarm the statesmen who have
been used to playing another sort Of
game. The President thinks pretty
fast and 1t has been suggested here
that he may foresee any traps and
allow those who laid them to fall into
their pits. At any rate, we are see
ing something new in international re-
lations, the final results Of which his
tory cannot fully record for a good
many years.
A backwash has set up from enact
ment of the emergency banking law.
That statute broad
Backwash From ened the powers Of
Banking Law the Federal Reserve
banks and allowed
them to discount certain types Of COM
mercial paper not heretofore eligible
to be received for discounting.
Since that was done, Washington
is hearing from all parts of the coun-
try to the effect that, If the Federal
Reserve banks are to be allowed to
discount practlcally all KINDS or COM
mercial paper. incorporated cities and
towns ought to be allowed to discount
tax warrants and other obligations of
the municipalities. Nearly every day
resolutions to that effect are received
in congress from some municipality.
From local standpoint, the propo-
sition is one that is difficult to deny.
The answer is simple. however, from
the standpoint of national policy.
Two reasons stand out why this
sort of discounting should not be done !:
1. If unlimited powers were accorded
the Federal Reserve banks In this d.
rection, soon the Federal Reserve
banks would be carrying the entire
burden of municipal Indebtedness.
There would be no attempt to market
their securities elsewhere. 2. If the