davidaulloa/AmericanStories huggingface dataset:
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
1T WAS THE VILLAGES
Park Region EchO)

with the claim that at Last the farm
ers have left the Farmer-LabOr
party; that it was only labor in the
big cities that saved Governor Olson
from defeat. But that claim will not
stand up when one looks over the
election tables. In county after coun-
ty, the returns show practically every
rural precinct going for Olson and
practically every village going against
him.
1t was the villages and the county
seats of Minnesota that gave Martin
Nelson the bulk of his vote.
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
NOT so BAD

The municipality owned light and
power plant out at Tyler in Lincoln
county is doing SO we'll that they are
giving light and power consumers a
Christmas present of their November
bills this year. The municipal plant
which has been there more than a
quarter of a century, operated as usual
with a good profit during the past
year. All equipment is paid for with
money in the treasury.
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06

productive bonds and thereby in the
reduction of taxation and the direc-
ton of this corpse-capital into produc-
tive industry.
Il believe that in the event of e
war for the defense of our nation and
it's liberties there shall be a conscrip-
ton of wealth as well as a conscrip-
ton of men.
THAT is the new call to arms, not
to become cannon fodder for the
greedy system OF an outwOrn capital
ism, nor factory fodder for the slave
whip of communism. This is the new
call TO arms for the establishment OF
social Justice"
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
NEBRASKA'S NEW LEGISLATURE
(The Country Press, Moorhead)

(The Country Press, MoOrhead)
Senator George w. Norris of Ne
braska, who almost single-handed put
through the amendment to the United
States constitution, abolishing the
lame duck" session of Congress and
changing the date of inaugurating our
presidents, scored another victory in
the elections held this month.
The senator sponsored an amend
which aboishes the present Legis-
lature and sets up, in place of Senate
and House, a single body of from
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
OLD AGE PENSIONS
(Madison (Minn.) Press)

The old-age pension plan should be-
come national institution and it IN
doubleday will. OF course there will
be opposition to it from the hidden an
tagOnistic groups. The next session
OF congress should take care of this
very very important matter. 1t is the
aged of this nation who built up this
country. Now they must not be for
gotten. Their life savings were wiped
out through the present economic dis
aster, not through any fault of their
own.
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
OPINIONS OF OTHERS
(Short timely letters on to,

(Short timely letters on topics
OF public interest are welcome.
whether or not the writer's opfn-
ions conform with those of the
American. All letters must be
signed with the writer's name for
our information. Signed articles al
ways are more effective. but If the
writer does not wish to have his
name used. it will be withheld.)
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
A BIT OF HUMOR

Heard among the students discus
sing the school play: Did she act in
tragedy or comedy" Both. She was
tragic in comedy, and comic in trag-
edy."
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06

Heard at the mems club: you
say that someone took money from
your pants pocket at home? Mebbe
it was your wife," mo. there was
some money left"
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06

why do you call your little broth
err Flannel?" asked the teacher of a
boy at school. 1.-The folks named him
that because he shrinks from wash
ing" was the reply.
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-06
FROM EXCHANGES

(Editorial Comment From Other News
papers. Which May or May Not
Conform With the Opinions
of the AskOv American.)
Evening star., 1934-05-30

unless extended by subsequent Con-
gress, though the act specifically pro-
vides that funds agreed to be loaned
prior to such time may be paid out
subsequent to such date.
The loaning authority Of the Fed
eral Reserve Banks under this act Is
similar In purpose to that granted the
Reconstruction Finance Corporation,
though somewhat differently limited
Federal Reserve Banks are limited to
loans to established industrial or COM
mercial businesses, and such loans
may only be made when such busi-
ness is unable to obtain requisite
financial assistance upon a reasonable
basis from the usual sources" Fed
eral Reserve Banks may also purchase
obligations of such businesses or make
commitments with respect thereto.
Federal Reserve Banks may also pur-
chase from financial institutions OBJ
legations of such industrial and COM
mercial businesses, and may make
loans to financial institutions upon
the security of the obligations of such
commercial and industrial businesses.
The law, however, provides that in all
cases where loans are made to such
financial institutions, or through such
financial institutions and not directly
to the industry, such financial insti-
tutions shall either guarantee 20 per
Evening star., 1934-05-30

larger industries provide capital by
the issuance of bonds or securities.
This cannot be readily done by the
smaller industries. and. furthermore,
lated capital to loan to invest are
usually less willing to loan to the
smaller industries than to the great
ones.
Apparently impressed with these
facts, from their individual expert
ences and independent of each other,
separate bills providing for loans to
industry were prepared and submitted
to the Banking and Currency Com
mittee of the Senate by the Federal
Reserve Board, through its very able
and charming governor, the Hon. Eu-
gene r. Black, and by the Reconstruc-
tion Finance Corporation. through its
equally able and charming president.
the Hon. Jesse H. Jones. ! think 1t
fair to say that the first reception of
these proposals on the part of the
majority of the membership of the
Banking and Currency Committee was
not enthusiastic. but after hearing the
personal presentation by the gentle
men named of the necessity for such
measures the members of the COM
mittee became thorough converts to
the advisability of providing for Gov
ernment loans to smaller industries.
The impression held by some members
of the Banking and Currency Com
mittee that the two proposals were in
conflict was Quickly dissipated, and it
became clear that there was no more
reason why each of these great agen-
cies should not have the right to make
such loans than that there should not
be two banks in one city, each making
similar loans. The two bills, while
having identical aims and purposes,
were quite different in detail. While
the two houses of Congress have diff
fered somewhat as to the details Of
Evening star., 1934-05-30

cent Of any loss to be sustained by
the Federal Reserve Banks in the
making Of such loans, or contribute
20 per cent of such loans to the capi-
tai of such business. These provi-
sions are Of very great Importance.
In the case Of ordinary discounts
with the Federal Reserve Banks of the
obligation of businesses or industries,
the bank or other financial institution
securing the discount Is compelled to
indorse or otherwise guarantee such
discount to its full amount, while un-
der the provisions of this act the
extent of the guaratnee or contribu-
ton on the part of the financial in
stitution is limited to 20 per cent.
The aggregate amount of loans and
commitments to be made by Federal
Reserve Banks under this bill may not
exceed the combined surplus of the
several Federal Reserve Banks as OF
July l, 1884, which will amount to
approximately sl43,000,0O0.
Subject to Regulation.
All transactions on the part of the
Federal Reserve Banks under this act
shall be subject to the regulations of
the Federal Reserve Board. 1t is
further provided by the act that loans
by the Federal Reserve Banks shall
first be submitted to a committee to
Evening star., 1934-05-30
THE EVENING STAR WASHINGTON WEDNESDAY,

this particular program. each house
has recognized the propriety of grant,
ing this authority to both Of these
agencies, and in each house the two
separate bills have now been Joined
and passed as one bill. The differ
ences between the two bills are now
before the Conference Committee, the
members of which are Senators Glass,
Wagner, Barkley, Walcott and Town
send for the Senate, and Representa-
tives Steagall. Goldsborough, Trail.
Luce and Beedy for the House, for the
purpose of having the differences in
detail adjusted. I have no doubt but
that from this group of most able and
experienced legislators the bill will
come to the two houses for final ap-
proval in highly acceptable form.
From close contact with the members
of the Conference Committee from
the Senate during almost daily ses-
sions of the Senate Committee on
Banking and Currency extending over
many months, can give personal as
ouI uIdilCc-tllOuSH hIlOW HO ouSi
assurance is needed-that no group of
men in public life or elsewhere Is
better informed on public financial
matters or more devoted to the enact
ment of legislation with sole view
of the public interest than the Senate
conferees. I do not have the same
intimate contact with the House con-
ferees, but do not doubt that they are
entitled to equal commendation.
The proposed act, which is gen.
orally known as THE Glass Bill" con-
fers the power to make loans to estab-
lished commercial and industrial busi-
nesses upon both the Federal Reserve
Banks and Reconstruction Finance
Corporation. Neither can make loan
to start an enterprise. Both are linn
tied to the making of loans to existing
businesses. Each may make loans
Evening star., 1934-05-30
having maturities not exceeding fiv
years.
r. F. c. Loans for Labor.

having maturities not exceeding five
years.
r. F. c. Loans for Labor.
The Reconstruction Finance Corpo-
ration Is authorized to make loans
for the purpose Of maintaining and
increasing the employment of labor.
when credit at the prevailing bank
rates is not otherwise available at
banks The bill further provides
that such loans shall 'be adequately
secured" and may be made "only
when deemed to offer the reasonable
assurance of continued or increased
employment of labor" and only when
the borrower "is solvent"
In view of these provisions, it is OBJ
vious that. If the act is administered
in accordance with these require
ments, the loans made under its au-
thority will not be gifts but genuine
collectable loans.
The Senate bill limited the Recon-
struction Finance Corporation to a
maximum of outstanding loans at any
one time of $250,000,000, while the
House bill would increase this limit to
$500, 100000. The Senate bill would
authorize loans to a single borrower
up to an amount of 81 100000. while
the House bill would place a narrower
limit of 100000 to individual bor-
rowers.
The power of the Reconstruction
Finance Corporation to make such
loans will terminate January 81, 1885,
Evening star., 1934-05-30

loans, and do not liquidate themselves
in the ordinary course of business.
It is for these loans that industry
should look elsewhere than to the
banks The result is that it is neither
good for the bank nor for industry
to have capital loans made by any
banks whose deposits are subject to
call, either on demand or upon short
notice by its customers.
Much is written and said of the
pilipg up of excess bank reserves in
the Federal Reserve Banks. This
should be source of encouragement
rather than complaint These accu-
mulated reserves evidence not the re-
placement or restoration of the great
reduction in deposits which I have
but the fortunate fact that
while the deposits in the banks are
smaller in amount, they have become
more liquid, and that within the range
of their financial capacity banks are
now prepared and determined to do
banking business and not an invest
ment or a speculative business, and
that when business starts there will
be funds available for its current COM
mercial needs. To use these funds for
capital loans would again freeze the
bank deposits and render the good
work that has been under way in
liquefying the assets of the banks of
little avail A study of past depres-
sions shows that a large increase in
unloaned bank deposits is one of the
which in every instance has
preceded real recovery. These excess
reserves are, therefore, to be rgardd
as hopeful sign.
Sources of Capital.
Realizing this situation. it has be-
come apparent that some source of
capital loans should be provided, if
possible, for smaller industries and
businesses which can no longer count
upon banks for capital funds The
Evening star., 1934-05-30
Loaning Capacity Drops.

In the past, these smaller industries
and businesses have generally been
financed by the banks. They cannot
look to the banks today Money with
which the banks make loans is prin-
cipally the money of their depositors.
Deposits in the banks of the United
States have decreased from the hign
point before the depression about 80
per cent, or some twenty billion dol
lars. This decrease in deposits neces-
karlly reduces their lOanlng capacity.
Furthermore the recent bank panic
taught the banks that their loans
should not be in long time, but in
short-time paper, in order that they
might be able to promptly pay their
depositors should they call for their
money.
Loans needed by many industries
are what is designated in financial
circles as capital loans, being those
the proceeds of which go into the
more or less permanent financial
structure of the business, but cannot
be paid upon demand or within a
brief period. In order to protect
industry in its operations, it must be
assured that it will not be called upon
to pay its capital loans except after
substantial period of time. Proper
bank loans are usually not for a term
longer than 80 days, and seldom more
than 6 months. The banks are and
will properly be the source of loans
for current needs such as the purchase
OF raw materials and the payment of
labor which are normally paid in due
course in a short time when the mer-
chandlse or manufactured products
are sold. Loans for the purchasing of
lands, buildings or machinery, on the
other hand. are the so-called capital
Evening star., 1934-05-30

be appointed In each district. known
as the Industrial Advisory Commit
tee" These committees shall be COM
posed of not less than three nor more
than five members to be appointed by
the Federal Reserve Bank, and shall
be composed Of men actively engaged
in some industrial pursuit. Members
Of such committees shall serve with
out compensation other than neces-
sary expenses, or per diem allowance
Continued on Ninth page)
Evening star., 1934-05-30

Continued on Ninth page.)
Evening star., 1934-08-26
CORPORATION
REPORTS
TRENDS AND PROSPECTS OF
LEADING ORGANIZATIONS.

NEW YORK, August 25.-The fol-
lowing is today's summary Of corpo-
ration news prepared by Standard
Statistics Co., Inc, of New York:
National Aviation Corp.-Net asset
value on June 80, 1884, equalled
s11.72 per share VS.. 1888 on Decem-
Der 81, 1888.
American Smelling g. Refining Co.
Reduced price Of lead points to
$40 cents a pound, New York.
Eagle -Picher Lead Co.-Deficit, six
months ended June 80, $110,242.
G1fdeen Cot was stated S3,052,-
900 par value Of f1ve-year 51z per
cent notes of comapny have been
turned In under maturity extension
plan; holders of $4,000 principal
amount have asked for redemption in
cash; Of the old maturity $246,0o0
principal are outstanding.
Derby Oil & Refining Corp.-Dehcit,
six months ended June 80, $53, 3,006 VS..
$118,997.
Honolulu Oil Corp.-Declared a
dividend of Is cents; q similar dis
tribution was made on June is, 1884.
Florida East Coast Railway.-Re-
ceivers have suggested that holders
of series D equipment trust certifi-
Gates take possession Of equipment in
satisfaction of their claim; it was
pointed out that interest on the issue
was not paid when due on July 1,
but that grace period extended to
October 1.
Lehigh Valley Railroad-July net
operating income, $27, ,834 VS.. $537, ,482.
Seaboard Air Line Railway-July
net railway operating deficit, $212,519
VS.. net railway operating income Of
$172,278.
Southern Pacific Co.-July net rail-
way operating income, $1,876,452 VS..
81, ,482, 2,349.
Wabash Railway-July net railway
operating income, $306, ,776 VS.. $505, ,52I.
Amoskeag Manufacturing Co.
Federal Surplus Relief Corp. an
nounced award of contract to this
company for 6,400,0OO yards of huck
toweling; company also received con-
tract for 100000 yards of mattress
ticking.
Cannon Mills-Federal Surplus Re-
lief Corp. announced award of con-
tract to this company for 5,58O,000
yards Of huck toweling and $500, 900
yards of terry toweling.
Eastern Utilities Associated common
share earnings. IL months ended July
81, $2.79 VS.. $2.48.
Evening star., 1934-08-26
New York Cotton
BY the Associated Press.

BY the Associated Press.
NEW YORK, August 25.-Cotton
was lower today under liquidation and
scattered selling which was said to
have included an increased volume of
hedging. Offerings were not heavy
but buyers showed little disposition to
follow up bulges and selling became
more active in the late trading, with
December declining to 1885, or IA
points net lower, and closing at that
figure. The final tone of the market
was barely steady at net losses Of 13
to 18 points.
Except for a squirt toward the close
trading was comparatively quiet, with
an increased proportion Of the selling
attributed to hedging against cotton
purchases in the Southwest. The
trade was said to be the chief buyer
with a scattering local or commission
house interest on both sides Of the
market.
Discussion as to whether the West
ern belt rains had come in time to aid
materially to the crop continued,
while the trading seemed to find no
Immediately stimulating influences in
the overnight reports from Washing
ton regarding the application of the
12-cent loan cotton plan to the cotton
held in the producers pool.
According to private advices there
were further scattered rains in West
and Northwest Texas, Oklahoma and
Arkansas.
The amount Of cotton on shipboard
awaiting clearance at the end of the
week was estimated at 47,000 bales
against 10000 last year.
The range follows:
Evening star., 1934-08-26
TIN PRICES'TAKE
uneven COURSE
Decline in Sterling Exchange
Checks Advancing Tendency
Earlier in Week.
BY the Associated Press.

By the Associated Press.
NEW YORK, August 25.-The
metals situation last week was fea-
tured more or less by an irregular
movement of tin prices. The decline
in sterling exchange checked an ad-
vancing tendency shown in the fore
part of the week, and resulted in a
moderate net reaction. Demand was
generally quiet.
Tin plate operations were estimated
around so per cent Of capacity, the
reduction rejecting smaller canning
requirements and a growing doubt
whether any large part of the Gov
ernment canning program will be
fulfilled.
Lead quotations were lower, re-
hecting an unimproved demand and
a poor statistical position. The
extended period Of dullness in zinc
was ended with a reduction in prices.
Buyers, however, are still skeptical of
the price structure.
Steel operations continued at
low ebb with ingot production esti-
mated at 81 per cent of capacity.
The feature of copper was the
weakening of the European situation,
although the domestic market re-
manned unchanged at &c for Blue
Eagle delivered to the Connecticut
Valley. Antimony held unchanged in
a quiet market.
Evening star., 1934-08-26
Chicago Grain
By the Associated Press.

CHICAGO, August 25.-A sharp
upturn in corn stimulated the grain
market today and prices moved higher
as general speculative buying broad
ened.
Aggressive commission house pur-
chasing pushed corn quotations up
almost cents at times following word
of frost in Iowa and predictions that
cooler weather and accompanying
frosts would spread over the northern
grain belt. The rally attracted q
large offering of corn from the country
and this tended to cheek the advance
Purchases of more than 400 900
bushels were reported by local hand
lers at substantial premiums over
September futures.
Wheat Jagged behind, but fractional
price gains were registered largely in
sympathy with corn. Possible dam
aging effect Of frost in Canada at
tracted some attention.
Corn showed q net gain of IL to 2
cents, approximately the days top, at
the closing bell September was
quoted at 79 to 1918 cents, December
at 809s to 80B and May at 83ss to
83h.
Wheat was y down to q cent up,
December new finishing at $1.05 to
$1.o5A. Oats gained 5s to is cent,
rye 70 to rs and barley y to 3H.
Provisions were slightly higher.
Evening star., 1934-08-26
Dividend Changes

BY the Associated Press.
NEW YORK, August 25.-Favorable
dividend changes in the last week
totaled 81, against in the previous
week, according to the Standard Sta
tistics Co. Of New York. Details Of
changes:
Favorable.
Increased-Mesta Machine, Tacony-
Palmyra Bridge common, Tacony-
Palmyra Bridge Glass A, Bolfour
Building vtc., Falconbridge Nickel
Mines.
Resumed-Johnson Ranch Royalty,
Brooklyn Manhattan Transit, Herman
Nelson Corp, Rochester & Pittsburgh
Coal S per cent non-cumulative pre-
ferred.
Extra-Lake Shore Mines, Beechnut
Packing, Calambra Sugar Estate, E. I.
du Pont de Nemours, Haloid Co., Hol-
linger Consolidated Gold Mines,
Quaker Oats, Abbott Laboratories,
Loudon Packing, Time, Inc.
Initial-H. C. Goldman per cent
second preferred, ziegler- -Hutter
BrewerieS.
Unfavorable.
Reduced-Atlantic Building Trust
(Boston), Hathaway Manufacturing,
Babcock & Wilcox.
Passed-None.
Evening star., 1934-08-26
Trust Institutions
Advised to Enlist
Newspapers Aid
Special Dispatch to The Star.

SPECIAL D1SpdLCn 10 L ne 0IdT.
NEW YORK, August 25.-
Public opinion rules American
life. It determines the success
or failure of any otherwise well
managed business. 1t makes and
unmakes the laws of the land.
The man-in-the-street makes
public opinion, and he forms his
opinion mainly from what he
reads in the newspapers"
These are some of the state
ments made by Gwilym A. Price,
vice president and trust officer,
Peoples-Pittsburgh Trust Co.,
Pittsburgh, Pa, chairman OF the
Trust Information Committee Of
the trust division, American
Bankers Association, in a spe-
cial message to trust institutions
appearing in the current issue OF
Trust Companies Magazine.
Mr.. Price, in urging banks and
trust companies to take news
paper men more into their con-
fidence, pledged the American
Bankers Associations trust diN-
sion ito assist trust institutions
in upholding the standards of
good trust service and to aid
them In acquainting the public
with the value Of those
standards"