, 1935-02-05
WASHINGTON
BY George Durno

DATED dTOulO the new deal n IL
nally coming to roost as Special
Trade Adviser to the president, are
beginning to think his day in court
Is near at hand.
Peek is the advocate OF Yankee
trading" in driving commercial
agreements with foreign nations. If
he eve gets a chance he will do II
through the Export-Import Banks
The Is authorized to start function
ing.
But up to now the former Agricul-
tural AdjuStment Administrator has
run afoul Of Secretary Of State Hulls
ideas Of only negotiating reciprocal
trade treaties containing the most
favored nation clause, which gives
tariff equality to all.
Senate rejection of the World
Court was the first ray Of light to be
seen by those advocating the Peek
system. They argue II showed the
temper Of this country 10 be suffi-
GENTLY nationalistic to permit some
advantageous bargaining for trade.
Also. there is a growing belief in
Washington that President Roosevelt
has gone Loyalty down the line for his
chief cabinet officer. Secretary Hull,
without obtaining many material
results thus far. OF the fifteen rec
iprocity agreements on the fire the
only clear-out progress TO date has
been made with Brazil.
All Of which makes the Peek Ad-
herents hopeful We r due for a per-
iod of hard-money, give-and-take
bargaining.
CottOn-The Saddest blow TO fall
on Peek's brow recently was the up
setting Of his tentative agreement 10
sell 100000 bales OF cotton to Ger
many. Anti-Hitler influences play
ed Skilfully on the state departments
emotions TO undermine il.
Briefly. Peek's office had arranged
to sell those 800. 900 bales to Ger
many for $4,000. 900, Of which $l2,-
100000 was to be paid down. AS Herr
Hitler does not allow any Of his
money TO 20 out OF the country, cred
IL was to have been established IL
r~eichSmarks IN Germany for the
benefit OF American importers. The
beauty Of Peek's bargain was that
the reichsmark is now quoted at
about 80 cents, whereas under the
agreement we would have had them
at the rate OF % cents. Germany
needs cotton badly.
American chemical interests are
given official credit for blocking the
trade. II was dinned into official
WaShlngtOn'S ear that German
chemicals would be imported IN ex-
change for the cotton al the expense
OF our industry. Those who should
know. however, say that Germany
would have had TO stipulate what
commodities would be shipped here
In return for the cotton before the
bargain was sealed.
Trouble%Secretary of Labor Fran
Roosevelt 70 be prepared for trouble
in the textile industry IN the not
far-distant future.
Large numbers Of workers Still
have been unreturned 10 work since
the last strike. Further, the head
long efforts Of the American Fed
Grafton of Labor to unionize the in
dustry completely are reported 10
have the mill owners in a fighting
mood.
A survey Of the Bureau Of Labor
Statistics developed four interesting
factors: Cd that the cotton textile
industry is still one Of the lowest
paid in the country; ~ that the
average hourly wages since the code
have gone up higher regardless than
any OF the other IS industries re-
porting: ~ that most Of the m
ployers have met the basic minimum
wage but have not maintained the
d~ifferentials between the various
grades Of skilled labor, and, C4 that
southern labor is distinctly restless
with complaints the mill owners are
not complying with Section IA and
arc violating the code stretch-out
provisions.
Play-On - The third finding OF
the Labor Statistics Bureau may
give the textile industrisliSts cause
for a faint cheer.
Reports from the bosses have been
that the upper grades Of textile la
Dor are getting a bit sore. Many OF
them believe the advance Of the un-
skilled worker to a living minimum
wage has been at their expense.
When and as a strike becomes I'M
minent, close observers expect the
employers to play the skilled work
ers against the unskilled. Francis
German. dynamic spokesman for the
Textile Workers Union, will bet you
II won't work.
Loans - Hon. Jesse Jones Recon-
struction Finance Corporation con-
tInues to make grand financial
statements to the White House. In
the period between Jan. 5 and Jan.
10 il reported authorizations OF
SIS. 000.o 900. disbursements OF $23,-
100000 and repayments Of $3s,ooo,-
900.
But this report reached the Pres
ident's desk with a footnote from
Donald Richberg's National Emer-
gency Council which said that crit
icism still persists that business
loans arc hard to get because Of the
nature OF the security requirements.
The criticisms apparently came
from six midwestern states.
Obstacle You'll see another
blow at the integrity Of the states
said . Senator. discussing the East
man railroad plan. X confess !
don't see how airplane commerce
can be regulated without wiping out
state powers and yet Congress has
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