Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1936-03-05

~ " A2AAAAAANNNH
California cheap power would be Sc
cured from the Bonneville and Grand
Coulee dams. linked with the Skager
project near Seattle, which would
probably be carried out IN co-opera-
ton with the three States and not
through Congressional action
About a year ago President Roose-
welt requested Congress to provide
open subsidies for American ship
builders and ship operators to replace
the disguised subsidies now being paid
them for carrying the mad. The
idea is to place American ships on a
competitive basis with foreign ships
subsidized by other governments. Last
June the House passed a bill along this
line but il made nc progress in the
Senate. The idea is being pushed for
ward again and some action may re-
suit provided the measure can satisfy
those who are afraid that the subsidy
will give large profits to ship men and
accomplish little toward sustaining an
adequate merchant marine If the
measure passes. it will probably limit
profits and salaries and prohibit the
well known corporate device of "siph-
oning' profits into holding companies
Twenty-one states shared in the
distribution Of 81 900 when the So
cial Security Board recently inaugur-
ated the largest welfare program in
the world. The money included aid to
the aged, the blind, and dependent
children. Federal assistance for the
aged matches state funds on a $3.50
figure basis up to $50 per person per
month. Persons IS years Of age or over
are eligible, although up to 1910 states
may make the age limit 20 years. Per-
sons who have resided five years out
of rine preceding application for aid,
including the year Immediately pre-
ceding, may not be denied benefits.
The same rules apply to assistance to
the blind. For dependent children the
Federal Government provides 81 for
every So put up by the States, with a
maximum of Sc per month per child.
When more than one child in the same
home is given assistance, Federal
funds provide S4 per month for each
additional dependent child.
The House of Representatives has
approved the largest appropriation for
the Army in any year of peace, $685.
1888 1888, for strictly military purposes.
Coming up is the bill to provide not
much less than 5000, 000, 900 to build up
and improve the Navy. Rumored in
the House was an alarming condi-
ton, carefully concealed by Congress
men, and the idea that the develop
ment of new aerial weapons is grad
ually changing the plans of strategists.
While past strategy dictated the viz
tual abandonment Of the PHILIPPINES in
the event of war, preparations for in
creased defense in the Pacific are evil
dent from increased amounts made
| available for harbor defense along the
Pacific coast at Hawaii and the Pam
anna Canal. Great emphasis is being
placed uopn an enlarged air force.
With considerable talk about credit
initiation and the fear in some quar-
tiers that currency imitation might re-
suit from the activity of some Con-
gresham, it might be we'll to check up
on the situation. AS every reader
knows, the aftermath of the World
Wan was a strenuous def1ation fol-
lowed by an inhationary movement
which lasted until 1929. This was mis-
termed prosperity" until the bubble
broke and the nation found itself on
the bottom.
With prices and values excessively
low, almost everyone recognizes the
necessity of building them up to a
more normal base. This process began
when the Federal Reserve Banks, dur
ing the administration of President
Hoover, purchased about S2,0O,00O
worth of government bonds. The idea
was then and is now that bank money
should be cheap in order that industry
and individuals will borrow and thus
start things moving. Naturally, once
underway, the upward trend could
continue unduly, thus equalling 1929
or get entirely out of control and Gre
ate a situation that would be even
more dangerous
President Roosevelt has consistently
maintained that the general level Of
prices is not high enough and thai
prices should be adjusted more nearly
to the level at which most of the debts
of the country were contracted. 1t is
the conviction of most observers that
he is determined to use all powe,
available to prevent prices from run
ming away, either to high or too low
For the most part all present effor
has been directed to stimulate credit
expansion, but it is fair to assume thai
when prices reach the desired leve
that the strength of the Government
viii be exerted against undue infa-
ton and credit expansion.
Ir fact, there are numerous control:
available when the Government deem!
it necessary to apply them but thu
necessity will only arise when credr
expansion sets in in a big way. While
the move seems to be gathering mo-
men;um, many officials today fear tina
it will not move fast enough to CHECK
the Growth of currency initiation senti-
| ment.