The Washington times., 1937-10-19
Paul MallOn---
NeUS Behind
The NeUS

AVA Tipped lately about MS
peace program. Speculation has
been choked off by his an
nouncement that he does not
know what he is going to do.
All interpretations he has
labeled as "guess work"
This much is not guess work:
What State Secretary Hull is
driving at is trade. Such things
as mediation in the Far East
and the other phases now filling
the public mind are only Incl
dental.
Mr.. Hull is reasoning this
way: The trouble with the world
is that there are two classes of
nations, the HAYES and the have
nots the HAYES possess ample
land, oil, coal, iron, copper, cot
ton. food and other essentials
of life the have-nots Japan,
Italy, Germany are suffering
from lack of these necessities -.
the only way to settle the
troubles of the world is for the
HAYES to make some arrange
ment to give the have-nots what
they need.
He wants to lower or remove
the trade barriers of all nations.
He would make this removal sui.
ficiently sweeping so that every
nation would treat every other
nation economically on the
same basis.
The catch, Of course, is to
work out the formula. The
obvious remedy Of making loans
or financing credits to the
have-nots would be far less than
popular in this country in view
of the situation of the war debts.
Then there is the johnson
act forbidding loans to those
who have not paid their debts.
Also the fact that the HAYES are
accommodating most of the gold
of the world, while the have
nots lack the means Of paying
for their purchases, except on
exchange Of products.
0ECRETARY WALLACE has
~ managed to keep it fairly
quiet around here, but he has a
cotton revolt on his hands
which is not by any means a
minor instruction.
At first, Wallace thought the
bitter complaints from Con-
gressmen about the administra-
ton Of his cotton loan system
were just ordinary congress
sional complaints. He went
down to Memphis the first Of
the month. with this sentence
in his speech: 1.-THE loan figure
has been set at 9 cents per
pound: with this loan, farmers
who take advantage Of it are
able to realize at least 8 cents
per pound on cotton Of 7s-inch
staple and middling grade"
But when Wallace came to
deliver the speech, he added an
extemporaneouS apology which
was not reported. Said he: IT
thought that was a good line
when I left Washington. But
since I have learned the loan
is not working as it should, I
have a different opinion. 7
don't know where the fault lies
but the difficulty will be
Strengthened out"
Upon "the difficulty" hangs
~ a tale as revealing Of
Government operation as any
you will ever find.
The cotton farmer formerly
took his cotton to a warehouse,
received a receipt which he then
took to the bank for a loan
from the Commodity Credit
Corporation. When the credit
corporation started checking UP
on their receipts for cotton in
warehouses in connection with
1885 crop loans, they found
they had been gypped out Of
about $21,0O0,O0O. Perhaps the
word "gypped" is too strong. At
any rate they found that the
cotton they had was worth
$21,O00,O0O less in quantity and
quality than had been reported
on the receipts. They took the
loss.
To stop that, the corporation
issued new regulations making
warehouse men responsible for
the truth Of their receipts.
Naturally the warehouse men