The Waterbury Democrat., 1938-02-25

economists.
 Reading the statement this quartet finally concocted, you can't help but think they would have been better off if they had let the charts speak for themselves.
 One chart made particular irn- presSion upon the President. It showed how price divergence can upset the economic system of the nation. In other words, if prices are all travelling in the same di- rection 1t isn't so bad. But if steel is going up while farm products are going down, then the effect upon the nation is like putting your feet on two different escala- tors going in opposite directions.
 This is more or less what is happening today.
 For instance, the farmer has to turn his cream into butter, even if. the price of butter is down. He can't tie up his cows the way 8 steel manufacturer can pull the fires from under his blast. furnaces. And if a COW dies, the farmer has to sell tho hide even if the price is down.
 For this hide he cannot buy as many pairs of shoes as he once did, because the price of the hide is down and the price of the shoe is up. For the shoe industry is regulated.
 Nor can the farmer buy SO much farm machinery for his cream and butter, because the steel industry also is regulated. Steel prices today have changed little.
 Depression Cause
 The fact that the farmer can't buy as much, eventually comes back to hit the steel and shoe manufacturer. and this whole busi- ness of price divergence is one of the biggest causes of every de- precision.
 In 1928 prices were following the same general trend. In 1929 they first began travelling in op- posite direction and hit their greatest divergence at the bottom of the depression in 1932-33. Similarly they were in perfect line again in 1886, but began to get on opposite esealators in 1887.
 The officials who prepared the Presidents statement discussed this in great detail, but decided that unless the country wanted to put on the same economic strait jacket into which Hitler has laced Germany, nothing much can be done about price divergence. That was one req son their statement sounded so milk-and-water.
 One or two factors will help. however-the farm program, tariff reductions on high-priced manu- factured goods, and antitrust ac- tion against monopoly products. High Cost of Goodwin
 In terms of dollars, the flight Of the Army bombers to Buenos Aires to participate in the in- auguration of President Ortiz was something more than gesture. To send the six bombers to Argen- tina and back cost: $34,000 in gas and oil alone.
 The flying fortresses eat up gasoline at the rate of 40 gallons an hour for each of their four engines. The six planes with their A engines consumed 960 gallons every hour of their 40 hours of flying from Langley field to Buenos Aires-or nearly 10000 gall Ions, one way.
 Loud Speaker
 Speaker Bankhead finds that he has to pound his gavel loudest for order in the House following speeches by the Screamers and shouters. If a member has low voice, the House listens in com- parative quiet. But if a loud mouthed member, particularly Rich of Pennsylvania gets up, Bankhead reaches for his gavel.
 Robert Rich of Woolrich is . Pennsylvania Republican with a lot of his energy centered in his vocal chords. With wild gestures and 9 screaming voice, he tears passion to tatters".
 The last time Rich spoke he was challenged by Lawrence Lewis of Denver, Colorado, and Walter Pierce of Oregon, both Democrats. These gentlemen shouted back at Rich, and Rich, standing three feet from them. shook his finger in their faces. and raised his voice another notch.
 When Rich was finished. the House was in turmoil. Bank head banged his gaveL "The House will be in order!" ... Bang, bang ,. "The House is not in Order!" Bang OFF THE RECORD