The Western news. [volume] (Libby, Mont.) 1933-current, 1938-04-21

ment, so it seems fair that the gov
eminent should take a hand IN rec
tifying the trouble.
Where Trouble Lies
The difficulty has been with the
securities and exchange commits
sion law. This has made almost
impossible the floating of small Sc
curity issues by local industries.
The penalties involved for any mis-
statement, any holding out of hope
for profits not absolutely justified,
ETC., are such that the little business
managers have been terrified. 30
they have just done nothing. Nor
mally of course they could find plen-
tv of investors, or suckers to buy
their securities, promising them all
sorts of profits. SEC has made that
too dangerous.
So the new corporation loans will
be made to these enterprises, gov
eminent money being lent with no
tirne-limit required-by the law-as
to when it must be repaid. Inc
present reconstruction finance cor
peration law requires that no loans
can be made with a maturity date
later than February /, l945.
The idea will be to require some
local participation in the loan, pref
erably from local bank, so as te
have a watchdog, on the ground, for
the governments money.
President Roosevelt is sold moi
only on the idea of hurdling the
difficulties imposed by SEC restric
tions, but of encouraging employ
ment. He definitely swings, for the
time being, to some of his more
conservative supporters, and tenn
porarily, at least, he is convinced
that relief is just shot IN the
ARM" while permanent aid mus
come from private employment.
incidentally Jesse Fl. Jones, TO off
Set the often made charge that HI
is a miser with RFC money, tolt
the senate committee that from i
to 20 per cent Of RFC loans are. IL
some stage of default. Which j.
Jones way of promising that he vii
be liberal on the industrial loans.
Mexican Affairs
Mexican affairs will take a yer.
| different turn from that general.
expected in the oil controversy
according to we'll advised sources i
|. Washington. Not only will Presl
dent Lazaro Cardenas stand firm o.
his sei2lre of American and othe
oil-felds, but he will force the pr
vate oil interests dispossessed t
market the oil from theml TIL
point is that Cardenas is expected t
agree to pay for the wells, but wi
agree to pay for them in oil. So thu
it will be up to the companies to Sc
to il the oil is refined and sold, {
else get no money.
On the silver policy Mexico
worried, but viii not be forced
yield. She needs silver for he
own currency, and she needs II
sale of silver to provide exchang
Already some of her mines al
closed down, also the plant of Il
American Smelling and Refnir
, company at Monterey. Gardens
! plans to tell the company to opera
: or he will seize that, too.
: Cardenas knows perfectly that +
:, seizure of the oil fields was not t
!. main reason for the United Stat
/. Treasury's reduction Of the price
silver, but that it was only the c
cuse. He knows that Preside
Roosevelt had been looking +
} some excuse to stop propping |
J the world silver price for lol
time, as a backdoWn from the S
i. yer policy that the United Stat
embarked on in the early days Of t
). New Deal in order to placate 0
silver producers and the infationist
, Cardenas is not encourage
r therefore, by the specious argume
that, under the law, the Treasu
q must buy silver, and, if it buys
o abroad, will merely be adding tv
! way freight charge to Mexican s
: yer. Cardenas does not weigh
n text of laws as do some America
i nor does he think the Washingt
10 government will be too much ha
n pered III that direction. Iii VIII
opinion he is joined by some shire
observers. here, especially the
yer and inhationist senator's, "
re are frankly worried.
:, Cuts Silver Subsidy
in Roosevelt discovered on N
On Years day that he could redl
Il the domestic silver subsidy with
$. an earthquake, despite the plant
r. cries of senators from the sill
n states.
he Mexico's program Of governm
" ownership of everything is mar
ne ing on. The silver move is m
D. likely to expedite it than to delay
D. Cardenas realizes also that he
the whip hand from diploma
MS standpoint. Secretary of State {
al dell Hull is already very much
l.. turbed at the repercussions throl
,r, out Latin-America, where
l.. strength of Mexico's position is
- .14 raaIiyed and the picturp cpf