davidaulloa/AmericanStories huggingface dataset:
Evening star., 1959-10-25

The United States has cut its
inspection demands right down to
the bone in a genuine effort to
get agreement.
Acceptance of quota on on-site
inspections is move of consider
able Importance. The quota idea
first was proposed by the British,
and then taken up by Khrushchev;
but Washington previously has
fought it tooth and nail.
1t would mean that when sels-
mographS detected suspicious
underground tremor, inspectors
could go to the scene and investi-
gate only if the quota of inspec-
tions for that year had not previ-
ously been used up. The inspec-
torate would have to save up some
of its quota so that it would never
get into a position where its hands
would be completely tied.
The argument in favor of going
along with the quota system Is
this:
Q 1t would be physically impos-
sible to check up on every suspi-
cious tremor. There are between
300 and 10000 of them every year
which are smaller than 5 kilotons
in size.
Q No police department needs to
post a cop at every red-and-green
traffic light in a city. 1t is enough
to police a small percentage Of
them.
Q Previously at Geneva the United
States has insisted on having one
suspicious event in every five in
spected. But this would present
the inspectorate with an impoS-
sible problem in administration.
Unanswered Questions
How many experts to hire?
How much equipment to buy?
One inspection for every flve
tremors could mean so inspections
one year and 1000 the next; one
would never know. To maintain
personnel and equipment for
1000 inspections every year would
cost billions of dollars, much OF
which would be wasted at least
some of the time.
So the United States is pre-
pared to go along with a reason
able quota which would be within
practical limits and which would
have some relation to the number
of unidentified tremors. Wash
ington still will not let the Rus
slams pull a small number, such
as five or six, out Of hat; but
something like 40 or 50-the exact
number can be negotiated-would
be acceptable, if there is enough
fiexibility to allow for a change
if future events justify it.
Once this stand is put on the
record, it will be up to the Rus
slams to show their good faith
and their interest. if any, in a
genuine East-West accord.
Evening star., 1959-10-25
Ant0rcticu:
Pact SndrI

international cooperation dur
ing the recent International Geo.
physical Year was so good that
confident statesmen predicted
agreement on continued CO.
operation and permanent peace
in Antarctica. The delegations of
IL nations met in Washington two
weeks ago to prepare treaty de-
militarizing the subcontinent and
maintaining a political status quo.
But initial predictions that all
would go smoothly failed of full
f1llment. Reservations, particularly
by France, Chile and Argentina,
have held up agreement on i'm
portant provisions of the draft
treaty. Methods of protecting each
nations rights and claims in Ant
arctica, and the question of future
accessions to the treaty by nom
signatory powers, among other is
sues, have slowed the conference
to a crawl.
Nations pressing territorial
claims to areas Of the sub
continent are France, Britain,
Australia, New Zealand, Argen-
tina, Chile and Norway. French
objections to the language of a
provision designed to protect such
claims has been a major snag
thus far.
Evening star., 1959-10-25

agricultural grounds, and SO
long as this situation persists, the
exporters of competing agri-
cultural products can legitimately
claim that they are not getting
the treatment for which they
bargained when they first became
contracting parties to the agree
ment." 1t added that If the
problem of agricultural restrictions
is not met in negotiation by the
importers of these products, "The
general system of clearing chan
nels of trade by general all
round negotiated reduction Of
trade barriers .. may suffer a
serious setback"
In addition the report blamed
agricultural protectionism for
maintaining uneconomic peasant
production on small farms in
Western Europe.
1t was as a result of the Har-
berler report that the Agreement
set up its Committee No. 2. At
the Tokyo meeting the committee
will present an examination Of
the agricultural policies of the con-
tracing parties and the effects on
trade. In about year the COM
mittee is to present its conclusion
as to whether changes should be
made in the pact relating to
agriculture,
Evening star., 1959-10-25
Costro's
A A'Bombing'?

Fidel Castro suffers from no
dearth of words, and his speech
making endurance qualities have
been notable indeed. Last Thurs
day night the bewhiskered Pre-
mier took to the television screen,
and for almost five hours roared,
threatened and gestured. 1t was
3 o'clock in the morning when he
subsidized.
The occasion for the marathon
harangue was the bombing" Of
Havana last Wednesday by leafiet-
dropping planes. Fighter aircraft
of the Cuban air force attacked
the invaders" and in the subse-
quent shooting two Cubans were
killed and As wounded. Premier
Castro said the leaflet planes also
dropped bombs. but in all the fine
confusion no one could say def
nitely whether the casualties were
the result of bombs dropped by
the interloper planes, grenades
tossed from speeding cars driven
by anti-Castro elements, or by the
spatter of bullets from the Castro
fighter planes.
Mr.. Castro charged that the
leaflet planes had flown from
Florida, and in this he proved to
Evening star., 1959-10-25

monarchy of 81 square miles
and 15,700 people, is ruled by
Prince Franz Josef II. Its capi-
tai, Vaduz, is the site of the
summit meeting.
MONACO, we'll known for its
Monte Carlo casino, its Prince
Rainier and Princess Grace, is
the only one of the four with
direct access to the outside
world. 1t is a Mediterranean
seaport on the French coast.
ANDORRA counts some 5000
people and 191 square miles.
1t is a republic under the
suzerainty of France and the
Spanish Bishop of Urgel and
occupies a beautiful valley in
the high Pyrenees along the
French-Spanish border. Off,
cially, its citizens live on in
come derived from cattle and
vineyards ana tourlSm. BuC
traditionally there has been
bit of nocturnal trading across
the borders, which are difficult
to patrol.
SAN MARINO maintains it
self in the Italian Apprentices
with a population of 13,500. For
several years after the end of
World War II it had the dis
tinction of being the only Com
munist state in Western Eu-
rope, but in 1857 a series Of
intricate political maneuvers
and a military blockade by the
Italian government ousted the
Communist council.
Evening star., 1959-10-25

ing Company Act brought these
enterprises under regulation. In
1899 the National Association OF
Securities Dealers brought over
the counter dealer under SUPER
vision.
The Federal Reserve Board can
raise or lower the margin require
ments to meet conditions bearing
on how much buying Of stock on
the cuff seems good for the
economy.
Nonetheless, the stock market
picture today has many similari-
ties to that preceding the 1929
crash: Prices have been bid up
beyond the traditional ratio to
earnings and dividends. Bonds
yield more than many stocks. The
public is in the market-and price
fluctuations in some stocks indi-
cate much of the buying has been
on tips rather than examination.
The volume of turnover has risen.
Policing Of Trading
But the stock picture has many
differences from 1929-and almost
everyone thinks the differences
outweigh the similarities.
The differences are: Policing of
trading by the exchanges and
Government agencies; outlawing
of the shady practices that sent
the market soaring in the '2Os;
the relatively small amount of
trading on margin; the big share
of outstanding stocks held by in
stitutions, many Of them like the
pension funds) unknown to the
1929 market, which lacked this
stabilizing influence; and the
healthier condition now of the
economy as a whole.
But perhaps the biggest differ
ence is the individual stockholder
himself. His ranks are much larger
now. Belief is widespread that he
is better informed about what he
buys and that he gets into the
speculation.
In othen words, today Americans
are putting into the market only
what they have left after taking
care of family security through
insurance, saving bonds and home
ownership.
Before Black Tuesday, the much
sillier speculator was using the
rent money or what he could get
on his insurance policy or borrow
from a broker to take a fling at
getting rich overnight.
He learned the hard way. And
it took the Nation almost a decade
to get over his folly.
Evening star., 1959-10-25
Drop in Import Bans
Due at Meeting

ton Of having to violate either
the agreement or her own laws.
Compromise Agreement
BY May of this year a compro-
mise was worked out at the semi
annual agreement meeting in
Geneva. Germany agreed to re-
move quantitative restrictions on
all items but those agricultural
ones covered by the marketing
laws. This was to be done pro-
gressively over a period of three
years according to set schedules.
An agreement waiver for this
length of time permits her to do
this without violating the agree
ment. Under the agreement such
waivers may last as long as five
years, providing there is a pro-
gressive ending of restrictions.
So far Germany has kept to her
schedules in removing the restric-
tions and has included some agri-
cultural products not covered by
her marketing laws. Although
some individual industries have
been dealt blow. Germany has
not been hurt generally so far by
the removal of restrictions.
Presumably Germany hopes
that by the expiration of the
waiver, the agreement will have
resolved the problem of eXempting
agricultural products. Then, too,
Germany is a member of the
Common Market and hopes to
see the formation of an agricul-
tural policy for that group within
three years. Any Common Market
action along this line undoubtedly
would have some influence on the
agreement.
Some German economists feel
that the agreement makes a mis-
take when it considers only the
whole economy of a nation in de-
termining what shall happen to
quantitative restrictions on i'm
ports. These experts point out
that German agriculture is not
prospering as much as German
industry and therefore should not
receive the same treatment.
Must Foce Reality
In a recent broadcast from
Bonn, DR.. Theodor Sonneman.
Undersecretary of the Federal
Ministry of Food, Agriculture and
Forestry, urged the agreement to
face reality which requires that
the goal of free world trade be
approached in various stages and
with differentiations as to pace"
He added: This in turn justifies
special arrangements for certain
sectors of any national economy
which are sensitive to crises, in
cluding agriculture which plays a
special part in all countries"
According to DR.. Sonnemann
agriculture should not be COM
PEELED to pay the price for in
creased industrial exports by hav-
ing to allow ever increasing guam
titles of agricultural products to
be imported.
A great deal of thought has
been and is going to the agri-
cultural problem.
Exactly one year ago a panel
of international experts headed
by Prof. Gottfried Haberler of
Harvard University put out a re-
ports titled Trends in Interna-
tional Trade. Their assignment
was to investigate disturbing ele-
ments in the outlook for expan-
sion of trade.
The study declared: "The agree
ment permits quantitative i'm
port restrictions on balance Of
payments grounds, but not on
Evening star., 1959-10-25

respected in the Nation.
Wealthy investors and business
men stopped work to join in pools
and syndicates to push up prices
of certain stocks and then unload
them Sometimes it worked the
other way and they raided the
market to force prices down arti-
ficially so that they could buy
them back at the bottom and
cover their short sales.
Corporations took advantage of
the growing demand for stocks
and sold additional millions of
their securities, thus watering the
holdings of their shareholders.
Investment trusts and holding
companies were formed to foist
Evening star., 1959-10-25

majority are considered investors
rather than spectators. Stocks
also are in the hands Of institu-
tional firms managed by presum-
ably hard-headed professionals
mutual funds, pension funds,
bank-managed personal trust ac-
counts and corporations.
The amount of stock on margin
is trivial today compared to the
total number of stocks listed on
the exchanges. And the amount
of cash that must be put UP in
buying a stock today is 80 per
cent, while in 1929 it was only 10
per cent. The volume of trading
on that slim margin was fantastic.
Almost everything about stock
Evening star., 1959-10-25
Continued From Page C-1

Continued From Page C-1
American Ambassador Lodge and
Mr.. Khrushchev had found no
sticking point" in their series of
talks, and the joint draft Of the
resolution was now almost ready
except for commas and periods. !"
Final agreement on the text is
predicted by tomorrow or Tues
day for submission to the Political
Committee.
In effect, the resolution will ap-
prove the donation disarmament
talks arranged for at Geneva, call
for full reports of all U. N. activ-
tiles to be provided the donation
group, and provide that the Gen.
eral Assembly be kept informed
of the commissions deliberations.
The donation body is to operate
outside the U. NJ, but the intent of
the resolution is to confirm the
overall responsibility of the U. N.
as the ultimate arbiter of inter-
national disarmament measures.
Evening star., 1959-10-25
THE FOREIGN SCENE.

be correct. The FBI in Miami
said the former head of the Castro
air force, Maj. Pedro Diaz LAMA,
had led the flight from Florida
airfield. Maj. Diaz, who broke
with Castro after the fall of Die
tator Fulgencio BatiSta and
charged that the Castro regime
was inflltrated by Communists.
later denied the FBI story but
refused to talk further.
Evening star., 1959-10-25

trading in the 1920s seems fan
taStic in today's light.
Some $50 billion of new cor
porate securities were sold in that
decade and half Of them became
worthless. Often people bought
them without asking anything
about the companies assets, or
what they made, if anything.
The chairman of one Of New
York's largest banks set up six
corporations-three American and
three Canadian-to trade in
stocks of his own bank. 1t was
later brought out that he made
more than $40 million by such
shenanigans. He is long dead and
the bank is now one of the most
Evening star., 1959-10-25

airfelds. The United States would
deeply regret" such incursions, the
department spokesman said. 1t
was pointed out that there are
some 280 airfields in Florida, with
at least 100 of them within 100
miles of Havana.
Evening star., 1959-10-25
U.S.Hos Compromise
Ready on Atom Tests
BY WILLIAM r. FRYE
Contributing Writer

UNITED NATIONS. N. Y.-Next
Tuesday there begins in Geneva
an East-West negotiation which
will test the sincerity Of the whole
elaborate Khrushchev peace Of
fenSive.
1t is the Observation-Disclosures
conference on a nuclear test ban,
which is resuming after a nine
week recess.
In Western eyes this parley is
the touchStone of EaSt-WeSt rela-
tions. If Soviet Premier Khru-
shchev wants an armistice in the
cold war badly enough to pay the
minimum price of inspection be-
hind the Iron Curtain, he will
show it at Geneva; if not, there
can be no armistice.
The United States is prepared
to meet Mr.. Khrushchev more
than half way. Washington is
ready, it can be disclosed, to ac-
cept a reasonable quota on the
special on-site inspections which
would be necessary to check up
on earthquakes" which could be
secret underground tests.
This issue has been a major
stumbling block. The Russians
have said that if the United States
gave way on the quota, other diff
f1culties would "fall into line
meaning quite clearly that they
in turn would make corresponding
concessions on the veto, the inter-
national stating Of control posts
and other disputed issues.
Showdown on Russions
It will now be possible to see
whether the Russians meant what
they said, and indeed, whether
they genuinely want an East
West accord at all.
An enforced nuclear test ban
is by far the East-West agree
ment nearest to realization. In
the Soviet jargon, it is the ques-
ton which is most "ripe for So
luton"
The test-ban parley is the only
disarmament negotiation of mod
ern times which has ever reached
the stage of actually drafting a
treaty. The treaty is fairly far
along toward completion; Of its
"a articles, II (and a preamble)
have been agreed upon.
What remains to be decided is
the key issue which always has
frustrated. arms negotiations in
the past: Whether, when the
chips are down, the Soviet Union
really will permit enough inspec-
tion to make sure an agreement
is being faithfully observed.
Mr.. Khrushchev persua d e d
President Eisenhower at Camp
David, according to diplomatic
sources here, that he is serious
about wanting disarmament. If
so, he can now prove it at &C.
neva. If not, talk about more
ambitious disarmament measures
is futile-even partial diSarma-
ment, let alone the general and
complete" disarmament which Mr..
Khrushchev processes to want.
In the past. the Soviet Union
has suSpected-sometimes n It
without justif1cation-that at the
West was asking for more inspec-
. ton than it really needed. Arms
negotiations always were primar-
lily propaganda battles and the
device of demanding comprehen-
sive inspection successfully ma
neuvered the Russians into the
position of opposing progress.
In the present case, If this
charge ever was true with respect
to a test ban, it no longer is true.
Evening star., 1959-10-25
BY SHIRLEY SCHEIBLA
Contributing Writer

Several European nations are
facing the possibility that they
must soon drop their restrictions
on the quantities of imports under
the rules of the general agreement
on tariffs and trade.
This will be one Of the chief
problems aired at the conference
starting tomorrow in Tokyo OF the
parties to the agreement. The
problem is not an easy one to re-
solve. The entire economy OF a
nation can be disrupted if care is
not used in ending the restric-
tions. It may be impossible to end
them for agricultural products be-
cause agriculture is a strong po-
litical force everywhere and favors
protectionisn.
Nevertheless, one Of the basic
aims of the agreement is to BAN
ish quantitative restrictions on
imports for the 81 signatory coun-
tries who represent IS per cent OF
world trade. The agreement per-
mits such restrictions only when
a country is experiencing balance
of payments difficulties. Under the
agreement it is up to the Inter-
national Monetary Fund to de-
termine when any country has
overcome these difficulties.
Though it has made no an
nouncement, the Fund has just
made a finding that Italy no
longer has balance of payments
difficulties. (This is expected to
be announced in TokyoD In addi-
ton France and the United King
dom are expected to emerge from
their difficulties in 1860. All three
countries now have substantial
limitations on the amount OF i'm
ports. The course of action they
pursue as their financial condi-
tionS improve will have an i'm
portant effect on world trade.
Agricultural Exemption
These countries are expected to
urge that the agreement exempt
AGRICULTURAL products from the ban
on quantitative import restric-
tions. The United States is not in
a position to do much prodding
for them to do otherwise. Uncle
Sam was one of the first nations
to obtain waiver and as a result
now has quantitative restrictions
on price support commodities,
dairy products and Dutch cheese.
Italy, France and Great Britain
may well follow the general
course set by Germany. That ma
ton emerged from her balance OF
payments difficulties a couple OF
years ago and has been quite
vocal since then in trying to have
agricultural products exempted
from the agreement.
Germany'S marketing laws pre-
date the agreement and require
quantitative restrictions on a large
group of agricultural imports.
They admittedly are protection
istic and are aimed at promoting
self sufficiency in agriculture.
(Today Germany produces rs per
cent of her food needs and is
managing to push up the percent
age year by year, Germany
maintains her marketing laws are
mandatory and not permiSsive as
the United States contends.
At the time Germany Joined
the agreement in 1851 she did
not expect to come out of her
balance of payments difficulties
in the foreseeable future. When
her payments balanced in 1857
she clsimed she was in the posi-
Evening star., 1959-10-25

correct this but 1t was too late.
The public borrowed at the higher
rates and went on gambling.
When a broker did urge his
customer to use caution, he us
ually lost the speculator to an
other broker who catered to any
buying whim.
Stock prices hit their peak Sep
tember 8. 1929, when the Associ-
ated Press index of so stocks stood
at 1877. There was a series of
breaks during october and the big
one came october 20 when 16,410,-
030 shares were traded on the New
York Stock Exchange, a record
that still stands.
The AP index fell to its lowest
point July 8, 1882, at 16.9. A long
but often interrupted climb since
then brought the index to a new
peak Of 1858 on August 8, 1859.
The current figure is around 220.
Black Tuesday wrecked the
hopes Of thousands and sent many
from riches to rags. But it also
set OF a train Of events aimed at
seeing it never happened again.
The New York Stock Exchange
had been asking its member firms
to give it data on their financial
condition. 1t began demanding
that they do. 1t tightened the re-
quirements for listing stocks on
the exchange and for staying on
the big board after being listed.
All the Nations exchanges have
set up their own watchdogs to
prevent or quickly squelch CHI
canery.
The Government has stepped
in, too.
The Securities Act
In May. 1888, Congress passed
the Securities Act, which requires
public disclosure of facts bearing
on worth OF securities.
The Securities and Exchange
Act of 1884 outlawed misrepre-
sentation and manipulation Of
securities, curbed the activities
of corporate insiders dealing in
stocks of their own company, set
rules for soliciting proxies,
clamped down on activities of
brokers and dealers.
Congress set up the Securities
and Exchange Commission to
police this. SEC demands full
financial information from cor
porations before new stock issues
can be offered. 1t can call brokers
and dealers on the carpet and even
revoke their trading privileges.
1t watches over the activities of
insiders and over the issuance of
proxy statements.
In 1885 the Public Utility Hold
Evening star., 1959-10-25

onto the public questionable shares
in huge quantities.
And the public loved it.
Stock trading crossed the 8
million shares a day mark in 1925,
quickly climbed over 4 million
and then million. Customers
men at brokerage firms grew care
less in advising about purchases,
and many member firms Joined
the pools.