Germany Deserves Commendation for Her Modesty in Asking Only Restoration of Her War-Lost Colonies. She Might Have Also Asked War Indemnities. THE WEATHER Humidity 4:30 p. ni. yesterday 76 Highest temperature yesterday S lowest temperature last night f Precl pita, iou for 24 hours 27 Precl p. ni nee first cif month 1.74 Precip. from Kept. 1. Ia:r7 3.! Deficiency since Sept. 1, 1137 i Cloudy. liQht raim or shower 1 GET IT FRESH That's the kind of news you get hot ofr ilia wire daily in the NKWS ItKVIKW. Service that never fallB, nexer distorts, never shown mr lialliy. A dally reader Is never be hind in current eveniH. I' .w r,i THE DOUGLAS COUNTY DAILY VOL. XLII NO. 158 OF ROSEBURG REVIEW ROSEBURG, OREGON, SATURDAY, OCTOBER 30, 1 937. VOL. XXVI NO. 78 OF THE EVENING NEWS 66 WW IV-1 va52aml Mil IIMU7II I IIIVII. I1MII II. MUM sy yjyjr v v v vv 1 . 1ST RfflTA mm mm Editorials on the Day's News By FRANK JENKINS THK big Issue in tlii 8 country TJ If ! I IP VnW t-u hl Shall we have government by the people, as in the past, or shall we have government by ONE MAN? r)P(!lTIeMrn IjritiL'l'fl P 1,. ft.....-.!.....-, i ii m ttinixlltif- I 1. A rubber stamp congress that will jump when he cracks the whip. 2. Control of industry and labor. 3. Control of agriculture. 4. Control of the courts. If he gets these things, we will HAVE one-man government. LET us give Roosevelt hiH Just due. Ho doesn't aspire to be a swash buckling dictator, riding rough shod over the liberties of the peo ple. He merely believes that if giv en supreme power HE can do ft netter jo., ot governing me Limeu States of America than the PEO PLE have done in the past. So he seeks personal power. Cl'PPOSE we grant, for the soke ot argument, that Franklin I). Roosevelt, as a beneficent dictator, tan govern us better than wo have been able to govern ourselves, ilranting even that, we must face this question: WHO' WILL- FOLLOW ROOSE- (Continued on page 4.) U.S. SHIPS PROBED WASHINGTON, Oct. 30. (AP) Chairman Copeland (D., N. V.) of the senate commerce committee took preliminary steps today to ward an Investigation of what he called "communistic influences" at work on American ships. He ordered the committee's staff to collect u 11 Information tivuilable on labor disputes aboard American merchant marine ships, including the strike of seumen on the Algic during a South American cruise. The Algic strike was "mutiny," Copeland asserted. He declared it whs one of many incidents in which crews had refused to obey orders as a result of labor disputes. "I am determined to try to get at the bottom of this communistic seamen's fight." Copeland said. "I'm sick and tired of that busi ness. There is no use tn building ships unless we have seamen that will operate them." Copeland said Harry Bridges, maritime union leader on the west coast, and bis lieutenants have created unrest among maritime workers and have "spread their in 0 flmmce to the Atlantic coast." Oddities Flashed (Hy the Associated Press.) Sad Mistake UNION. S. C A policeman nfk ed a merchant here to repark Ills car, but the tradesman found It locked and couldn't locate the key. H ordered a locksmith to make a key, had the machine washed and greased, filled with gas and ail and reparked. Then the real owner got In and drove away, apparently unaware of what had happened. In the Dog House PHILADELPHIA Jake, a police dog, is in disgrace. When a hold up man entered his master's gas station be just watched. He didn't even give a growl as the robber forced James White Into a cellar and cleaned his pockets. Safe and Sane LINCOLN, Neb. Comes forth tin Lincoln Ameriran Legion post with a solution of the hallowe'en problem. It will sponsor a city-wide chil dren's party to keep them out of mischief. The Lincoln recreation board and other civic organizations wilt assist. E 1L0FC.I1 tutomobile City in Midst of Bitter Campaign on Issue of Control by Labor Faction. ' w" ' "c attempt of the Committee for In dUBtrial Organization to score illlKli'iiil Oryni)i7ntinn tn ennn major political coup fn this auto mobile center has turned an ordin arily staid contest for the mayoral ty into one of the bitterest cam paigns In Detroit's history. Conservatives ami ClO-opposed labor groups combined to fight what they termed a "plot to seize the reins of city government." Nearly half a million Detroiters are expected to give the final ver dict with their votes Tuesday. They will choose a 15,000-a-year mayor, a nine-member city coun cil and city clerk and treasurer. To elect its candidate for mayor, Patrick H. O'Brien, the CIO lead er, was faced with the necessity ot overcoming the lead of nearly Ht nnn .i,i i tve.. cu cerk Rtchar(1 Reading in tne primary. Adding to the dif ficulty of their task were endorse- menis of Reading hy two candi dates eliminated in the primary- former Mayor John W. Smith and Clarence J. McLeod, a former con gressniaii. The Detroit and Wayne county reiteration ot Labor backed Smith in the primary. AFL support given Smith appar ently has divided since the pri mary, 1 O'erlen Uses New Deal ' Theoretically non-partisan, the election contest has brought from O'Hrlen a direct appeal for new deal democratic votes and a warn ing that republicans are ready to use n m defeat ns n "Jumping off inace tor state and national vic tories. Reading, nominally a republican, has held office for years in He troit's non-partisan government. CIO leaders have asserted the campaign issue is "labor vs. the economic royalists. LA GUARD! A-MAHONEY RACE DRAWS NATIONAL INTEREST YORK, Oct. 30. (AP) A tense political campaign that has drawn national interest ends (Continued on page 6) SALEM SWITCHES TO SANTIAM WATER SALEM, Oct. 31) (AP) Salem today ollirlally began lining water from North Salltiaill river, renlne. Ing Willamette river water that nas heen used for many years While the new water has gradual. ly been going into the distribution system for several days, it was orrieially tin ned in at a celebration totlay at I' ail-mount reservoir, new lll.noil.OOO-gallon structure. The Nortli Snntinm supply comes from Stavton island, lii miles away, where ft undergoes natural filtration us it seeps from the river into the Intake pipes. The new sup. ply Is hy gravity, requiring no prniping. The cost or the new sys tem was ttlmut si'.L'en ntiu. From Press Wire False Start WAtTKON. la. With siren screaming and bell clanging, the Wnukon fire truck roared out of the station on the way to a fire. (but the truck chugged to a stop before it had gone a block. The firemen peered Into the gas tank. It was empty. Nature in the Raw OKLAHOMA CITY Next time Teacher Lillian Morrow calls for nature study specimens she'll be more specific. Fourth Grader Maxlne Paker brou'.'ht a sprig of poipon Ivy, Sixth Grader James Nelson a young rat tlesnake. Old Story, New Twist POLIET, 111 It cost James Len rl, a tavernkeeper, $7,2i'0 in sav ings learn ull confidence men aren't in Jail. Three strangers promised him ?20 for each $100 he could produce. He produced $7,200 which the trio locked in a trunk, or so Lenci thought. In due time Lend opened the trunk to discover his funds had been replaced with a package of stage money appro priately labeled "phony mazuma." DETROIT RUL IN ELECTION Rescuers Save Youth Buried to Neck 12 Hours CHELMSFORD, Mass., Oct. 30. (AP) Rescuers early today freed Manuel Camacho, lit, of Low- II, from a sandbank in which be had been buried up to his neck for 12 hours. Almost unconscious at the end, he was taken to a hospital for treatment of crushed legs. More than lot) policemen, fire men and volunteers from three communities worked through the night under floodlights to release the lad. For most of the 12 hours be re mained conscious, guiding his res cuers and asking only for cigar ettes. Frequent drinks of whiskey stimulated his resistance. Uite last night the Rev. Walter A. Quintan, pastor of St. Mary's church, administered lust rites of the Catholic church and remained nearby. The youth was burled yesterday when the sundbank collapsed while be and three others were digging at its base. T Pair Nabbed by Officer as 1 hey Prepare to Smash Store Window. Apprehended while assertedly at tempting to force entrance Into the Deer Creek Safeway store, Curl Melching. 23, and Wilbur Chap man, lit, who gave their home ad dress as Sturgis, Michigan, were arrested here last night. Accord- lug to T. W. Thoinason, siieclfil merchants night watchman, the two men hair rolled a barrel up to the rear of the grocery store and were preparing to smash a window when he approached and flushed a light on them. They admitted their Intent to rob the store, Thomasou said, und also stated they were picked up In Cottage Grove Friday and two other members of their partv held tor attempting to steal gasoline. .Melching, Thomason reported, admitted a police record In Michi gan for burglary. Howard Chapman, 21, a third member of the parly, claiming to be a brother of Wilbur, but deny ing knowledge of the attempted robbery, was taken into custody later by city officers, "when found asleep in the trio's parked car on Lane street, The three men were turned over to Sheriff Percy Webb und were undergoing questioning today. LIQUOR SALE BAN HITS 3 COMPANIES PORTLAND, Dct. 30. (AP) The state liquor commission noti fied two Idaho com, mules and an Oregon concern today to cease sidl ing liquor to certain outlets in Nyssa and Vale for the remainder of 1!K17 on the grounds that finan cial assistance bad been given to the retailers. The Overland Ileveragn Co., Numpa, Idaho, was alleged to have assisted Icttie Alford, Nyssa. A similar relationship was alleged between the Meechan Distributing Co.. Payette, Idaho, and Let tie Al ford and G. L. Smith, both of Nyssa, and between the Uoyer Pros. Co., Ontario, and 11. S. Sack etl, Vale. BANDITS OVERLOOK WOMAN VICTIM'S $38 EUGENE, Oct. 30. Two masked bandits, who held up Mrs. Harry Jones, Springfield, but failed to find $118 tdie was carrying In her pocket, were sought by state and county officers in this area. Mrs. Jones reported to state po lice that while she was driving along a county road north of Springfield at 9 o'clock yesterday morning, two men, with handker chiefs over their faces, stopped her car and, flourishing revolvers, di manded her purse. She gave It to them but they found nothing fn It They then pt her proceed. Mrs, Jones told police, without making further search. CLAW MACHINE OPERATOR FINED TACOMA. Oct. 30 (API Iron claw machines may bo games of skill to experts in their opera tlon but they are games of chance to most players who risk their nickels in them. Police Judge Prank A. Magill ruled yesterday Mrs. Mae Avery, restaurant operat or charged with maintaining a gambling device, which was a claw machine, was fined $25. E EFFORT UPSET CIO, Without Waiting for Resumption of Parley, Asks Allegiance of Furniture Union. WASHINGTON, Oct. 30. (AP) Organized labor' civil warfare broke out openly again today over :i CIO proposal to enroll all furni ture workers Into one big union. Without waiting for resumption of stalemated peace negotiations with the American Federation of Labor, John L. lewis, chairman of the committee for Industrial organ izalion. Invited AFL craftsmen In the furniture, bedding and allied trades to meet. CIO furniture work ers in a national unity conference here Nov. 27-29. William Green, AFL president, termed LewiH maneuver a war like gesture," Jiud added; It Ih bound to have a disturbing effect upon pending peace negotia tions. It seems to us indicative of, the CIO position." 1 Lewis said the conference "will lay the basis for unity of all furni ture workers in a single, powerful international industrial union at filiated with the CIO." The CIO estimated 2.r0.(i00 work ers were employed in the furniture trades, tiO.000 of them organized in unions. Lewis' aides said they did not regard the proposal as having any relation to the peace negotiations which recessed Wednesday until NOV; 1. ; - 7 -a ivJ onlr.ANn Ort no iap'i l State police rescued W. J. Roth and M. A. Blelmeyor, AFL organ izers, from the woods near Oak flrove yesterday after they had fled into hiding from 30 men, be lleved to be CIO sympathizers. WASHINGTON, Oct.- 30. (AP) John D. Piggcrs, unemployment census administrator, made wli.it he called a "gues.s" today th;it the forthcoming survey would dtc!os3 an unusually large percentage of jobless over 40 years old. lligget-s said be did not. believe these men were "on the scrap heap" but simply bad found it im possible to adjust their lifelong work habits to meet the competi tion of younger men In job-hunting. While the census, he predicted. will direct attention to this man- over-40 problem In an ur.pi'-c-'-dent-d manner. It utso will furnish a basis for solving it. "If you know the types of peo ple unemployed." Niggers said. "and their ages and capabilities and the industries In which they worked, you can determine what they're capable of doing In some other Industry." TEACHER SENTENCED ON MORALS CHARGE TOLEDO, Oct. 30 (AP) John C. Cowles, ff, Harlan high school principal, pleaded guilty to contributing to the delinuuency u: a six-year-old girl before Circuit Judge G. F. Sklpworlh yei'tep'ny and was sentenced to a two-year to' III. In another case, two women. Eva Tronson, 24, and Vernie Tronson, 25. both of riiletz, were sentenrnd to 30 days In Jail fr 'tcf'n; their cells after being incarcerated for oiJ'ikenness. MARX BROTHERS HIT BY JURY'S VERDICT LOS ANGELES. Oct. 30 (AP) A federal court Jury found Groiicho and Chieo Marx, film comedians, guilty today of Infring ing on a copyright In last year s radio broadcast. Conviction carries with It a penalty of not more than $1,0110 fine or not more than year In Jail. -o- 4 DEATHS IN FIRE BLAMED ON STILL CLEVELAND. Oct. 30 (AP) Faulty operation of an Illicit whisky still was held by police and firemen today as the possible cause of the deaths of a man and wife and their two daughters In a fire swept dwelling last night. UUOH PEAG BI NEW MOVE Yule Chorus of More Than 100, Roseburg Plan Presentation of a public Christ mas- program by u huge union chorus has been definitely urning- d. It was announced today, the choirs of the several churches of the city are joining the chorus, which will he supplemented hy the Hoseburg Women's Choral club. the Hoseburg Husiness and Profes sional Women's. Glee club, and the Hoseburg Men's Glee club. It Is expected the chorus w ill huve more than 100 voices. The union chorus will be under the direction of J. M. Adams, In structor in music at the Hoseburg hieh sclionl. Present plans are to present the program in one or the largo uuiil loiiums of the cily, probably the armory, on the Sunday evening preceding Christinas. GANGSTER ESCAPEE Killer and Wife Walk Into Police Trap at Home of vHis Mother. f-l.KVEI.ANII. Oct. an (API I-Vilenil agents scratched Frank lllld. .convicted slayer and hank rnhber, from their list ni - waiueu men" today and turned lo the search for his younger brother. Charles, only member of the 11 ro llrolhers' gang who escaped from the Cuyahoga county Jail over a month ago and still at large. Frank lllrd and his wile, .syivia, iilso a fugitive, were trapped in a bulletins capture last night as thpy-drove up'lo-the homo ot .wi. lllrd's mother. Sheriff iMartln 1.. O'Doniiell sulci his deputies were in the house as lllrd's wife walked In and thai a member of the family was instruct ed to go out and tell I' rank that the coast was clear. Frank then came in anu was raptured. O'Donnell said. Hird and bis Drainer, accompan ied hv James Wnlnier. escaped from the county jail here Septem ber 2:1, In a daring armed break ami a wild niitomnhile chase through the city streets, leaving their wake a totally injureti woman whom their specdlug tar struck down. flu (li-mbi'i- IS w diner was ran Hired ill 1'hiladelphia in a stolen car. The lllrd brothers and Wlilmer were arrested here In July, during :ui attempted robbery 01 a t lee- lund Heights bank, and were be ing held lor trial In a series of Cleveland hank robberies. Hoth of the Minis have long pris on records. i:nailes cseapcu inim .Missouri's state- prison July i, 111.10, after serving less than four years of a ten-year robbery sen tuce. Frunk escaped from the saino prison lust January 111. where he was under a life sentence on a first degree murder charge. TRAFFIC CRASHES TAKE SEVEN LIVES r.lVF.RMOrtn. la., Oct. HO. (API Three persons were killel and three others critically injured last night when an automobile col lided with a senii-truller nil tie truck north of here, dumping a load of ill callle onto the car and pas sengers. AIM1UKN. N. Y., Oct. 30 - ( API Four men were killed today wheii illelr car struck Hie rear end of a parked truck near C.rm snuin's coi ners. COLUMBIA RIVER LANDMARKS BLASTED THE DALLES. Oct. 30. (AP) Three landmarks for Columbia river mariners since isr6 when the Mary made a record run to the Cascades to aid survivors of tin In dian massacre the Hood River reefs. Mosler jock and the Basalt promontories at Three Mile rapids are being blasted to oblivion. I'nited Stales engineers are re moving them tis navigation dun gers when Bonneville dam creates its huge pool. o- FEDERAL LOAN ON CORN REQUESTED SPRINGFIELD, 111., Oct. 30. (A P) Representatives of Illinois agricultural organizations called upon Secretary Wallace! ' today to initiate action for a government loan of at least 60 ceiitu a bushel on the 1U37 corn crop. They dispatched an appeal to Secretary Wallace after telling the sciihte agricultural subcommittee yesterday a falling cash market ma le a corn loan imperative. FARM BILL PUT FIRST ON JOBS Right of Way Given Over Wage-Hour measure and Other Agenda for Special Term. WASHINGTON, Oct. 30. (AP) Administration leaders in con gress are working against lime in an effort to get the president s five-point program ready for de bate at the special session begin ning Nov. 1 it. Farm legislation will have the right-of-way. Ev . i- ,ir hills should bo ready at the Mart of the session many legislators have expressed the belief the entire program can not be enacted before the regular sessions begin in January. Here is the status of measures on the administration program: Farm legislation The house ag riculture committee Is completing a bill to limit ucreago planted in principal crops. Farmers would be allowed lo raise and market much as they cun on their allotted laud. Chairman Jones (D., Tex.), said the measure also would continue the present soil conservation bene fits and would establish an ever- normal grtiuaiy system to store .surplus of some crops for use in lean years. age-hour standards Thero have been unconfirmed reports t hut revisions may be offered to the bill empowering a hoard to es tablish in interstate industries a work week of not less than 40 hours and minimum wages of not more than 40 cents Am hour. The present measure, now bot tled up in the bowse rules commit tee, has been criticized by leaders of hoth the American Federation of Labor and the Committee for Industrial Organization. Many southern congressmen are opposed to it, contending it would rettir Industrial development in the south. Government reorganization Chairman Cochran !., Mo.), of the hou.se reorganization commit tee will return next week to take charge of bills revising the civil service system and replacing the comptroller general with an audi tor general. The house approved last sum mer the other portion of the presi dent's reorganization program, (Continued on pnge 6) PORTLAND, Oct. 30-(AP) Circuit Judge James W. Crawford sustained the demurrer entered by Ralph 10. 'Moody, assistant state attorney general, on behalf n Governor Charles Martin as de fendaut in a $r4R,000 damage suit filed by Earl Fehl, fonder Jackson county judge. Fehl, who alleged that the gov ernor had denied him good-time credits In serving a four-year pri son sentence for ballot theft, was given 20 days in which lo file new complaint. The demurrer said that Fehl was not entitled to the credits claimed and that the governor was not. liable to civil action for damages for any official action, howevc erroneous. Judge Crawford held that cred its for good behavior applied only to parole, and not to the discharge of prison Inmates, and that the mutter of parole was discretionary with the governor. DINING CAR TIPS OUTLAWED BY PACT OMAHA, Neb.. Oct. 30. (AP) President Solon C. Mall of the na tional council of dining car em pl iyes declared today train pas si'iH-ers were "slclt and Hied of lipphig" and have virtually "abol ished the tipping practice." Hence, be added, ihi council has approved u proposed coal i act with rail roads outlawing tips and asking minimum salaries of $100 u mouth. HUNDREDS PERISH IN SYRIAN FLOODS DAMASCUS, Syria, Oct. 30. (AP) More than 1.000 persona were drow ned tn floods northeast of MamascuH, authorities announc ed today. Ten thousand persons were marie horm-lcHs and several villages were destroyed. . FOR CONGRESS FEHL SUIT AGftlNST am SQUELCHED Prince Indicted On Charge of Murder Facing second-degree murder indictment In connection with the slaying of hit half-Caste com mon law wife, Arvina Kinstea, 22, Prince David Kalakaua Kaw ananakoa, above, Is being held by Honolulu police. He Is the last aurvlvlng member of the Hawaiian royal family and a grandnephew of the last male monarch of the Islands. The prince la alleged to have slain the woman with a piece of brok en crockery during a wild party. He was already on probation on an old manslaughter charge growing out of the death of a ycung woman In an automobile accident In 1931. Allegation of Perjury at Trial Not Proved, Says California Court. SAN FRANCISCO. Oct. 30 (API The California supreme court today denied Thomas J. Mooney's plea for freedom on a writ of habeas corpus. I he decision was five to one. with Jusllce William II. I.ungdon dissenting. in unnolincllig the opinion, Chief Justice Waste slated the court has concluded that Mooncy failed to establish by substantial credible evidence that bis conviction was Hie result of perjury on Iho part of prosecution witnesses." Mooncy, convicted wllh warren K. Hillings or murder for the mill Preparedness day parade bombing here, is serving his 21st year in San Queutin prison on a life sen tence. The chief justice said Monney also failed to show "lliat the pro secutlng officers caused or suffer ed to be Introduced at his trial any testimony which they knew or had any reason to believe was false, or that they Were guilty of suppressing or preventing the in- t reduction of any evidence which, had it been Kiven, would have been favorable to the del ease at his trial." George T. Davis, Mooney's at torney, declared the case would be curried promptly lo the United States supreme court. Mooncy has steadfastly asserted his innocence, contending he was convicted hy perjured testimony. I oday n decision wan Iho long- awaited outcome of an application (Continued on page 6) U. S. Debt Slash Two Billion in WASHINGTON. Oct. 30 (AP) A balanced federal budget prob ably would send the owners of 2.000.(MMi,o0 In tax-free govern ment securities searching for new flelda of Investment, fiscul authori ties said today. They said a substantial sum perhaps SUMUMiM.noo lo SO'iO.imo.nfl may be Included in the U'it.S budget fur paving nff existing debt. This, plus operation of linanclal provisions of the social unfit rlt v and rnllroad retirement acts, would liquidate about $2,iM)(i.lMU.0uii of federal obligations now in the hands of I he public. Under the security nnd nil' pen sion laws about l,r,iH).0n0,iii)0 of the government debt will be shift ed from private holders to the treasury during the next fiscal year. This transfer will be accomplish ed hy retiring present outstanding ohHinttionn ns they mature. Then. I list end of selling pew recilrities to the public, the treasury will Issue special obligations to secur fty ami railroad pension reserve accounts. PLEA TO EASE FOREIGN ZONE PERIL HEEDED Heroic Chinese Troops Gain Safety of British Lines Through Spray From Jap Artillery. SHANGHAI. Oct. SI (Sunday) (API Chlnn's "lost hallullon" early today succes.. fully ran tho Kauntlct of lieavy Japanese fire to withdraw into tho Bafety of the internailnnal concession helilml Americnn und British defense lines. More than 400 of the unit which had defied hesleKlnir Japanese for four days in devastaled K. Impel dashed thrnueh the waltlnu Brltr ish army lines. They were disarm ed anil will he Interned for the res! of the war. Tho Chinese brought out In tri umph the hune Chinese flan which luid flown over their warehouse fortress. Last to rench safety was Colonel Ilsleh Chln-V'uan. bnttalion com mander, who said Generalissimo Chlani? Kai-Shek had sent direct orders to hrlmr the unit out be cause the country felt It was "too valuable to he spared." A Japanese nssault on the bat talion's warehouse-fortress brought on a deadly battle and apparently nullified earlier plans for the Chinese to lay down their arms and wllhdraw Into the internation al settlement. Hiltish troops nnd British police of the settlement already nail made arrangements- ror sum evac uation when the Japanese began blasting Hi the warehouse with ar tillery, machine guns nnd rifle fire, liitmiiese searchlights playod on the roadway over which the Chin ese were dashing for safety. -lap- (Continued on page 6) El TOKYO, Oct. 30. (AP) An tin official group of highly placed Japanese today charged that Bri tain was helping China in her war against Japan und warned that Anglo-Japanese diplomatic rela tions might be broken If this con tinued. "Tho council on tho current sit uation," with more than loo prom inent men atlending, unanimously and amid wild cheorlng adopted this resolution: "ir the British fall to reconsid er their attitude we may ho forc ed to take an attitude of gruvo de termination by severing yeura of friendly dlplonmlic relations." The resolution accused Britain of being "tho main driving forco fn the eotivoenlinn of the nine- power conference, apparently to start intervention." "The Japanese cannot allow tho British to continue unmolested In their present Improper doings," I declared. Anti-British feeling has been rising steadily in Japan, where tho public believes Hongkong Ih th main source of munition for tho Chinese. Newspaper edllorlalH have as serted that Britain has changed the attitude of the United Sillies to ward Japan's actions In China. in 1938 May Drop Tax - Free Securities These obligations are Issued against tax collections under the two social programs. The cash col lected from the taxes drops Into the treasury's Kcneral Lind and la spent for supplies, services, public works or other government ex penses. About Sl.nno.ooo ouo or the spe cial obligations alieady have been Issued, permitting the treasury to borrow this amount without offer ing securities for sale to the pub lic. Some of I he speclul Issues bear t'J per cent interest nnd some 3 per cent. The average In terest rate on the entire S37.0O0.- ,ni) federal debt now is 2.5 per cent. Officials said today that whether the budget-balancing and debt re tirement programs for next yeai materialize depends largely on fu ture business trends ami congres sional action on a new farm pro gram. The budget would ho knocked odt of line, they said, utiles taxes are provided to meet the coat 0 tho proposed farm program, miim