Monday, October 21, 1932
Pa ire Four
CA GRANDE EVENING OBSERVER, HA GRANDE. ORE.
5aCirmthe bmhiQ barter
Am la&tomitnt Kmpt
Rum Mala M
BAJBOLD U. TtHIXt .
. BmIdmi Miniger
PuMJabad a mnga. ocept Bandar, at 1710 Blxtli RM, La
armada. Orafco.
stand at tfca Poatcffica at La Oran4a, Oregon, aa Baeond Claai
Mad attar tinder act of Uarcb a, 1079.
OmOIAL PAPEB OF UNION CCICTffTT ASD THS
cttt of la oaAjfDi
aOEUBEB OF ASSOCIATKD PBJBBfl
Tba aaaodated Preaa la ezcJtutrely entitled to uaa for publication
o all neve dupatabea credited to It or not otherw eardltadll -Uabad
herein. AH right, of republication af apeclal dlapatc a In
ttna paper and alao tna local am bereln alao are rerred.
National Adrertlilnf BpreaentatlTe
U. O. MOOENSEH CO. Ino.
an Franaaeo, Loa Angeka. Beaule. Portland. Chicago,
Detroit. Hew York
SDfiBCRIPnOrf BATES
By Carrier
Oairr, one month In advance
Dally, all month. In adrance
Dally, angle copy
7
to
By Han
Dally, per mcctt. tn adrance
Dally, per aU n ntba In adrance
Dally, per year In advance
toe
.KM
ADVERTISING BATES
Diapuy, foreign, per column Loch
Dleplaj. local, per eoiumn inch
46e
Tuna contract prlcea on application
0UT:0URWAY
0 Ijord, revive thy work in the midst of the years.
Habakkuk 3:3.
BUSINESS AS USUAL
. Business in La Grande has suffered considerably from
economic strains and shocks during the .past year, the same
as the majority of the cities and towns of the nation. Low
market prices for farm products and the lack of a market for
lumber have been the chief factors in the slowing down of
the business machine.
We were all doing our best to cany on under such condi
tions, and doing a better job of it than many other commun
ities, when the city treasury was suddenly found to be
some hundred thousand dollars short through the cleverness
of the treasurer in covering up her appropriation of public
funds for private use. That put the city government in a
tight place and required strict economy to avoid the neces
sity of increased taxation to offset the loss.
Then, after adjusting ourselves to that situation, we were
running along fairly smoothly when both of our banks sud
denly closed their doors on a Saturday noon last March the
United States National closing because of the large amount
of paper classified by the bank examiners as frozen assets,
and the La Grande National following suit because of the
danger of a run on its deposits.
That occasion was a test of the loyalty and confidence of
the people-of La Grande and the surrounding territory a
test that was passed wtyh flying colors. Depositors of the
United States National promptly signed waivers on a large
percentage of their accounts in order to make possible the
organization of a new bank which would take over the de
posits and such proportion of the assets of both old banks as
might be approved by the examiners.
As a result of the fast work accomplished between Satur
day evening and Monday morning, the necessary waivers
were signed and $150,000 in capital and surplus for the new
bank was raised by the local business men and citizens of
the county, and the First National bank opened for business
ness at nine o'clock Monday morning. This could never have
been done if our people had lacked confidence in the future
of the community.
The new bank made it possible to continue the ordinary
course of business, and conditions over the nation during
the late summer showed considerable improvement and
furnished some encouragement for the railroad and brighter
prospects in the lumber industry. The recent announcement
of plans to re-open the Mt. Emily mill was the most optimis
tic news in this vicinity in the past several months; so it
was with great surprise that most people heard that the
First National Bank had decided to go into voluntary liquid
ation and close its door3.
The fundamental cause for the closing of the bank was
the continuous withdrawal of diqiosits, almost half of the
total deposits having been withdrawn during the past seven
months. The bank, because of widespread economic stress,
was unable to collect enough of its loans to offset such heavy
withdrawals, though it might have stemmed the tide with
the aid of the Federal Home Umn bank and the Agricultural
Credit corporation in the next two or three weeks.
Hut the declaration of a bank holiday in Pendleton last
Tuesday evidently frightened many local bank depositors who
withdrew their money to the extent of some 70,000 dining
a single day, and by Tuesday afternoon someone had started
a rumor that the La Grande bank was going to close its doors.
Humors and the consequent spread of fear finally made
necessary the very action which the people feared, and the
directors decided to go into voluntary liquidation rather than
risk a run the next day.
(Speaking of rumors on Wednesday morning there
were stories in circulation to the effect that several large
business firms in town hud withdrawn all their money and
caused the bank to cln.se. The Safeway Stores, Montgomery
Ward & Co.. the .1. f:. I'nnwv fVi umi n, ti.;,... rs-,,,..,..,.
U'Dra nrttmirr llwiun .i... ..I I i:. . ... . i .. ..
v.. ..-iv- (imiii' u. jii mii itMimiuig towns aim even
in Baker the story was told that Safeway had broken the
bank in La Grande. Investigation revealed that all such
rumors were groundless, especially the latter, since Safeway
was one of the stockholders in the First National, and it
would have been directly contrary to their own interests to
cause the bank to (.'lose.)
But all that is now a thing of the past. The- damage is
done, and now our energies should l.e engaged in repairing
it. Business is greatly handicapped with no hank in the
city, but it is surprising to see how rapidly men can adjust
themselves to the most difficult situations. By some means
or another we are all managing to get along. There is a
considerable ainmint of cash in circulation, and more use
is being made of bartering than ever before, for labor and
various services as well as for goods. In a city where it
would ordinarily seem impossible to get along' without a
bank, "business as usual" is the slogan in spite of the al
sence of any financial institution.
There, is considerable doubt that another bank can be or
ganized right away; it may be some time Ik-fore a sufficient
number cf people can be persuaded to put their money in a
bank again. But if conditions improve at all in the next few
months, wo shall undoubtedly have a new financial institu
tion in Ia Grande. People will sooner or later outgrow their
' present lack of confidence and start all over again to re-
' construct the system of trade.
! Here in the Grande Ronde valley we have a good founda
tion on which to build. As a visitor remarked just a day or
; two ago, a former local resident, "the valley is just as beau-
: tiful as ever, the soil just as fertile, the crops just as plenti
ful, the weather just as fine; our troubles are not the result
I of the failure of Nature, but are entirely due to maladjust-1
iment of human relationships and lack of confidence in each
i other." These conditions can be remedied, though it takes
time to heal the wounds, and then we will find ourselves back
on the road to normal living conditiono.
HAIL HINDEXBURG!
Those shouting thousands of Germans who trooped down
j the streets of Berlin to shout birthday greetings for Presi
Ident Von Hindenburg represented, when you stop to think
i about it, one of the most encouraging factors in the entire
European situation today.
Their celebration was an expression of the profound loyalty
i and respect which the average German feels for the aging
warrior; and that sentiment is, pernaps, about as good a
bulwark as Europe today possesses against disaster. ;
Germany is being pulled about sorely these days. Revo
lution is hardly more than a hand's breadth distant. Hitler,
the Hohenzollerns, the Communists all are watching their
chance, all have strong public support, all would seize power
tomorrow if conditions were just a little bit more favorable.
And no one needs to be told what such an event could mean
to the peace of Europe.
But in all this confusion Germany has one thing to tie to
its stalwart, incorruptible old president. And it is that
very feeling of confidence and love which gives us our best
reason for hoping that the final outcome of things in central
Europe will not be as bad as it easily might be.
Ail of this, of course, is only another way of saying that
the intangible things in human affaire are usually the most
important.
The feelintr which a large numler of people happen to
have for one man is something you cannot put into the scales, the facta about how the Hawiey-, that ahouid come to pass. por it
v , r,'f mo..aiiro r as vmi can Hitler's shock trnorw vou Sraoot tarl" glTe P""1"" Ore-j was under his steady pressure that
YOU cant measuie it, as JOU can Hllltrs snOCK troops, JOU gQn cuitUTe produc adequately i general plans for the bulldtn? were
can't dissect it, as you can dissect the group which seeks to fob the first time in post-war 1 completed, tme to the land acquired
restore the Hohenzollern dynasty; it is simply tnere, more .history. sales statesman.
potent than any of these more material things, just as In
dia's love for Gandhi proved, not so long ago, to be so much
more potent than any of the more tangible elements in the :
Indian equation. j
By J. R. Williams
( T VOU -THikiW -MATS 1 A I MSSlE, J
SMART AMD O-EvieS?, VE-LUW . V-W COLO,
DOMT WOO? Vv-EV-U, 1.1 CO-' f GUT MO CAM I
-T-HltJGS AWA7 FROM V ' Oi ftCE-MUST
1 -The Fire. Place so . havjE wasHiE.
I WOOfi DELICATE I , " . -r- I
I " 1 i i'ivirnnj utl unm.
THE OPEN
COURT
OORREfiPO.VDE.NTS MUST
SUBMIT THEIR NAMES TO
THE EDITOR IP THEY DE
SIRE LETTERS I'UINTED,
A. L. Oralapp, Oct. 12. 1032
Principal La Grande High School
La Grande. Oregon:
Dear Mr. Oralapp:
My attention was called last eve
ning to an article appearing In the
La Grande Evening Observer which
stated that the Enterprise school and
the Enterprise team was offering the
condition of the field at La Grande
as an alibi for losing the game. We
hope that this report is not accepted
as true by the La Grande school and
team. At no time has the school or
any member of the team offered any
excuse or alibi for the score. I am
sorry that such a report should get
so far as to be published as authen
tic. Of course we cannot be respon
sible for individual reports which may
get out. We wish to assure the La
Grande school and team that we con
sider that we did our best to win the
game but that our best was not good
I enough, and that your team won the
game by playing football.
Again assuring you of our best
wishes for the continued success of
the La Grande squad, we remain.
Yours truly,
L. Lee Williams, superintendent.
Paul E. Schiller, coach.
Vern White, student body pres.
e 1932 BT HCA SPWCE. WC RtO. U. 5. PAT. Off. P-xVj
In Washington
jlst for the Increase In the lumber j
Other Papers
Say:
TKl'TJ! AliOl T THE I1WM.KV
TAKIf'F
Probably no tariff measure ever
enacted in American history has been
more lied about than the Ilawley- j
Smoot tariff. The Democratic spell- J
binders are now damning It from:
Maine to Texaa and laying on Jt the :
burden of our wom At. i hs u m
1 time the Democratic nominn m hi.
travels from place to place assures
localities that their specific tariff
will be preserved. What Is the tarlfi
but a compilation of local demands? i
This editor Is not a high-tariff Re
publican. In our opinion the change"
In our national status from a debtor'
to a creditor nation called for atteti
tlon in our tariff policy. But the
Democratic position on the tariff is
now thoroughly hypocritical, in their'
1028 platform they approved the prln-1
clple of the protective tariff and Ai!
Smith campaigned with the definite
assurance to Wall street that hlgu
protection would be maintained. j
When individual schedules were up
for adoption the Democrats voted
preci:ely as the interest of their dis
tricts dictated. Thus we had Dill
voting for a tariff on lumber, Thomas
of Oklahoma for a tariff on on,
Walsh of Montana for a tariff on cop
per. Brounsard of Louisiana for a tar
iff on sugar. When the whole list is
completed the Democrats rage with
fury and brand the tariff measure as
one of the deadly sins. j
Pres. Hoover urged a revision of the
tariff In hts first mewnge to congress
with particular application to agricul
ture. Most of the tariff upplng which
was done was on agricultural item.
While numerous changes were mode
In Industrial items as well, the tariff
was distinctly one for the protection I
of agriculture. J
The Hawley-Hmoot tariff has been '
assailed as the hlKhent In our history,
which Is not true. The average rates
of duties for the several tariff acts,
at the date of passage as applied to
Import ii for the preceding year were:
Mi'Klnley tariff 4H.4U'.;. ;
Dlmjley tariff 40.&9
Payne tariff 40.63' '
Kordiwy tariff , AH.Hb'r
Hawlcy tariff 41.24r,f,
Thus the Hnwlcy-Sinoot tariff was
lower than the average rates of the
If publican tariffs of the last 40
yi ars.
At the time of Its enactment the
tariff act of 10;,0 n bowed B IM.t de
crease, welched average,-, tn four
schedules or U.I7';f ; and a net In-t
en-rue in 11 schedules of 7.41',; or!
a not Incrraho for the act as a whole,
of only 23f";;,.
The iivi-nitfe on all Imports, frc
nnd dutiable. Is about 10'.; . or an In-cn-Hhe
or over the act of 11123.
Hu. h average was 2J';J- under tho
Mi Kin.cy act, 20.0 under tho Wll
htm (Democratic) act, 25 8.,;, under
the DhiKley art. and 10.3 under the
Payne act.
Now tuitc the matter of chMne of
Kms. In the 12 torlff there were
33HO dutiable items. Of these BOO
were Increased In the Hawley-Smoot
ft' t. 2;n were dec reacted, and 2170
were left unrhnngrd.
The ivrcentnge of Importu admitted
DUTY KKKK under the Hawley-Smoot
net in the largest with a nlngle ex
ception in 40 years. ThP percent agra
ore a f oli ws, of t he I terns w h Ich
. a;ne In free of duty:
MrKluley tariff . 52 4' -;.
Wilvin tariff 44't
Dlngley tariff .. 4.i.2"n
I'fiyne tariff . , 1.2.6'
Underwood tariff W.3'f
KVmlney tariff 3
Ilawley tariff Cti.O' j,
We ctle these- figures, not to de
fend the tariff of 1U30; hut to refute
the fnhte assertion made by Demo
cratic spokesmen who preach low tar
iff and practice tariff high-Jacking.
For example AFTER the Hawley
Hmoot tariff was adopted, those who
lerilly led the fight for MOIUC pro
lection on oil, lumber and copper
were DEMOCRATS. Democrat Henry
II. Van Du;er of this state was lobby-
By Herbert Plummer
U'ARHIMr.TnM l,.ct MA- u-
tariff- and he. was ably backed up by hPrtaH t. r,i- t x. v..
jdaily editorials in the DEMOCRATIC other day. In the presence of the fore
j Portland Journal. Democrats of Art- ; most jurists and lawyers of the coun
jzona and Montana worked for the try. a ceremony took place that might
j copper tariff. Democrats from Ok la - well have been called a memorial to
jhoma and Texas worked to put across ' William Howard Taft.
i the oil tariff. It the Iaylng of the comer
The Republicans are at least hon- atone for the stately new home of
est in standing consistently for the the nation's highest court.
principle of the protective tariff. , The late president and chief Jus-
and the structure itself authorized
j oy iaw. ne a tea just neiore the actual
j appropriation could be made.
Par back in the first years of
; Taft's Washington life, Theodore
I Roosevelt, then his chief, suggested
that Taft was available timber for
the presidency. Taft, however, let
it be known that what he wanted
was a place on the supreme bench.
In
a subsequent issue we will give tlce long dreamed of the day when pinnacle of his lifelong
REALIZED AMBITION
Tafs was drafted for the presi
dency, however, if a man ever was.
And it brought him In the end one
of the bitterest political defeats any
man of his party has known.
Yet time brought him consolation.
As chief Justice he reached the
ambition.
At the start he set himself to In
tensive study of the practices and
processes of the court. Under his
driving force much was done to
speed up federal Judicial machinery.
Tet his heart was not set upon
that so much as It was on the real
ization of his long cherished dream
of a stately Independent building to
house the court a structure in
keeping with the dignity and power
of the Judicial arm of the govern
A MEMORIAL
Now the court is to have its home
as he had dreamed it. Even the
architectural design bears the stamp
of his individual taste.
And, whether It Is so designated
or not, to many the structure will
stand as a memorial to his long and
distinguished public service.
Thoughtful Bobby
Bobby, age four, was to accom
pany his daddy to a shooting match
for the first time. Bob arrived on
the scene with his hands full of
matches. When we asked him why
he carried the matches, he replied
indignantly, "Why, for daddy to
shoot at, of conrse."
Ancient Roman Empire
The Roman empire Included the
present countries of Italy, Great
Britain, France, Spain, Austria,
Hungary, the Balkan peninsula,
Asia Minor, Palestine and northern
Africa.
Importance of Meat
Meat Is a healthful, nut Hons
food which furnishes complete pro
teins, excellent minerals (Iron nnd
phosphorus), and some vitamins
(glandular meats. A, B, and G;
lean meat G and E). Exchange.
.
j-f-
We Recommend
These
Purchases
In this issue you will find a number of advertise
ments of real interest to you. v -;
They offer for sale a variety of products that
are often enough vital necessities. Sooner or later
you will have to buy many of them anyway. You
will undoubtedly buy some of those we advertise.
We recommend these heartily because we know
from long experience that when a product bears
the name of its maker and finds a friendly market
throughout the country it must have survived the
most exacting tests as to quality, desirability, and
value!
In this day when a manufacturer or merchant
reaches the point where he is willing to offer his
wares for sale through the advertising columns
of the press, you can depend upon it that it must
be worth purchasing . . . because otherwise' the
business wouldn't last long!