THE' MORNING OREGONTAN, TUESDAY, FEBRUARY 24, 1920' V V IT DON CITY E Rostov Is Retaken by Russian - Voluntary Army. SOVIET ENVOYS AT REVAL Bolshevik Forces Reported to Have Seized Murmansk and Ship ping in North Harbor. -Th, from the bolshevik! of Rdstov-on-the Don by the Russian volunteer army, Denikine forces, is reported by the British military mission in boutn Russia today. The city was taken February 20, together with 1500 prie oners and 22 guns. The capture of Rostov-on-the-Don by the bolshevik! was reported in Moscow dispatches of January 15. The city is an important railroad center and the chief port of the Don river region. Formerly It was the capital of the Denikine government. Indications of a return blow by the anti-bolshevik forces to the east of the Don were given February 21 In a bolshevik communique which reported fierce fighting near Rostov. "The enemy has started an advance," the communique stated. REVAL, Esthonla. Feb. 23. Two bolshevik delegations have arrived here, one to administer the provisions of the peace treaty between soviet Russia and Esthor.ia and the other to direct the reopening of export trade with western -Europe through the Russian co-operative societies. An Esjhonian delegation will leave shortly for Moscow in connection with ths execution of the peace treaty's terms. LONDON, Feb. 23. Bolshevik forces have seised Murmansk and shipping in the harbor there, following a revo lution which broke out at that port Saturday afternoon, according to Lloyd's dispatch from Vardo. Norway. News of the capture was brought to Vardo by a Russian steamer. It was the only vessel to escape seizure, but was riddled with machine gun fire and tbt. captain was wounded. Murmansk is situated on the Mur- man or Kola peninsula, jutting east' ward from Finland and north of the White sea. It is northwest of Arch angeL Last year Murmansk was the base of operations for allied forces fighting the bolshevists along the western shore of the White sea. COPENHAGEN, Friday, Feb. 20. Maxim Lltvinoff, Russian soviet rep resentative here, has received con firmation of the capture of Murmansk by the bolsheviki. The message tell ing of the capture states that the whole of North Russia is in the hands f the soviet. Litvinofr in an interview empha sized that the soviet had now secured an ice-free port for trade with west ern Europe. He said that just before the overthrow of the white autnori ties the Kovernor-Keneral at Arch angel, Lieutenanb-General Miller, -had made overtures for complete capitu lation. LONDON, Feb. 23. Premier Lloyd George and Premier Nitti are believed to favor resumption of relations with soviet Russia, although Premier Mllle rand of France is not inclined to agree to any immediate action, ac cording to the Daily Mail. The ques tion is called to attention by a memorial sent to Mr. Lloyd George by a number of military men and others who during the past two years have been In Russia on official business. The newspaper says this prublem must be considered by the supreme allied council at Us sessions, which licirtn tndiv. The Chronicle maintains that "all candid minds must recognize that as no anti-bolshevik organization exists anv lonEer. soviet Russia Is now Russia." "Do we want peace," It asks, "or do we want to continue the blocKade, with the risk of Incurring the hostil ity of the Russian government and military reprisals against the Letts. Poles. Roumanians, India and Meso potamia. at the same time depriving the rest ot the world ot me nussian grain supply? Surely there Is only one answer, peace, which would be altogether better if it could De oo tained on the proper terms." Similar views are taken by the Dailv News, which says: "By what right does a handful of politicians condemn their democracies to needless hardships ana tne democ racy of Russia to hardships fourfold more acute by prohibiting a natural and beneficial exchange of needed commodities?" The Manchester Guardian says that if the soviet government is as un successful "as its opponents' publicity agents have told us. then why not throw Russia open and let the world see the failure, and the failure die of consequent obloquy?" SALMON LOSS ALLEGED Witness Avers V, S. Dropped Big Sum by Rate to Packers. OREGONIAN NEWS BUREAU, Washington, Feb. 23. (Special.) B. N. Bennett, an accountant, testified before the Reavis sub-committee of the war investigating committee this afternoon that the public lost $7,000. 000 to 9. 000. 000 by the government's action in selling back to the Pacific coast salmon packers the canned sal mon left over from the war. He said that during the war the government purchased J3S.000.000 worth of sal mon and last May and June arranged the return of all leftover stock to the packers at a price $3 to H a case be low the market price. He said that in Omaha, where 600.000 cans of pi nion were stored, the wholesalers Of fered the government S10 a case for the enttre lot. This offer, he testified, was refused and later the same lot was sold back to the packers at 7 a case. This sal mon, he testified, was then sold to jobbers and distributors in all parts of the country and the government aid the freight charges necessary for its delivery. NO-CHANGE STAND IS HIT (Continued Prom First Page.) itself free from any cut-and-dried programme when it takes up the subject. Adatiaiatratioa la Stanaek. The administration's staunch sup porters in the senate, however, ap parently are . not fearful that these counsels will prevail. They indicated tonight that if any considerable num ber ot democrats wanted a caucus, one would be called. But they flaunt ed the suggestion that it might throw ver the president's advice or show a majority against the past and present party stand on reservations. Among republicans it was said that the caucus proposal apparently had grown out of a stiffening in republic an ranks which in turn resulted from the senate's action Saturday when irreconcilable opponents of ratifica tion seized the balance of power and used it to prevent any modification of the republican reservations. ' All Reservations Considered One. It was argued that mild reserva tion republicans were shown 'that modification in the Interests of com promise would be impossible and that the whole reservation group, includ ing article 10, must stand or fall to gether. - Bearing out this contention, mild reservationists who .have predicted that the article 10 provision could fee modified if necessary said today that the only chance of ratification now seemed to rest in the possibility that enough democrats would accept the provision unchanged. Who initiated the movement for a democratic get-together was not ap parent, but the move was understood to have the indorsement of Senator Underwood of Alabama, a candidate for - the democratic leadership, and other influential senators who have been urging that every effort be made to bring about ratification. nSTYDEFU T Federal Reserve Board Re port Sounds Warning. TURKS OPPOSE BRITISH CONTROL OP CONSTANTINOPLE POINT AT ISSUE. English Opinion Against Ottoman Dominance; Moslems Invoke Wilson Dictum. LONDON, Feb. 23. In the Evening Standard today Lord Robert Cecil gives it as his opinion that Turks must leave Constantinople on the ground that the "maintenance of Turkish sovereignty over thajt ground would be a menace to tranquility." Lord Robert says the policy of the allies toward Turkey should be just and he could not conceive that any one could doubt they were justly entitled to remove the Turkish gov ernment from Constantinople. Protests against the Turks retain ing their hold upon Constantinople were made in several churches here yesterday. A number of the most prominent people in the country, in cluding the archbishops of Canterbury and York, have memorialized Premier Lloyd George, earnestly opposing a policy. which would leave Constanti nople in Turkish hands. A Moslem delegation which is In Venice on its way to hold a mandate for 70,000,000 Indian Mussulmans, has sent a statement invoking President Wilson s 12th point on assurance of a secure sovereignty of Turkish por tions of the Ottoman empire. It begs hat no final decision on Turkey's future be taken until the Mussulman standpoint which Is maintenance of the Ottoman empire intact, is heard, CONTRANTINOPLE, Feb. 22. The British battle squadron of five dtead- naughts and four destroyers anchored here is the most imposing naval force which ever entered the waterway. Some circles look at the arrival as happening in the course of an ordi nary cruise, while others connect it with the present critical position of Turkish affairs. LONG CREDITS OPPOSED Countries Also Listed to Which Ex tension of Credit Is Not Needed to Continue Foreign Trade. ME LETTERS BURRED WEEKLY CORRESPONDENCE FIGURES IN NEWBERRY TRIAL. Effort by Prosecution to Introduce Evidence Regarding Subscrip tions Is Failure. GRAND RAPIDS, Mich., Feb. 23. The government won and lost today attempts to introduce testimony relating to Senator Truman H. New berry's connection with others of the 22 men on trial with him. Frank E. Dailey succeeded in bringing be fore the jury the fact that the chief defendant had contributed 31500 to the state central committee of the republican party, but failed in an ef fort to introduce letters relating to 147 subscriptions to Harvey's Weekly. The government called numerous witnesses in an effort to connect Roger Andrews of Menominee and Judge Kieland and Henry Dotsch of Escanaba with payments of sums to men who were persuaded there to work in the Newberry interest in the 918 primary campaign. Most of these witnesses got 310 for their part. A long argument came over the Harvey's Weekly letters. The barred exhibits were offered through George M. Gottfried, business manager of the North American Review and Harvey's Weekly, who came from New York to identify the correspondence. There were letters from Senator Newberrv and the publishing company relative to the yearly subscription price and finally an order from the senator for 47 subscriptions "to friends in Mich igan." This list included 72 of the defendants. SPANISH WRITER HONORED ovelist and Others Get Washing ton Cnlverstiv Degrees. WASHINGTON. Feb. 23. The hon orary degree of doctor of letters was conferred today upon Vicente Blasco Ibanez, the Spanish novelist, by George Washington university at the midwinter convocation. Herbert C. Hoover, former food ad ministrator; Senator William M. Cal- er of New York and Franklin Mac- eagh, former secretary of the treas ury, received similar degrees. CARDINAL BLAMES WOMEN Extravagant and Audacious Dress Held to Set Bad Example. BRUSSELS. Feb. 23. Cardinal Mer- cier, in his Lenten pastoral letter, blames' society women for setting a bad example for working women in what he terms their extravagant and audactoua dress, sensual desires and luxury. He decries bolshevist tendencies and calls attention to the necessity for reconstruction work. WASHINGTON, Feb. 23. While the net trade balance in favor of the United States in 1919 was 34.017.745, 000, a number of South American and far eastern countries held balances against this country of 3664,055,000, says the annual report today of the federal reserve board in naming the countries to which extension of credit will not be necessary for the continu ance of foreign commerce. The board's analysis shows that im ports from the British East Indies for .the year exceeded exports by $240,634,000 Cuba was next with 3140,219,000 and Brazil followed with favorable balance of $118,915,000. China's balance was $48,639,000 and Japan with $43,639,000 slightly ex ceeded Argentina's total of $43,190, 000. Chile had a balance of $28,970,- uuv. Gold Assets Reported. These countries, the report, says in general, are in a position to pay for goods bought from the United States either through exports or by the ship ment of gold. A bill carrying out the board's rec ommendations for limitation of bank borrowings was introduced by Repre sentative Phelan, democrat, Massa chusetts, ex-chairman of the house banking committee, after presenta tion of the report to congress. The bill would authorize' the federal re serve board to review reserve bank loans and Increase interest rates on loans to individual banks as a means of reducing borrowings and increas ing credit distribution. Determination of the board to exert the full power of the reserve banking system in regulating and controlling the credit situation, a course designed to aid commerce and industry in re storing a pre-war equilibrium, was disclosed in the report. "Healthy Liquidation" Urged. The board was prepared to "test the ability of the system to check expansion and to induce healthy liquidation." The board explained it was aware of the implied power to rectny the condition which confronts the country. This power necessarily followed the authority for and em ployment of an elastic system of reserve credit and note issue, it was added. Recommendations also were made to congress for amendment of the reserve act, which would permit reserve banks to establish normal maximum lines of credit accommoda tion for member banks. An ascend ing scale of rates would be provided in event money was borrowed above the maximum line. This, the board believed, would work to the end that credit expansion on a large scale -would be stopped. Rapid Deflation Warning Out. Warning was given that the country must guard against too rapid defla tion. It was pointed out, however, that some remedies employed to cor rect deflation might create condi tions worse than inflation itself. "Deflation merely for the sake of deflation and a speedy return to 'normal deflation' merely for-the sake i of restoring security values and com modity prices to their pre-war levels without regard for other conse quences, would be an Insensate pro ceeding," the report said. "It must never be forgotten that . . . . modern business is done on credit. One of its life-giving princi ples is credit. The ultimate test of a credit system must be found in what it does to promote and increase the production of goods. True iir general, the truth of this observa tion deserves to be particularly em phasized in the present deranged state of world authority and trade, when production is the crying need of the hour everywhere." Discount Rate Rise Explained. In explanation of its increase in discount rates the board said this had been the traditional method of credit control. Its use, however, pre-sup poses normal conditions and these, it was pointed out, do not all exist at this time. While a high reserve bank rate was shown to act as a restrain ing influence upon borrowings, it may attract credit from other cen ters. It is this condition, among others, that was said by the board to make inperative the use of its power in controlling credit and start ing deflation. In checking expansion, the board declared much depended upon co operation of business and the com munity generally. 'There Is, however, no need for drastic or precipitate action," the report continued. here need be no apprehension as to our ability to effect the transition from war-time to peace-time conditions if reason able safeguards against the abuse of credit are respected. Our economic and financial position is, at the bot tom, safe and sound. The processes of adjusting the volume of credit to a normal basis should be effected in an orderly manner." A plea was made for complete ab sorption by investors of outstanding portions of war securities issues. As these pass into the hands of perma nent holders and the national debt is reduced by the operation of the sinking fund, there gradually will come a proper balance - between the "volume of credit and the volume of concrete things," the board ex plained. The specific need of greater pro duction was urged again as one of the methods by which the proper bal ance" might be materially aided. But the board directed attention to dan gers which lie in the path of great production unless that production is immediately followed by dlstributipn and avoidance of wasteful consump tion. 'These are the fundamental eco nomic processes upon which the proper functioning of the federal re serve banks must depend," the report said. "The federal reserve system can do much to assist these processes, but it cannot of itself alone compel them. "While the federal reserve board will always be mindful of the inter dependence of credit and Industry and the influence exerted on prices by the general volume of credit, the board nevertheless cannot assume to be an arbiter of prices. Its primary duty is to see that the banks under its supervision function effectively and properly as reserve banks.".. The granting of extensive credits to foreign trade and the resultant keen competition in our own markets with the foreign buyer was charged by the board as being "one of the po tent causes of high prices." It was shown that the demand for commodi ties from domestic as well as from foreign sources was so far in excess of the supply that-the increased cost of credit can be and is absorbed in the price. Speculation, therefore, has not been effectively checked by advances in interest rates because of the an ticipated and usually realized large profits according to the analysis. Long-Term Credits Opposed. The board restated its o. position to the financing of exports which re quire long term credits through bank ing operations as distinguished from appeals to the securities market- Of America's balance of trade for the calendar year $4,017,745,000 approx imately $2,000,000,000 was declared to have fallen as credit transactions on the commercial banks. Treasury ad vances during the year amounted to $1,757,989,000, but this was not re garded as sufficient to offset the cor responding measure of expansion necessitated by the carrying of the credit balance. ' All of these credit arrangements, it was asserted, indirectly reflected back to the federal reserve banks Although none of the paper tendered by the foreign buyers was discount able at reserve banks because of legal restrictions, commercial banks which have received It were believed to have turned in order obligations for redis counting, which otherwise would not have been sent through that channel. DUBLIN FLOUTS BRITONS City Corporation Issues Orders to Ignore Military Rule DUBLIN, Feb. 23. The Dublin cor poration today resolved to prohibit any employe or official from asking of the English military government permits for discharge of municipal duties. Further, the corporation or ders cessation of municipal services endangering the lives of its employes during the imposition of martial law, has issued instructions to remove night watchmen and to extinguish lights, and refuses to authorize pay ment of overtime to any men worktag by permit between midnight and? 5 A. M. . . ' It is pointed out by the corpora tion that the darkened city would be at the mercy of burglars and other criminals. The rejoinder is made that the responsibility is the govern ment's. Streets tonight -were in darkness within the city limits. BRITONS HONOR PILGRIMS Lord Mayor of London Presides at Mansion House Luncheon. LONDON, Feb. 23. A luncheon was given at the Mansion bouse today in celebration of the tercentenary of the sailing of the Pilgrim Fathers and Washington's birthday. The luncheon was presided over by the lord mayor. Conference on Gift to Be Held. TORONTO. Ont, Feb. 23. Prelimi nary conferences in connection with John D. Rockefeller's gift of $5,000,000 for the advancement of medical re search in Canada will be held here March 9, 10 and 11, it was announced today- Refugees Reach Cairo. CAIRO, Feb. 23. (Havas.) Two thousand five hundred refugees from Russia have arrived here. Aid has been extended to them by military au thorities and the British Red Cross. New York to Send Woman. NEW YORK. Feb. 23. Selection of woman candidate as delegate-at- i large to the national convention in San Francisco next June will be one problem before the unofficial demo cratic state convention to be held Thursday. Canada-Australia Liner Sails. VANCOUVER. B. C. Feb. 23. Reg- lar steamship service operated by the Canadian government between Canada and Australia was inaugurat ed today when the steamer Canadian Importer left for Australia wijh a general cargo, Sure Relief 6 Bell-ans Hot water Sure Relief RE LL-ANS Lb? FOR INDIGESTION Flier Dies In Burning Plane. EAGLE PASS, Tex., Feb." 23. Sec ond Lieutenant Horace M. H. Cory was killed here today when his airplane fell 1200 feet after suddenly bursting into flames. Corey vras 2" years of age. His tome was In Chicago. Bargain in Highway Trailer. A brand new 5-7 ton, 4-wheel re versible "highway" trailer, with extra good stake body is offered for sale by the Phez Co.. Salem, Or. Write for full particulars. Adv. As a Health Measure For that, if nothing else, you should take the time daily to sit down at a table during lunch com fortably while you are at it and eat well-cooked, carefully selected food appetizingly served (in double-quick time, too) and after a sufficient period of time in which to make a demonstration, you will find that your strength and resistance will become much greater. Here, in either restaurant, you will find the best the market af fords, cooked as only our chefs can cook, and at a price that will make you wonder how we can do it. . Hfmpertal 'si EX iiimiiiiiniiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiii 11111111111 1111111111111111111110111111111111111111111111111111111111 A Treasure in Your Home The delight of being independent of all laundry troubles will be yours if you order an m. ELECTRIC WASHING MACHINE The Apex is the ORIGINAL oscillating washer. Designed eleven years ago and never has been equaled because it is impossible to infringe on Apex patents. JThe shining copper tub cannot rust; it is always sanitary and sweet smelling. IThe Apex method is FASTER than any other mechani cal washer and handles the clothes more delicately. There are no moving parts in the tub to obtain action. fApex all-metal construction guaranteed to serve years without expense. All mechanism fully covered. IThe Apex wringer swings to the position that is most convenient for you. 3i Simplex Ironers Our professional demonstrator has had two years' experience with the Simplex. She will instruct vou how to iron a great variety of garments in addition to flat pieces. Do Not Depend Upon Amateur Instruction Family Size 140 cppa 420 Sr" Don't Buy Before Seeing the Apex. Buy Electrical Goods From an Electric Store J. C. ENGLISH CO. Upstairs at 148 Fifth St., Bet. Morrison and Alder-Phbne Main 143 kiiiiiiiiiiiriiiiiiiiiiiiiiiiiiiiiiimmiiimiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiii miiiiiimiimii I - and all E s on the report card Itt&X ,:XVv ira milk. Let him have all he can qES : Good grades in school come easily and natur ally to the well-nour ished child. Ask any teacher and she will tell you how often the poor lit tle tots from homes where no' attention is paid to food values and particularly where there ' is no milk are dull and back ward in" their studies, if in the first few years of his life the child is undernourished, if his little body becomes under weight and poorly developed, the same condition is bound to apply to his mentality. And the tragedy is that he seldom regains this loss in-after life. The Portland Grade Teachers' Association, knowing that nothing can take the place of milk in the diet of the growing child, maintains a "Milk Fund" in order to supply those chil dren whose lack of milk is retarding their mental and physical growth. Give your child the start in life to which he is entitled a hpalthy body and -a normal brain. There is nothing in the world so essential to this con dition as plenty ol HP