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
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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"
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