Weather: Fair
Home Edition
LANE COUNTY'S HOME NEWSPAPER.
TODAY'S NEWS TODAY
EUGENE, OREGON, MONDAY, SEPTEMBER 21, 1931. PRICE: on streets 3c, ox trains and news stands bc, Sunday editiohso NO. 83
FOUND!
Government Of England
Suspends Gold Standard
As Nation Faces Crisis
ALARMED!
SENFaNTS
ia.rilCTU
Mm
Intervention
in manchuria
ULTliT
00
SUSPENSION
BONUS DEMAND
league Ol JNauuua na&cu
Immediately
Wa is aroused
Lling Against Japan Is
At High Pitch in
Nanking
VAVKIXG. Sept. 21. 0P China
Kfd out today against the Japanese
Lpation of southern Manchuria.
finrernment oiliciais, newspapers
L individuals expressed their re-
itment in various ways. pHriiuumro
Nanking. Feeling against Jnpan
L running high." Mass .meetings
r lareely attended, students par-
ltd the streets with banners deery-
L the occupation and the govern-
nt designated next Wednesday ns
lomiliation day" in connection with
incident.
Japan In Area
iHhmiffh nfficinl reDorts said Jan-
Sese troops had evacuated Kane
nctse, near Changchun, the termi-
s of the pout n jinncuurinn railway,
bier important cities of Mnnehurin
fcnained in tlie military grip of the
imirted Alfred Sze. its chief dele-
itp to the leasne of nations, to Iny
ina s case before the league council.
iThe Chinese delegare was requested
i tnnpal for the Icaeuc to take im-
fdiate and appropriate action accord
it to the league covenant and to
u5f Japanese troops to withdraw
m preserve peace in tne rar iast.
Intervention Urned
Representatives of Chinese news
!encien and newspapers, in the name
the nation's press, cabled the lcn
p of nations urging intervention in
mchuria, where "wnnton invasion
this pence loving, law abiding peo-
showed utter disregnrd of the
'ashington treaty and the Kellogg
Kt."
C. T. Wang, foreign minister nd-
fssinir the Government s weekly
morial meeting, said: ..
"We may lose our lives, we may
ip our homps. but we cannot, sur-
mder any part of the country in
Kited through centuries from our
irpfathers."
.Tat fhi.Tan . coIr,- MAmKn. f
i Kuomintang. the largest political
Srty in Llnna and the organization
hind the nationalist government
i "Among the civilized nations It Is
p way of one neighbor to help nn
tter in timo of distress. When .Ta
Vn wns afflicted by the earthquake
1923 all the nations, including
ft: a a, cam to hr aid.
i Japan Unneighborly
"J"Xow China is gripped by terrible
pods and confronted with a serious
ftimnnist menace, but what is Jn
n doin? to help her sorely afflicted
ishbor';"
tA high official nf the foreign office,
wuriing the situation, said that if
wan fniled to make nroner nmends
SEE CHINA STORY
PAGE 10
eathe r News:
ptooday dawned mostly fair in Eu
f. with prospects for warmer
ploer and rlmr skies for the first
Wl fit th. n-nnl. ... I . ntt::i
, ...-.-i. jit t-;iM. iflillllll
pi'r data announced Monday
KIRe'cHM . UlAcuikiffrnu.
t ,. - ti naniii u I u IV . IHir
;tbt d Tuesday ; warmer in.in-
L ; 'u, :1'1; pentie to moderate
.... um nu snore, t ire wea
f f,nJ't f"r Oregon: Fair Tues-
"r"eMi!iy Willi risniff tem-
Fcl , STATISTICS (From the
'i. .u. ncuroekert. local cov
iment fiM............ . -f:-
S In","' degrees; DMxi.
, Vj k 'lesrees. dlamette
i-i btlon- normal. Wind, north-
felUSLAW TIDES: Tuesday, hlph
I" ',' lM P. m.j low. 4:31 a.
P. U:.n n, m.: )nw r,:2n m-i 5.42
wtlement Of Eugene
hjick isttlea,,
''t of Kugenes milk
recast Monday after-
eraent between pro
Si tors will be reach
r three days, accord
dr,y from some con-
' as fr,
1 MipWe :r.
" and d:.;r
"i'kin lltr,
1 "rd Mo
lA'l. di.tribmo
s of Eugene were
ng Monday afternoon
"f ruiiimerce to per
'.TTinji among them
ree distributors were
e-tmir. tne purpose
-nii, f,. tr, mnimnin
'"f th milk dis-
itere nnl to work
' I,,liliC confidence
i M';v slid its purity.
t,t sti'l oilier inter
he b ivinrss were d;s-
cro'ip generallv
h s "nd little ones.
"T'i of directors
"'"krg to further
Jin.iatwn of their
full time
- e tl.ft h'itnes nf
tic.,, -,;.(,; a
p-..ducrs. In the
',r'en prodicers
. "i ort.m
Tivpmvt
M for ti: ,.
n:
"tad.tr:.
'"1 rl ,.
c-:.-
' i: ' , '
,
"t th. r,.
r
4-r i
'iwk
Forced down by bad weather
conditions during an attempted
crossing of the Atlantic from Por
tugal, Christian Johanssen, above,
and his two co-pilots of the mono
plane Esa, were found Monday by
'a steamer which located the
wreckage of their plane In the sea.
CHEST TO BE MADE
Plans for Getting Funds
For Beneficiaries to
Be Talked
The constitution of th'e Eugene
Charity Chest is expected to be
adopted at a meeting of the general
committee and representatives of the
beneficiaries nt the chamber of com
merce at 7:o0 o'clock Monday night.
1'lans for the canvass for funds are
also expected to be made at this
time, according to F.dward F. Bailey,
chairman of the committee in charge.
The beneficiaries of the Charity
Chest are the I.ane county chapter of
the American Ked Cross, the Salva
tion Army and the St. Vincent del'aul
society and each will receive a pro
portionate share of the funds, to be
determined by the directors of the
chest.
The constitution provides for a
general council to administer the
funds of the chest, to be made up of
15 citizens of Eugene, each bene
ficiary to appoint five. This council
has the privilege of appointing five
more to make a total of i!0 in the
group. A board of directors will con
sist of six persons elected from and
by the general council and a budget
committee lo pass upon the budget of
each beneficiary organization is pro
vided for.
This group will elect a president,
vice-president and treasurer to serve
without pav and a secretary who
shall devote such time to the duties
of the office and receive such com
pensation as shall be determined by
the directors.
A reserve fund Is an Important
feature provided for in the con
stitution of the Charily Chest. Ap
propriations from this fund will be
made only to meet extraordinary con
ditions and emergencies.
Another provision is that no liene
ficinrv organization shall give enter
tainments for the purpose of raising
funds, or solicit contributions other
than permanent endowments or lega
cies in behalf of suh organization,
without first obtaining the approva,
of the board of directors of the chest.
Milk Trouble Expected
to tho Eugene pasteurizing plants,
necessitating a manager who could
handle all such business for the pro
ducers group.
Practically all the contracts held by
the Eulene Farmers' creamery with
producers have been heard from and
they were expected to be all released
by the creamery board at a meeting
somn time Monday. In the new plan
between distributors and producers,
distributors buy tiieir market milk
only from the producers' association.
Another meeting of distributors to
further put over their organization is
expected to be held shout Wednesday.
Man KiIledWrrT
Hall's Plane Fall
NEW TY'IiK. Sept. St. '4-)
Teter .1. Brady, president of the Fed
eration hank, was killed todsy when
.lames lin.-dwin Hall's speed plane,
the Crusader, crashed in flames l
tween two houses en Staten island.
The houses were set afire, and a
woman in one of th'm. Mrs. Mry
Parito. was humeri to death.
ll;iil escaped by Jumping i'n
parachute. Brady also or r"'"-
chuie. but fsiied to tiinca
j ifl time to leap.
County to Press Charges If
Pupils Are Not in School
Wednesday
RESIDENTS ADAMANT
Refuse to Send Children
To Regular School
Building
The district 17 school row contin
ued unabated Monday with parents
opposed to the present members of
the school board defying the ultima
tum of Assistant Superintendent
Lawrence C. Moffitt to have their
children in the district school Monday
morninc or face prosecution for vio
lating the compulsory school law.
The defiance was expressed by the
parents again sending their children
to the home of Mrs. Maud Frady,
former teacher of the district school
who was discharged by the majority
members of the school board, Mrs.
Ruth Wright and Mrs. Myrta Mc
Fadden. Warning Sent Out
Mr. Moffitt stated Monday that the
warning notices required- by law
would be Bent out Monday night to
all parents -who have been keeping
their children away from the district
school. Miss Lela Parks, teacher
hired by the school board to replace
Mrs. Frady, was expected to report
the names of the offending parents
late Monday afternoon.
The written notices, warning the
parents to hare their children attend
ing the district school on the day
following the receipt of the notice,
are expected to reach all of the par
ents involved on Tuesday, Failure to
hare the children in school on Wed
nesday morning is expected to result
in complaints being filed against the
parents by Mr. Moffitt as school at
tendance supervisor.
May Faet Trial
Parents arrested on the charge of
violating the comnulsorv school lnw
will be brought to the Junction City
justice court for trial. The court mny
Impose either fines or jail sentences
tor tne offense.
The parents, who seek the resig
nation of Mrs. Wriehr ind Mrs. Mc
Fadden from the school board and the
reinstatement of Mrs. Frady as
teacher, declared today that they
would not back down but will con
tinue to hold their children from the
district school as long as the two wo
men directors are in power.
- Sources close to the situation hinted
Monday that the dispute might he
settled out of court through a com
promise which would involve the
resignations of the two women di
rectors and the status of the deposed
teacher in the district.
The outlook for a peaceful settle
ment is not held to be very bright.
uot!) sides in the row have made re
pea ted statements that they would
tight the matter through to a finish
and neither one wishes to be the first
to annear to neld a noint toward-end
ing the breach between neighbors
which threatens to make its effect
felt all through the school year re
gardless of what form the settlement
may take.
E
RENO. Sept. 21 OJ.R) Jack Demp
spy was granted a divorce today from
Kstelle Taylor Dempsey on the ground
of mental cruelty.
The decree was entered by default
when his nctress-wife failed to bring
a crors-complaint or contest the case.
Although Dempsey's was the lflth
on the docket of Judge Thomas F.
Mornn, the preceding complaints were
heard in short order and the former
champion's decree was entered at
11:57 o'clock.
The bearing was held behind closed
doors.
Jim McKay. Reno sportsman, was
Dempsey's wit ness. Ieonord Racks,
bis manager, also accompanied him.
Entering the court shortly after
11:30. 2. minutes was given, to the
czc in t end of the usual five, in an
effort to give the former champion an
"iron clad" decree which would resist
any contest.
Although V"pt secret st Dempsey's
request, it was understood the pro
codings weh unusually thorough, and
that testimony wss given in detail.
It was reported that Dempsey nnd
McKay charged Mis Taylor with be
ing tempers mental to the point of
erueltv. entrsvsgant. snd as larking
lore for a home, and not desiring
children.
Tillamook Man
Is Mistaken for
Deer and Killed
TTTXA Mh K, Ore., Sept. 21.
p)Miftrsken ftr deer,
Rslph Nelson. 4. Tillamook.
hot to death hv his brother. Wil
liam Nelson, tlanbsldi. Ore., on
Miami creek IS mile from here
Tenrerdsv. It wss the first casu
alty of Oregon's deer hunting sea
son hKh opened Sunday.
Nelson's twxlv wan carried part
of the sit out of the rough
muntrv where the andent hap
pened bv William NeJon snd
three other members of the Jmnt
ing psrtv. Kirt word of the
trairedT came when the? sent
ahead for fcflp in carryiLg their
burden
He'll no longer be the "late"
mayor of New York. For Jimmy
Walker, world famed for hit tardc
neaa, waa preaented with thla huge
alarm clock auipended by a gold
colored chain when he attended a
luncheon of American and English
newipaper writer. In Paris.
TWELVE KILLED IN
Ohio and Indiana Rocked
By Hard Quakes
Late Sunday
TOKIO, Sept. 21. OP) Japan's
most severe earthquake since 1024
shook Tokio and adjacent regions to
day. Incomplete reports showed 12
deaths. 40 seriously injured and con
siderable property damn ye.
The quake occurred at 11:20 a: m.
(0:20 p. m Sunday B. S. T.) Tele
phone and telegraph lines in Gumma
and-Saitsma prefectures, where the
shocks were the worst were torn
down.
First reports agreed that many
houses collapsed, causing the fatali
ties. Yokohama, Kofu, Fluzuokn, Fuk
ishimn, Nngoya nnd various other cit
ies on Hondo island felt the shocks.
Thousands of persona ran from
their homes in Tokio and Yokohama,
where the great earthquake of 11123
did enormous damage and instilled in
the populace an acute fear of earth
shocks.
Department stores and other busi
ness places, which wero thronged
with morning shoppers witnessed
scenes bordering upon panic.
QUAKE IN U. S.
C LE V E IA X D, Kept. 21 . W)
More than a dozen cities nnd towns
in portions of Ohio and Indiana were
severely shnken last night by sub
terranean tremors, the most pro
nounced in this section since 1811
when the entire Ohio river valley was
affected.
Although attended by intense ex
citement, among householders, the
qunke did comparatively little damage
and caused no loss of life.
It renched its greatest Intensity at
the village of Anna, in western Ohio.
The community of iVK) persons was
without a whole chimney today, and
every house nnd building was damaged
to some extent.
Plastering in the Anna high school
was shnken from the wnlls and the
corner stones of the Lutheran church
were jarred Iooe. Damage was esti
mated nt $10,000.
Starting at about 6 o'clock, east
ern standnrd time, nnd continuing over
periods of time as great ns 30 sec
onds, the qunke extended from Zanes
ville, O, on the extreme east, to
Richmond. Indianapolis, Connersville
and Lihcrty, Ind., on the west.
Ilittldings were reported to nnve
swayed in SrHngfield. O., while dis
tinct sho-ks were felt in Columbus,
Lima. Cincinnati, Dayton, Cairo,
Westminster. Sidney, Wnpnkoneta nnd
ftomer, O. Sidney reported fallen
chimneys but in other localities the
effect consisted largely of rattling
dishes nnd windows.
Lindys Give
Aid In China
Flood Relief
NANKING, China, Pept. 21.
A) Colonel and Mrs. Charles A.
Lindbergh, volunteering their services
to the Chinese government for relief
work, msde an aerial surrey of the
flood-stricken section of northern
KinngMj province today.
The survey flight was the result
of an offer by Colonel and Mrs. Lind
bergh to place themselves and their
plane at the disposal of the govern
ment to help in any possible manner
during the flood emergency. The
offer was accepted with thanks by
Chiang Kai-Shek, head of the na
tionalist government, and T. V.
Hoong, finance minister.
'The region for which the fliers
headed was Inundated late in August
and the loss of life was estimated at
KHtxKl in five counties along the
grand canal. Destruction in that area
waa so thorough, however, that no
means of making a reliable surrey
have been available.
At Lindbergh's suggestion, all so
cial function planned here in honor
of Mrs. Lindherrh and himelf were
csnceled to enable the fliers to de
rote their full time to flood relief
work.
Af'eP accepting Lindbergh's offer
to help Soong sent two experts
of the. floon! relief commission from
Shsnrhsi to Nanking to confer with
the fliers on the most ffectire way
of unci their plane,
Declares Government Can
Stand No Further
Expenditure
SITUATION 13 GRAVE
Tax on Rich or Loans No
Help at Present, Says
President
By RAYMOND CLAPPER
(United Press Staff Correspondent
OLYMPIA n.VLL. DETROIT,
Mich., Sept. 21. (uR The American
government can carry no additional
burden of expenditure without "grave
risks." President Hoover solemnly
warned the American legion conven
tion today.
The country's need, he said. "Is
second only to war."
He asked the war veterans to de
fer all demands on the government
until after the depression. It was
in effect a request for a moratorium
on all bonus and pension proposals
during the depression.
Difficulties Shown
. Neither loans nor taxing of the
rich, he declared, would avert serious
difficulties if additional demands were
made on the government.
Mr. Hoover, speaking earnestly and
frankly, appealed to the' World war
veterans to summon again the same
courage and self -sncrif ice which
brought victory in the World wnr
and to enlist in the fight to maintain
the stability of the United States.
Without mentioning specifically
bonus nnd pension proposnla advo
cated by many in the legion. Mr. Hoo
ver, after referring to depression re
lief nid given by the legion, said:
"But there Is today an even greater
service to our country. That Is the
determined opposition br you to addi
tionnl demands upon the nation until
we have won this war ngninst world
depression. Nothing would give
greater alow of confidence to our
country today than your enlistment
nnd the vigorous support you can
bring to this effort to prevent addi
tional burden on the government from
any quarter whatsoever.
Situation Grave
Mr. Hoover emphasised the gravity
of the situation further.
''The imperative moment has come
when increases in government expen
ditures must be avoided, whether it
he ill considered, hasty, or unin
formed legislation of any kind, or
whether it be for new service meri
torious in themselves," he said.
"We can carry our present expendi
tures without jeopardizing national
stability. We can carry no more
without grave risks."
Mr. Hoover urged that "no one be
misled by those who sny it Is only
necessary to tax the rich.'
"We must face the absolute fact
that the rich can be taxed to the
point of diminishing returns and still
the deficit in our ordinary and neces
sary expenditures would not be cov
ered even upon a basis of utmost
economy," he said. In the end. he
warned, "it is those who would be
forced to work in the fields, at the
bench nnd desk who would be forced
to carry an ndded burden for every
added cent to our expenditures."
nALIFAX, N. 8., Sept. 2L OP)
All three flyers, recently lost on a
flight from Portugal to New York,
were found today,
The Norwegian motorship Belmoira, i
bound for Russia from Albany, N. Y., j
reported this morning finding the
wreckage of the plnne In which Wiley
Rody, Fernando Da Costn Viega and
Christian Johanssen. left Lisbon for
New York. The motorxhip sighted
the wreckage off the Newfoundland
coast near where it was last seen In
the air by a stenmer.
Later anotlVr messsge came from
the Belmoira reporting that two of
the fliers had been taken from the
wreckage. Still a third messsge
brought word that all three were
saved.
Will Body, Christian Johanssen.
Herman airmen, and Fernando Costa
Viega, Portuguese sportsman, hopped
off from Juncsl Do Sol, about 30
miles from Lisbon, Portugal, at 4:30
a. m. (K. S. T ) September 13, bound
for New York. Their junkers all
metal plana was heavily laden with
035 gallons of gasoline and 105 gal
lons of oil.
They last were sighted on Septem
ber 14 at 1:40 p. m. (E. 8. T.) by
the stenmship Pennland about KO
miles southwest from Cape Race,
Newfoundland, and 305 miles east of
Halifax.
4
Employment Survey
Of State Under Way
PAL-EM Sept. 21. A com
plete survey of the unemployed situa
tion In Oregon is being conduced by
-L M. Devers. attorney for the state
highway commission, upon the sug
gestion of Oorernor Julius L. Meier,
it was announeed here today.
Immediate action in handling the
affairs In earh cotmt? has been urged
hv Derers In communication with the
county commitfees, in which he hat
pointed out steps tor securing tuei
and foodstuffs for msny of the needv.
The Rtate htrhwar commission will
use the surrey figures as a basis for
employment on emerfency highway
eon tracts, a was maicitto.
J.P.Morgan Declares
English Action .
Correct
Financiers All Deem
Move as Step to
Recovery
By DEWITT MacKENZlH
Chief of London Bureau, Assd Press
(Copyright 1031 by Associated Press)
LONDON, Septi 21. OP) J. P.
Morgan today expressed to the Asso
ciated Press optimism regarding the
situation arising from Brent Britain's
sensational suspension of the gold
standard. He said it waa a "hopeful
and not a discouraging event."
Mr. Morgan made this statement In
reply to a question from a corres
pondent who sought him in bis pri
vate office not far from the Bank of
England.
"This step seems to me to be the
second necessary sti'ge in tho work of
the national goverumeut, the first
being the balancing of the budget,"
Mr, Morgan said.
To Restora Trade
"The completion of tho govern
ment's work will bo the restoration of
trade iu this country."
"This being the case," Mr. Mor
gan continued, "it seems to me a
hopeful and not a discouraging event
and one which brings the great work
of the government much neurer to
accomplishment."
In receiving the Associated Press
correspondent, Mr. Morgau broke an
almost ironclad rule never to grant
newspaper interviews. His father ob
served the same rule before him.
But once the distinguished banker
decided: to tnlk, no one could have
been more cordial. He discussed the
situation for almost on hour nnd while
it is not permitted to quote him any
further than nbove, it mny be said
that In the entire discussion he did
not express any pessimism.
And he added a word of fine tribute
for thn character oud stability of the
Enelish neonle.
Several other financtera expressed
similar opinions. Without exception,
they held tho view that the govern
ments Intent step is in the right di
rection nnd that Britnin will weather
her crisis.
Situation Serious
There waa no disposition to try to
evade the fact that the situation is
very serious.
Indeed, one of the most hopeful
signs these financial experts find is
that England does recognise tho sit
uation ns serious nnd It attacking her
problem from that standpoint.
Other financial commentators re
quested that their names be withheld
but here are some of the points made
by several American bankers, all of
whom nro widely known:
Suspension of the gold standnrd by
Great Britain not only was not un
expected, but it was a logical and
loregone conclusion.
From tho standpoint of the finan
cial expert It wan the correct move.
The only criticism oirered is mat it
should have been done before.
Far from heing disconcerting this
move has cleared the atmosphere.
Stops Run
What, has happened is that Eng
InnH. ah n hnnker. has stopped n run
on her Institutions. People nil 1 he
world over were cashing their Mrltish
securities here in London. Individuals
did not, realise the magnitude of the
operations and did not recognise that
they really were pnrucipnung in a
run.
Brltnln was not going to let herself
get caught ns (Jcrmnnv did just after
the war when tho mark crumbled to
practicallr nothing becauie Germany's
reserves had been wiped out. financial
experts declare. The fall In the dollar
value of the pound ha been antici
pated and discounted by bankers, It
is said.
Baseball Scores
AMERICAN LEAGUE
At Ronton, Jut tame K. TT. E.
Pt. Loui, 0 8 0
Boston 2 ft 2
f'nffmnn n4 Bfniough; Durham
and Connolly,
At Boton, 2nd tm
Kt. Imis s 2 4 1
Bontnn. . n 12 2
(irnj and Ferrrll; Morris and
Stonf.
At Philadelphia, lit gam
TVtrolt 2 11 ft
Phlldlphla 3 ft 1
Una. .it and Grabowakl; Bommfll
and llovinj.
At Philadelphia 2nd game
Pefroit 13 1
Philadelphia ft 7 2
Bridges.- t'hle and Ruel; Peterson
and Palmlnano,
At New Tork
Cleveland. , P 0
New York 1 ft 2
Terrell and L. fiewell; Ruffing nd
Dickey.
At vTnuhiniton
Chirago 3 0
Washington fi 0
Lyons snd fiarrity; Iladlej, Mar
berry and Rpencer.
At Pittsburgh- R. IT. F.
Philadelphia fl l 2
Pittsburgh 4 0 3
J. Elliott, Renge nnd Mefurdv:
Harris, Hpencer, Osborne, Wood and
I- inney, (trace.
At Cincinnati
Boaton 2 ft ft
Cincinnati 3 13 0
Reiboid, Sherdel aud Crooio; Lucas
tod Aiby.
OPTIMISTIC!
J. P. Morgan, above, broke a
precedent Monday when he 'granted
an Interview expressing himself as
optlmlstlo concerning the action
of England. It la virtually the
first statement to the press he has
made on any subject.
Short Selling Is Prohibited
By Board; Bear Rout
Hits Mart
NEW YORK, Sept. 21. OP)
Prices rnllied with spectacular swift
ness on the New York stock exchnnge
today after an tyirmous volume of
early selling, prompted by the London
situation hnd swept principal shores
down $2 to $(1.
What started as a heavy liquidat
ing movement turned into a bear
rout before the session was an hour
old. Shorts who hnd built up Inrge
commitments during the September
decline scrambled to cover when the
market caught Its breath after the
first torrent of selling, doubtless
frightened by the market s success
in absorbing tlioxe sales us well as
by thn governing bonrd's invocation
of the rule against demoralizing
short selling.
Uniled States steel, well supported
throughout the first hour, son red
nearly $4 a share American Tele
phone fully recovered a break of
$".( i2. TTnion Pacific jumped $5 net
nff or dropping $2.75 nnd flcneral
Motors, whkh hnd fallen ?2 sold $1
nbove the Snlnrday Hoxe. American
can, Western Union. Bethlehem sled
nnd many olhera milled strongly.:
Liouidatlon. coming in nnrt from
abroad where the London. Berlin and
Amsterdam markets wero closed, piled
up liugn orreritinn ndfiniHt the open
ing. Ko strong was the urge to sen
that transfers In Ihe first, half hour
swelled to 1,IH).')(K) shares, the larg
est volume for thnt period since June
li, JiMU.
NO SHORT SELLING
NEW YORK. Sept. 21. P The
New York stock exchnngc governing
hoard issued a notico prohibiting
short selling jut before the market
opened today.
Just, before the opening time the
stock exchange ticker printed n notice
saying tlie exchange would open ns
uunl but that the governing com
mittee in view of the grave nnd seri
ous emergency created by the sus
pension ' sold pavmenta in r.nglnnu
nt a meeting held curly this morning
reaolved that in Us opinion short
selling during the present emergency
would tend to bring out a condition
of demoralization In which prices
would not. fairly reflect market values
and therefore would violate the pro
visions of section 4 of article 17 of
Ihe constitution of the exchange.
PRICES RALLY Oil
EXCHANGE MONDAY
Here 's What Happened
After Britain's Action
(STOCKHOLM. H-pt. 21. (U.R
The bank f t.cIou to'lny rnivl Ha
li.roiint rnlr- from 4 to T, rent
follnwine Iho n'lintKv in tl" Hunk r.1
KmIdikI run from 4',!i I" P" c"1-
COPKNHAfiKN. fr.pt. 21. J.B
nniir" in Ktm klmlm. Oslo, ami top
rnhnum were H"','l toilny waiting oe
vflnpmrMit in Lomliin.
I In ninli lmtik nnpi-nfli-d anlra and
nnrrhnaM ' f'-f-inn rxHiniu but
liotln awl railways continued to
rppi sterling.
jmrSNKLR. NM,t. 21. u.n
Stock nrhinifi of Hntcl and
Antwern were Hoard today lu to
Ibe Hrjtih situation.
ttO.MnAT. Sept. 21. lURI Thf
stork eirnanf was Hosed todnr un
der the president's f tnergenry pow
Silver rove three rupees (nnont
fm rents rompiired with rinturday's
Hose. Cotton rose eight points In
an hour.
(iold rose ten annna (about
rental per tola is.-yen pennr-neights t.
The government ordrreii hunks and
markets throunhout India to remain
Hosnl tomorrow. The victory Issued
to ordinance temporarily rclieyivi tb
Payments in Britain
On Gold Parity
To Cease
Heavy Withdrawal of
Foreign Credit
Is Cause
WHAT GOLD STANDARD IS'
The gold standard of ex
change is normally in use by
virtually every civilized nation
of the world. It is predicated '
on the fct that paper money
of a country's bank of Issue la
redeemable in gold on demnnd.
In the British foreign ex
change market, recently with
the pound sterling available he
low Its gold parity, in relation
to other currencies, it has been
profitable for banks to acquire
sterling pounds in the market,
convert them into gold nt par
ity, nnd then convert the gold .
Into other enrrenciea by ex
porting the gold.
The pound sterling waa peg
ged in New York during tha
war at $4.70. It reached this
srtificinl height by means of
securities sale of dollars held
by British citizens.
In J9W, It was decided to
remove the support, and the
sterling dropped, until finally
in 1JU0 it hit a new low of
$n.ir.
The gold standard has been
adopted by most every country
since the war.
(By United Tress)
Decision of the British government
to suspend temporarily operation la
part of the gold standard echoed
throughout the world today.
Principal stock exchanges of Eu
rope closed with the exception of the
Paris Bourse where prices reacted
sensationally In heavy liquidation.
The pound sterling dropped to a
sale quotation of $4 per pound in New
York, compnred with a close Saturday
of $4.84 7-8. In London, the pound
wns quoted nt $4.40. In Paris the quo
tation was 100 francs to the pound or
about fl.30.
Gold Prloe Drops
The prlco of gold la London fell
from f shillings HVj pence to 84
shillings 0 3-4 pence today.
Immediate effects In commodi
ties were to Increase prices
abroad. Liverpool cotton shot up
sharply as did metals In London.
In Bombay silver and cotton
prices advanced. Liverpool roso
4 cents a bushel.
Bankers in New York held hurried
conferences to check the first effecta
nf the British decision which they an
ticipated because of general lack of
knowledge of tho situation.
Leading bankers In New York did
not believe the situation serious so
fur ns this country wns concerned.
Americn, nccording to nn Influential
banker, has only about $50,000,000
credit in Kngland aside from the re
cent limns to the Bank of England
which are pnynble in American gold
dollnrs. This amount is of no conse
quence ns compared with the huge
short term credits of America in Ger
many, be said.
Move Anticipated
Brokers and bnnkers in New York
nnljcipnted the move and made prep
arations for It last week. The stock
market in New York declined shnrply
Inst week as traders discounted ef
fecta nf a temporary suspension of
the gold standard.
Tha situation means that for
the time being England will sut
pend payments within tha British
empire on the gold parity fixed
In 1025 when the gold standard
was resumed after a suspension
during the World war.
iiovernment obligations In foreign
countries contracted on a gold basis
will be met at the gold rate when they
fall due. k .
According to a leading American
banker the effects of the move will
SEE GOLD STORY
PAGE 10
goyernment of Its obligation, nuder
tha currency act to aril gold it,rltng.
Liverpool" fiepr. 21. u.
Cotton and wheat prirea soared to
ilnr with the fall in yalue of tha pound
sterling. Cotton rose $1 hal.
while wheat rose from to 4 cent! t
bushel.
LONDON, Sept. 21. (U.B Tha
price of gold hero was fixed at nomi
nal quotation of K4 shillings
penre an ounce today. This oomparad
with Sutunlny'a quotation of 81 (hill
ings HVj pence.
HAMllUHO. Hrrmanr. Sept. 21
nj.Ri The bourae was closed Indefin
itely today.
flKNEVA. Sent. 21. (U.RV SsH,
banks were handling only obligation,
if Hwitserland today and refraining;
from all foreign dealings.
It was understood convening of I
conference of International banker!
at Hasle today or tomorrow wa, un
der consideration.
PANZiri FHKE CITT, Rept. 21.
(U.R Th selwt abolished th co-r,-
IbeFmarKETS STORtt,
PAGE 10