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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (March 7, 1933)
Medford Mail Tribun Paid-Up Circulation People wbo pay tax tbeli newspapers urn the oest prospeote tor tbs adver tisers, a. B . O. circulation la paid ap circulation, rhis newspaper Is a. a a Twenty-Seventh Year MEDFOKi), OREGON", TUESDAY, MARCH 7, 1933. No. 293. sjmil ThtWeather Forecail: Cloadv tonight and Wed nesday; not much change in tem perature. Highest yesterday T , 64 Lowest thli morning Hi) E EM JW Iza Jzi J JEa U Comment on the Day's News By FRANK JENKINS. PRESIDENT ROOSEVELT, in his Inaugural speech, says: "First of all, let me assert my firm belief that the only thing we have to fear is fear Itself; nameless, un reasoning, unjustfled terror which paralyzes needed efforts to convert retreat Into advance." HE HITS thnaU on tha head. Remove this "nameless, unrea soning, unjustified terror" that has gripped the people of this country and our business troubles will begin to vanish as the early morning fogs vanish before the hot sun. W HY does fear piny uch havoc with the modern business struc ture? ' Well, It's like this: Modern busi ness la built pretty largely upon credit bark credit, chiefly; some thing like nine-tenths of all our buy ing and selling, which constitute business, being accomplished by means of bank credit. And bank credit, you must remem ber, Is built upon BANK DEPOSITS. GET this picture':' Modern business, which provides Jobs, which In turn provide buying power, la built upon bank credit. Bank credit la built upon bank de posits about ten dollars in bank credit, In normal times, arising out of each dollar of deposits. The savings of the people, you see, deposited In the banks, provide the foundation upon which the whole structure of business resta. When FEAR, by causing people to remove their deposits from the banka, DESTROYS THE FOUNDATION, the structure must fall. HAT'S all very wll,-yoirmay asy. "but the banks ought to be strong enough to stand up under any emergency. Listen: Banks, no matter how strong they are, CAN'T survive when all their depositors take all their money out all at the ssme time any more than the atrongest man In the world can survive when his heart stops beating. BANKINO, like so' many of the use ful devices that have made mod era civilization possible, is bssed upon simple fact discovered ages ago by . eome smart Individual. As of course you know, the first bsnkers were merely SAFE KEEPERS. That is to say, they provided a safe place where people might keep their treasure away from thieves, and they charged a fee for the use of this safe place. We have a eurvtval of this Institu tion In the modern safe deposit vault. THEN, away back in the dim be ginnings of recorded history, some smart person discovered that all those who brought their treasure to the safe place for safe keeping didn't ask for Its return ALL AT THE SAME TTMB. That atarted him to thinking, and out of his thinking came this idea: "Why not lend a part of thla accu mulated treasure to those who need It, using repayment aa they come in to repay those who ask for the return of their treasure? It will be quite safe, because experience proves that as long aa my customers HAVE CONFIDENCE In me they won't all ask for their treasure at the same time." The scheme worked,, and out of It came the Immensely useful Institu tion of banking, without which clvlll ratlon could not have reached Its present high level. BUT mark thisi The first bank whenever It was startsd; whoever It was that founded It COULDN'T have survived If ALL Its customers had demanded the re turn of their treasure all at the same time any more than ANY Individual modern bank, no matter how strong It Is. can aurvlve If all Its depceltora demand all their money all at the same time. . Banking, with all Its vt. useful ness to mankind, Js BUILT upon the simple fact that as long as depositors have confidence In the hank they won't ail demand thetr money at the same time. The whole thing is Just as simple as that. 'O. YOU SFE ) to provide i Jt ISN'T POSSIBLE bank that will be i (Continued on Page T9l OF CITY JOIN IN Brighter Outlook Prevails As Decision Made to Meet Emergency In Circula tion Wednesday Morning Business was looking up in the city of Medford this afternoon, and a brighter outlook flooded the horizon for merchant, buyer, employer and employe, as a meeting called to launch an emergency Issue of local scrip, opened at the chamber of com merce at 2 o'clock. For money of any other clink or color "smells the same" to southern Oregonlans, If It will buy. And thata what local scrip will do. The cham ber of commerce expects to have it In circulation by tomorrow morning, starting a complete turnover of the wheels of business, partially para lyzed since declaration of the bunk ing holidays. Business Men Backers The scrip will be underwritten by a group of local business men and will be In an amount judged suffici ent to care for the immediate neces sity. If further issuance Is found necessary, it was explained this after noon, another group of business men will be called in to participate In Its launching. The chamber of commerce 'meeting thla afternoon was preceded by one held at the city hall, at which B. E. Harder, president of the First Nation al bank, explained thoroughly the banking situation, urging, an exten sion of credit aa the cornerstone of commerce, and the best solution of the present situation. He predicted the arrival here by Friday of clearing house certificates to be Issued out of Portland and approved temporary plans to Issue local scrip, saying that It could do no harm and would un doubtedly furnish immediate' relief here. The city hall aid auditorium and' "corridors were filled to capacity for his talk and many persons were unable to gain entrance. Bakery Has Own Issue The Colonial Bakery today launch ed lta own scrip to care for the pay roll In the amount of 585. The certificates will be accepted as pay ment for merchandise at the Colonial bakery or by any grocer or merchant selling or serving products manufac tured by the Colonial bakery. Clearing house certificates expect ed here within a few days will bring retirement of the local scrip, accord ing to the plan Both are expected to stimulate buying and discourage any tendency toward hoarding, Mr. Harder pointed out this morning. Clearing house certificates are be ing Issued In preference to regular currency, Mr. Harder explained to prevent hoarding and start an imme diate circulation of a medium of ex change. Hoarding Problem "Currency put out now," he stated, "would probably go Into hiding. Clearing house certificates will be spent, bringing the business turn over needed. Portland will pay us clearing house certificates against our balance, enabling their circula tion here as soon as they are out." Listing the banking regulations In effect for today, which will liberalize considerably the situation of yester day, Mr. Harder stated "Front doors will remain closed but side doors will be open. We will "permit withdrawals to drawer of check only In amount limited to necessity. All checks will be okehed by an officer before pay- (Contlnued on Page Three) SOVIET DECLINES TO C0NFER1TH LEAGUE MOaOOW, March 7. (AP) The soviet government refused today to participate In the League of Nations consul atlve commission which Is to deal with the Slno-Japanese conflict. The reason ascribed was the "hos tility" of the major participants toward the soviet administration. The refusal did not mention the United States by name but obviously referred to the absence of diplomatic relations between Washington and Moscow. . Jacksonville H. E, Club Will Meet With Mrs. Skinner H. K. club of the Jacksonville Orange will meet tomorrow afternoon at the home of Mrs. R. A. Skinner of the West Side district, It was an nounced today. Mrs. Skinner has extended a cordial Invitation to all club members and ladles of the Grange. At the last meeting of Ihe club held at the home of Mr. Anna Wendt, a Washington luncheon was held, with Mrs. Emma Conger as assistant hostess. Eighteen were present, and following the business session, games were enjoyed with Mrs. Zola Pick and Mr. Man Sims in chars. High wnr prize was awarded Mrs Elsie 'Hoover. New 'Mother Jones' Mrs. Agnea Burns Wleck of Belleville, lll.t who has been named president of the auxiliary of the Progressive Miners union of Illi nois, is called the new "Mother Jones" In the strife-torn Illinois coal fields. (Associated Press Photo) CLOSED TIGHT ON PORTLAND, Ore., Mar. 7. (p) Although banka in several Oregon cities and towns were open for limit ed operation today, Portland institu tions remained closed under the na tional and state holiday regulations. while Portland bankers communicated with the Federal Reserve bank in San Francisco fcr further lnforma- The Portland brsnch of the Fed eral Reserve in San Francisco, they said, was now the only link In the city's financial structure not connect ed for a reopening of banks here un der a limited business program ai laid out in the 13 regulations of the secretary of the treasury. Meanwhile, In other sections of Oregon, emergency business waa be ing conducted. At Salem the banks opened today for emergency business. Pome payroll disbursements were be- In met, pending further Instructions from Washington. D. C. The back doors of Klamath Falls banks were open for vital business. Portland bankers said that until the Federal Reserve bank released their balances they would be unable to operate under the terms of Secre tary Woodln's regulations, since every bank carries the greatest part of lte balance In the Federal Reserve bank. The '.Portland clearing house had completed plans for Issuance of scrip this morning, but this arrangement was Interrupted by announcement from Washington, i. C, that scrip plans were to be delayed until Fri day. (Bv the Associated Press.) From their cages in the nation's banks thousands of paying tellers were confidently paying out and re ceiving money again today. They could do so becatise quick action by the federal government lifted some restrictions on deposits, permitting release of deposits for es sential purposes. And their confidence of a return to normalcy was heightened by a second order authorising clearing houses to Issue scrip or other medl urns of exchange at the conclusion of the national holiday Friday. One huge New York lnsttutlon re ported hoarders' gold was flowing in to Its vault again to the count of thousands of dollars. It was said the deposits were being paid under the trust fund regulations issued In Washington. ROSEBURG EASED BY FEDERAL COIN ROSEBURG, Ore., March 7.- AP) Business channels In Roseburg were expected to be relieved immediately from the shortage of currency, as the result of an order received this morn ing permitting local banks to cash checks drawn on the TJ. S. treasury. Checks totaling approximately 7000 given federal employe, pensioners and veterans provided with disability allowance, received since the first of March, are being paid toUny In cash. Pendleton Menfs Trial March 15 PORTLAND. March 7 fAPl Trial of six Pendleton business men ac cused of assault and battery on James C. Turner. 73. of Ores-ham. was today continued until Wednesday, March IS. They were to have rone i on trial hrre tomsrrcw. Tinner j-harHed thv hat him when he re I fused to sign a bank deposit waiver, $5 AUTO FEE AND TRUCK, BUS BILL Legislature Passes Two Im portant Measures Up for Governor Meier's Signa tureSales Tax in Debate SALEM. March 7. (AP) Highway legislation was disposed of In short order In the senate of -the Oregon legislature today, both the automo bile license fee of 5 and one cent gasoline tax, and the truck and bus bill being passed by safe majorities.' Both will become laws, unless votoed by the governor, within 90 days from adjournment of the legislature. With these two major measures disposed of and the sales tax consid eration set for special order of busi ness In the senate for 3 o'clock this afternoon. It was believed sine die adjournment could now be taken either tomorrow night or Thursday. There are many other bills to be con sidered but debates on these were expected to be limited. Majority Oppose Sales Tax The divided report on the sales tax was returned by the taxation com mittee during the forenoon, with the majority opposed to the bill and the minority favoring lta passage with amendments, referring the bill to a vote of the people A bill calling for a special election In the event the blK Is referred la still In a house committee. The house, after an all morning debate, passed the taxation measure calling for quarterly payment of pro perty taxes and cancellation of all penalty and Interest on delinquent taxes prior to 1931. Immediately after passage of the automobile license bill and as part of the same special order of busi ness, the senate took up house bill 493, the bus and truck bill. The bus and truck bill provides a tar of one mill per ton-mile for large carrying, concern, a,nd &bree-fourthB of a mill per ton-mile for private contractors. The bill was assailed by Senator Burke who called It "a railroad bill pure and simple." With all members present only Brown, Burke, Staples and Zimmer man voted against the truck and bus bill. A controvery between Judge L. H. McMahan and Marlon county lawyers that has been seething In the legis lature for the last week, culminated today In a victory for the Judge when the senate defeated a bill that, would have removed him from the law de partment of the court. KLAMATH RELIEF L SALEM. March 7. (AP) Andrew Collier of Klamath Falls was named chairman of the Klamatn county un employment relief committee by Gov ernor Julius L. Meier at noon today. He will have six others on the com mittee, three named by the governor and three by the county court. The three named by the governor Include Claude McColloch, Mrs. Elizabeth Sanders and A. J. Schlefersteln. all of Klamath Falls. Cabinet In Session. WASHINGTON, March 7. (AP) President Roosevelt and his cabinet ended a two-hour session shortly after 4 o'clock on the banking situation and a program for the special ses sion of congress meeting Thursday. Business on I. O. U. Basis Ministers to All Wants NEW YORK, March 7 (AP) Bus iness turned to the public prints to day to tell the man In the street that he could trade as freely as he liked on his good name; eat on It, sleep on It, procure all the necessi ties of life on It. travel on It, even go to the theatre on It and take along the folks. The advertlsi ng columns of the New York papers were crowded with display announcements brimming with encouragement for the present and with optimism as to the future. The ordinary pay-as-you-go family was told that money might be tem porarily scarce, that scrip might be not yet available, but that credit was still the cornerstone of commerce and that despite the present crisis It remained unshaken. "If you haven't got a chame ac count, hurry In and start one," was the tenor of most of the department store advertisements. And they sug treated how to nise such accounts to best advantage, even advocating of fice workers eating lunch In the store restaurants and charging the bill to their accounts. Hotels offered all their facilities on a basis of trurt. PUam!h:p J'nea ad vertised that checks wre arreptshle and Jiiat scrip would be as soon a Present Extreme Is Turning Point Declares Expert NEW YORK. March 7. (AP) The present situation may prove to be the low point of the de pression. In the opinion of A. D. Whiteside, head of the- Dun and Bradstreet Mercantile Agency. "The American people may con fidently rely upon the intelligence and determination of the Ameri can business man to carry on and to progress from this point," said Whiteside's statement. FOR UNEMPLOYED The Jackson County Unemployed council, through lta secretary. O. H. Qoss. today Issued the following de tailed atatement. to the "unemployed members of the Good Government Congress": Yesterday, Monday, March 8. a rep resentative of the Unemployed Coun cil of Jackson county made arrange ments, through County Judge Fehl. to speak for a few minutes upon UN EMPLOYMENT and RELIEF In Jack son county at the meeting to be held at the court house. It Is a fact that Mr. Llewellyn . A. Banka and Mra Henrietta B. Martin were fully aware that a short address was to be made upon RELIEF and UNEMPLOYMENT. In addition, perhaps one-half of the unemployed workers present were also aware of this fact. Despite this. Mrs. Henrietta B. Martin deliberately closed the meeting following Mr. Banks' remarks without having an nounced the unemployed representa tive who stood near by. Immediately after the meeting Judge Fehl expressed surprise that the unemployed were denied a voice at the meeting. Questioned by the Unemployed Council-as o-her reasons for - the tactics employed, Mrs. Martin replied : "Mr. Ooss did not ask me ferbom ALLY. I AM THE PRESIDENT of the Good Government Congress, NOT JUDGE FEHL." One csn only conclude from this, as well ss past actions, that neither Mrs. Henrietta B. Martin or Llewellyn A. Banks are Interested In the em ployment of the unemployed or re lief of the needy, but are using the unemployed workers for their own (Continued on Page Two) - , Fire at Keno Does Damage of $20,000 KLAMATH FALLS. March 7. ,(AP) Loss estimated by the owners at n.iv e?n nnn w mused bv fire which destroyed a general store and a restaurant at Keno. ore., J me. west of here, lsst night. Roosevelt Eats Lunch At Desk WASHINGTON, Mar. 7. fl) Presi dent Roosevelt had lunoh served at hla desk In the executive office today as he worked at his banking program and prepared for Thursday's extra session of congress. WASHINGTON RELIEF MEASURE IS SIGNED OLYMPIA. Wash., March 7. (AP) Governor Clarence D. Martin of Washington signed the JO,000.000 unemployment relief bond Issue meas ure today and announced steps would be taken Immediately toward bring ing an action before the state su preme court to test its validity. Issued. Alrplsne companies and other travel lb ma followed suit. Broadway went even further than the rest In extending a helping hand to the temporarily embarrassed. Pro ducers of one of the current hit In vited playgoers to use checks for the purchase of tickets and added that if checks were not available I. O. U.'s would do Just as well. With all this encouragement and reassurance that temporary shortage of cash wssn't going to mean corre sponding shortage of necessities or even minor luxuries, the people con tinued about their businesa with un troubled calm. Some of the stores went beyond credit assurance In their advertise ments and used newspaper p&ce to diagnose the publics condition and find It good. Unrtr the heading "respiration regular, pulse normal" one of the larse stores said: "A great store Is In ft key position for testing public reaction to any emergency operation. It Is pleasant, therefore, to issue a public bulletin (about the public) and report that with the temporary financial tourni quet snustly applied, hualness pro ceeded under the most reassuring condition.' T IN SPEECH PLANS Permission to Use Gym for Public Address Denied Erstwhile Editor G.-G. Leaders Leave in Dudgeon PROSPECT, Ore., March 7. (Spl.) Leaders of the so-called Oood Gov ernment congress left here last night in a huff when the school board de nied permission for L. A. Banks to speak at a meeting scheduled In the school (rymnaslum. Permission had previously been granted Earl H. Fehl to speak but when he attempted to Include the erstwhile editor In the program he was Informed Banks would not be permitted to speak. Fehl, Banks and Henrietta B. Martin, president of the Good Government congress, then left Prospect, accord ing to Information obtained here. . Memoers of the Prospect district school board are Tom Carlton, W. E Mooney and L. A. Dltorth. There came to th La strife torn oounty today a blessed respite from political turmoil and fantastic ru mors and Inflammatory talk. There were signs of peace, and an under tone of optimism. ' For the first week-day since Janu ary 2, the court house corridors this morning were not filled with loung ers and curiosity seekers. A dozen men stood on the sidewalk and laughed and Joked. Though It waa a non-Judlclal day, due to the bank moratorium, "with no official filings being made and no court in session, many people came on business. Court house officials and workers marvelled at the sudden welcome change. Developments of Day It was also quiet on all other fronts, the developments of the last 24 hours being: The district attorney's office start ed an investigation of the claim of L. A. Banks, honorary president of the .. so-called "Good Government congress" In his court house steps speech Monday, that he had written to the governor and other state of ficials "unless we can have Justice, I will take the field In. revolution against you people now make the most of It." Strong public disapproval regis tered of Incendiary speeches, and launching of grave oharges against officials and citizens, to fan preju dices. ; (Continued on Page Three) STATE'S RECEIPTS MAY TOP OUTGO SALEM, March 7 (API Receipt of the state government for the pres ent blennlum were estimated by the ways and means committee. In Its final report, at 13.S08.000, or S3.009, 008 In excess of state expenditures, leaving the latter to be applied to the state deficit. Receipts embrace tl2.446.000 esti mated In the Hansen budget esti mated to accrue from varloua activi ties snd 150.000 from the '.'tithing" bill .which has now passed both houses. Expenditures embrace 0,720.353 In legislative appropriation, of which 5,435.083 I, the total of budget Items and 234,300 non-budget Items; con tinuing appropriations of 305,150; and mlllaga taxes of 3.011,483, mak ing s total of 0.888,902 In expendi tures as against the $12,000,000 re ceipts. WORK STARTS ON One hundred fifty men today started work in five-hour shifts on the highway work in the Ashland district, according to reports from that city. Besides the ISO unskilled laborers employed on the Job, there will be an additional ten men. Twenty-one per cent of the un skilled laborers are selected from Jackson county unemployed, the re mainder being from Coos, Curry, and Multnomah counties. Work has started on two bridges over Bear creek. Information from Ashland states, and moving of heavy machlneryls now underway. DRY LEADERS MAP EMERGENCY PLAN WASHINGTON. March 7. (AP) Plans for a nation-wide emergency campaign to prevent ratification r the prohibition repeal amendment were laid today before a two-dsy gathering of dry leaden, mostly church men, assembled at the Cal vary Baptist church. The stategy proposed by a ways and means committee selected from among the nearly 1000 drys represent ed, would drive st restoration of state I prohibition laws. - Bond Theft Suspect Ray Winger, 19, Boise, Ida., high school boy has been arrested on charges of stealing $230,000 of state of Idaho blank bonds and forging namss of officials on them. He was arrested In Omaha, where It was alleged he confessed, In a purport ed attempt to cash one of them, (Associated Press Photo) 2 DENVER, Oolo., Mar. 7. (p) Two alleged members of the gang that kidnaped Charles Boettcher, n wealthy young broker, for W0.000 ran som are behind Jail bars, Chief 3f Police A. T. Clark revealed today, and two other men who helped stage the abduction are known, and their arrest is expected soon. . Chief Clark announced that C. W. Pierce was under arrest in Denver as the alleged writer of the extortion letters. He said Arthur Toungberg was under arrest at Chamberlain! S. D. MITCHELL, fl. D., Mar. 1. (P) Denver police captured a suspect In the kidnaping of Charles Boettcher. wealthy Denver broker, In a surprise raid on an alleged hideout along the Missouri river near Chamberlain last night, and were reported concentrat ed in that region today for further operations against the alleged kid naplng gang. AT 11 ALSO ENJOYED A. H. B unwell, newly appointed secretary of the chamber of com merce, outlined briefly the work to be undertaken this year at the noon luncheon of the Lions club at the Hotel Holland today. The meeting was attended by a large crowd and an enjoyable program of music was also presented. Miss Margaret Pen nington and George Andrews enter tained with duet and solo numbers, accompanied at the piano by Mrs George Andrews. The group of songs included: "Wanting You." "A Boy and a Olrl Were Dancing," "Take Me In Your Arms' and "On the Street of Dreams". Short talks were given by W. T. Lee, assessor of Klamath county, D, E. Van Vac tor, district attorney, and George E. Powell, deputy district at torney, who were guests here today from Klamath Falls. Mm. Lawrence Pennington was also a guest at today's luncheon, ac companying the group of musicians, Mrs. Mae Powell, wife of Dewey Powell, was reported back at her. home near Talent today, following reports at the Medford city and state police offices that she had disap peared from the crowd at the Oood Government congress meeting In front of the courthouse yesterday afternoon. Joe Croft, member of the Good Government cone: rem telephoned of ficers lat yeaterday, asking if Mrs, Powell waa being held In Jail. Croft was released on $1000 bond the Inst of the week on a charge of ''burglary not In a dwelling" In connection with the ballot theft at the court house. fir-ant Pass Banks open. O RANTS PASS, March 7. AP) Banka In Grants Pass continued open for restricted banking business Tuee dav without having actually closed their doors for either the governor ice the president's franking holiday. E NEW FIRST LADY Three Thousand Letters Await Answers From Mrs. Roosevelt She Is Popu lar With Girl Reporters Br PAUI, MALM (Copyrighted by MoClure Nen-spaper Syndicate.) WASHINGTON, Mar. 7. Mra. Roose velt has more to do with things than you've heard. The Preeldent consults her at least once a day and sometimes oftener. Site gets a tremendous amount of msll. Right now she Is trying to answer 3,000 letters that have piled up on her. She answers all letters, those knocking aa well as boosting. With the exception that she won't answer those with a political tinge. She wrote some during the campaign. the recipients published them and her husband was embarrassed. Everybody around the Roosevelt Is fond of the First Lady. She eeea the girl reporters whenever they want to see her. They, In turn, do any thing she asks. For that reason you probably will find that all domeatlo news from the . White House will be favorable. Col. Lewis Henry Howe, the Presi dent's confidential secretary, has to pay a price for his close association with "Franklin," as he calls his chief. Roosevelt taunts him unmercifully. He Is still rsgglng him about the new suit hs bought for his triumphal de scent on Washington. Mr. Ickes got his Job toy ssklng for it. The secretary of the Interior had no Idea that he might rat such an appointment. He was very ambitious about Washington affairs of state. He came to see his good friend. Prof. BeTle of Columbia. The professor suggested he might fit Into Mr. Roosevelt's- cabinet picture, -i . Nothing daunted, Mr. Ickes went to (Continued on Page Two) TO PHILIPPINE POST WASHINGTON. Maroh T. (AP) President Roosevelt today gave John H. Holllday of Missouri, an ad Interim appointment to continue as vice-gov ernor of the Philippines. The president accepted the resigna tion of Theodore Roosevelt aa gov ernor general and designated Holllday as acting governor general after Roosevelt sails from the Islands March 24. Holllday was continued In office to await the arrival of Homer 8. Cum mlngs, of Connecticut, who will take over the governor generalship after he completes his' temporary appoint ment aa attorney general In the Roosevelt cabinet. Klamath Banks Making Change KLAMATH FALLS, Ore.. March 7. (AP) Banks In Klamath Falls had their back doors open, safety deposit boxes were available to depositors, snd emergency business was being trans acted today. The banks were making change. WILL ROGERS "eSflys: SANTA MONICA, Cal Mar. 6. America hasn't been as happy in three years as they are today. No money, no work, but they know they got a man in there who is wise to con gress, wise to our big bankers and wise to our so-called big men. The whole country is with him. Even if what ha does is wrong they are with him, just so he does something. If he burned down the oapitol we would cheer and say, "Well, we at least got a firo started, anyhow." ; "We have had years of "don't rock the boat." Go and sink it if you want to. We might just as well be swimming as like we are." Yours, v