PAGE SIX
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UgUBtl AUDIT BUUAU
Insurance As
mi, lATUTAVABLI IN AD VAN CI
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torn HoniM ., j.r
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ONE of the elements which offer hope of recovery from
today's depressed business conditions is the strength
of the banking system as compared with that of 1M
Quickly indeed we have come to accept the grantee
of bank deposits as a matter of course. And yet the act
was passed only in June of 1933, and. was not really set
operating until the first of the following year.
Yet today more than 50,000,000 bank accounts are in
sured by the Federal Deposit Insurance Corporation.
And the owners of those accounts feel safe in regard to
them. That builds confidence.
The first bank to close, whose depositors were pro
tected by the insurance law, folded up in the fall of
1935 Since then more than 350,000 depositors in 200
odd "banks have received $117,000,000 from the FDIC.
They lost nothing, and, barring a total collapse of the
banking system with a series of closures like that which
dotted the period 1920-33, the depositors m more than
13,700 insured banks are not likely to lose anything,
eithThev know it, too, and the result is a confidence
which in turn makes widespread bank closings less
likely. Confidence breeds confidence, and security breeds
security. ,
This strong banking situation is not entirely, of
course, the product of the insurance plan. It should
' u.r.j i,.i of tha hnnks m the country
went bust in the period just preceding the de
pression, and that, generally speaking, it was the strong
er banks that survived. Ever since bank deposit insur
ance came in, there has been a tendency for the num-
. p i i .LJ.I, U sirienlidnrirvns And ClOSiniTS.
This generally makes for greater strength in those which
"Stricter rules for chartering new banks have been
nut in force, with consequently greater cum.
cess lor inose uiai. uu ucjiu
f h BTiKtintr banks
-j li .J (UaiimVi -fa A oral
Btreiigwiieucu wuuug
As long as there are 50,000,000 savings accounts
whose owners feel quite secure in their possession, there
lies beneath recessions and depressions something which
i i , i ii i- BAvva 4-n Via
ougnc to maxe, ana in me pieoeui, uisiauc occmo u.
makiner. a cushion off which we "bounce" once bottom
is hit.
Rush to the Rescue
A STORY arrives from India of a building that caught
r. tire and got out oi control oi me jouai vuiuutccio.
rnuA.A KA;nn- nt toionVinno in thp villace. a letter was
sent bv ureent cost to the
lj mcah ji'.nmgl"
WtS 111 ft 1 1C LI 1V1 uiopiDai " V . ill
ruler. It arrived on this gentleman's desk a fortnight
. 1 1 I'l 1 1 (ITThmah "
or so later, tie saw tnai re was mameu uigcin., ucucu
it at once, studied it, decided it was worthy of response,
1 j: nlnln niiTinrofllo -fnrfli with
mi Jl j
ine uremeu iounu, ou mvi, w. mo uU..v....s
was gone and a structure of an entirely different nature
was already rising on the . old site.
This is the kind of story that ought to send a number
f th hpst known gentlemen in the world of diplomacy
into gales of laughter. Geneva should be reduced by its
merriment to a state of positive helplessness.
TULELAKE - CAN BY
ROAD PROBLEM PUT
BEFORE CHAMBER
ALTURAS Fred Tatton, secretary-manager,
Sacramento divi
sion of the state chamber of com
merce, and F. W. Haielwood, dis
trict state engineer from Redding,
met with a delegation of Tulelake
and Modoc county good road
boosters here Monday evening.
Tatton Is securing data on the
wants of the different localities
for necessary roads so that he
can recommend the wants to the
budget committee of the state
chamber of commerce.
Modoe county asked that S200,
000 be appropriated for a new
road around Sugar Loaf moun
tain on the Lakevlew-Alturas
highway. They received assur
ances from Tatton that the rec
comendatlon would be made. The
matter of the Tulelake-Canby road
would be taken up with the for
est service as well as the federal
park commission, Tatton assured
the boosters.
This road, the main traveled
artery between Klamath Falls and
AHuras, is not In the state high
way system and funds from Mo
itoa countv ara not available for
Its malntalnence. At present, the
road Is In a deplorable condl
tlon.
CHURCH OFFICIAL
TO SPEAK SUNDAY
AT MALIN MEETING
MALIN A Mrs. McFarland,
Phoenix, Presbyterlal president of
churches of southwest Oregon,
will address members of mission
ary societies of Maltn, Merrill
and Tulelake at a joint session
OBMPANT. MblUbai
Mt
.JlUutl Mt
Mil. Orfroa
. !'
AuocUUd fmi
Uull.
- S.-TwW-Mh.
- ...
M UWd- sl
0t CIRCULATION
Assurance
""T"; . ,- .T I -ii
has also been materially
ophnn.
.
state fire brigade. Receipt
rtnnwlpHcpd almost immediately. It
on1 fnr-warilpH tn the state
iLnl 4-Vi n aIiI VimlHinir
here next Sunday afternoon. The
gathering will be held either In
the church auditorium or on the
lawn and a cordial Invitation is
extended to the public to be pres
ent. Mrs. McFarland, recently re-
,iiinii1 frnm o Praahvtprlnl CTAn-
era! assembly at Buckbills Falls,
Penn., attended by Presbyterlal,
Synodlcal and local society presi
dents ana otner tneoiogicai om
cials, will bring an interesting
mcuRcn of work of the church
organizations. She is at present
in attendance at tne state synoa
In session at Eugene.
ENDS SATURDAY
News
Behii
ByPAULMAlLOICS?
(Edltor'j not: Her li ome
thlng th world hai nvar ieen
before, a column about columnlata
by one whom they moat frequent
ly accuse one of the top govern
ment economlsta, Leon Hender-
aon, WPA adviser, tne oniy gor-
ernment economist who called tne
turn on the current depression
six months before It developed.
Here Mr. Henderson presents his
rlews and lays down nine cardinal
principles of the beliefs which
form his working creed. Paul
Mallon, Washington.)
By LEON HENDERSON
WASHINGTON, July 14 The
wrltten-about8 In and out of
the new deal, whom I know, have
little objection to the space de
Toted to them or their Ideas. Fact
is, most of them love It. iney
never throw down a story that
blows up their importance, even
if the writer la lnauiging in nuij
tower dreaming. They smirk a
bit. act coy and hope no one ruins
the myth.
But they are toucny aooui iur
luimnii heiinfa. Nearly every
one has tried to carve out some
little portion of general tneory
Li.k tvu hiM h,tinr nrlvate
wuivu gt.na m " - - "
satisfaction an expert la supposed
to enjoy. Just let some columnist
fail to make the delicate distinc
tion, and the written-about squeals
like a stuck pig.
I know. 1 nave auiierou vu.
times.
SO COMPLAINT
I could explode In a minute
Paul's myth that I am one of the
.u.ni'. eh I f economic ad
visors, but as long aa Steve Early
and Colonel Mclntyre aon i bi
too mad about It, 1 11 keep on
. .1.. A tnnH HlnnlnKS. BO-
sidea. the president Is entitled to
get some tun oui oi m
inuii. in h hosnltal laat
winter, Frank Kent Implied that
I waa entering tne oaca ooor
.u irki.a HniiA every day. Did
i i., vnnk and me down? Cer-
.Inlv not.
And Dorothv Tnompson y"-
m imnnrtanca while I was
away by using me as a flog 'or
some ii un - I ,
jij.i. iii.A T, wan a rood column.
Tiri.lA HnllM 1)11 111. r bu
.... if irht out of nine state
ments about me were wrong.
While I was at NRA. a smart
. r. ma Inln a DredlCtlOn
Ar unu i.' - .
that business conditlona would t
. . v- .ii f tnlri him why
I thought so. Consumers had
caught up with their aepreom
debts. ' They had paid their taxes,
... ai, .nina f their Property
Baivaavu -. - .
.nanrf(nr more for
amusements. More people were
Bttlnr married. More furniture
h.ln. anlri.
RH u " O . , .
I was accusea oi vumua -Julius
Klein and basing my fore-
. noi nn two facts: That
.u .,mir, -was cetting more
. haphnloni.
rugs ana -- .
What made me so damn mad
.1..1 -iter thinn did get bet
ter in the fall none of the gang
that covered NRA could see a
" ,. that the nredic-
gl UI I III " . -
tlon came true. If they had. my
fragile sUndlng with the academi
cians might have Improved, be-
-ream I had been
saying that the current spending
of consumers was a ueiver lo
cator and forecaster of business
prices, tl..lt.lj2";
I had gone so far as to say that
my fellow digit nounaa,
on past records, were like the
ousel bird which Hies backwards
because lfs more interested In
it has been than
DWU( U . a.
where It'i going.
nv A V VT?D
taai ha. nrPRM ana other
IVCLCinv w ar ; -
publicists began referring to me
as a planner. .
tvtniiniror amone otners. naa
m aA infiATPH aa a nlanner
i t .imn.i had tn Brat down On
my knees to Kip to get my card
changed. I expect 1 couia nave
, ii tn axtahllah an eco-
.mi. nrinrinls hv fnllowinK Walt
Llppmann's proposal In the good
society, but the barb woum nave
tin hoen under my hide while the
case rushed madly at snail's pace
through the courts. I migni nave
num.! thp miHconceotlon by get
ting the Grand Order of Lofty
Planners tn u, that I had no un
ion card, but this would have been
embarrassing because the order
DARING
Ljttraqe:
aqei
THE NEWS AND THE HERALD,
SIDE GLANCES
-By Georgo
TZ
COra. f H SY Kf fvKt. INC. T. M Btq II. t. MT.
"My husband is Inking his vacation this week. Next week
he is goiiifZ, to watch the children while 1 take mine."
hopes I will some time repent of
my quaint, old-fashioned notion
that competition la really the life
of trade.
I cot the matter straightened
out with Fortune, but I think I
must have oversold them because
they endowed me with an entirely
new school of economics, ana i
have not yet explained away some
of Fortune's delicate delineations
hlch, of course, got me an
wrong.
I poured out my heart to
Baruch and he said, "Why don t
you make a speech!" I found
something neuer in ine iutm
this column.
AMERICAN SYSTEM
In 1935 I wrote for a congres
sional committee the following:
Basic Assumptions of the
American System
What were originally the basic
assumptions of competition as a
plan for insuring socially desir
able results In a capitalistic sys
tem of production, operating
under republican political institu
tions?
1. That each Individual, at his
own risk, was at liberty to take
the action he considered most ad
vantageous to himself.
2. That there would be univer
sal freedom of contract among
Individuals. -
1. That rewards would be In
proportion to benefits supplied
consumers In the forms of larger
production, lowered prices and
new goods and services.
4. That the individual migni
retain gains as his private proper
ty.
S. That the shares of each con
tributor would be determined by
nrlces. through the mechanism
of a free market. In which no
seller or buyer could prevent free
functioning.
I. That no long-term restriction
would be placed upon the inter
national flow of goods.
7. That the rewards for saving
would be directly dependent upon
the productivity of its Investment
and that there would be a con
tinuing loss of capital that naa
failed to produce consumer bene
fits.
8. That the alternative of work
ing free land would be always
available.
8. That the government would
Intervene only to compel all citi
zens to obey the rules.
Taken together these constit
TODAY
It Started in Paris and
Wound Up in the Alps!
Claudette with two new boy
friends in a gay romantic Irollol
A Ptfiineunl Fieluis with
Melvyn Douglas
Robert Young
RAINBOW
JtMWH, a.
KLAMATH FALLS, OREGON
Clark
J '. .
Sr
Of,.
uted the conception of the Ameri
can system.
STILL PLANNER
I believe that the national pol
icy which comes closest to vail
dating these assumptions la the
best possible policy for America,
I will be missing a lot of fun. how
ever, It some of the mtud-readlng
publicists don't find some way to
make me out a left-wing, radical
planner Just the same.
Ten Years
Ago
In Klamath
DIEHN street, the first unit of
the Oregon avenue Improve'
ment project, waa completed laat
night and the California avenue
detour Into and out of Klamath
Falls became effective this morn
ing. City Engineer C. C. Kelly
announced.
Music lovers wilt learn with
Interest of the concert planned
under the auspices of the Lions
club soon. In which such stars
as Caroline Andrews, known as
"The Lark," James Stevens
noted baritone, and Doran Wer
ner of the New York symphony,
will perform.
'With reconstruction of tram
ways and the laying of a new
railroad spur scheduled to be
under way Monday, the Ewauna
Box company sawmill will re
sume oneratlona within a week
It was announced last night by
C. B. Crisler, after officials had
completed a survey of tne nam'
age done by Wednesday s lire.
ANSWERS TO
CRANIUM CRACKER
Questions on Page 1
1. False. Count Haugwltz
Reventlow is a Dane.
2. False. An electron Is part
ot an atom.
3. False. Boz was a pen name
used by Charles Dickens.
4. True.
5. True.
LAST DAY
TOMORROW
MONOORAM :gw f '-ta
PICTUSIS ElL
rv
3WI
.
it; ii vw mm?-
TV
$ I ROBERT PAIGE
JACQUELINE WELLS
i c enamel
Telling the
Editor
HOtiALIHT VIEWPOINT
Klamath Falls (To the Edi
tor): Seeing that "comrnilo"
Chrlstonson and "brother" Pat
mont have expressed tholr points
ot view, would It be Imposing to
publish the point ot view on the
other side ot tne soomi prou
lomt Mr. Put mont openly expresses
his tinr ot social revolution, (a
peaceful revolution would un
doubtedly cause htm Just as much
foar) when he states: "Unless
communism Is properly exposed
and opposed, wo will yet witness
a revolution." whereas. Mr. Chrls-
tensnn rocs strong for "relief
(read bigger bowls ot soup, No. 1
potatoes instead of culls, and $5
Chrlstmaa bonus for relief re
cipients) "and recovery."
Apparently, this "recovery" Is
of "dying capitalism," which is
the direct causo of the "masses"
needing "relief." He does not
even Intimate of a fundamental
change ot social orders. Perhaps,
this Is how the communists have
of "Into assumed an air of re
spectability," quoting Mr. Tat-
uiont.
Both these gentlemen are paint
ed with the brush of reform, only
they do not recognise the likeness
In each other.
It has been stated that "a rose,
by any oilier nnme, would smell
Just as sweet." In changing that
statement, Mr. Chrlstenion ar
ticle sums up as. "a reformer."
(In the present historical epoch I
by any other nnme would be just
aa reactionary."
Ha states In his article mat
'capitalism comes from the fruit
ot labor." That statement is
false. Capitalism Is a social sys
tern based on the' exploitation of
Inbor. What labor creates Is so
clal wealth (not capitalism) and
is exploited of all mat weaun,
over and above labor's necessities.
Marx plainly stated this fact "But
(wroto Marx) doea wage-laitor
create any properly for the la
borer? Not a bit. It (labor) cre
atea cupital I.e. that kind of prop
erty which exploits wage-labor."
Furthermore, by not designating
labor tn the present social order
aa "wage" labor, the only conclu
sion I arrive at Is. that he believes
that tho social order of capitalism
will always exist, because of the
fact that It will taken human labor
to produce wealth In any form of
society.
In the same paragraph the
wrltor queatlons: "then why
should they (capitalism or cap!
tallsts?) be reckoned first?" That
question leada me to believe that
he senses that the products of
wage-labor are appropriated by
something or somebdy but con
elders as progressive the contln
uatlon of tho system of exploits
tlon of labor, so long as labor Is
considered first and the capitalist
class and their labor skinning so
cial system secondly.
"The tenth national convention1
(states the writer) "ot the C. P
U. S. A., hns this to say: that the
finance capitalists are attomplng
to hold the masses of the people In
a huge concentration camp at
starvation levels."
Of course the Industrial, and
especially the landed capitalists
would never consider such a mon
strous thing aa this. Consequent
ly, the communists "united front
of farmers and laborers." wit-
ncss some 13,000,000 unemployed
In the U. S- at the present time.
If they are not In a "huge" con
centratlon camp, they might as
well be. for as long aa capitalism
exists there will be millions of
unemployed aa far as any construe
tlve nurnose Is concerned.
Tho communist party, In "con
venllon." must have read tho
"Word" "from cover to covor" and
found where the money changers
were driven from the temple and
came to tho conclusion that inas-
"BULLDOG DRUMMOND'S PERIL"
AND "ZAMBOANSA"
BACK IN THE
SADDLE!
Th scrsjan's fight
ing cowboy hero
brings you thrills
and triplo-action
...as ho crossos up
a doublo-crossorl
2nd HIT I
7
as itirinimiiaij' ssirvuv
WE
rieiMru
mn,h aa landed and Industrial
capitalists (landed and Industrial
In the modern soiiso) wore nut
driven from the tomple at that
lime, why bother about thorn now
n changed mat mini nonunions
that some 1000 years Iiavo
brought about.
rtv Hit communist parly's line
of oonfiisod masoning, the mum-
bers and sympathisers ot tne
parly have wull earned the desig
nation of "comics." Comical If It
wns not so tingle, when society
Is on the threshold of going on to
higher soolnl order, or ones-
ward into nnnthni' dark age, a
dark ago of industrial toudnllsm.
Witness Italy, tlormany, Austria
and probably Spain soon.
What Die working class should
he Interested In is a program In
tholr own Interests and not In
uch reactionary articles as tne
above mentioned two. Reaction
ary as far aa social progress Is
concerned.
There Is only one organisation
In the u. S. A. that Is propound-
lug the Interests of the working
class. That orxunltallnn Is the
Socialist Lnbor party. They have
only one plunk In their platform.
That plank la the abolition of the
wage system and the institution
ot the industrial republic ot labor.
Borne mav ask. how Is It pos
sible to Institute the industrial
republic of labor by a peaceful
means? That ean only be accom
plished br the working class. In
their coming together on the po
litical field, to abolish this po
litical form of government and in-
stltuie tho industrial form of gov
ernment. At the same time, com
ing together on the economic field
Into a revolutionary Industrial
union, to enforce the mandate of
the ba ot. In rase the capitalist
class should not abide by the de
cision of the majority at somo fu
ture election.
IVAN 8. HULBERT.
COST OF CRIME
KLAMATH FALLS, (To the
Editor) Here are some figures
recently released by the respected
director of the Federal Bureau
ot Investigation, Mr. J. Edgar
Hoover, who certainly Is in a
nos It on to know wnereor ne ai
firms, and who in a recent article
says:
"The annual crime bill of the
United States is estimated at US
000.000.000. The cost Is 1120
a year for each man, woman and
child In our country, in i37
there was an average of 3
homicides dally In the United
8tntcs, 125 aggravated assault
cases dally and 690 auto thefts
dally.
"There are 4.SOO.O00 conniving,
scheming, dangerous criminals
attacking our country from all
sides.
"Eighteen per cent of all crimes
In tho United States are commit
ted by Juveniles undor 21 years
of age."
Surely Mr. Hoover has not
given out figures higher than
thoy are. Think of It, 110 a
month for each moniber ot the
family I
In a family of five, the bread
winner Is actually paying ISO a
month whether he realises M or
not and the condition is growing
steadily worse. Should we not
think carefully and act upon our
convictions?
Here Is another quotation from
Mr. Hoover:
"Law enforcement offlcera
work long, tiresome hours In an
effort to auppress crime. Public
opinion must forcefully back
them. Their efforts aro hampered
when public opinion rests dor
mant.
"Officers need your assistance.
Thoy neod to know that you, as
a member of the Great American
Publlo will support them when
tbey perform their duties.
This support Is needed most
Must End
RUDOLPH
"SON OF
tf. ... c
COMING SATURDAY ONLY
I s-f. II III. LS . 1
ST vl Witt
f n
July 14, 1938
when the going li rough, whn
orlllclsm is being heaped on of- .
fleers who huvo forcefully pom' I
,...,,,.,1 ihalr iiiitlna."
IWI " ....
uhi-aIv aiii. Infill naaca nfrlcai-M
tutu arali-nnia active cnnmiraf Inn
from the law abiding cltltens ot
our cnniniuiiiiyi au wny imi uis
cuss tills subject and nolo the
dlffuiont causes for this con ill.
tlon.
uMuliiaan nai cent of our ciim.
i mvtk Invnnllna. What la Ilia i
i, . " -
cause when all our children hue
the prlvllego or a goon euuraiioiiT
ruihiiK uliivsroiinils mav so
a wuys towards solving tho proli.
Icm, bill wo iiiusi g iihiiiit, u
I ask the question: "What Is the
..n all Ilia fllai-naarri
law at Mils time? Whd has s
answer.
r. l. enn wood,
1MKIH IN CARS I
i,ir.H (Ta the Kdltorli It
i. . .. ..ifMiiaa aaatliat tho law In
every slnto to leave a dog In a
parked car in not wonuiur win
the windows closod,
II Is an act of enmity, all Hie
worse If the car Is standing In the
sun.
People who are fond ot their
Amm a lll nrti Hn It- nanllltt who ara
not fond ot their dogs should not
keep them.
Kvory man or woman motorist
knows what It Is lo sit tn a stn.
tlonsry car five minutes In the
broiling sun, yet many will leave
a dog for an hour or more, with
the suffering growing In Intensity
hy Die minute.
Mrs. Sidney W. Richardson,
Bncretary-Monnger,
Medford (lumen Society.
NEW MEMBERS OF
GRANGE HONORED
The regular meeting July ot
the Henley grange waa given In
honor of the new members at
which time five were present.,.
The new members contributed W
their pari by putting on a patrl. '
otic program,
The program consisted ot a talk
by Mrs. Harthburger on the patri
ot. Benjamin Franklin; a talk by
Mrs. Tommy Jackson on the word
Independence, giving Its slgnlfl
conce to us aa Individuals and as
a nation; and a history of the
writing or in oiar pniu
Banner." by Mrs. Jack Hays. This
wan followed by group singing or
i ..... . itAfreabtnenls
were served al the Close ot the
meeting.
Court House Recordt
(WKDNKHWAY)
Divorce Hulls Piled
Clara Mao Harrington versus
vanillin r ilarrlnston. Charge.
cruel and Inhuman treatment.
Couple married May 21. 1918, In
Lake Charles. Ls. IMalntltr asks
reasonnhle attorney fees and
costs. W. C. Van Emon, attorney
for plaintiff.
t D nlpbult vartna Kthel R.
Pickett." Charge, desertion. Cou-V,
pie married June IS. 1U. In T
k-l.malh Fa a. Flalmlll
division of certain real property.
J. II. Lsrnsnsn, attorney ivt
plaintiff.
Divorce Drcree
Mildred K. Ahl versus Philip
Ahl. Decree by default. Plain
lift awarded custody of a minor
child and 120 per monlh for Its
support, together with $50 at
torney fees and 125 suit money.
Caao Dismissed
John Johanspn versus Oeorg
II, Nnwcombn a(W Ernest N. New
combe. Action dismissed on mo
tion of plaintiff.
In Siberia, natives build their
granaries on stilts so that the tre
mendous snows of winter will not
cover them up.
FRIDAY!
VALENTINO
THE SHEIK"
on
mm
m
mm
...iiL
witn
RochtlU Hudson
Borrah Mintvitch
and his gang
Robtrl Wilcox J
Kobtrt Wilcox j