"A Happy Idea"

Gold, cotton, copper, wheat and grasshoppers were the chief contents of President Hoover's mind last week. With his approval the Federal Reserve Bank of New York joined the Bank of France in advancing the Bank of England credits of $243,000,000 to make up for the short-term loans Britain had agreed not to withdraw from Germany (see p. 16). He announced that the Department of Agriculture was working on relief measures for the 'hopper-infested West (see p. 12). And from U. S. Ambassador Frederic Moseley Sackett in Berlin came a suggestion involving cotton and wheat which President Hoover and his aides welcomed as "a happy idea."

What was proposed was that Germany buy on long-term credits a large quantity of the Federal Farm Board's 200,000,000 bu. of stabilized wheat and 1,300,000 bales of stabilized cotton. The Farm Board could thus unload some of its expensive holdings, U. S. commodity prices might be boosted, and the German Government would make some money. While Ambassador Sackett was diplomatically urging German officials to make an offer, President Hoover reviewed the "happy idea" with his cabinet. The Farm Board announced it was ready to sell to Germany on credit if the offer were right.*

In Berlin the ''happy idea" produced divergent opinions. Behind a high tariff ($1.30 per bu.) German farmers have this year produced an unusually large wheat crop (160,000,000 bu.). Germany needs to import only about 30,000,000 bu. to bring its supply up to domestic consumption. Most of its imported wheat comes from the Danube basin, Manitoba and Argentina. It was not likely that Germany could or would take any appreciable amount of wheat from the Farm Board. But of U. S. cotton on credit Germany could make great use; its textile industry was deeply depressed and in need of just such a stimulant. During the discussions U. S. copper was worked into the general scheme but it did not get very far because U. S. producers are reluctant to sell at current low prices (7 1/4-c- per lb.) and German manufacturers are not anxious to buy because of their inability to market their finished wares.

P: Senator George Higgins Moses of New Hampshire marched into the White House, invited President Hoover to dedicate next year a memorial at Franklin, N. H. to mark Daniel Webster's sesquicentennial. The President hemmed & hawed, would promise nothing. Then Senator Moses asked for a contribution to the memorial fund. Promptly President Hoover signed a check for $100. Before going to the Navy Department to get another $100 subscription from Secretary Adams, the Senator issued this bit of mosaic. ''It's not in the cards to take the Republican nomination away from President Hoover."

P: The 1930 vintage of Rhine wines was named "Evacuation" to honor the withdrawal of the French forces of occupation. Rhenish vintners last week christened their 1931 output "Hoover."

P: Last week President Hoover formally received Dr. Celeo Davila as the new Honduran Minister to the U. S. The President will have to be careful not to confuse him with Ambassador Carlos Davila of Chile, Minister Charles Davila of Rumania, Commercial Attache Cesar Davila of Venezuela or Resident Commissioner Felix Davila of Porto Rico.

P: Ivan Matveef arrived in the U. S. early this year from Russia to buy tool machinery for U. S. S. R. While on temporary credentials he became a vice president of Amtorg Trading Corp., thus violating immigration regulations against an alien transferring his activities while in the country. Secretary of Labor Doak, no friend of Reds, moved swiftly and vigorously to deport him. U. S. firms selling him tool machinery protested loudly to the White House. Last week it developed that President Hoover, anxious to retain Soviet trade, had interceded with an order to Secretary Doak to adopt a more liberal policy toward Russian businessmen. Thanks to the President, Ivan Matveef, no longer an Amtorg vice president, will remain in the U. S., continue to buy tool machinery for U. S. S. R.

*Soviet Russia's offer to buy Farm Board Cotton was rejected last month because of poor credit.

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