Capital Comment

Washington.

The spectre of subversive elements engaged in a deep seated plot to change the present form of government, has evidently disappeared from the minds of members of Congress. This significant development came to light just after the McCormack committee which investigated Nazi and other propaganda activities in the United States, submitted its report to the house.

Although the report received good publicity in the newspapers of the country, the editorial reaction clearly indicated that this country has little to fear from subversive elements. This reaction is in the main similar to that coming from members of Congress. In both cases, however, it represents a change of opinion. When the resolution creating the investigating committee was introduced about a year ago, members of the House were all steamed up over the idea of an investigation of Nazi and other similar propaganda activities. Editorial comment in the press was strongly in favor of the proposal. One of the main reasons, perhaps, involved the aggressive Nazi activities in Germany which provided for an elaborate international propaganda machine.

According to the McCormack committee report, this country has little to fear from Nazi or Fascist activity. But, Communistic activity, judging from its increase during the last year, may “inevitably constitute a definite menace.”

The report of the committee has started some of the governmental agencies into action in checking up on some of the findings. The State Department is in the midst of carrying on investigations of subversive Fascist activities by an Italian vice consul at Detroit. Another investigation has been started by the State Department concerning the activities of a consul of the Mexican government assigned to San Bernardino, Calif., in interfering with religious practices and religious freedom of some American citizens. The Department of Justice and immigration officials of the Department of Labor are delving into the mass of informational material gathered by the committee to determine what future action may be taken.

Meanwhile several members of the committee and other members of the House have introduced bills which seek to curb subversive activities in the United States. A number of these proposals follow the recommendations made by the committee. Others, may be expected to be introduced.

Representative McCormack, chairman of the investigating committee, has introduced a bill which would make it unlawful to advise, counsel or urge any member of the military forces of the United States to disobey the laws or regulations governing such forces. This proposal is the outgrowth of the committee’s findings that Communists have been active in spreading propaganda among soldiers and sailors. The Communists, it was learned, have gone so far as to employ women to spread this propaganda among army and navy men. Indications are that Representative McCormack’s bill to check such activities has a good chance of becoming law.

A drive to aid small industries throughout the country has just been initiated by Representative Herman P. Kopplemann of Connecticut, who introduced ###ill which would create an intermediate industrial credit system.

The corporation established under this bill would have a revolving fund of $1,100,000,000 of which $100,000,000 would be capital stock subscribed by the Treasury and the remaining money obtained through the sale of the corporation’s bonds. The corporation would be authorized to loan up to $500,000 to small manufacturers, commercial and service establishments, either directly or by rediscounting loans made through financial institutions.

Representative Koppelmann, a member of the House Committee on Banking and Currency, has been one of the leaders of the drive to ease the credit situation for small enterprises. During the last session of Congress he introduced a measure, some of the provisions of which were incorporated in the final Administration proposal enacted into law. He believes that the credit situation for small business still remains critical and immediate action is needed if recovery is to be hastened. Indications are that his intermediate industrial credit proposal has a great deal of support.

It has become increasingly evident in Washington that Hitler and his followers have become pretty sure of themselves — so much so that in the eyes of the world they are becoming obnoxious. Heartened by the victory in the Saar, the Reich has adopted a well-defined objective—the territorial reintegration of Germany and the economic domination of the territories from the Baltic to the Black Sea. Efforts are being made to engineer a plebiscite to give the Austrian people a chance to decide whether they would like to join Germany. This in itself is interpreted as a bold step.

Since the Saar plebiscite, Germany has become less disposed to take advantage of opportunities to create a general European understanding. Germany is keenly interested in rearming and would like nothing better than scrappin### part V of the Versailles Treaty. The common expression of German officials in their talks with representatives of other nations is: “The Reich stands by its rights. We are willing to play ball as long as you recognize the justice of Germany’s claims.” And these claims include the right to build up an enlarged military machine.

On March 1, the Saar becomes German. Reports that filter into Washington indicate that minority groups are living in terror. They have no work, no country, no money. Homes are being searched for arms by the police who have long been suspected of favoring the Deutsche Front party, and now have come out openly as German officials.

The Governing Commission still attempts to control the situation. The people still expect protection from the international forces which have kept the Saar peaceful. In spite of all that these outside interests may try to do, they have no power to prevent fear from creeping into the hearts of the minority.