mariner would shake his head. Nothing is impossible. In two ways may a ship be sunk-by being crushed, by being capsized. Naval architects are not hired to design ships that a storm could crush. Such a feat would yield neither profit nor honor. But capsize? Everything that floats, or nearly everything, can be capsized. A ship that rolls easily is best, for she knows how to right herself. Of course, she is less comfortable for passengers than one who keeps an even keel in ordinary weathers; but by and large, she is the more seaworthy. The temptation to build ships that would not roll-in order to gain passengers at the expense of safety-is old, however. The Germans followed that line a while before the War. But the old temptation has fewer followers nowadays. With steam vessels, the foremost part of seamanship is to keep them headed into a storm. What danger then? Very little, unless the captain be drunk-or unless her driving force go bad, her propeller shaft be broken, her engines stop in their ceaseless grind. In these days of several screws and several turbines, even that danger is minimized. The leviathans may flout the sea until some day-who can tell?-the unpredictable, the improbable, may turn itself into a fact.

SUPREME COURT Attorneys General

Nine justices in black robes held high court in the Capitol. A few feet to the north in another, larger chamber of the same building, were assembled the Senatorial group of the lawmakers of the Nation. The question before the court was: "Where do the powers of our legislative neighbors end?"

Specifically, the case was that of the United States versus Mally S. Daughcrty. The history of the case had only a few salient points. The Senate had appointed a committee to investigate the conduct in office of Harry Daugherty, Attorney General. Believing that evidence which had a bearing on the case might be obtained, the committee issued a subpoena for Mally S. Daugherty, brother of the Attorney General, to come before it bringing certain books and papers. He refused. Meanwhile, the Attorney General resigned. Shortly afterwards, the Senate ordered Mal Daugherty arrested for failing to answer its subpoena. The Southern District Court of Ohio held that he was unlawfully arrested and discharged him. The Government took an appeal to the Supreme Court.

The question before the high court was: Has one of the Houses of Congress power to compel the attendance of witnesses; and if so, has it the power to compel witnesses in such an investi

gation as this? A. I. Vorys and John B. Phillips represented Mr. Daugherty. They argued that the Senate is a legislative body; its power to force witness is restricted to impeachment cases, election contests and cases in which attempts are made to expel members; if there was power to compel witness to testify with a view to gaining information on which to base legislation, it rested in both Houses, not in either one alone; but the investigation of the Attorney General was not conducted with the avowed purpose of finding a basis for future legislation. The power of making such an investigation did not lie in Congress; Congress was in fact usurping the functions of the judicial and executive branches of the Government.

For the Government appeared the erstwhile Attorney General, George W. Wickersham, acting as a special Assistant to Attorney General Stone. He argued that Congressional investigations could legitimately make investigations as a basis for legislation, and that it was to be presumed, without avowed statement of purpose, that the Senate had made its inquiry for legislative ends; the investigation was entirely proper and the power to compel testimony resided in the investigating committee.

The justices in black robes asked many questions and then retired to meditate before delivering an opinion that will have an important bearing on future Congressional inquiries.

BUDGET

For 1925-26

The President sent to Congress the budget estimates for the fiscal year of 1926 (July, 1925-June, 1926) with the usual message explaining and amplify. ing the recommendations. Said he:

"We have before us an estimated surplus of $67,000,000 for the next fiscal year. If we continue the campaign for economy, we will pave the way for further reduction in taxes. This reduction cannot be effected immediately. Before it is undertaken, we should know more definitely by actual operation what our revenues will be under our present tax law."

The estimates of expenditures for 1926 as compared with the present fiscal year of 1925 are: Public debt (inter- 1926 1925 est) .$830,000,000 $865,000,000 Public Debt (reduc

tion of principal) 484,000,000 471,000,000 Post Office Dept... 637,000,000 613,000,000 War Department 338,000,000 347,000,000 Navy Department.. 289,000,000 313,000,000 Interior Department 267,000,000 294,000,000 Treasury Dept. 163,000,000 180,000,000 Agriculture Dept... 140,000,000 78,000,000 Commerce Dept... 22,000,000 25,000,000 Justice Dept.. 24,000,000 22,000,000 16,000,000 16,000,000 8,000,000 8,000,000 484,000,000

State Dept..

Labor Dept..

Veterans' Bureau.. 405,000,000

REPARATIONS

The Salary

When Seymour Parker Gilbert Jr. left the shores of the U. S. to become Agent General of Reparations (TIME, Oct. 20), his salary was unfixed.

Upon his arrival in Paris, newspapermen asked him if it were true that he did not know the amount of his pay. Replied Mr. Gilbert: "That is a small matter."

Last week, the Reparations Commission published the Agent General's stipend. It was almost two-thirds of the President's salary, more than double the amount paid to America's highest paid Ambassador, nearly five times the average salary of a State Governor, more than six times the pay of a Congressman. Precisely, it was $47,500 per annum.

INTERNATIONAL

Prizes

The modern peace problem, like its predecessors, is international; but, unlike them, it is idealistically positive in nature; that is, it aims at maintaining a world equilibrium on the basis of an international code of ethics, which is ultimately to bring sanity into international conduct and thus eliminate war. To encourage this idea among men, many institutions have been formed and are operative.

Woodrow Wilson Foundation. Last week, it distributed its first annual prize of $25,000 "for meritorious service of a public character tending to the establishment of peace through justice." The money is from the income of about $800,000 raised by popular subscription.

The Davis who is not the defeated Presidential candidate, not the Secretary of Labor, not the Assistant Secretary of War, but the Davis whose given names are Norman Hezekiah, descendant of Snead Davis, a Revolutionary soldier, and who was Under Secretary of State in the Wilson Administration-this Mr. Davis nounced that the $25,000 had been awarded to Edgar Algernon Robert, first Viscount Cecil of Chelwood (Lord Robert Cecil), third son of the third and greatest Marquis of Salisbury.

an

University College, Oxford, dressed in the tight, long trousers and flowing coat that was a peculiar product of the Victorian Age. He entered the service of his august father, as

Frank Davey

DAVID STARR JORDAN Ichthyologist, educator, prize-winner

had his four brothers, known merely as a Cecil.

It was at the age of 22 that he became a practical as distinguished from an Oxford politician. In a variety of positions, many of them important, he has served his country and served it well. Since the War, even during it, he lent his weight and experience to the problem of international peace. In 1923, his King, in recognition of his great services to humanity, made him a peer of the realm and he became Viscount Cecil of Chelwood.* Now, in the 39th year of his public service, a distinguished U. S. juryDr. Charles W. Eliot, President Emeritus of Harvard; Judge Florence E. Allen of the Ohio Supreme Court; Dr. James R. Angell, President of Yale; Authoress Dorothy Canfield Fisher; Publicist Raymond B. Fosdick; David F. Houston, member of Wilson's Cabinet; Financier Thomas W. Lamont; Henry Noble MacCracken, President of Vassar; Authoress Ida M. Tarbell-appointed by the Board of Trustees of the Wilson Foundation, has unanimously selected him from 100 nominees to receive a prize.

Specifically, the award was made be

ago, he fought for peace, for mediation, for a fair settlement with an honesty and a rightness which could not be denied."

3) He was instrumental in gaining statehood for Albania, thereby tending to assure peace in the Balkans.

4) "He has aided in the development of an international conscience in the matter of mandates-'the sacred trusts of civilization' dreamed by Woodrow Wilson.'

5) "He has been a pioneer for control in arms traffic."

6) "He has been unceasingly active in behalf of racial, religious and linguistic minorities."

The Foundation cabled to Lord Cecil, informed him of the award, received the answer: "Deeply gratified by award . . . which gladly accept." It was then given out that he would arrive in Manhattan in time for a dinner on Dec. 28, birthday of Woodrow Wilson, at which the award is to be presented to him. Lady Cecil, a daughter of the late Earl of Durham, is to accompany him.

Nobel Peace Prize. Last week the Nobel Prize Committee of the Norwegian Storthing (Parliament) decided not to award the Peace Prize this year. Apparently no deserving person could be found. Even to Washington the Norwegians looked in vain.

Since 1903, the following have received the Nobel Prize for Peacet: 1903 Sir William Randal Cremer

1904 1905

1906 1907

(English)

Institute of International Law Baroness Bertha von Sultner (Austrian)

1908

Klas Pontus Arnoldson (Swedish) Frederik Bajer (Danish)

1909

1910

August Marie Beernaert (Belgian) Paul H. B. B. d'Estournelles de Constant (French)

International Peace Bureau (Switzerland)

1911

Tobias Michael

(Dutch)

Carel Asser

Herman Prize for Peace Education. Last week, $25,000 offered by Raphael Herman of Detroit, for an educational plan calculated to foster world peace, went to Dr. David Starr Jordan, Chancellor Emeritus of Leland Stanford University.

Mr. Herman, born in Germany, made a fortune manufacturing steam power

+ The Nobel Prizes are for Peace, Literature, Medicine, Physics, and Chemistry. The awards are made on Dec. 10, anniversary of the death of Alfred B. Nobel who bequeathed a vast fortune (the interest on the original capital was about $9,200,000), to endow five prizes. The value of the prizes is about $35,000 each; much of the money is absorbed by taxation and the upkeep of Nobel Institutes.

specialties in Detroit. Dr. Jordan, author, ichthyologist, educator, has long been a patriarchal figure in world peace associations of the U. S.

Unlike the Bok award, the Herman specifications did not involve legislation or a referendum but called for the best method of conscripting the world's educational forces for peace. More than 5,000 plans were submitted. Dr. Jordan's:

Let the world's school teachers cooperate under the supervision of the World Federation of Educational Associations.

Let 12 committees be appointed: to work with foreign educational groups; to work with peace societies; to investigate the teaching of history, of patriotism, of world amity; to encourage international athletics; to consider the creation of a "Peace Council" in the U. S. State Department; to study military training and "preparedness" in the schools, incentives to war, and the theory that war is a "cosmic necessity." Finally, a committee to investigate the relations of the League, the World Court, The Hague Court, to international education.

Bok Prize. Edward W. Bok, retired editor, offered a prize last year (TIME, July 9, 1923, Nov. 26, 1923, Jan. 7, Feb. 11) for a practical plan to promote peace. The prize was $100,000, $50,000 to be paid on selection, $50,000 to be paid when a referendum in the U. S. shows sufficient popular support. Dr. Charles H. Levermore of Brooklyn, ex-president of Adelphi College, won the prize, received $50,000, but is still waiting for the second instalment.

Filene Prize. Early in the year Edward A. Filene, Boston merchant prince, offered a series of prizes amounting to $50,000 for the best peace plans submitted in Great Britain, France, Germany and Italy.

THE LEAGUE

Council Meeting

In Rome in the Doria Palace-lent by Prince Doria, descendant of the famed Genoa Admiral-containing 1,000 rooms with accommodations for 6,000 troops, assembled the Council of the League of Nations.

Among the 40 agenda the Council was particularly concerned over:

1) Discussion of the Protocol to the Covenant of the League (TIME, Oct. 13).

2) Explanation of the recent happenings in Egypt (TIME, Dec. 1 et seq.) by the British member.

Austen Chamberlain, British Foreign Secretary, scurried from London. At Paris, he found time to put in a sound half-day's work. At Rome, he was enthusiastically received, became a cy

nosure.

COMMONWEALTH

(British Commonwealth of Nations)

German Treaty

One piece of the week's news was out of all proportion to the space given it in the daily newspapers. Brief despatches told of the signing of an AngloGerman Commercial Treaty; few hinted that it was one of the most important events of this postbellum decade.

The Treaty, yet to be ratified, is for a period of five years and is between the United Kingdom of Great Britain and Northern Ireland and the Republic of Germany. Until Sept. 1, 1926, the component nations of the British Commonwealth have the right to adhere to the terms of the Treaty, or negotiate new treaties.

Chief among the terms:

1) Both nations to receive most favored nation treatment in all matters of trade.

2) Reciprocal engagements to regulate the status of nationals, companies, shipping and goods in both countries.

3) Reduction of present list of prohibited imports.

4) Tariff adjustments where different grades of the same article are adversely affected by a reduction of duties. (Protection for the Lancashire mills).

cotton

The significance of this Treaty is that it hampers the much-mooted coalition of German coke and Lorraine ore, as under the most favored nation clause whatever privileges Germany may extend to France she will automatically extend to the United Kingdom. It also means an end of discrimination against the Germans in Britain, for they will, under the Treaty, be allowed to deal in non-ferrous metals, to reopen banks, to serve in the merchant marine on the same terms as other aliens. Moreover, fishing rights have been made reciprocal. Apart from its significance, the raison d'être of the Treaty was the expiration on Jan. 10 of the trade protective clauses of the Versailles Treaty.

Philatelic

King George is a philatelist and crippled ex-Sergeant F. W. J. Winter knew it.

It happened this way. King George drove to Windsor Castle. Alighting from his auto, the King perceived the ex-sergeant sitting in a hand-propelled chair in the Park and immediately went to have a chat with him.

During the conversation, the ex-sergeant asked the King if he would accept a half-penny stamp with the watermark placed sideways. His Majesty inquired if he had a duplicate and, upon receiving an affirmative answer, he accepted the gift and departed.

A few days later, Winter received a

Entente Cordiale

Austen Chamberlain, Secretary of State for Foreign Affairs, screwed his eyeglass more firmly into his eye and left the Foreign Office to journey to Rome.

At Paris, a capital with which he was well acquainted, the British Foreign Minister stopped off for a chat with Edouard Herriot.

Behind the gray walls of the Quai d'Orsay the two statesmen conducted as unusual conference. There were r witnesses, and none was needed; not even an interpreter, for Mr. Chamberlain speaks French almost as well as M. Herriot. But the walls of the Qua d'Orsay are not so thick that they dr not have chinks, the windows are not s dirty that they are opaque and the doors are not so made that they have no keyholes.

Accordingly, it was bruited that France and Britain, cognizant of the danger from Bolshevism in the East and Near East, would henceforth work hani in hand in a spirit of complete understanding. It seemed likely that new divisions of the world were discussed with a view to resisting the machinations of Moscow.

GERMANY

Anti-Semitic

It has been a favorite pastime, down the ages, whenever anything went wrong to blame the Jews. Thus, in Germany, the Jews are responsible for losing the War, responsible for the Republic, responsible for the peace terms and responsible for many other things Anti-Semitism runs high throughout the Teutonic land.

Not long ago, Theodor Fritsch, Etor of the anti-Semitic Hammer, called Max Warburg, head of the Hamburg banking house of that name, a "Secre Kaiser"; accused him and one Dr. Kar Melchior, together with Jewish for ciers in general, of sacrificing patricte interests for their own gain.

The matter came to court when Her

Warburg sued Editor Fritsch. In his evidence, Max Warburg declared that individual Jews had everywhere won influential positions through their ability, but that none exercised or sought to exercise any super-Government control

Keystone

FELIX WARBURG -through ability

Continuing, Herr Warburg said: "My brothers Paul [onetime head of the Federal Reserve Bank] and Felix [ financier, member of Kuhn, Loeb & Co., Manhattan] are American citizens. Paul holds an office in America equivalent to the presidency of the Reichsbank. Throughout the whole War, he never once saw President Wilson and, therefore, could hardly have controlled the United States Government.

"I myself have always followed the interests of our Government in all financial transactions. I warned the authorities against signing the Versailles Treaty. At the Peace Conference, I served only as an expert, declining to be a member of the delegation. Naturally, the Jews have acted as advisers to statesmen, as, for instance, Bleichröder did for Bismarck.

"But the international dictatorship of Jewish high finance can never be proved because it does not exist."

The court gave a decision for the plaintiff; the judge sentenced Fritsch to three months imprisonment.

As You Were

The second General Election of the year was held.

Issues. As it has been in the past, and as it is likely to be in the future, the overshadowing issue was whether Germany is to continue a Republic or revert to an imperial régime. The Experts' Plan played some part, but,

generally speaking, only the extreme elements opposed it.

Parties. In Germany there are seven main parties and a number of "mushroom" parties of little or no significance.

Republicans include: Social Democratic Party, moderate Socialists representing the working classes; the Democratic Party, liberals representing the bourgeoisie; Centre or Catholic Party.

Monarchists include: German People's Party, representing the big industrial interests; Nationalist Party, representing the landowners and farmers; German Popular Party, led by General Erich von Ludendorff, who is opposed to the Experts' Plan. Bolsheviki. The Communists are against everything, except Bolshevism, which they seek to impose by means of an armed revolution.

Results. Provisional returns showed that the extreme Parties (Bolsheviki and Ludendorffites) had been decisively defeated and that the Social Democratic Party had made equally decisive gains; otherwise, taking into consideration the increased vote, the position remained the same. Almost complete returns:

Elected. Most conspicuous of those elected was Grand Admiral Alfred von Tirpitz, conspicuous for his appearance because of his famous snow-white beard, which reaches his chest in two magnificent and cylindrical cascades; conspicuous for his intellect because, if ruthless, he proved himself a good sailor and has since had the common sense to vote for the Experts' Plan.

In the same class were elected Prince Otto von Bismarck, grandson of the Iron Chancellor, and Oskar Hergt, until recently leader of the Nationalists.

Among others were: Chancellor Marx (Centre), Foreign Minister Stresemann (German Peoples' Party), ex-Chancellors Scheidemann and Wirth (Social Democratic), General Erich von Ludendorff (Popular Party), Count zu Reventlow (Popular Party), Count von Bernstorff, exGerman Ambassador to the U. S. (Democratic), Fräulein Ruth Fischer (Communist).

Significance. The acceptance of the Experts' Plan last summer in

P. & A.

ALFRED VON TIRPITZ

He kept his seat

volved amendments to the Constitution, which in turn involved the securing of a two-thirds majority. A two-thirds majority of the Reichstag was 314; the Government could command, with the Socialists, about 260. It was clear that the Monarchists had to be won over. On the promise by the Government to give them four seats (later cut to three) in the Cabinet, about two-thirds of the Monarchists voted for the Government and the Experts' Plan legislation was enacted.

However, when the time came for carrying out its promises, the Government met with unforeseen difficulties (TIME, Nov. 3), and was finally forced to ask for new elections.

Elections over, the Parties are in about the same position. The Government coalition still lacks a majority. There is this difference: The

Government Farties, excepting the Democrats (who declined to work with the Monarchists), can now rule with the Monarchists and thus stay

in power. Failing an agreement with the latter, it would seem that the Government must résign. The situation, therefore, in its broad outlines, is a case of "as you were."

FRANCE

Debt Bubble

In Washington, the World War Debt Funding Commission started to discuss the French War Debt to the U. S., which amounts to more than $4,000,000,000.

In Paris, Premier Herriot thought the whole affair was taking on a too serious complexion, so he issued a statement:

"The talks which have taken place in the last few days between the French Ambassador to Washington and the American Secretary of the Treasury . . . should . . . be considered only as . . . simple semi-official .exchanges of views." The atmosphere became chilly.

In London, however, a storm of indignation broke at the mere idea of France discussing her debt with America before making some pronouncement of her intentions regarding the debt of nearly $3,000,000,000 which is owing to Britain. The Morning Post: "If Germany had won the War, the American Congress, instead of laying down terms according to which France and Great Britain were to pay, would be discussing ways and means for paying an indemnity, a pretty fat one, to William Hohenzollern."

Red Week

The expression "I see red" was given another meaning in France. First, the French saw Red Ambassador Leonid Krassin arrive; second, they witnessed the arrival of Red Captain Jacques Sadoul; third, they saw the Reds in various parts of France chastised.

Krassin. In the station, several thousand Communists raucously greeted him. One Comrade Doriot proclaimed from the housetops: "Krassin has reached Paris; the revolution has begun." On every side, impressionistic Frenchmen shouted: "Vivent les Soviets!"

After his arrival at the Embassy, Ambassador Krassin issued a statement wherein he stated his pleasure at being in Paris. His first task would be, he said, "to establish normal relations," to

solve "all questions of mutual interest." A loan would be asked for later, he inferred.

Sadoul. But the greatest news of the day, for Frenchmen at least, was the arrest of Jacques Sadoul. Once the member of a French Mission to Russia, Captain Sadoul had become so enamoured of Bolshevism that he deserted to the Bolshevik ranks. In 1919, a Paris court martial condemned him to death in absense for treason.

The return of Sadoul was attributed to a desire to cause a sensation on the day of the Bolshevik Ambassador's arrival. Had he waited a few weeks, he would have benefited from the amnesty law recently passed by the Senate (TIME, Dec. 1). But no, he came back to claim a retrial.

Red War. The simultaneous arrival of Messrs. Krassin and Sadoul had its effect. Communists everywhere became as busy as bees in an overturned hive.

In the morning following the day of his arrival, Ambassador Krassin paid his respects to Premier Herriot. One hour later, the latter's stentorian tones were heard in the Chamber of Deputies: "The Government is well aware of its duty and will take action against these foreign Communists."

The same afternoon, police started a round up of Communists. Seventy foreigners not one of them a Russianwere arrested and held pending deportation. Twenty police commissioners and more than 700 men were engaged in different parts of France in the search; and it was alleged that a revolutionary plot had been "nipped in the bud."

Again

RUSSIA

Since the late lamented Comrade Nikolai Lenin announced his New Economic Policy for Russia there has been a growing need for its modification; and, from time to time, according to necessity, it has been modified. Each time the critics have carped: "Bolshevism is failing." Last week, it failed again.

Comrade Dzerzhinsky "the terrible," President of the Supreme Economic Council,* said state aid must be withdrawn from trade and applied to industry and that trade must be financed "carefully" by private capital.

Smaller Army

At a plenary session of the Red War Council in Moscow, M. Frounze, who appears to have superseded Léon Trotzky as War Lord of the Red

*This is not the same as the all-highest presidium of the Union Central Executive Committee, of which Kalinin is Chairman; nor is it the same as the Union Council of Peoples' Commissars (corresponding to a European Cabinet) of which Rykov is President.

Army, stated that all forces of the Red Army and Navy had been reduced from 610,000 to 562,000 men. These figures show that Russia has an Army and Navy numerically inferior to the Army alone of France, which amounts to 690,500 men (figure for 1923).

Another major decision of the Courcil was to abolish dual commandership in the Army. Hitherto, each commander had attached to him a politic commissar, or “archangel,” as Comrade Krylenko, onetime Chief Commander of the Russian forces, called them. An order of a commander was invalid until countersigned by the commissar; but such is the state of thing in Russia that the Moscow autocrats can now trust their officers and are, incidently, enabled to raise their pay.

Royal Arrival

Upon the good ship Paris arrived Manhattan Her Imperial Highness t Grand Duchess Victoria Feodorova cousin of King George of Britam younger sister of Queen Marie of Rumania, wife of Cyrille Vladimir vitch, self-ordained Tsar of all t Russias (TIME, Nov. 24).

Because it was feared that some inpetuous Bolshevik might attempt her life, the authorities sent a bevy of policemen and detectives to meet her On the journey from the wharf to the Hotel Waldorf-Astoria, where the Grand Duchess was staying, another bevy of motor-cycle bobbies clattere noisily in front, beside and behind be Two detectives of the Bomb Squad were detailed to guard Her Imperial Highness throughout her U. S. visit.

Such precautions, while necessary were none the less an act of courtes from the U. S. Government, which doe not recognize the Bolshevik régime t Russia.

Pestered by pressmen, the Duches smiled, waved a long narrow hand, refused to talk about politics. She was in the U. S., she said, merely as grateful woman." The Monday Oper Club, an organization which provis titled guests for wealthy U. S. b tesses, arranged entertainments for her On her first night in town, there was an informal dinner in her suite-th guests including Mrs. Cornelius Va derbilt, Mrs. Arthur Curtiss Jar Princess Cantacuzène-Speransky, M Richard Mortimer, Mrs. Henry H Rogers. After dinner, the party we to the Jolson Theatre-minus M Vanderbilt, who rushed off, apologiz Later, the Duchess beamed at a sch of wriggling débutantes at the Cur Club. The Colonial Dames of Amen gave a party for her in a Park Ave Hotel. The engagement pad of visit recorded leading hostess in A York, Philadelphia, Washington.