Knox on Safety

Says a law of Pennsylvania: "Any person who shall make . . . any statement or rumor, untrue in fact, in reference to the solvency or derogatory to the financial condition of any National or State bank . or other financial institution in this Commonwealth . . . shall be punished by a fine of not more than $5,000 and by imprisonment at hard labor for a term not to exceed five years."

In the course of his current 22,000-mile campaign tour, Republican Vice Presidential Nominee Frank Knox arrived one day last fortnight in Allentown, Pa. Having asserted within the week that Franklin Roosevelt was leading the U. S. toward Communism and that the nation would be better off today if it had had no Government at all since 1932, Alf Landon's First Mate proceeded to continue his discussions of the New Deal in the same tone and temper. To Allentown's sober citizens he boomed: "I am tired of hearing this nonsense about a choice of the American people between liberty and security. . . . The present Administration has been for four years giving lip service to security and welfare, and today no life insurance policy is secure; no savings account is safe."

There were no bank runs in Allentown next business day, but last week the Republican National Committee received a letter for Nominee Knox from Pennsylvania's Secretary of Banking Luther A. Harr. After citing the State's law against financial slander, Secretary Harr, a Democrat in a Democratic State Administration, declared: "Your statement is so sweeping as to include every bank and savings institution in the State, but I will not stand on technicalities. If you have information that one bank or savings institution in this State is unsafe, I am willing to accept that as sufficient justification. . . . If I do not hear from you within a reasonable time, I will refer this matter to the Attorney General for such action as is warranted."

Questioned by newshawks in St. Paul, Minn., Nominee Knox had no comment on this challenge. But in New York Republican National Chairman John Hamilton stoutly backed up his No. 2 candidate's assertion, snapped: "They were safer in 1932 than they are now."

At that, Democratic National Chairman James A. Farley, who so far in this campaign has been nearly as oblivious of John Hamilton's existence as of Alexander Hamilton's, broke down and roared: "Chairman Hamilton's statement . . . is just as ridiculous as other statements he has made during the last few weeks. His statement . . . is an insult to the intelligence of the American people."

In Washington Comptroller of the Currency O'Connor got into the fight by pointing out that since March 1933 only eight national banks had failed, that on Sept. 28 it would be a whole year since one had closed its doors. In Brooklyn, however, Rev. Charles E. Coughlin, Boss of the Union Party, loudly bawled that the principal U. S. banks are already "busted."

When Herbert Hoover arrived in Manhattan to perform his duties as director of New York Life Insurance Co., a reporter for the pro-New Deal New York Daily News cornered him in the New York Life Building, asked him if he agreed with Nominee Knox's statement.

"That's politics," said Mr. Hoover, "and I can't talk politics in an insurance office."

"Well," shot back the impertinent newshawk, "let's step outside then."

Pursuing Director Hoover to the sidewalk, the reporter persisted: "Will you vote for and support a man who says that life insurance policies are unsafe?"

"I don't want to make any statement about that at all," barked the nation's only living ex-President as he burrowed into his automobile, sped away.

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