Site Ed. Note: The front page reports that, according to White House sources, the President was considering an ultimatum to Secretary of Commerce Henry Wallace that he would need to refrain from making speeches about American foreign policy or leave the Cabinet. The President consulted with Assistant Secretary of State Will Clayton and U.N. Atomic Energy Committee chairman Bernard Baruch on the matter of Mr. Wallace's statements the previous week at Madison Square Garden, initially approved by the President until after Secretary of State Byrnes and other State Department officials took umbrage at the statements against a get-tough policy with respect to the Soviets, contrary to the expression in Stuttgart September 6 by Secretary Byrnes. The President was scheduled to meet with Mr. Wallace during the afternoon.

Meanwhile, Drew Pearson had obtained a copy of a letter from Mr. Wallace to the President from July in which the former had suggested a policy of reasonable guarantee of Russia's security and forming a treaty under which all nuclear arms would eventually be destroyed by the United States. In consequence, Mr. Wallace's office released the letter, saying that it had been "filched" from the Commerce Department files, prompting a threat by Mr. Pearson of a libel suit.

Mr. Wallace, in response, stated that he would accept Mr. Pearson's statement that he obtained the letter from sources outside the Commerce Department but was interested in knowing the source. Mr. Pearson responded that his sources were confidential but gave a hint in saying that six carbons of the letter had been produced at the White House. He also stated that he would not pursue legal action.

The White House denied that any copies of the letter had been made. The text of the letter is reproduced in Mr. Pearson's column of this date and the following date.

In Lake Success, N.Y., the United States proposed to the U.N. Security Council that it create a fact-finding committee to study border incidents along the entire northern Greek frontier, including the areas adjacent to Albania, Yugoslavia, and Bulgaria. It would also study the Ukrainian complaint of persecution of minorities by the Greek Government.

At the Paris Peace Conference, the military commission approved the military limits within the Italian peace treaty

From Nanking, there were increasing indications that China's idle Government armies in Manchuria were preparing to launch an offensive against the Communists to try to push them further north, with focus on Harbin.

In London, the squatters who had occupied Government-owned apartments in the West End were being evicted based on trespass laws, but 600,000 union workmen took up their cause and protested to the Government that the housing shortage needed to be remedied with greater celerity. The squatters had been in occupation of the facilities for ten days.

Hotel and restaurant associations vowed to take court action to test OPA's right to roll back prices of meat sold in restaurants to June 30 levels.

Harold Ickes continues his examination of the haphazard method in which decorations were conferred within the Army, with favoritism given to the Air Corps over the infantry. E. J. Kahn, Jr., in The Infantry Journal, had made a good case for there having been discrimination between fighting soldiers and "cocktail-party soldiers" and civilians within the War and Navy Departments compared to members of the military. Nearly everyone who had regular contact with high War and Navy officials were given decorations for extraordinary service.

He cites the Petroleum Administration for War as having been one of the most efficiently run of war agencies and with indispensable results for the war effort. It was responsible for coordinating the building of the Big Inch and Little Inch pipelines which had supplied oil to the East Coast for shipment overseas. Yet only one decoration was granted to the agency, to the efficient Deputy Administrator Ralph K. Davies, while seven Navy officers received commendations for petroleum despite none of them having been responsible for the delivery of oil.

The Mead Committee of the Senate, investigating the Garsson combine and its improprieties with respect to obtaining and maintaining war munitions contracts despite higher than average industry costs, had found that an "E" had been awarded the companies for their excellent war production record. Mr. Ickes offers that it was likely not the only such instance of an undeserved award.

He cites a precedent for such awards coming as a result of political influence: Col. Robert McCormick, editor and publisher of the Chicago Tribune, had served in World War I without an award, but in 1923, under President Harding, it was discovered that he deserved the Distinguished Service Medal for his "executive ability", that is, says Mr. Ickes, looking good behind a desk.

Heavy snow fell in the Rockies.

A trans-Atlantic Belgian plane, enroute from Brussels to New York with 44 persons aboard, mainly American and Belgian businessmen, was overdue, with its whereabouts unknown, last sighted northeast of Gander, Newfoundland. A Coast Guard vessel reported seeing wreckage northeast of Gander. Limited visibility, however, prevented immediate search.

Senator Charles Andrews of Florida, a Democrat, died of a heart attack in Washington. He had served for ten years in the Senate.

The American Federation of Musicians strike came to an end as it was agreed that the hotel musicians would be paid the same 20 percent increase in wages as the nightclub musicians were promised on Saturday.

The maritime fleet remained for the most part idle in American ports despite the AFL seamen having returned to work and the CIO having relaxed its picket lines to allow AFL members to cross them. In New York, longshoremen were at work on only 82 ships, 22 of which were American, of 432 ships at anchor. A thousand French seamen caught in the strike stated that they would not return to work until the CIO had won its wage demands.

OPA head Paul Porter urged the Decontrol Board to restore forthwith the June 30 ceilings on all dairy products.

Sunspots created a major interruption of trans-Atlantic shortwave radio and cable transmission.

A judge in Detroit recommended that the fee for divorces be raised from the current $5 to make them harder to obtain and hopefully to reduce the soaring divorce rate.

In Los Angeles, Sari Gabor was suing Conrad Hilton, the hotel magnate, for divorce. She testified that Mr. Hilton would not fire the butler who would not take orders from her. Moreover, he told her that if she did not like it, she could leave him. He had returned to his rebuilt home after a fire and took along his butler but did not want Ms. Gabor to join him. She then went to reside with her sister, Eva, who corroborated her testimony.

The Blanton divorce mill case was apparently consigned to the inner pages of the newspaper this date for want of any exciting development.

On the editorial page, "A Higher Pay Scale for Teachers" finds it significant that the most fiscally conservative journal in the state, The Charlotte Observer, had come out in favor of a substantial rise in teacher salaries to alleviate the crisis in education in the state generated by a shortage of qualified teachers. The Observer proposed a minimum annual salary of $1,560, with graduated pay increases which could go as high as $3,600 per year.

"The Handicap of No Opposition" comments on a story from the Concord Tribune stating that the Democrats of Cabarrus County had a problem with voter apathy being so great for the fall election that they stood some danger of losing the county or even the district, that of House Ways and Means Committee chairman Robert Doughton, to well-organized Republicans.

"Mr. Petrillo Jerks His Jerks" comments on the strike by the American Federation of Musicians, that it was a strike in which everyone involved got what they deserved. The basic dispute was that union head James Caesar Petrillo wanted the musicians who played in clubs with floorshows to be paid more than those in clubs without. The result was that most of the fancy nightclubs had been doing without music, causing business to decrease.

A piece from the Greensboro Daily News, titled "Toward a Two-Party System", states its fundamental agreement with Virginius Dabney of the Richmond Times-Dispatch in his advocacy for a strong two-party system in the South. The South would not receive Democratic Party recognition insofar as having anyone on the national ticket as long as it was a foregone conclusion that it would remain solidly in the column of the Democrats nationally. And there was salutary effect on local and state elections from a strongly competitive two-party system. As things stood, the primary was the only election of consequence and little heed was paid to the general elections in the South.

Drew Pearson, as indicated on the front page, reprints the first half of the letter from Secretary of Commerce Wallace to President Truman which had been mailed in July. He prefaces the letter by saying that the President, on the basis of it, decided to have Mr. Wallace make a public speech containing these ideas to gauge public reaction, and that it was on this basis that he had approved the New York speech of the previous week—which in two days would lead to Mr. Wallace's firing.

Marquis Childs, returning from vacation, looks at the Wallace speech and its aftermath, concludes that it had done great harm. He reveals, contrary to that implied by Drew Pearson, that the President genuinely did not know what specifically was to be said in the speech as he had not read it before its delivery, had only had it summarized by Mr. Wallace, a summary which stressed the political aspects of the speech and that Mr. Wallace intended to say that he was not anti-British, nor Anti-Russian, but in favor of American foreign policy. To this point President Truman readily agreed.

Incidentally, Mr. Childs describes Will Clayton as "Acting Secretary of State", a position which, at last report, was occupied by Undersecretary of State Dean Acheson while the Paris Peace Conference occupied the attention of Secretary Byrnes. Officially, Mr. Clayton was now Undersecretary of State for Economic Affairs, a title which may have prompted confusion in the press as no one previously had held such a position, and traditionally there had been only one Undersecretary. Mr. Clayton has been described more than once as "Undersecretary" without the qualifying limitation, and so we continue to refer to him, without intending to diminish his importance, as an Assistant Secretary.

Perhaps part of the problem in the eruption over the Wallace speech was that no one seemed to know who was minding the store at the State Department. Or was Mr. Wallace, the last of the prominent FDR New Dealers in the Administration, set up for a fall out of the continuing effort since the summer of 1945 by the "Missouri gang" to clean house?

Samuel Grafton also looks at the Wallace speech, saying that Mr. Wallace had articulated a new form of isolationism, letting Russia alone in Eastern Europe, that the United States had no more business in meddling in that region than Russia had in Latin America, Western Europe or the United States. An isolationist writer for the New York Daily News had in consequence welcomed Mr. Wallace to the fold.

A letter writer, formerly of Georgia, who was proud for nine years to reside in North Carolina, sends along an editorial from The Atlanta Constitution, written by Harold Martin, titled "North Carolina Outdoes Georgia". The piece, in part, had been reprinted on August 26 from the Winston-Salem Journal.

Beyond education, the primary differences Mr. Martin had observed were that in Georgia the farmhouses lacked paint and in North Carolina, even the impoverished farmer always managed to coat the side of the house facing the road; and whereas the old shed was torn down in North Carolina when a new one was erected in its stead, in Georgia, the old one was left standing to rot away in the sun.

A letter from Governor Ellis Arnall of Georgia thanks The News for its recent editorial on his book, soon to be published, The Shore Dimly Seen.