Evening Star Newspaper, August 14, 1921, Page 29

EDITORIAL PAGE NATIONAL PROBLEMS SPECIAL ARTICLES — he Sundmy Stat ‘Society News = Part 2—12 Pages FAR EAST PROBLEMS NOW GET LIMELIGHT s WASHINGTON, D. (., SUNDAY MORNING, AUGUST 14, 1921 Members of Congress Are Delighted CASH FOR FARMERS TO HELP ALL TRADE - commercially /point in regard to the coming con- Some of the Questions Which Will Be Dis- cussed at Disarmament Conference - in Washington. BY G. GOULD LINCOLN. ACIFIC and far eastern ques- tions,” which are to be con- - sidered at the Washington conference on disarmament pext November are creating as keen in- terest here as the question of disarma- ment itself. The subject is vast. It econtains many pitfalls into which the representatives of the conferring pow- ers may fall unless they tread with extreme caution. Yet if these problems of the far east c€an be solved—even in a measure—at the coming conference, undoubtedly a tremendous stride will have been made toward the peace of the world for gen- erations to come. Japanese Becam® Suspicious. i€ problems of the Pacific were to be con- sidered, the suspicions of Japan were immediately aroused, according to Te- ports from that country. It was touch and go whether Japan would agree to enter upon such a conference. But the very fact that Japan has finally ac- cepted the invitation is an encouraging sign. ' Suppose, for instance, that Jzpan, instead of the United States, had been issuing the call for the disarmament conference, and Japan had stated that along with the question of disarmament there would be considered American Questions, including the Monroe doc- trine. It is easy to imagine the excite- ment that might have been aroused in the United States. It is impossible to state, officially, at this time just what problems of the Pacific will be considered at the con- ference, or even the program which the administration had in mind when the suggestion was made that these prob- lems of the far east should be consid- ered. But it is possible in a general ‘way to state some of the problems that may be covered at the conference. Al- ready, it is understood, American ex- perts on the far eastern situation have been detailed to make a complete study of these Pacific problems and to pre- pare the data which are to be used by the American representatives at the con- ference in November. By November, it 1s expected, these experts will have put all these data into such shape that they caa be readily made use of. China One Big Problem. China, of course, assumes vast nrro-l portions in any consideration of Pa- cific problem. The fate 8F {Hat huge, and so far unwieldy. republic of the east is of the greatest comcern in any settlement of these questions. For many years that country has been considered by European nations as a fair fleld for exploitation. Japan has done its share in the exploitation of the country, and has advanced step by step toward the control of Chin- ese affairs. 1 Mr. Uchida, member of the Japanese house of peers. has beep quoted as saying: “We should,K make the con- trol of China's foreign policy and management of her intergal financial and military affairs our goal, thereby establishing an eastern Aslatic fed- erated empire, with Japan as its leader.” The policy of an China for the commerce of all na- tions, as enunciated by John Hay during McKinley's administration, naturally is threatened by such a program as advanced by the Japanese statesman. “open door” in Questions Largely Ecomomic. And this, by the way. leads to the thought that the problems of the Pa- cific are to.a very large extent eco- nomic. The trade with China is the goal not only of this country, but. of course, of Japan and England and Frante and other nations—until late- 1y, that of Germany. But Japan has Jargely supplanted the German inter- est In China. In fact, In the great | provinee of Shantung, where Ger-! many had fastened before the war, Japan has been the predominating influence since the world war be- gan. And the problem of Shantung is not the least of the matters which may be considered at the coming conference. The disposition of Shan- tung under the treaty of Versailles| was not to the liking of the United States, and was one of the principal points of attack in the United States Senate when that pact was before it for consideration. “The Lansing-Ishii note of. Novem- ber 15, 1917, appeared to recognize the principle that territorial propin- quity creates special interests for Japan in Chinese territory. It has baen hailed in soms quarters as al- lowing the establishment of & kind of Monroe doctrine of' the far east, with Japan in the shoes of the United States. Has Definite American Policy. Whatever the policy of the last administration, Secretary Hughes of the State Department has now made it very olear ghat this country has & very defl ly American policy with regard to China and will insist upon the rights of this and other nations to deal with that country and on terms of equality. Probably no man in the Benate tolay is giving closer atten- tion to the problems of the Pacific than Senator Hiram Johnson of Cali- fornia. He has expressed a high opinion of the manner in which Mr. Hughes has taken hold of the Chinese question. . Furthermore, he has ex- pressed confidence that the American Searetary of State will deal with this particular problem of the east in an able manner. = Senator Johnson is very firm on one 1 ference on Pacific problems, and it s that the alien land laws of the |ywiy wsed to rob trains state of California and the immigra- |eut west, and mow is ome of tion exclusion laws of th¥ United States should not be considered. of ln:tlon!. It was one of the talking Ppoints against the ‘When the word went forth that the | States into, the les::xlry Stelioies dyed-in-the-wool base was migration exclusion laws,” said Sena- tor Johnson, “are domestic problems which the, United Stated should not, and I believe will not, submit to any international conference.” . Senator Lodge of Massachusetts, chairman of the foreign relations committee, while expressing no opin- fon as to what may or may not be considered at the coming conference, agreed that the question of immigra- tion exclusion had hitherto always been held in this country to be a strictly domestic issue and one that would not be submitted to an inter- national conference. This was true during the debate in the Senate on the Versailles treaty and the league e. Yap Looms on Horfson. The little island of Yap, home of the stone money and 'a primitive race, and also a cable center for the far east, looms up as another of the Pacific problems that may be—and probably will be—discussed when the delegates of Japan, Great Britain, France and Italy meet in Washing- ton November 11. The United States has not been satisfied that Japan should dominate Yap and its cable connections. It has insisted that the island should be internationalized. What bearing the conference will have on the future of the Anglo- Japanese alliance is, of course, prob- lematical. It may have a very vital influence in the continuation or dis- continuation of that alliance. The question of the continuance of this alliance was considered in London at the imperial conference last June. But no decision was reached, and the alliance was automatically renewed for onme year. The pending. There is no question but what the Anglo-Japanese alliance is regarded in some quarters in this country as a menace to the United States. In China the alliance is regarded as an agreement under which England and Japan stand together for the exploi- tation of territory in the far east. particularly China. On the other hand, if the Anglo-Japanese alliance is alloweq to fall by the wayside, and no solutign..of fHe “problems of' the Paetfié” is reached at the conference in November, then it is likely that’ Japan and China will be thrust more closely together. Certainly this will be the case if Japan has its way, it is said. For an Asiatic League. At present China is in rather a chaotic state, to say the least, with its northern and southern govern- ments, and some of the provinces of the huge country organizing a third government. In the south the repub- licans have chosen Dr. Sun Yat-Sen president. The Peking government of the north is®headed by Premier Chin. But the military governors of the northern provinces, it is said, dominate China and the government of the north. The restoration of monarchy in China, With the over- throw of Sun Yat-Sen and the uni- fication of the country would please Japan undoubtedly and aid in the plan of some of the Japanese at least,’ for a kind of Asiatic league of na- tions, with Japan and China as the principal members. It is going to bé difficult to deal with Japan's ambitions regarding China, it is feared. How, it is said, will it be possible for Great Britain and France, sitting at the same con- ference table, to say to Japan, “Get out of China,” when those two nations issue is still | have their own spheres of influence in the ancient country. It is hardly con- ceivable that Great Britain will vol- untarily relinquish her footing in China or that France will agree to get out. Yet Japan's moves into the territory of China have been taken with just the same degree of right as were those of the European natlons— the right of force. Great Britain's possessions in the far east, notably Australia and New Zealand, and also South Africa, are greatly interested in the coming con- ference on the problems of the Pacific, (Continued on Third Page.) Once Famous Highwayman | A “Fan" and Evangelist ~ AL JENNINGS, try's most moted evangelints, is a ball fan. BY COL. JOHN McA. PALMER, U.S.A, Pres'dent’s language is as follows: Presidents from time to time have " had occasion to_po:nt out the dangers and inconveniences arising from our defective military institutions and to recommend the establishment by Con- gress of an organized system of na. tional defense. first of our Presidents who has been able to announce that this legislative task has been performed and that Congress has at last provided an ade- quate legal sanctjon for the perma- nent organization of the national de- fense. The character of the act of Congress approved June 3, 1920, referred to in the President’s statement as our new national defense law, is not generally understood. ‘This is largely due to the fact that its constructive provisions instead of appearing as complete new sections o law are scattered through- out the pre-existing national defens act of 1916 as amepdments here and there. though simple in the extreme, are buried in an enormous mass of rela- tively unimportant detail. Those who have had the time and patience to segregate and analyze these new pro- visions are surprised to find that Con- gress has finally crystallized the mil itary pol:cy of the United States. It is this significant fact that the President announces to the country. B = establishes an economical and dem- ocratic military policy thoroughly consistent with our national tra- ditions. regular Army to be augrgented by great citizen forces in the event of national emergency. war forces have been extemporized after the occurrence of an emers gency, the new law wisely provides that the framework of their organ- ization shall be established and de- veloped in time of peace, in-so-far as _this Is practicable through the voluntary service of our patriotic young ren. United States as defined in the new law, comprises the Regular Army, the National Guard and the organ- ized citizen should ,encourage the de- velopment within its proper sphere. It is our traditional military policy that we are to mantain a small regu- lar or standing army in time of peace and that this small peace establish- ment is to be augmented or rein- forced by great armies- of citizen soldiers when a national emergency calls for greater forces. The defect of. our military system in the past has been that the organization of these larger forces has been deferred until after the declaration of war. The experiences of the world war have shown that even under dire stress and with the co-operation of powen- ful allfes, the extemporization of such ap or year with the tremendous waste.of That President Is Back in Capital BY N. O. MESSENGER." RESIDENT HARDING came back to the capital after his brief vacation in- the | north to be recelved, figuratively,” with open arms by the Congress leaders, who had been awaiting his return to talk over the subjects causing them greatest concern, reduc- tion of taxes and appropriations. Congress leaders themeselves would be the first to resent the imputation that the legislative branch was seeking dictation from the executive over its duties, responsibilities and prerogatives under the Constitution, but nevertheless they were “powerful pleased” to see the chief executive and tell him their troubles. Congress and the Treasury had been going over the figures relating to taxes and appro- priations, and had come to no resolution there- on, the congressmen being disposed to hold that savings could be effected in expenditures and taxes could be cut to a greater degree than estimated by the Treasury. After taking a sec- ond look at House Leader Mondell's compila- tions and getting the President's views, by and large, the Treasury came to the viewpoint of the House leader, and thought that the thing might be done. 2 * Xk X * The net result of the conference with the . chief executive was the determination of the ways and means committeemen to go at tax reduction with a broadax and make a wider slash than was thought possible some time ago. They prospect of a possible recess of Congre: as soon as a tax bill passes the House was the tempting lure which incited the legislators to renewed activity, and the following day saw them busily engaged upon the project. 8So, for a day or two, the lay reader was presented with bewildering. arrays of figures running into the millions, dealing with sur taxes, excess profits, retroactive effect of tax reduction provisions and all that sort of thing. It’s wonderful how easy it is to discuss these amazing totals in money when they relate to “ Doesn't it beat all how suspicious any oppo- sition party is when it is in the minority? * %k X Xk Republican spirits, which had been some- what. droopy during the President’s absence and their time of uncertainty over taxes and all, began to pick up amazingly after the con- ference with the President and the decisions reached thereat to slash away at taxes and expenditures. It would be a little bit brash to claim that the republicans feel that they are yet far enough out of the woods to crow very loudly, but they undoubtedly think that they are making headway toward the clearing. It is safe to say that no party in power in recent years has been confronted upon the threshold of its incumbency with a more vexa- tious problem so difficult of solution. That tax proposition, it must be borne.in mind, was not susceptible to the application of theory or of political policy: but was a hard, cold fact, to be axsailed only by the application of economic law. Yet they had boldly announced fn the cam- paign that it would be handled by them in a definite way and promptly, the definite way be- ing material reduction of the taxes. President Harding and the Congress leaders have had this promise facing them at every turn in the proceedings and have not Tost sight of it for an instant. *x k %k Xk The farmer has most assuredly been well treated by this Congress, and the party isn't over yet. President Harding at the confer- ence with the leaders upon-his return again took occasion to remind them that his interest in the measures designed for the agricultural class was unabated, and that in their plans for recess or adjournment he did not wish them overlooked. Beginning with the emergency tariff, at the outset of the extra session, bill after bill of importance to the farmers has been started through the legislative mill. The bill to regu- farmers have gone them one better. There are several distinct organizations represented in Washington, but they work together and keep in touch. 3 ® The republican party once claimed to have 2 llen upon the political alleglance of the farm- ing class .of the north, but elections of later years have shown that it was not infallible. The politiclans are speculating upon whether the administration and the party in power will realize In the gratitude of the farmers for the legislation of this Congress. * ¥ X * It will dawn upon the country pretty soon, it is predicted by officials, that the new Vet- erans’ Bureau, created by the Sweet bill, which was signed by the President Tuesday, is to be one of the big business institutions of the gov- ernment. It is to operate for the benefit of the soldiers of the world war, and is destined to expand, it is held, far beyond even the limits now visfoned. The bureau is the last word in the co-ordi- nation of governmental activities for a given purpose, and a practical illustration of the elimination of duplication, red tape and gen- eral waste of effort and of lost motion. Its operation fs being watched with deep in- terest by congressmen, who are keenly alive to the criticisms which have been heaped upos the government for the asserted and frequently proven faflure of the government to function as the people desired and Congress ordered in behalf of the veterans. These criticisms have hurt, for congressmen know that they have tried to help the veterans in every way pos- sible. They have provided means which have frequently been misused and wasted, not through {11 will or even indifference of the various government agencies, but because the operations were so diffused that they over- lapped and failed in various ways. * ¥ % X The next big step In the same direction will be taken when the departmental reorganiza- Additional Funds for Federal Farm Loar System Expected to Put New Life Into Business. 8Y WILL P. KENNEDY. act makes certain so long as bond: ANDING a billion dollars to|can be sold the continuous, uninter business, through the process | Fibted loaning operations of the fed of liquidation, which will re- lieve to that ¢xtent the pres- ent financial stringency; Giving ready cash to one-half of the purchasing public so that they can buy the materials they need for another year and thus making the wheels of industry hum; That's what the Curtis-Nelson act, enily ssed, adGine ,£30,000 to the capital and d.pesi‘s of sha fed- eral farm loan sy means Con- gress and governmeyt officials Eay that this legislation ‘s *he first big. practical move by Uncle Sam to re- store prosperity and to put “busy” into business. “It means more to American busi- ness than the tariff,” says Asbury F. Lever, federal farm loan commission- er, who as chairman of the Hbuse committee on agriculture for eight years knows as well as any man in the country about the legislative end of this most impor*ant basic tndustry. Only Four Gpposing Votes. This measure, fathered by Repre- sentative A. P. Nelson of Wisconsin, was passed by the House 315 to 4, and, under the leadership of Senator Charles Curtis of Kansas, the Senate concurred unanimously. The original capital of the twelve federal land banks was too small to | eral farm loan system. It is estimatec that there is a demand in this coun try for such a character of investmen' 2% our farm loan bonds to the exten of $200,000,000 & year. The machinery of the farm loan system, operating normally, is capable of putting thi: amount of money annually into the hands of the farm borrowers. Biluon Laollars a Yeam Assuminy that % :- facts a%e war. ranted, ana reasvn.ag upon the tneors hat $1 of yuoney «1'i liquidate 35 o indebtedness—and this is a conserva. tive estimate—the conclusion foilow: that the enactment of this legislation by and large. during the course o) years, should result in the liquidatior of about a billion dollars of debts an- nually. The importance of the provisions o this bill are emphasized by the report of the census bureau, showing a very large increase in the farm mortgage indebtedness of the country. The ccnsus bureau finds that the mortgage debts of American farmers more thar doubled in the decade between 191¢ and 1920. The increase in mortgage charges against farms owned by their operators was 1 per cent. or from 2.851 in 1910 to $4.012.711.21 The mortgages amounted ir 1920 to 29.1 per cent of the value of governmental finances, and the question is how 1ate the packing industry was pushed. The tions are effected, and the duplication and permit a reasonable flotation of farm |the farms against debts of 2.3 per successfully the lay reader can couple them up _ Dill to prevent gambling in grain is going waste efforts are corrected in that quarter. 1 bonds with: dopting some | Cent of the values in 1910, The val with his own tax bills. through. The first law for the enlargement What the Sherman act sought to prhibit in oan Bonds, miLhont AcoREs e s L EERe DRRRES s of credit .for the benefit of the farmers was frade, the government intends to put into ef- artificial machinery other than is B “,"l‘: in 1920, the report show- Skeptical democrats in Congress still followed by the pending extension of credits fect in its organizations, and will eventually, provided in the act. The farm ‘loan . were § .610. The average failed to enthuse over the republican hopes of thTOUE the federal agency provided. Exports do so, though it may be a long time coming. bonds are issued against accumulated ; amount of mortgage debt per farm making great inroads into the taxes or In ef. &7¢ to be encouraged. and the judgment of Consolidation and co-ordination is recognized first mortgages on farm, lands and [for the United States in 1920 was fecting notable savings In expenditures. For thoushtful men in Congress and the adminis- as an economic factor as valuable to Uncle under the theory of the law sufficient | $3.361 against $1 in 1910, The tration is that some real benefits will accrue Sam as to a commercial trust. of these farm mortgages or other ac- ;\'nlues of farms increased 117 per the good of the country they hoped it could .be done, but political considerations fed. the flame of their doubt. * It was whispered among the democrats that they might find .political capital in the fact that the republicans propose to tackle excess profits and luxury taxes, which they will represent as affording the last reduc- tions to be made. They will also, it is.declared, be-on the lookout to call the opposition to account.if it is caught seeking to postpone expenditures in- stead of reducing them. - to the farmers from the credit bills. * % %k % Congress is well aware that the farmers are well organized and represented, and to this fact may be ascribed, in part, the solicitude of the law-making body for the tillers of the soil. Next to labor, the farmers are classed as the best-organized element of the popula- tion at present. There was a time when the manufacturers were thought to be the most ~ - . potential, through their organization, but the * kK kK Possibility of the general tariff revision bill being delayed until the winter session begins is being seriously discussed. In order to guard against the contingency of no bill at ‘this ses- sion, it is proposed to extend the life of the emergency tariff act for two months from November 27. It is considered practically as- sured that the tax revision bill will be consid- ered by the Senate before the general tariff bill (Copright, 1921, by The Washington Star.) Permanent Military Polié,y for the U. S. Is at Last Provided by Act of Congress nounced the final establishment of a national military policy. The Our present national defense law. It provides for a small bankruptey. This is our peace. The Amy of the reserves. Every patriotic of “these forces, each 0 An Epoch in Our History. N a statement to the press on June 13, 1921, President Harding: an- i From the days of Washington wrl tem. Mr. Harding,is lhel of the Hous The important new provisions, ‘American _| tion Our Traditional Military Policy. nization requires more than & treasure and energy that always ac- fu defect was the main problem that confronted the last Congress in its program of military legislation. was apparent that the existing mill- tary system would certainly fail to meét ‘a sudden military emergency in time, and the experience of the recent war had shown that even when time for extemporization Is, providentially granted, the cost of extemporization It was obvious that the new mili- the national defense must be sys- tematically organized, in A Rejected Measure. The frst measure considered by Congress as a solution of this funda- mental problem was the bill sub- mitted by former Secretary Baker shortly after the armistice. This bill proposed military time of peace, but in institutional forms hitherto unknown to our po- litical system. standing army in time of peace to be expanded as such in time of war. It did not propose measures for the improvement and ultimate perfection of our traditional citisen armies, but practically elimlnated\ them as es- senflal features of our military sys- The Congress deliberately re- jected this proposal because it in- volved prohibitive cost, provided inadequate preparedness and because it proposed a military institu- tion universally regarded as repugnant to the genius of our institutions. It rejected this official proposal, but only after exhaustive hearings, in which it was apparent that few thoughtful; men, in the Army or out, were able to glve it their approval. Congress Writes Own Law. ‘With Secretary Baker's War Depart- ment bill thus consigned to the waste paper basket, the military committees to undertake the difficult task- of drafting and passing a bill of their own. It is characteristic of the con- structivé statesmanship of these com- mittees that their final solution of this problem was in the direction of adapting and institutions * grown with the natfonal life and not in adopting novel or foreign institu- The military policy underlying the new law is the traditional mili~ tary policy of the United States—that 15, the maintenance of a small Regu-| lar Army in time of peace to be re- inforced by great armies of. citizen ‘soldiers: in’time of emergency. The fect of this historic institution .as revealed by the world war was that in the past’ we have delayed the or-. ganization of these citizen ' armies until an emergency occurs. The ob- vious remedy was simply to provide for .their organization in time of peace. This is the underlying, domi- nating fedture of the new law, sim- ple—as all really great constructive great and smfll, are It law, threatens national time of the Presi: organization in 1t proposed a great tury \ ! Union. because it purpose. jshing. ‘Weeks said, in part: nd Senate were forced ganizing, correcting - native which have the Regular Army, Guard, to other duty. view of for solution. the resources of | —mighty -but unorganised. In framt|see to of & law. Thé fact that these provisions, amehdments throughout the act of 1916, the fact that the details of or- ganization are left to the executive and the further fact that until re- cently there has been no formal ex- pression of executive intent with reference to. the eéxecution of thefesta have all combined to prevent a popular understanding of one of the most important measures ever enact- ed by an American Congress. has prescribed that the military or- ganizations required at the outbreak of war shall be constituted by the Gen. Pershing’s New Mission. But the President has done more! than to recognize the wisdom of an act of Congress and to announce a Through the Secretary -of War, he has definitely assigned this great tonstructive task to Gen. Per- In announcing the prospec- The law. requires the chief of staff to cause to be made by the ‘War Department general staff the nécessary plans for recruiting, or- supplying. mobilizing, training and demobilis- ihg tke' Army of the United States and for the use of the military forces for national defense. Under this provision of law, it is the plan of the Secretary of War to especially charge Gen. shing, when he assumes the office of chief of staff, with the organi- zation and training of all element: of the Army of the United States, whick by law is defined to include the National Guard and the organized reserveés. It is proposed that Gen. Pershing become actively acquainted “with the various elements of the orgafi- ized reserves and the which _would form__the larger part of the Army which he ‘would'.command if active opera- tions should be undertaken hefore the date 6f his retirement or de!lll ‘was a eritical - and,im-|be attered as until raw resources could be mol into trained armie: and equipped and intelligently ‘There was and trained, a supply system to be shed over still in civil I!fe, who must be trai: control the vast military mechan! as a consolidated whole. Burden of Responsibility. Back of him, indeed, were all of resources of a mighty nation and ple,” but without gepreciating w! and more overwhelming burden there was an American front France. can staff control, in elaborately ganized offensives, had conquered salient of St. the Meuse-Argonne., Gen. had led a victorious army in ba upon him is to preserve that organ equipping, The Congress prescribes that actual divisions of the National Gu: Per- the permanent organizations of Army of the United States. éran cit'sen soldiers will thus h: an opportunity to: transmit their perience, ers and ‘their sons. Has a Great Opportunity. +In .short,” Gen: 'Pershing, his assignment. under the terms National to perpetuate the.framework of forcement on the battlefleld, a rein- forcement that could not be effective ded adequately armed led. or- ganized, lines of communication to be submarine-infested seas and through the congested ports and highways of France. There were thousands of officera, most of them ined ing and military adminstrat'on, and perhaps most difficult of all a central staff or headquarters must be col- President in time of peace. It grants lected, knit together and adapted to t, as constitutional com- mander-in-chief, the necessary pow- ers and personnel to accomplish this organization, leaving the details of organization to him. Congress has assigned a great constructive mis- sion to the President, and the Presi- dent has accepted it. These two har- monious acts of the Iegislative and executive branches of the govern- iment finally define our .military in- stitutions. After more than a cen- the government at last has made that provision for the common | Fesponsibility. | defense, which the preamble to the]Called upon before to build so much Constitution proclaimed to be one of | I such pressing haste. the primary objects of the Federal ism the the loyal support of government and peo- hat others did to support him in his task, it is’ safe tq say that no man ever had upon his own shoulders a greater of No man was ever And yet in lttle more than a year in An American army, under American leaders and through Ameri- or- the Mihiel and had con- tributed decisively to the final defeat of the enemy in the great battles of Pershing ttle . after achieving the greatest single tive appointment of Gen.' Pershing as|¢..¢ of organization in the annals of chief of staff of the Army, Secretary|mankind. And now the task imposed iza- tion, 50 that the great citizen army of the world war shall be a perma- nent army of the United States and not an ephemieral incident in history like the arny of Grant and Sherman. the ard and the National Army which took part in the war shall be localized and perpetuated, 8o far as practicable, in the Our vet- ave ex- their traditions and their organization to. their younger broth- through of the new-law, -is ‘given an oppoftunity the great “organjzation - that he himself national - institution, prepared i sball ‘be A Te In view-of Gen. Pershing’s new-as-| created. He will be able to leave his signment, it may be interesting to re- | éxperience to. posterity. not merely view his -past achievement with tiie|as a historic memory, but as a vital ting out its pecular rela- tion to the new problem assigned him to fneet the stress of the next great \When he arrived in|war, though it be a hundred years Paris in June, 1917, with a handful of | from now. Future American com- staff officers there were no American|manders will be spared the burden troops in France. Behind him:were|of hasty organization-that he bore aroused America{becanss it will be .his new task to it that the organization that for ceptable collateral, such as govern- ment bonds or cash, must be in the hands of the registrar of the district before bonds can be issued. It has been found impossible to ac- cumulate sufficient of these first mort- gages to float any considerable bond issue, and the capital stock of the banks has not been sufficient to make up the difference. To illustrate: The farm loan board has just completed the sale of $40.- 000,000 in farm loan bonds, back of which at the time of begihning the sale was $20,000,000 of mortgages and $20,000,000 of government certificates which_the farm loan board borrowed onthe market. sufficient to run the system until about the middle of August—that is, to date—because the board is loaning at the rate of $12,000,000 to $15,000,000 per month. The Curtis-Nelson bill amends the farm loan act by increasing the de- | posttory privilege of the federal land great army to be Yormed ;s with the Treasury from $6,000.- 000 to $31,000,000. Without such privilege the system found itself within the last month without any available loanable funds, for the reason that experienced bond salesmen advised the federal authori- ties of the unwisdom of attempting shortly after the close of the pre- vious offering. To Loan Treasury Funds. It will hardly be possible to make another successful offering before the first of October, they have advised, or at any rate until the last of Septem- ber. In the meantime, without the provisions of the Curtis-Nelson act, the loan operations would have to close for lack of money. provisions of the act. however, farm loan system borrow from the Treasury not in ex- cess of $31.000,000 to be used for loan- ing purposes pending the bond sale. The federal land banks are availing themselves of this privilege to supply their needs until another bond sale is made. When such sale is made the Treasury will be reimbursed and the system will utilize the remainder of the proceeds of the bond sale for loan- ing purposes until it is exhausted. Tren the deposit privilege will again be called upon. 2 In other words, the Curti elson Discusses Trade Outlook With President Harding would have | cent. The farm loan act permits money borrowed through the system to be used in liquidation of mortgages upon farms if such mortgages were made for agricultural purposes. Forty-nine per cent of the entire population of the United States i agricultural. The provisions of the Curtis-Nelson act. by continuing the operations of the farm loan system starts the process of liquidation on the part of the people. It lets one- half of the entire purchasing public 0 into the market and buy for cash. Those who have borrowed money from the small local banks are able The $40,000,000 is|to pay it back, and the local bankse can then put this repaid capital into other deserving channels of industry that previously had to be denied because the banks had no more money to lend. Unfreezing Frozen Credits. The money derived through the farm loan system is going to do more to unfreeze the frozen credits of the country banks than anything done in the way of lezislation or evem sug- gested, the federal officials say. It allows the merchant to be paid. He. in turn. can pay the whole- country sale merchant, who in turn will pay traditional military policy. ~But | (ary Jegislation should be based on| Congress has thus settled the mill- |and prepared for the multitudinous the banker in New York, and the whereas in the past these larger | ., "o i1cinle that the framework of | tary policy of the United States, and |and exacting demands of troop lead. |2NOther sale of farm loan bonds S0|j;qugtion will ebb through the whole sea of international finance. Within the next eighteen months the federal farm loan system will loan from $250,000.000 to $275.000.000 actual money. The terms of repayment are an im- portant feature. Indebtedness through the farm loan system is unlike other systems except the building and loan. Debts can be made with more or less Under the | impunity because of the amortization the | feature of repayment. is authorized to|is required under the terms of the act The borrower to make annual or semi-annual pay- ments of interest on the mortgage as well as principal. the loans running about 331 years. and the rate of interest cannot exceed under the law 6 per cent The amount already loaned by the twelve federal land banks is $350.- 575,873. The joint stock land banks, which are private corporations work- ing with the farm loan system, have loaned an additional $7§,255,962. —_— FOOD PRICES INCREASE. Thirteen Cities Show Raise in Costs in Month. During the month from June 15 to July 15, there was an increase in the retail price of food in thirteen of the principal cities of the country, the Department of Labor announced yester- day. One city, Omaha, Neéb., showed & slight decrease. Minneapolis showed the highes: increase with a rise of 8 per cent. Other cities showing rises in the cost of food were Buffalo, Indianapolis, Boston. Denver, Spring- field, 11L.; Kansas City, Chicago, Fall River, Louisville, Baltimore, New Or- leans and Philadelphia. All the cities showed decreases ranging from 30 per cent in Boston to 38 per cent in Omaha in the cost of food on July 15, 1921, against the cost on July 15 1920. In- creases ranging from 37 per cent in Louisville to 54 per cent in Boston were shown In food costs for the period from 1913 to July, 1920. Fig- ures Showing relative food costs for ‘Washington were made public August EDWARD E. EAGLE, An authority on international trade, whe, has just returned from a tour of the world 'lasting five years, ealied 10. —_— MILITARY BOARD NAMED. . Lieut. Col. William F. Herring- shaw, Capt. William H. Middleswart and 1st Lieut. Malcolm D. Grimes, all: of the Quartermaster Corps, have been appointed a board to meet in this city and - determine the faull market value of the various com- modities involved in the comtract be- tween the United States and the