Evening Star Newspaper, October 23, 1921, Page 47

GERMANY MENACES ERA OF GOOD WILL Events Across Rhine- May Decide Whether Peoples of Europe Are to Realize Amity and ,Prqgress. BY OLIVER OWEN KUH ELF-PRESERVATION, the first impulse of life, is makipg itself manifest 1n the.greater nations of Europe. Some of the smaller ones are not -yet far-sighted enough to Keep their feet upon the Lighroads of progress, but generally speaking there reigns in ‘Europe today keen desire for the normal—the Wwiping out of old sores. In the main the bruises Inflicted in’the four years of demoniacal strife are passing. Mem- orfes of the hideous things that trans- pired under the guise of furthering the best ends of humanity have sub- sided. Practical minds have convinced practical peoples that the war has passed, and into the discard with things military must go, for the mo- aent. at least, thoughts of future confliot. It is mot a question as to whether it is the better part of expe- Jiency to adopt this or that course ini international as well as financial re-| lationships. Expediency is temporal.; Prosperity, even the life, Of mations Jdepends on 'speedy adjustments of the conomlc body and sociul conditions if there is a return to the old order. Throughout the length and the breadth of the continent today there is heart-rending yearning for - settled order, fewer bleats from latent poli- ticians, fewer occasions fop the wav-i ing of firebrands by militarists. Peo- ple generally at the present moment for the things that constitute | hunger *he ‘hel!er elements of life. And the great channels of business, the ar- & for the life blood of all nations, e dtusting themseives toward the ©ond that once more Europe shall pul- Sate with new-found encrgles and ac- complishment. * % ¥ The moment is ripe for accomplish- ment. At no time since the war have aeoples been so ready to submerge treds for the common cause of pro- tection and amity. France and Ger- many have reached an accord which provides for the exchange of billions| in goods in the settiement of repara-! tions _accounts. This agreementj would have been absolutely impossi-; Ule two years—yes, oue year—ago. Both nations. the bitterest of ene- inies, have begun to awaken. England | has expanded her commercial inter-| wsts throughout the globe fn an en-} deavor to inject new life in paralyzed trade channels and help in the gen- eral task of revivifying the world. Ttaly likewise has settied down to work in spite of the political confiict which has tended to divert the minds of the people ever since the war was ended. The Balkans grum-, ble and talk war, but they subsist} on grumbling and bloodshed. Even holshevized Russia is~ beginning to make informal tenders to other na- tions and adopt courses designed to bring abont greater fellowship among Slavic peoples and western neighbors. The bolsheviks are begin- ning to realize that isolation and self- ish exploitation of political or na- tional creeds cannot forever exist wwithout reacting against those who ropagate national selfishness. The Seandinavian countries today are «training their financial and economic -nergles toward the general plan of .omity. Eyerywhere the desire of com- mon people is making itself manifest through increased production. The +1ime 18 ripe for the crystallization and practical working out of sume definite teps looking toward the rehabilita- tian of world exchange. the settling down to tasks, social, industrial an economic, under a new order, but— s Germany to decide whcther Eu- rope ‘i3 to continue in the ruck of| espondency? O Gormany to say whether the fac- {tories of Europe shall hum or wheth- or-the tricky continental mind shall not swing back into war mad ch;n-‘ 3 e Germany to be permitted to pro- | Jong the unsettled conditions simply Capital Sidelights BY WILL P. KENNEDY. President Harding, who Bgot 2a strong vote from the musiclans'} unions all dver the country because he used to play in a brass.band in his youth, hasn’t anything on Repres- mentative W. M. Morgan of Ohio, and the latter boasts of it. Morgan started life in a log cabin, and the wind hoyling around the corners at- tuned his ear to this sort -of music. .As he grew up he indulged hlmgelf in"blown music as a recreation, with the result that when he was twenty years old he was a member of a band and played with it for a quarter; of a century. He held a union card and still holds -it. Representative Morgan played the cornet and bass tuba, Just as President Harding did; .--but Representative Morgan has con-, ttnued to indulge himself in this! pastime, and claims the distinction o being the only member of Congress who played in a band participating in a Labor day parade this year. * k% % i One of the best gentleman farmeru! in Congress is Representative James ' R. Mann of Illinois, former republican Jeader. Representative Mann is not « ‘one-crop producer. He takes as delight in growing vegetables! Ts“fi‘;vers.‘and vice versa. Then when | he has grown his vegetables he cans them and distributes the homé-grown, home-canned produce among his col- es in Congress. 18 [ann anjoyl‘ spreading the love of gardens, and to this end propagates and - distributes large gquantities. ofy rosebushes, plants, shrubs, bulbs, etc. | One day along came a man.who ad-| snired a rosebush and some Other| things Mann had growing. Mann promptly dug up the bush and wrap- Ded it up with some other nlnn.u for | his visitor. The latter asked: “Now, how much do I owe you?' Mann: velled: My boss does not allow me to take any pay for stuff out of this zarden” As his guest extended his! hand to say “Good-bye,” Mann felt a} hard cold coin between their *palms | and heard the visitor say: “Well, old man, here's a half dollar for your- eelf, just the same.” 5 R Representative R. Walton Moere of Virginia, brings to the present day the . traditions of the cgurtly, hospi- table Virginia gentry, lords on their ancestral domains, who ‘are demo- nd sheer love of wouthern soil and southern air, home- smoked hams and the devotion of heir retainers. Representative Moore, coming from a noblé line of colonial sncestry, has steeped himself in the historic records- of his people and dispenses today the hospitality that was a creed with his for bears. Nothing" delights him more than to wather a crowd of his friends about him at his country estate, in historic #airfax Court House, where he serves iried chicken and roast ham dinners such as have made his family famous sor several generations. Colleagues ‘n Congress from all points of the and from every state in the Unlon have been his guest, and all siie big public officials have voted him a prince of entertainers. But Repres- .and because the allies insist upon enforc- ing the demands for reparations? These are questions upon which the peace of mind of the whole continent rests. These are issues of which just solutions must emerge if the conti- nent is to progress as various peo- ples would have it progress.- Germany under Wirth has done much to dissipate distrust, but now thet the Silesian decision has been made known. a decision which un- doubtedly will be approved by the council of the league of nations, clouds are gathering. -There is re- newal of grave doubts as to whether Germany will continue obedient to the dictates of allied governments. Disobedience, as every one knows, will bring prompt sanctions from the allies and it is extremely doubtful it Germany will escape as slightly as she has in the past year through their application. The situation as it has- developed in Germauy In the past week is fraught with danger to all. The mark has tumbled to such a point that the Germans are beginning to insist that a ncw regime be cstablished in Ber- lin, that reparations payments be re- nounced and that Germany usher.in & prolonged and decidedly strenuous cndeavor tu undersell the world. With the mark between.150 and 200 to the dollar, with a ten-hour day prevailing in Germany, the Germans can mahufacture cheaper than in any place in the world and trade in- { vasions would undermine industrial conditions in many nations that today are demanding reparations, and strug- gling toward industrial light. The Upper Silesian situation, as I predicted, is responsible for the hue and cry raised in Germany against continuance of reparations payments. The people, learning that they were to receive but half of Silesia. have gone into a panic and have flooded the .market places with their marks. Everywhere there is gloom, inasmuch as the government led the peovle to believe the whole of Silesia was ex- sentfal to a going Germany. Now ‘that it is known that Germany is fo lose half of the Silesian triangle, the | German situation reficeta the smm-!»l ity of any go its people L nations depends upon any tlement. poiitical or othe Fho dunger rests mot In what the | people themselves may do. There is | cvery reason to belicve that sooner . or later they will substde and col- lect their wits unless prodded on by political interests inimical to the; Wirth government, those political groups h have never ceased to plot against the democratic regime and who have but thinly veiled their threats that at a given moment they would overthrow the allied reparations ugreements even at the expense of a disorganized, helpless Germany. But egotistical as they are, the junker interests believe that they can preserve Germany by deflance to the allles through the force of milltary ight. The German people gave their answer to the junkers shortly after the murder of Matthias Erzberger. when they made it plain they wished the republican form of government. But mob_psycholoxy works strange | tricks and there yet remains & ques- tlon as to whether fealty to the re-! public pledged when there were still | hopes of retaining Silesia cannot be | turmed against the government when it is believed that a territory vital to the nation Is to go to tho hated Poles. The answer as to European progress does not rest in the desires of other peoples as yet. The answer to prog- ress and contentment still lies with he Germans. and events of the mext ew days may decide which path Furope as a whole is to take. During the coming week the reichatag is to assemble. Chancellor Wirth may or may not fall. But whatever happens, in so far as the make-up of the ‘present government is concerned, a reichstag vote on resolutions to renounce reparation payments would be the most vital, for in” such action the whole security of Fur¢vpe rests. entative Moore finds his greatest pleasure in throwing open his doors spreading his table with the best for the maimed soldiers in Wal- ter Reed hospital. His two sisters, best type of southern womanhood, give Lim heartiest support in “this hospltality. * %k ok ok The new chairman of the House ap- propriations committee, Representa- tive Martin B. Madden of Illinots, is a won his million by specializing on efficlent economy in organization. But withal Madden has not outgrown a warm heart, which has grown more tender with the years and living close to_his fellow men. Some years ago he had in his em- ployment a youth who grew up from office boy to cashier. But the youth's family moved away to New York and he lived at a hotel, where he came into contact with some “sports” who undertook to show him how to make money fast on the races. It was the old story, he won alluringly for a time, then struck a slump, and final- ly woke up one morning to find his supposed friends had “done” him and that he had lost not only all his own savings, but had dipped into the con- cern for several thousand dollars. ‘Then in desperation he skipped to New York. A couple of weeks later Representa- tive Elliott W. Sproul, for forty years a close friend of Representative Mad- den, got a telephone message that the youth had given himself up be- cause his guilty conscience had made him imagine sleuths of the law dog- ging his every step. On the advice of Representative Madden, Mr. Sproul got every large patron of Madden's concern but one to sign a petition urging clemency for the youth. Mad- den took this before his board of di- rectors and talked to them with good effect. so_ that the youth wis not prosecuted, Madden personally re- funding the money. Since then it has been repaid,with interest, and the youth who came so near to being a criminal and jailbird is now a pros- perous -and respected business man. In deeds like this Representative Madden has found his greatest pleas- ure through life, and for the Past forty. years he has been aided and abetted by his damon and Pythias triend, Representative Sproul. _THE SUNDAY STAR, WASHINGTON, THE STORY THE WEEK HAS TOLD 'D. ¢, OCTOBER- 23, 1921—PART 2. BY HENRY ‘W. BUNN. (Copyright, 1921, by The Washington Star.) HE following is & brief summary of the most important news of the world for the week ending October 22: UNITED STATES OF AMERICA. —the national conference of unemployment had just hopefully adjourned and a pleas- ant sentiment was abroad that we were , just entering on an era of good feeling, co- operation and reconstruction, when the country was shocked by.the news that the chiefs of the five most powerful railway unions had. issued strike orders which, beginning to take effect on October 30, would, it thoroughly complied with, almost completely tie up all the important rail- ways of the country by November 5. The subject is too vast and complicated to be adequately presented even in outline here. 1.shall merely notice the latest development. The task of finding a solution of the contro. versy has probably fallen to the Railroad Labor Board. The union chiefs having rejected certain proposals of the board looking to a settlement, the board has cited these chiefs and tho executives of the rallroads involved to uppear before it at Chicago on the coming Wednesday, for a hearing of the dispute. “The board as- sumes Jjurisdiction on the statutory ground that it is likely substantially to interrupt com- merce” and “both parties to the dispute are directed to maintain the statues guo on ‘the properties of the carriers until hearing and de- cision.” 2 It is a nice question whether under the most liberal interpretation, the Ksch-Cummins law may be contrued to furnish a legul basis for this last injunction. One can hardly doubt that. should the hearing extend beyond October 30, the union chiefs would suspend the strike orders affecting other roads. Unfortunately the board has no authority under the Esch-Cummixs law to enforce its decisions. The hearing com- pleted at (hicago and the decision rendered: supposing the latter unacceptable to the unions; what then? On October 18 the Senite ratified the treaty with Germany, 66-20, a number of proposed amendments having been voted ‘down. The Austrian treaty was also ratified, 66-20, and the Hungarian treaty, 66-1 That bomb which Mr. Herrick, our ambassa- dor to France, excaped through a succession' of happy accidents; was ever mortal more lucky? * ¥ X ¥ THE BRITISH EMPIRE.—Parliament re- ovened on the 18th, on the 18th Lloyd George _ made an important speech, dealing chiefly with i the problem of unemployment, and trade. TPar- liameut will be asked for an additional £300,000 for gement (in the form of grants) to emigration ¢ men to the dominions. Surely @ modest not be exploiting to its limit these sound and admirable cures for unemployment. is invited in this connection to the very liberal nd wise provisions made by the government for the sottlement of ex-soldiers on the land (including the most thoughtful, even aifectionate arrangements to offset inexperience andehard luck). ‘The British *government proposed widened distribution and increased rates of unemploy- ment Insurance benefits through higher levies on employer; employed and the government. The reports do not make clear the government's proposals for encouragement and revival of trade and industry. Apparently certain for- elgn-trade ventures are to be insured up to 100 per cent by the government, liberal credits with easy terms of payment are to be offered to the smaller European states in greatest dis- tress, especially for improvement of transport, and interest is to he guaranteed on loans raised by certain reputable companies for great new undertakings offering a prospect of employment on the grand scale. Some £100,000,000 is to be devoted to public works—forestry, drainage, cte. The premiet admits a very considerable risk in such undertakings by the government, the government can- - but feels that the.circumstances of the time Justify the taking it. The official bulletins of the conference on . Ireland convey little information, but an un- official and_plausible report declares that De Valera's. telegram to the Pope of the 20th inst., has imperiled the negotiation. The tele- gram 18 as follow: “The people of Ireland have read the mes- sage sent by your holiness to the King of Great Britain and appreciate your kind interest in their welfarc and the paternal regard which suggested it. I.tender your holiness their gratitude. “They are confident that the ambiguities in the reply sent in the name of King George will not mislead you, as it may the uninformed, into belleving that the troubles are in Ireland or that the people of Ireland owe allegiance to the_British king: “The independence of Ireland has been for- mally proclaimed by the regularly elccted rep. resentatives of the people of Ireland and rati- fied by subsequent plebiscites. Thé troubles between Ireland and Britain have their source in the fact that the rulers.of Britain have sought to impose thelr will upon Ireland and by brutal force have emdeavored to rob her people of the liberty which is their natural right and thkeir ancient heritage. | “We long to be at peace and’'in friendship with the people of Britaih, a8 with other peoples, but the same constancy through persecution and martyrdom that has proved the reality of our people’s attachment to the faith of their fathers proves the reality of their attachment o their national freedem, and no consideration ‘will ever induce them to abandon it.” It is indeed not surprising that such an un- compromising assertion of Irish independence “out of conference” should embarrass the con- ference proceedings. That _telegram has shrewdly nipped public hope of a settlement. Moreover, it is said, the comtretemps occurred at the precise moment when Ulster wus intro- duced into the discussion. A meeting of the conference is scheduled for Monday. Many predict that, meeting will be the last. ¥ %% Kk GERMANY.—It was confidently predicted in last Sunday's dispatches from Berlin that within the week the Wirth cabinet would re- sign, the long-expected accession of the Ger- man people’s party (the party of big business) to the government coalition would take pldce, and a new cabinet would be formed pledged to a “conditional reparation fulfillment policy” in place of Chancellor Wirth’s “unconditional” or “honest” fulfillment policy. ‘Conditional on what? Conditional. ap- parently, on return of Upper Silesia to Germany, on repudiation by the aliier of a contrary declsions previously taken. Else a plea of “non possumus,” or the stark fact of bankruptey, encouraged or induced (so it is darkly hinted) by government itself; else rejection of the Loucheur-Rathenau agreement: else the fat in the fire, chaox—C(iod knows what. “one of the predictions hav yet been ful- o d, but It seems. probuble that important German decisions have been made. to becoms Canadian cffective soon ufter anmouncemcnt of the ~upreme council's award pursuant to the leaguc council’'s recommendations concerning Upper Silesia. _That announcement was made on the 20th. The supreme council appears to adopt in toto the recommendations of the league council. It is fascinating to speculate about those German decisions. To demand a “repara- tion moratorfum” for a term of years (other demands, as for reduction of the reparation total, to follow in' due course)? To demand immediate reduction Bf the reparation (total (no payments mcanwhile)? To take the bit in the teeth and flatly repudiate the London program? Or, as suggested above, to “sabotage” the London program? The last would be the most_embarrassing course of all.to the allies. Not impossible developments in Germany may be such as to prevent attendance of Briand and Lloyd George at the Wacehington conference; not impossibly they may be such as to clamor for consideration at tlie conference. On the other hand, the Germans may decide to go very warily: that they are ready to do o is Sug- gosted by a report that, though the cabinet is to be reconstructed, Wirth {s to remain chan- cellor. z * % % % PORTUGAL.—Portugal has a new cabinet, the seventh or eighth, I believe, since the be- ginning of the year. Portugese cabinet changes are usually effected with a great deal of noise and gesturing but no bloodshed. This time, however, the preposterous soldiery did some shooting, incidental to which several of the old cabinet, intluding the premfer, were killed. The Portugese exhibit an almost increditable in- capacity for “government” as we understand the term; “government” in Portugal being mostly & euphemism for petty intrigue and malfeasance. ¥ kK X THE BURGENLAND.—Conditions in the Burgenland 4dre still chaotic. The Budapest government, having signed. the Venice sgrece- ment, by the terms of which Hungary admits Austria’s title to ail Burgenland except the city of Oedenburg and some surrounding territory (In which city and territory a plebiscite is to be held) and agrees to clear. all armed Hun- garians out of the Burgenland, has ordered the latter to surrender their arms, else they will he treated as-rebels. Apparently they elect to be treated as rebels, and there is some doubt whether the Budapéest government will dare to send in regular troops to deal with them. They have sworn as only a Hungarian chau- vinist can swear not to allow Austria to posse herself of the Burgenland. * % X X SOVIET RUSSIA.—Col. Haskell has just re- turned from a tour of the famine area. Col. Haskell seems to be singularly qualified, by nature and unexampled training, as observer, investigator, organizer of Informution service and analyst of the information furnished him. His reports should clear the air and consign to oblivion an incredible mass of rumors and of reports by llars, gulls, fanatics and imbeciles (of course 1 do not mean to include all reporters in these categories). The following, quoted by Mr. Duranty in the New York Times, is a sum- mary (it has the authentic military bouquet) by Col. Haskell of his impressions and con- ciusions resulting from his tour. . 1. Serlous and widespread famine exists in the Volga basin and to the east thercof. % “2. This famine is'due primarily to’ the? drought of the past .summer. Whatever has - been requisitioned by the soviet government or red and white armies, therc would have been nothing in the nature of serious starvation danger had not the drought occurred. “3. TMR crisls in the famine will not be reached before the first of next vear. i “1. Seventy-five per. cent of the people ched with the transport uvailable an in From the best available repo diseounting exaggeration and propaganda, believed that around 15,000,000 peopl: are af- Tected by the famine. 6. The population is not uniform and a considerable number of the 1 obtain food sufficient to sustain life. “7. The order of urgeney for relief is first, food; second, medical supplies, and-third, cloth- ing. 3 “8. In addition to the present relief the most ng need is a program of adult feeding. This program shouid be limited attected 00,000 can o cereals. “10. To carry out a rcasonable adult pro- gram it is estimated that the requirements amount to 5,000.6000 pounds of cereals dally. “11. The soviet government is unable to ac- complish_relief without outside aid.” Col. Haskell estimates that the outside cost of carryinz out his “reasonable program” would be $50,000,000. He is convinced that there is no danged of sabotage or of interference with American Rellef Administration by the soviet authorities. There {s perhaps a danger that some of Col. Haskell's statements will be con- strued by some unintelligent persons as justi- fying or at least palliating the soviet regime, and they are pretty sure to be so represented the bolshevist propagandiste. “Iwere dutiuble. BY EDWARD N. DINGLEY. $ a rule, discusstons of the tariff question are dry and uninteresting to the average citizen—the “man “in the street.” However, the fundamental principles are vital to the welfare of all, and more than ever in thesc days of disturbed and distressed finance and economics. One of these fundamentals, touching American | jbusiness, industry and employment, {i% the question of * caluation"—valua. | Ition of imports. The puurpose afl { this article is to make clear, if pos- [ sible, to the average man and womar. unfamiliar with the techni- calities and workings of the cus- toms tariff—that is, the duty on imported goods and merchandise— the meaning of “valuation” 3s used in the tariff, and its intimate rela- tion to American prosperity and the happiness of the American people. During the calendar year 1920 the total imports of merchandise into the United States were valued at $5.278,480,000. Of this amount $3,117,- 010,000 camesin free and $2,161,470,000 In other words, 59 per cent were free of duty and 41 per cent were dutiable. Of the dutiable imports about 54 per cent in value had an ad valorem rate and about 13 per cent a specific rate, the balance being cent a specific rate, the balance being compound or a combination of ed.” Substantially this has been the language of the law ever since. How “Foreign Valuation” Works. ufacturer or producer claims. it is jimpossible for him to compete in the Amerlcan markets with the !orelxnl articles valued at a low figure. Many AMERICAN VALUATION FOR IMPORTS American valuation plan is the only thing to meet the situation. Under the present law and practice the invoice or list attached to import- For nearly eighty years the Drac-|gpecific instances were presented to|ed goods Is in the currency of the tice has been to apply “valuation™ on the basis of the invoice placed there- on by the foreign manufacturer, €x- porter or the domestic importer. The invoice must be certified to by an{ing officers) claim (1) that an Ameri- tariff law of last spring provides th American consul (or some consular of- the House and Senate committees. To {lluminate the cqntroversy over this problem, it might be stated that importers (and many customs assess- can valuation svstem will not bel country of export. The foreign cur- rency s “converted” into American money by the collector of customs at the port of ‘entry. The emergenc: method of ‘‘conversion of currency’ ficer), setting forth are articles and | workable since it will be impossible | based on the “value measured by the foreign value thercof in the foreign currency or currency of the country of origin. The colector fo customs in the merican port of entry is required to onvert” this foreign Invoie or schedule into American curren: money, and this resulting sum is the! “valuation” of the imported goods, un- less the valuation for any reason s voluntarily raised by the importer, or officizlly raised by the American ap- praiser. The importer may appeal to a board of three appraisers, ‘and in certain cases to the United States Court of Customs Appeals in Wash- ington. The Fordney tariff bill, now before the committee on finance in the Sen- ate, alters this long-standing custom of “valuation” of imported goods-and merchandise on the invoice of the ex- porter—accepting the invoice of the foreigner—and requires ad yalorem duties to be imposed on the American valuation of similar or comparabl articles. Saction 402 of the admini; trative provisions of the bill says tha alue wherever used in this act ® ¢ % ghall mean the price on the date of exportation of the imported merchandise at which comparable and competitive products ‘of the United States were ordinarily sold or freely offered for sale in the usual whole- sale quantities ® * ® fo all pur- valorem and specific. Therefore im-|chasers in the ordinary course of ports to the value of about $1,167,-trade, including costs, etc, in the 184,000 had an ad valorem rate—that 38, | principal markets of the United imposed according to the value. So|States.” i that the question of “valuation” and |the application of an “ad valorem"; duty applies to slightly more than one-half the total dutiable imports. Furthermore, a little less than one- ihalf the total government receipts]| from impofts were from “ad valorem” duties. J 1 Affects Revenues Heavily. Therefore, broadly speaking, “valua- tion” touches about one-half of the duty-paying imports and about one- half . the goverhment's receipts from customs duties. For the last fiscal ‘were $308,564,000, and for the year previous $322,902,000, so that “valua- tion” or *“ado valorem” duties concern approximately $100,000,000 to $160,- 000,000 annually. This is under the present tariff law. It is believed re- ceipts from customs may be increased to $500,000,000, in which case “valuz- tion" will affect abaut $250,000,000 in imports. To reach a clear understanding of the present controversy over “valua- tion” of imported goods, the work- ings of the present law and the de-: | velopment of 2 long-standing system ‘Ia illuminating. For seventy-nine years without interruption the pro- visions of the customs laws and the practices of the customs officials have been to “value” or. ‘“assess” all im- ported goods and nierchandise on the foreign valuation—that js, the valua- tion placed by the foreign manufac- turer or seller or importer. Prior to 1842, the law governing “valua- tion” - shifted somewhat. The first tariff act of 1789 Imposed ad valorem duties on merchandise “at the time | and place of importation.” In 1795 the dutiable basis was made “the ac- tual cost of the place of exporta- In 1799 the “place of impor- was restored. In 1817 the basis was “the net cost of the ar- ticles at the place when imported.” In 1823 the basis was made the cost of goods “at the time and place when and where procured.” In 1828 -the basis was the “actual value at the time purchased, and place from which the same shall have been imported.” In 1832 the basis was the value “ the time purchased and place from whence the same shall have been im- ported into the United States.’~ In 1533 the basis was. made the value “at the port where the same shall be entered.” In 1842 the basis was the “actual market value or wholesale price at the time -when. the goods were purchased. in the principal mar- kets of the country whence import. “American Valuation” Applied. Further, the bill provides specific methods of ‘determining ‘value for sale,” “cost of production,” “fair mar- ket value,” etc. This is the proposed “American. valuation” system of ap- plying ad valorem dutied, which will affect about one-half the dutiable im- ports, and about one-half the customs recolpts. It has aroused much discus- slon. ‘It is a mistake .to call this proposed plan “revolutionary.” It wag tried in the first tariff act and in the law: of i hard-headed business man, who has|vear the total receipts from customs|1833, Several times after the system of ‘“foreign valuations™ was estab- lished “finally in 1842, efforts were made to restore “Amercian valua- tlons’—once in 1849, again in 1850, 1851 and 1852, also in 1880 and In e s average wholesale |markn price of comparable Ameri-| jcan goode; (2) that it will involve {long litigation and overthrow many court decisions and practices; (3) that merican manuiacturers can combine iand boost prices, thus increasing im- ! port duties: (4) that it will stop im- jports, check cxports and increase idleness in America; (5) that it will be impossible to ascertain similar or comparable merchandise; (6) that im- porters will not know what duty they must pay until the goods arrive; (7) that it will take years to establish the new system. The proposed American valuation system has been most ably defended. There are two fundamental .argu- ments in this defense—first, .under- valuations; second, unfair competi- tion, primarily due to the low rate of exchange, especially between Ger- many and the United States. By low rate of exchange is meant the low value of German, French, Italian and '\English currency, as compared with the American doliar. oBth underval- uation and unfair competition touch vitally the problem of American in- dustrial preparedness and prosperity, | economic safety and employment. Evils of Undervaluation. Untdervaluation of imported mer-! buying rate of exchange in the New York merket at noon of the day of | exportation of the merchandise.” Importers have taken advantage of the low rate of exchange, especially with Germany, purchased foreign goods with American doliars at a| high premium, and “dumped” the goods on the American maiKkets. Tins would have been impossible under a system of American valuation of im- ported goods. Canada prohibits a discount of foreign currency in excess of 50 per cent; yet German goods are flooding Canada by way of Holland, where the discount is less than 50 per ‘cent. . The problem concerns the national welfare vitally. Economic and trade conditions make the United States the most desirable market and American doliars the most desirable money in the world. National self-preserva- tion, it is said, would seem to dictate some effective plan to prevent foreign nations from making the United States the industrial dumping ground of the world. For Uniformity in Valuation. Finally it is claimed that the pres- Jent system of foreign valuations by a foreign invoice makes for a differ- ent tariff on competitive goods com- ing from several countrics. Often i similar goods come from ten or u|Dr. L. 'BOLIVIA STILL HOPES, FOR OUTLET TO SgA, Rifasliof Laagae of . Her Petition Will Not Result e 70 Nations to Condi rinovd odT - M0 zssniav w7, 0 ensoid> cegon® Abandonment of Efforts. BY BEN WKELWAY. ] AR from ubandoning her con- tentign of a riglit to an outlet to thé sca, Dolivia is irding her loins for to have this long-standing dizpute definitely settled. Ier first defeat, encountered when the lcague of natlons asscmbly ruled the revision of treaties was without its jurisdic- tion, has determined Bolivia to adopt other tuctics, the nature of which can be forecast from the opinion ex- isting in certain well-informed- quar- ters in Washington. The birth of the international court of justice came at a time when Bolivia was ready to withdraw from the league because of its inability to take up a question which was of the highest importance to Bolivia. But the creation of ' the international tribunal by the clection of its pe sonnel held out the hope which was about to be abandoned, and the Boli delegation ut Geneva was told to tight.”" . * % & % While official confirmation of Boliv m now is lucking, it t Boli will, as her nother attempt 1o up in first sten, make have the league of nations take her dispute by revising the form which it was last submitted league assembl; The rev treaties being without the olivia of attempt to prove that Chile has not abided by the terms of a treaty which tion the league, today makes her the only republic of |South America lacking an access to the sea. If she is abie to denmion- istrate a violation of the treaty, she I hopes to have tie league take up her lcase for settlement. Failing this. the international court of justice will {be appealed to. { There is sai ist in"Folivia j2 hone that ates might 1be prevaiied upon o arbit the | {dispute. “which invelves Chile. Peru { But the attitude of Peru hand and {Chile_und Peru re [for dispute (wrovi of T {neit < willing to budge an inch in favor of u third party. which in ithis case is Bolivia And the United States would hardly intervere a arbiter in u dispute unless called upon by all the parties concerned. ‘There is little doubt that the inter- {national court of justice will have the Taona-Arica dispute, including the claims of Bolivix for an outlet to the sea, before it for adjustment. - And there ic every indication th it will be received with Dermanent satisfaction to all concerned, thus bringing to u close an issue which now beclouds the future development of three potentially strong republics of South Americx.” * k¥ ¥ x teban Gil Borges. minister of foreign affairs of zuels. whose resignalion was an rounced shortly after his regirn tn lis country from « visit to the Unitcd Dr. ner | DR. ESTEBAN GIL BORGE! States at the head of a special m sion, i8 to become a permanent resi- dent of Washington. He arrived her last week and n announcement stutes he will be -associated with Breckenridge Long, former Third Assistant Secretary of State, in the practice of international law. with | beadquarters here. Dr. Gil Borges was met at Union station by a di guished party com ’l'nfil‘d of the minister of Venezuela, Do antos A, nor Dir. Don i !chandise, unless successfully correct- $ v | e 5 jdozen countries. Each importation jthe Pan-American jed by customs officials, means great) nus 4 different valuation. The Aamer: [ cisco (3. Vit s iloss of customs revenue to the gov-!ican valuation plan will make the fi‘nc{;fll‘.“nml‘ llr", « . \h'l,}nr jernment, to say nothing of the seri-| IMPOTt duty OF rate the same for cach | 't Gulllerine, 3. Sherwell, assis i X country. imecretary and = judical expert, { ous competition In the American mar- { " spectively. - of the Inter-Am kets. The full extent of undervaluations | Aany American manufacturers are | phu VS T @cion Ts hot known. That it.is heavy Is not | abpealing to Congress for this Ameri- | J denied. Specific cases of fraudulent | |undervaluations may be recalled.! ‘One case alone was settled by the importers paving the government $700,000. On the average there are about 4,000 cases annually involving disputes as” to the foreign market value of imported merchandise. The temptation always is to undervalue if the importers can “get away with it . Defenders of the American valua- tion system say it s not just to per- mit forelgn manufacturers or pro- | ducers or importers in this country to place their own valuation on goods |wusors. but proved of little value. In 1882, In 1890 “the foreign cost of pro- | which enter the American markets in duction” was added as an aid to-as-|competition with goods made and rs sold under American conditions. 1897 “the wholesale price of foreign | Often the forelgn invoice is valueless 800ds in the United States” was added |and the Treasury has only five men as. an aid, with permission to figure |in 'forcign countries to investigate back to a “guess” as to the real val-!the actual cost of production and reul ues. The same provisions were In the value. It I8 claimed that it is far mrlflfidof lnslt}!'l.nd 1913. But none|easier to ascertain the average mn-| seemed to the bill and carry out!yet value in this country than abroad. the intentions of Congress. Adoption|yyithin the last month several Treas- | of “American valvation” was urged in|yry officials and others have been 1909 and 1913. The only resylt was the adoption of an alternative to for- eign value, takink the American sell- ing_price of the foreign -article and making deductions to bring it back to the foreign market price. In short, it was found almost impossible to deter- mine accurately -the difference be- tween the “cost of production in America and abroad,”. which' all agree is a fair basis for a tariff rate. The importance of ‘valuation” to revenue, industry and employment loomed large as the post-war finan- cial and economic problems appear: ed. Trade disturbances, the economic downfall of many European countries and the declining rate of exchange emphasized the need of adopting some other method of assessing ad valorem duties on one-half of our imports, out of which we derive one- half of our customs revenue. Radical conditions seemed to require radical remedies. . Bk importers and Home Manufacturers. ‘The "two classes. of citizens most vitally interested‘in this problem are importers, on the one hand, and man- ufacturers,” producers and. growers on ‘the other. .Naturally fmporters (and foreign manufacturers and.pro- ducers) oppose the American valua- tion ‘plan, becauge it may mean high- er import duties, The American man- gathering information along this line in anticipation of the adoption of the American valuation plan, Effécts of Low Exchange. The prevailing low rate of forelgn exchange (due primarily to .the enormous isgues of paper money abroad) results in a law cost of pro- “duction in. those countries, and a constant invitation to export-largely to countries having a high rate of exchange. Germany can manufacture goods at one-fifth the cost (in gold) in the United States, pay freight and Import duty, and undersell Amer- jcan competitors by a wide margin. To meet this unfair competition, American manufacturers and pro- ducers urge the American valuation system. In a recent address Secre- tary Hoover said: “I.find considerable discouragement in some trades at the apparent inability to meet German competition. At the present momeént German manufacturers.apve exporting goods at prices that we can meet with great difficnlty in forAign .maerkets, and are, indeed, invading dur home marketsjat such levels that we need strenuous protectfon if some of our industries are not to close.” The Sec- retary told the ways and means com- mittee that ad-valorem duties on the cun valuation system. Organizations have been formed to promote it and inform the people. They are met vigorously by counter organizations of importers and allled interests. Leading members of Congress are di- vided. Members of the tariff com- mission are divided, half for it, half against it. However, the drift seems to be in its favor, the Senate finance committee having agreed tentatively to the principle, but changing the phraseology -of the House measure. The Senate committee substitute lan- guage defines “domestic value, port value,” “export. value” and “cost of production,” and ‘specifies four ways of determining the “valuation” of imported merchandise—(1) domes- tic value, (2) import value, (3) for- eign export value and (4) cost of production abroad. B It remains to be.seen whether the House or the Senate “form” will be retained. The fact remains that the principle of American valuation is as- sured, and that the new tariff bill when finally passed will contain this principle. In the meantime it is ex- pected that a plan of putting into practical and safe operation an Amer- jcan valuation system will be worked out satisfactorily. RESULTS' FOLLOWING " PACT RATIFICATION (Continued from First Page.) armistice. These claims, however, are not covered in the provision of the treaty, which says that German prop- erty seized by the United States may be held to guarantee payment of the claims of Americans against Germany. But _under the treaty of Versailles it is provided that the payment by Germany of the expenses of the forces of this and other. allied osuntries in. the occupled area shall be made immediately after th® money for the restoration of Belgiuin, and take precedence of other claims. The United States, under the Harding treaty, retains for itself its claim for the pay- ment of the American troops’ expenses in the occupied area. Incidentally, it might be to the interest of the United Statess to have a representative with the feparations commission in connection with these clalms, it 15 said. B It will be reniembered that shortly iafter his return to Venezudlw last June, Dr. Gil Borges' resignation was followed by reports of i break be- nother” effort | ported, Dr. Gil Borges wag not suff i tits ver-| tween the former minister of foreign. relations and Gen. Gomesz, president- elect of Venezuela. Gen. Gomes, it seems, was diesatisfied over the re- sults of the mission's visit to this country, prineipally be ause, it {8 re ciently flattering to th elect in his speeches here. 1 Thess reports have never been- verified by official statements, and Dr. Gil Borges' rcsignation has been laid to ill health and a desire to takel up the active practice tiopal law, in which he is ww acknowledged expert. Dr. Gil Borges: will bring his family to the capital, where he will establish his permanent residence, . = * % % % icholas v of Panuma_and the Normal Panama, to begin a study methods i use in the country’s women's institutions, with emphasis on home economics and kindred sub- jects. From u United Stat tion he. will ‘The president of interna-i ctoria, former” Ppublic instruotion fus ut present director of School for Women of arrived in Washington has of education. conference with the 5 commiksioner of educa- ko to New York city. bureau of education of the Pan- American Union will co-operate with Dr. Victoria in securing an American® -xpert to take over part of the supers School. Panama Norm: ® * & % on 6f the Victoria ompanied Senor Morales, sccretary of the ¥ of Panema, on a mission to’ ripresentutives of, centennial enor Morales, who st week, will con- officials while I anama’s fiscal vy as Panama at’ the celebration. Mexican ¢ with Treasury ashington on affuirs. * % % Gelabert, Cuban sebretary of fina who has been in Washington fer two months in evonnection with tariff on sugar and Seror tian other Cubun products, last week pre- ented 10 State Department officla Mumorandum Proposing an emer- Eerey trew between the United ba which would grant duties or > the United on imports States. 1d take {the senut rectprova! treaty now in eMect between the twe |countries, under which Cuba enjoys la preferential of 20 per cent on he | koous shipped to the United States, and this country pavs duties of 20 to 40, per cent less than other countries on ‘im- ports into’ Cuba. The position taken by Cuba is that the loss suffered through an increase per cent exemption in import duties paid by *TUnited States mer- chants would be more than offset by - {an_increased market for-her sugar. and other products in the United” States, while thix vountry would gain by the advantage over other countries {shipping to Cuba | In view of the delay in enactment. i ! of permanent tariff legislation and Cubi’s ne=d for relief from the pres- ent dutiex under the emer- jencyx tariff. it ix considered advisable that such a treaty as outlined be en- jacted, i Ye desired finan- vial and economic aid * % % ¥ Senor Don Luis Tllanes, counselor of ieft Wash- ington for {legation in Jupan. He will sail this | week. While Washington was Senor, | lliunes' first diplomatic post, he hi | won distinetion in his government's® {kervice His experience gained in the, | department of finance of Chile made {him a recognized expert on financial { matters as related to economic condi- tions in South America. He served on a number of important missions sent by his government to countries abroad. - * % %k % R. C. Biller and Frederick J. Gillis, two students of the Georgetown Uni- {yersity Schonl of Foreign Service, re- turned to Washington last week from: { Guatemala City. Guatemala. where, Tihey attended conzress of th s Federa Ameriean Uni of Central iicrsity Students as the sole delegates! from the Unite States. They re- ot that the conference wis success-’ ful in it« primary oBject of bringing closer relationship hetween the stu-, dents of the American republies. Various methods discussed to fur- ther bring close relations between the university students of the Amer- icas resulted in 2 movement to es- tablish centers for_the distribution. of information in North and South America and the exchange of scho-+ larships between various universi- ties in the several countries repre sente While in Guatemala Mr, Miller and Mr. Gillis were guests of* the Guatemalan government, and fol-, lowing the sessions of the congress {the government extended to the stuss dents every facility for their investi= gation of business and economic life, {in Central America. » * % % | Brazil's weather bureau, “which comvs under the department of agri- culture. has established a weathen forecaxt service for aviators, creats, ing pilot balloon and kite stationd for the work. Aviation has heenY 4 with progress and with sugs, 1 Brazil. with the helpful cq of . interested govern¥ aerial transport comps has been formed in Rio Grund!"?!‘:’ i Sul for regular passenger and freight® jservice between that city and dise' | tributing_centers in the neighborin, |states. The machines used are o {¥rench manufacture. ] An MIDDLE WESTERN STATES SEEK A DIRECT OUTLET TO THE SEA: Gov. Henry J. Allen of Kansas will urge the claims of the middle west at a national engineering forum in New York city November 4, when, it was announced yesterday, engineers, educators, economists and public offi- cials from many sections of the coun- try will discuss the opening of a trade route from the world's ports to the midlands of North America {through the carrying out of the St. Lawrenoe ship canal and power project. The meeting, which is to be public and which will be attended by engi- neers and others interested in the project from numerous _ industrial centers of the United States and Canada, is being arranged under the suspices of the American Society of Mechanical Engineers, American So- ciety of Civil Engineers, Amerjcan Institute of Electrical Engineers and the American. Institute of Mining and Metallurgical . Engineers. Herbert Hoover is_expected to preside. Among _the other speakers will be ex-Gov. W. L. Harding of Jowa, who, with Gov. Allen, will present the views of the producers of the middle west. Dr. R. 8. MacElwee, former director of the bureau of foreign and domestlc commerce, now director of the echool of foreign service, (George- town University, will speak on “The Greatést Single Step Along the Road to National Efficieney.” Dr. Mac- Elwee will dllustrate his address and will go into the economic features of the project. H. 1. Harriman of Bos- ton will explain New England's stand toward the proposed international undertaking. He will speak on “The Power. and Transportation Features of the Project, Translated into the 'Economics of New England and the East.” i The committee plans to make the meeting the biggest vet held on the creat lakes-St. Lawrence river- pro- posal. The four national engineering * societies have named a committeg of which W. L. Saunders of the Inger- soll-Rand Company is chairman, t&" arrange for representation from ' thes i different regions affected. This meet- | ing. designed to aid a broader under’ I standing of an undertuking whose I merits are now being debated by indi- viduals and municipal bodies in vari- ous states, is, it was stated. another step in progressive engineering par-, ticipation in national and interna- na tional affairs. Western speakers will voice the demand of the west for a direct apd economical outlet to the sea for its immense surplus production. Tes further the project a vigorous cam- paign is being conducted by the Greas™ Lakes-St. Lawrence Tidewater Asso- ciation: & voluntary association of -+ fifteen member states of Illinois, In-' diana, Ohio. Michigan. Wisconsin, Minnesota. 1owa, North Dakota, Souti Idaho, Montana, Wyoming,. Colorado, Neébraska and Missourt. 1 1 l RECLAMATION WORK GAINS. | ‘ Nearly all the reclamation projects in the west have felt the prevailing business depression, but a marked im- provement has taken place in the last fomr months, according to A. P. Davis, director of the reclamation’ gervice, who has just veturned to three’ months in the flald. . ' “‘Crops are generally good,” Mr. Davis said, “and the market has so far im- proved for fruit, potatoes, sugar beets and cotton as to make those products, generally profitable, .and farmers in those lines are rocovering :thelr fimame* Washington after spending "