Evening Star Newspaper, December 4, 1921, Page 51

+ EUROPE NOW FACING |THE KNOTTIEST PROBLEM rupting Germany BY OLIVER OWEN KUHN. UROPE faces her treaty was signed. With com- plete financial breakdown threatened throughout the length and the breadth of the continent, and the moment having arrived when there lack of friction between the allied governments, there is on the other hand bickering, squabbling and the fanning of flames that are as certain to bring about new alignments and new readjustments politically, as well sets. The solution of the riddle lies in united co-operative endeavors in solving the German financial problem which is so intermixed with the pay- ment of allied reparations. v or may not have ex- hausted every avenue in preparing to raise the $250,000,000 dollars due in reparations in January and Febru- But the fact remains, Germany ary. that she cannot pa: bankrupting the German te. pay in gold is utterly impossible. pay_at al rmany must flood the world with exports produced at a smaller cost than they can be pro- duced in any which she sell rmany must pay her obligations out of future produc- tion. present tangible ets. If German oods the markets of the world with goods produced at low cost then other nations cannot begin to compete and there undoubtedly will follow znation of business and consequent engulfing of Europe with unemployment with its myriad con- esquent dangers. For, it must be horne in mind, other nations also must obligations with future trade ermany does not pay, then she lays herself open to seizure by the al- i atisfaction is obtained. is provided for in the treaty of Vers but it is_the last thing the majority of the allies desire. * ok ok ok How to save Germany and make her a going concern financially and nreventing, allied action which might lead to future wars, is the thing that is giving London considerable worr: British prosperity is in a large m sure dependent upon a going Gel Correction of France's precar nancial position likewise is in sure dependent upon fulfillment rmanic obligations and France resort to any expediency very farthing provided for under the treaty. The friction that has many loped between th, two _coun- in the months that have elapsed the reparations question first me acute is not conducive to ing the Franco-British view- —the first to exercise s .cond_to avoid thel 5 the past ten day the great industrial magnate of Germany, and Dr. Walter Rathe- rau, German financial expert, have been in consultation with British gov- ernment officials in regard to methods through_ which Germany may be able to pay. It is known that the question of a moratorium for Germany has been discussed. Likewise great Brit- ish financial interests have been ap- proached in connection with the ques- tion of advancing Germany a long time loan by which she may meet the reparations payments due in January and February. As to loans there are exceedingly small chances of them be- ing realized unless the allies can frame some system whereby the con- \ tinued flooding of Germany with paper marks is _stopped and_ some definite plan established whereby the financial situation of Germany is made less precarious. * * k X Tn the moratorium certain sections the stabilization of the mark, pos- sibly its recovery to a point where 1t will be possible for the government to revise its financial affairs to a point that future reparations pay- ments will take care of themselve: Most certainly it is true, if German; continues to avoid allied sanctions embracing control of her financial ffairs by other nations, she must have time in order to revise her whole collective system. The French are entirely skeptical of Germany's protestations ~ that she is able to pay only a small proportion of the reparations payment due in the mext three months. The Germans, on the other hand, have pointed out to the British that in all probability the Ger- man government deficit will be more than 30,000,000.000 paper marks for the phxt fiscal year, not accounting for the parations’ payments and compliance with other allied sanctions, which may bring the total up to around 300,000,000, 000 paper marks. Al TR e The French, it is reported, will de- nd that Germany be declared bank- rupt and that the Rhineland regions be rde autonomous.” under control of the jed powers. This is a_step that will tterly opposed by the British. It ared that the suggestion that the allies and Germany unite in the ex- tion and revival of trade with 2 (0 reopen that great reservoir of 'CONGRESS, RETURNING, KNOWS THE PUBLIC f IS IN CRITICAL MOOD (Continued from First Page.) total of 152 piblic and privaté laws and resolutions passed, as against 12 in 1919 and 109 in 1917. There was a total of 415 measures considered and reported by committees, as against 368 in 1919 and 145 in 1917 The House, while “hitting all the high spots” in President Harding's message to the extra session, passed much legislation of great importance to particular localities everywhere throughout the country. It performed the very unusual job of cleaning up the private calendar, and cleaned up the unanimous consent calendar sev- eral times. * ok ok ok The biggest thing that Congress @id in the extra session was to pass the tax revision bill. This is an illus- tration of the legislation of national importance that was put on the statute books. The ways and means ommittee labored with that measure Il day long during the hottest days f the summer. The House then 'adopted more than 440 perfecting amendments. Then the Senate finance committee went through the same kind of travail for a longer period. and the Senate itself put on 833 amendments. In conference all these differences ‘between the two houses were ironed out except the 50 per cent maximum surtax on incomes above $200,000, which was approved by an aye and navy vote. Many of the amendments were further amended. So that no matter how the country may take that law, it can safely be sald that it received .more detailed considera- tion than any measure that has passed Congress in the memory of man. If it has not accomplished everything desired, it surely repre- ments the consensus of compromise opinion. . The real wonder is that a bill cov- ering such a vast domain of public interest, reaching into every home and vitally affecting every business, g or little, could be enacted at all. eople throughout the country ind that each man and woman— vou and I and our neighbor—get an saving, and that the head knottlest | p;5 been favorably recelved. & problem since the. Versailles|such scheme which would should be complete co-operation and | as economically, as the sun rises and | ction of the world to} of the British people see a chance for} Collection of Reparations Without Bank-‘ Sure to Heighten Anglo-French Tension. i trade to German products, thereby enabling Germany to pay the allles, Any tend to promote the paying power of Ger- many through Germanic efforts will more than meet with British approval. The British, in truth, are suspicious of French desires in regard to sep- aration of the Rhineland from Gar- many and have so far resisted at- tempts looking toward its eventual severance on any pretext whatever. This move is declared nearest the heart of the French, and in any de- liberations that may come pn the question of guarantees for Tepara- tions payments the French are sure to adyance their desires in this direc- tion. And this the other allies be- lieve would be but laying the founda- tion stones for further struggle which may result in the same terrible re- { sults as the last war. Notwithstanding the friction that has arisen between the French and British over the near east, the ques- tion of land armament and subma- rines and multitudinous other ques- tions, it may be expected that in the conferences to come on_the question of reparations Premier Lloyd George will approach them with the greatest aution and attempt to make easier the path of Premier Briand. Every effort undoubtedly will be made to meet the French on some ground half way between the British and French extremist views of German repara- | tion, for unless Briand, always amen- {able to reason, is maintained in the | government of France there will be !less chance of perpetuating the policy of “live and let live” which Lloyd eorze and Woodrow Wilson first enunciated at Paris and which Lloyd | George since has striven to maintain insofar as Germany is concerned. * ok ok k There is little doubt but that | Premier Briand faces a great test of | strength with his political adversaries. { Former President Poincare, he of the “push - Germany - to - the-- limit-of - ex- | tinction™ school of thought, is girding | his loins_for re-entrance into active i political life as premier, and in recent days his ambitions have received increasing strength and support. Poincare represents that element that would not swerve a whit or jot from the exact wording of the treaty of Versailles, no matter what the result, so long as French policies are main- | tatned.” And one of the policies of the militarist and so-called imperialistic group is annexation in one gulse or another of the left bank of the Rhine and what the British term the com- plete enslavement of Germany through financial and economic sanctions. | But even back of this there lies a { British _understanding that Poincare is committed to the policy of resist- ing the whole British idea of economic and financial readjustment of Europe. Unquestionably the canny Welshman who presides over England's destinies |has wielded a stronger voice in allied deliberations than any other man in rope. France repeatedly has been forced to bow to British dimplomatic thought in readjustment problems. Poincare's followers profess to see in him a man who will combat British influence even to the point of isolating France from her former allies if it is necessary to advance, at least pro- tect, strictly French interests. Lloyd George daes not want this if it can be avoided. A great section of the French people do not want it. But if Poincare and his supporters can make it appear that Briand is under the thumb of Llovd George, by his agree- ment to any policy not strictly in con- formance to the popular French idea that Germany should be shown no lenience whatever as to reparations, then the Poincare school of political thought in France undoubtedly will have its inning and France's course may be guided to the point of isola- tion in dealing with Germany. * Kk Kk No statesman of Europe wants to see this, for the perpetuation of the strictly French viewpoint means con- |stant and continued friction, owing to the fact that economic and finan- cial affairs of other nations are more or less in contact with Germany, and are influenced by its recovery. The French policy, it Is believed, would lead to bleak despair over the whole of central Europe and consequent enervation may hinder reconstruction endeavor. British believe without aid to Ger- many solving ' her difficulties, Ger- {many may fall financially, politically {and socially. The French extreme- {ists want that very thing. It would safeguard France physically and would place Germany’s resources and industries under French _control. Even though England did not wish to have Germany recover swiftly, there, nevertheless, would remain an- antipathy toward 'any step France might take toward enlarging her do- main of influence on the continent. That is one cause of the friction thas today exists between the two coun- tries. But whatever the actual steps look- ing toward the settlement of the Ger- man reparations question, there is ]one thing certain, and that is that every step will be marked by the sharpest of clashes between the French and British viewpoint, with no man capable of telling just what may or may not be done, or what channels_the negotiations may take before fial settlement is reached. of the family in making out his next income tax report will find a still further saving. In considering what the extra ses- sion did, one must not overlook that every committee conducted hearings lon a number of subjects, and that these printed hearings constitute a library with millions of pages, costing nearly $300,000 for printing alone. There is a determination to cut this cost, and there is being exercised a stricter supervision over printed hear- lings thdn ever before. MAILS APPEAL TO WOMEN Mr. Hays Asks Them to Send Par- cels Early. Members of 2,500 women's clubs throughout the country are asked by Postmaster General Hays to partici- [can history extendin pate in the early Christmas malling S D. C, ' DECEMBER 4, 192{—PART 2. ~ 'STORY THE WEEK HAS TOLD BY HENRY W. BUNN. (Copyright, 1821, by The Waskington Star.) HE following s & brief summary of the most importarnt news of the world for the seven days ended Decem- ber 3: S ,UNITED STATES OF AMERICA.—By presi- dential proclamation the week of December 4 to 10 is to be American Education week, dur- ing which’all are urged to lend their best thoughts to the problem of public education. 1t is not so much that public educational fa- cilities are lacking in quantity or quality, nor that the distribution thereot is faulty (though there are egregious instances of insufiiciency or defect); rather, on the whole, it is that nothing like full advantage is being taken of facilities when adequate both in quantity and quality. “More than 5,000,000 boys and girls in America,” says the proclamation, “are not availing themselves of our free school adg vantages.” That Is indeed a most alarming percentage of statistics. On Thursday the United States Railroad Labor Board handed down a decision of the utmost importance. It abrogates the “national agreements” of 1919 between the Upited States Railroad Administration and the six federated railroad shop crafts; it promulgates a new set of working rules (including old rules proved satisfactory by experience and old rules modi- fied to make them more elastic); and It recog- nizes the principle of the “open shop” for the railroads. The immediate effect, however, of the recognition of the “open shop” principle will not be serious; since, as a statement by the board is careful to point out, “a large majority of the railroad shops are unlonized and the existing unions are recognized by the board and by the transportation act as rep- resentative of the majority.” The most im- portant change effected by the new set of rules is in the matter of classification of work. It is calculated that the new. classification will mean a total annual saving to the carriers of $50,000,000. It will be recalled that in the recent crisis which threatencd a great railroad strike the shop crafts (carmen, sheet metal workers, ma- chinists, hoilerworkers, blacksmiths and elec- tricians) voted not to join the proposed strike. They would wait, they said, for the decision of the Railroad Labor Board on their “working rules”; recognizing decisions on working rules to be more important from the wage stand- point than direct decisions on wages. Will the shop crafts accept the decision of the Rail- road Labor Board? It is pointed out as sig- nificant that the decision was unanimous, no one of the labor group of the board dissenting. The report by Gen. Wood, now governor general of the Philippines, and W. Cameron Forbes, formerly governor general, upon their recently completed tour of inspection of the islands, with “general conclusions” and rec- ommendations based on the observations made during the tour, has reached Washington, and the “general conclusions” and recommenda- tions have been made public. The most im- portant of the recommendations is that “the present government status of the Philippine Islands continue until the people have had time to absorb and thoroughly master the powers already in their hands.” * %k * X GREAT BRITAIN.—Sir John Craig, premier of Ulster, addressing the Ulster parliament on Tuesday, formally announced rejection by Ulster of the British government's proposal for an Irish settlement involving an all-Ireland parliament. The situation is thoroughly Hibernian. Ulster, more passionately devoted to the crown than any other part of the em- pire, cannot be expected to pay the slightest attention to the proposals for her union with south Ireland when the represéntatives of south Ireland refuse to swear allegiance to the British crown. The representatives of . south Ireland are probably bluffing about the oath of allegiance; if Ulster would join the south on Dublin’s terms doubtless that little British are solemnly explorme 'as Lioyd George would y) for a substitute for the oath of alleglance which would satisfy the crown and. “save the face” of the Sinn Fein Irish. The Sinn Feiners del!ghtfully term the British “formalists,” that they should stick upon so trifling a matter as an oath. But, the oath apart, the British proposal (which seems to have had the approval of the Sinn Fein) was wholly unacceptable to Ulster. On December 1 Lloyd George submitted a new proposal to the Sinn Feln conferees, and they have gone to Dublin to talk it over. If the press de- scriptions of tho ‘new proposal are correct there is little reason for thinking that it would be acceptable to either Dublin or Bel. fast. The present prospect is that the negotia- tions will be broken off or suspended, and that in either case the truce will be continued, in the hope of a resumption of negotiations. But few are sanguine enough to expect that peace will long survive cessation of negotiations. * * k % GERMANY.—That super-industrialist, Hugo Stinnes, was in London over the last week end. He elaborately campuflaged his movements, and it is not yet publicly known what he was after, with whom he spoke, wjether or no he held a semi-ofiicial commission to negotiate concerning reparation matters, etc. There is a rumor, however, that he made some interest- ing proposals to British bankers, briefly as follows: That they lend (a long-term loan) the German government the money required for the January and Pebruary reparation In- stallments upon the security of his great prop- erties in Austria and Sweden; that they pro- cure (through the British government) a rep- aration moratorium; that they collaborate with him in certain grand projects, as the rehabili- tatlon of Russia, a great railway trust, to start with the German railway system and later to extend itself over all Europe, etc., etc. Such & program pre-supposes the consent and colluboration of the British govergment, and apparently it contemplates bolsterini ®p Lenin & 1t contemplates, to be sure, rehabilita- tlon of Germany, but a Germany harnessed to the Stinnes car; it contemplates pooling of German and Brifish interests, the death of the old entente, the birth of a new entente of Britaln and Germany. It contemplates a con- spiracy of British and German thieves in high place to “exploit” Europe and corner the sWag. The rumor is probably incorrect in fts specific allegations, but even so it deserves the attention I have paid to it. For it shows what people are thinking and saying about Stinnes, whose shadow covers all Germany, with ragged fringes out over Austria and Sweden. On {ts eastern edge that shadow seems to be flickering, in the way of shadows, as though before a sudden dart into the Rus- sian_region. Stinnes had hardly left London when Dr. Rathenau arrived there. Rathenau certainly has a semi-official commission to talk repara- tion finance, and he is still in London in parley with the bankers and with members of the government. Dr. Rathenau appears to be a man of honor. He is not trying to make a deal with Britain behind France's back. His program is sald to include a loan (perhaps a joint British-American loan) to_ enable the German government to pay the January and February reparation installments; thereafter a moratorium for two years, and the exten- slon of the Wiesbaden idea (partial substitu- tion of payments in materials, manufactured articles and labor for payments in gold marks) to reparations due Britain, Italy and Belgium. Rathenaus visit to London seems to be having the happy effect of hastening the adoption of a new program of reparation finance conformable to the actual situation. Apparently the French are reconciled to the idea of a brief moratorium on condition that the Germans straighten out their finances, which they can very well do if they really try. The German difficulties are financial rather than economic. Indeed. it is reported . that the French have almost completed a new reparation plan of the most liberal de- scription. X The recent riots and store plundering in Berlin and other German cities had, in all probabilities, a spontaneous origin in protest against the high and ever-mounting cost of living; but they soon received a pretty or- communists, acting, it i{s plausibly claimed, under orders from Berlin. At first, only food, but later all kinds of stores were looted. Overnight & store would be marked with a_ red sign. ‘The-next dey disclplined columns would converge on that store, the avenues of approach would be blocked, and picked de- tachments would gut the' store, throwing the contents on the sidewalk, where other de- tachments would load them into wagons on hand according to schedule. These curious doings seem to be over, but some say they are merely prelusive to a general communist movement planned for December. * % * X AUSTRIA—The good behavior of the Viennese has long seemed to me a bit weird and {ndeed unwholesome. Some day, I thought, there would be a memorable out- break. There was one on Thursday. The gov- ernment had just announced that food sub- sidiaries and government doles of all sorts would soon be discontinued. A great popular demonsrtation of protest was being held in tront of the parliament house when of a sud- den a riot broke loos The mob made for the luxury stores and the great hotels and smashed and looted. They treated hotel guests roughly, robbing the women of furs and jewelry, even in some cases tearing ear- rings from ears. Americans were among those robbed. The government is inclined to ascribe the outbreak to the communists. It is not necessary to seek so far. It was inevitable that the multiplying miseries of those un- happy Viennese should one day find expres- sjon. That villainous-looking, out-at-the- heels mob was the Viennese populace once justly famed for amiability, now brutalized by hunger and disease. The proportion of real briminals was probably neither more nor less than is usually to be found in any city crowd; these, one suspects, committed the worst ex- cesscs. The allies have promised and promis- ed to relieve the Austrian situation. Perhaps now at last they will set the ter meulen or some other program in motion. Perhaps it is not too late to prevent a reign of terror. The rage of the meek, however, once they are aroused, is apt to be a devastating thing. * % x X THE CONFERENCE.—I lack space for adequate discussion of the conference. Be- sides, it isn't necessary. All the big-wigs of journalism are discoursing on that theme. I confine myself to a word or two. The Japanese have not yet relinquished their claim to a higher capital ship tonnage total than the Hughes plan allows them. Sub- committees are dealing with submarines, re- vision of the laws of warfare, and “the new agencles” of warfare (poison gas, aerial bombs, etc.). The knotty question of the naval strengths to be allowed France and Italy has not yet been formally considered; the dis- cussion thereof promises to be lively. The committes on far eastern and Paclfic affairs is proceeding cautiously with Chinese problems, ~The Chinese demands for tariff autonomy had been referred to a subcom- mittee. A commission of jurists is to visit China to study the administration of justice there. It will recommend appropriate ‘action in response to the Chinese demund that ex- ercise of extraterritorial jurisdiction in China cease. The demand for withdrawal of foreign post offices from China is the one Chinese demand fully conceded to date. The Chinese demand for withdrawal of - forelgn - troops, railway guards, police and electrical installments from léhlnu, introduced perilous matter, still in de- ate. At the Instance of Mr, Hughes and Mr. Balfour, the Japanese and Chinese delegates agreed to a dual negotiation”of the Shantung question. The negotiation is already in train. Though this negotiation is nominally apart from the conference, the event thereof s per- haps of critical Importance to the conference. Behind the Chinese problems lower murki- 1y those of Siberia. It is presumed that the Frosident's Informal suggestion of yearly in- ternational conferences will be forwarded by a formal proposal of the same. A logical, an inevitable proposal. matter of the oath could be arranged. The ganization and efficient direction from the BRAZIL'S EXPOSITION TO BE A BIG AFFAIR Though Nine Months Off, Plans Already Under Way for American Partici- pation on Elaborate Scale. BY BEN MCKELWAY. HE Brazilian international exhi- bition, tc be held in Rio de Ja- neiro next September in con- junction with Brazil's celebra- tion of her first centennial, is looked zilian-American relations, and extensive preparations are under way to make the participation of the United States some- thing to be remembered for many years to come in Brazil. The commissioner general and his five assistants, to be appointed by the President, who will have direct charge of the government’s part in the exposition, will be named within a short time, and with their appoint- ment the $1,000,000 appropriated by Congress for the use of the different branches of the government service will become available. The Shipping Board, the Depart- ment of Agriculture, the Department of Commerce and the Department of the Interior will take u prominent part_in representing the government of the United States. The Shipping Board is to provide transportation, at special rates, for governmental and private exhibits to and from Rio de Janeiro. The Department of Agricul- ture is to send an exhibit of the agri cultural and forestal productions o the different states and accompany it with a full description of the vari- ous entries, printed in English, Span- ish and Portuguese. The Department of Commerce will send an exhibit of the fisheries industry of this country: the Department of the Interior will prepare an exhibit dealing with the mining Industry, and while detailed plans are yet to be completed, each department probably will send an in- dependent exhibit not specifically or- dered by Congress in its resolution appropriating the necessary funds. * X ¥ ¥ Every leading industry of the coun- try is expected to be represented, and the United States Chamber of Com- merce and export trade assoclations are co-operating to stimulate interest |in the exhibition among American business men. The competition which now marks {the field of trade in Brazil will be cxamplified at the exposition. Great Britain, Germany, France, Italy, Hol- land and Belgium are planning ex- tensive participation, and the private industries of every country which does business in Brazil will compete to impress the South American with the worth of its wares. The exposi- tion is the first of its kind in South America, and every Latin-American country will be represented. It is therefore considered necessary that the United States section of the ex- position shall be an imposing and a truly representative one. The long friendship and the in- trade relations between the United States and Brazil makes it appro- priate that this country should be well represented. 1n 1919 Brazil im- ported from the United States three- quarters of her coal, half her cement and 95 per cent of her motor cars, kerosine, gasoline and many other articles. Brazil has been called the great sister republic of the United States. SNe is the largest, both in population and area, in South Amer- ica, and, though far to the south, she is bound to us by many common ties Subsidies to Help U. S. Shipping Instead of Discriminating Duties BY EWARD N. DINGLEY. T is reported that the President may send a special message to Congress asking for the repeal of section 34 of the Jones mer- chant marine act of June 5, 1920, “to provide for the promotion and main- tenance of the American merchant marine.” If the information is cor- rect, the inference is that the fixed policy of the administration will be “subsidies” rather than “discriminat- ing import duties.” This raises many interesting questions, and the pur- pose of this article is to answer some of them and to touch upon the high spots, so that the busy reader may know the principles involved, the background and the possibilities, if not probabilities. Congress enacted the Jones mer- chant marine law on the theory that something must be done to overcome the high .cost of construction and operation as compared to other mari- time countries. The Senate commit- tee on commerce held exhaustive hearings and incorporated section 34, which recites, in_substance, that “in the judgment of Congress, articles or provisions in_treaties or conventions to which the United States is a party which restrict the right of the United States to impose discriminating cus- toms duties on imports entering the Tnited States in foreign vessels and in vessels of the United States, and which also restrict the right of the United States to impose discriminat- ing tonnage dues on foreign vessels and on vessels of the United States entering the United States, should be terminated, and the President is hereby authorized and directed, within ninety days after this act becomes a law, to give mnotice to the several governments, parties to such treaties or conventions, that so much thereof as imposes any such restriction on the United States will terminate on the expiration of such periods as may be required for the giving of such | m notice by the provisions of such trea- ties or conventions.”" ‘Back of this lies a period of Ameri- g 130 years, dur- ing which our merchant marine has risen and expanded, then declined in- week, December 5 to 10. Letters went | gloriously until feverishly revived by out from the Post Office Department !the world war. today. Our merchant marine quarter of the rst century, *discrim- “Women probably wrap and pack |nating import duties for the first 90 per cent of that are mailed, he Christmas gifts|quarter of the first declared the'Post-|inating duties” century, “discirm- meaning a higher master General in a letter to Mrs. |duty on foreign goods brought in for- Mrs. Winter is urging members of the general federation to do all Department in~ handling the Christ- i mas mails. Opposes Navy Reduction. To the Editor of The Star: The American Navy, which would very soon have become the most pow- erful in the world, was built for the protection of our coasts, and not for conquest. The British navy is now first upon the seas, but England i in financtal difficulties of so serious a nature-that she must, in any case, almost entirely, ceaze to build capital ships, from sheer lack of money. For this reason, the command of the seas would have fallen to the United States in a very few years, auto- matically and without an effort. We should thus have become absolutely safe from foreign attack. Under these circumstances, to propose to re- duce our Navy, to actually destroy a number of powerful warships, built for our own defense, would be suicidal. Very sincerely yours BERTRAND, , SHADWELL. in | treaties of their power to,assist the Post Office | designed to promote the American Thomas G. Winter, president of the]eign vessels than in American vessels General Federation of Women's Clubs. |and higher tonnage dues for foreign than for American vessels. The early “amity and commerce,’ merchant marine, all contained “the most favored nation clause” each providing that the mnation subscribing to the treaty or convention “shall pay . . . no other nor s;'n':e:h "“"‘g{.,‘.’,‘: imports than those whicl e na mol:t favored are or shall be obliged %o pay.” “Reciprocity on the Seas.” After the war of 1812 our foreign commerce was controlled largely by shibbole “reciprocity on the as,” and in 1828 Congress suspended all discriminating duties. The domi- nating cry was “trade should be free,” *all shackles on commerce should be stricken oft.” The United States signed many commercial trea- ties, all containing “the most favored nation” clause, whick prevented dis- criminating duties, so far as treaty nations were concerned. In 1862 Congress restored a 10 per cent additional duty on imports brought in foreign vessels, the ships of foreign nations having rights relative to duties by reasol special commercial Congress again imposed a 10 per cent additional duty, but “not on ves- sels entitled by treaty or any act or acts of Congress to be entered in the ports of the United States on pay- ment of the same duties as in vessels of the United States.” Again, in the tariff act of 1890, Congress provided for a 10 per cent discrimination in favor of American ships, but “the provisions of the law not apply to goods imported in ‘vessels from countries entitled by treaty or act of Congress to the same entered in the ports of the United States in American ports.” Congress went further, and in the same law provided that “no goods shall be im- ported except in vessels of the United States unless in cases covered by spe- cial treaties.” The tariff acts of 1897 and 1909 contained the same provi- sions, substantially. The tariff law of 1913, now in force, has the same provision, but it “shall not apply to goods_imported in vessels not of the United States entitled by treaty or convention or act of Congress to be entered in the parts of the United States on payment of the same duties as on goods imported in vessels of the United States.” The act of 1913 also allows an “additional discount of 5 per cent on all duties on goods imported in vessels admitted to regis- section shall be so construed as to abrogate or in any manner impair or effect the- provisions of any treaty concluded between the United States and any foreign country.” ~ Supreme Court Decision. The United States Supreme Court, in the case of U. 8. vs. M. H. Pulaski (243 U. S, Oct, 1906), decided that “the subsection means what it says; it grants the discount to none.” In other words. the discriminatory pro- visions of the law are inoperative when special commercial treaties in- tervene. Facing this situation, and desiring to place the country in a position where it could, if thought de- sirable, restore discriminating import duties; the Senate committee on com- erce and Congress itself inserted section 34 in the Jones law, “author- izing and directing” the President, within ninety days, to notify all countries having such treaties with the United States of the abrogation of all portions of such treaties Which prevent discriminating duties. Through Secretary of State Colby, President Wilson announced his re- jfusal to carry out the mandate of section 34, on the ground that (1) “the mandate of Congress was made regardless of the fact that the trea- ties contain no provision for termina- tion;” (2) “abrogation would destroy our ‘commercial relations;” (3) “the power to make new treaties lies with the President.” = Debate in the Senate on section 34 of the Jones law began May 20, 1920, and throws a flood of light-on the reasons which prompted Congress to insert this provision in the law. Sen- ator Jones said: “We are not seeking retaliation, but do not fear it.” Sena- tor Lodge said: “There is nothing vio- lative in this section.” In the debate it was stated that “practically all of the commercial treatiés and conven- tions that held the nations together six years ago have been ended either by war or denunciation.” The section was agreed to without a vote. Con- gresa indorsed the policy of “dis- criminating duties” as a means of bullding up and permanently main- taining_ an American merchant ma- rine. Between 1865 and 1875 several attempts were made to secure the abrogation of such portions of the commercial treaties as prevented dis- criminating tariffs. All failed. The only alternative for the per- “except| manent rehabilitation of tHe Ameri-|headed can merchant marine is a system of ] f| subsidies or spbventions in the form t Sreatien™ In 1884]of direct ald ox mail pAY, The Lnited!repartedin favox of a'system of sub- tration under the laws of the United b, States, provided that nothing in this|m States never has adopted the sub- sidy system, notwithstanding the claim of some that mail pay is a subsidy. The Jones shipping law of 1920 provides that for five years the Shipping Board may annually set aside out of the revenues from sales and operations a sum not exceeding $23.000,000, to be known as .its con- struction loan fund, to be used in aid of the construction of new vessels, but this is not a subsidy. The Story of American “Subsidies.” The story of America’s experiment with ship “subsidies” or subventions dates back to 1855, when, to meet British subsidies amounting to $300,- 000 annually, the United States under- took a feeble system of mail pay sub- sidy or subvention. Three American lines to Europe and several to South America and the Pacific resulted. This mail subsidy amounted to $2,000,000 annually. In 1858 the law was re- pealed, and the only American trans- atlantic line (the Collins line) went into brankruptcy. From 1839 to 1848 Great Britain pursued a powerful pol- icy of subsidy. The Cunard line was backed by the British government and ruled the ocean transportation. In 1848 a member of Congress said: “The time has come when we must decide w{elher we will vield ‘this essential nch of navigation and this indirect ans of extending our naval arma- | ment to our great commercial rival, or | promptly extend to our enterprising | merchants the necessary means to compete with British sagacity and capital.” Abandonment of postal sub- sidies brought the result predicted— American shipping surrendered. In 1860-1861 Great Britain paid an annual subsidy to her shipping amounting to $4.531,000. In 1864 the American Congress granted an annual subsidy of $250,000 for the establish- iment of a monthly mafl line of steamship_service between Philadel- phia and Rio de Janeiro. The United States paid $150,000; Brazil paid $100,- 000. This was in force until 1876. In 1865 the United States government made a_ten-year contract with the Pacific Mail Steamship Company for: mall service between San Francisco and China and Japan at an annual subvention of $500,000. In March, 1891, another effort was made to revive American shipping on the ocean by means of mail pay. Anact of Congress authorized the Postmaster General to enter into contracts with American steamship lines for the transportation of mails to foreign countries. Eleven routes were estab- lished, costing about $954,000 annual- ly. This law was amended in De- cember, 1906, placing the Postmaster General in charge of the entire pro- gram and authorizing a bounty of $4 per mile to American ships promising satisfactory American ocean mail lines to South America, Asia, the Philippines and Australia. Subsidies by Foreign Nations. Between 1891 and 1908 several un- successful attempts were made to aid the American merchant marine by means of more liberal mail pay or subventions. In defense of the mail pay bill of 1881, it was pointed out that in 1890 Great Britain paid an- nually the following mail subsidies or bounties to British steamship : To Japan, China and- Indla, 00; to Australia, $650,000; to the Pacific, $80,000; to South America, $250,000; to the United States, $50i 000; to Canada, $75,000; to-the. West Indies, $350,000—a total of more than $4,405,000. From 1840 to 1905, Great Britain paid over $45,000,000 to her ships sailing to and from South Amer- jca alone. These were mail subsidies or_subventions. The feeble congressional act of 1891 was Ineffective against such powerful foreign competition. In 1904-1905 a congressional commission bfi the Iate Senator Gallinger of New pshire made an exhaus- tive investigation of the subject and sidies to meet this competition. It was hoped the act of 1908 might bring better results. During the debate on the 1908 bill it was stated that “South merican trade is demoralized by the oreign shipping trust or combina- tion, whose weapons are rebates, dis- criminations and boycotting.” In 1905 Postmaster General Cortelyou called attention to the fact that the year be- fore the actual cost to the United States of ocean mail service was $2,965.624, while the proceeds were $6,008.807. However, the mails were carried in foreign ships, largely. Dur- ing the debate on the 1920 shipping bill Senator Jones said: “We are pay- ing more than $3,000,000 a year for the carrying of our foreign mails, and $2,600,000 of that sum is paid to foreign ships.”” Section 24 of the Jones law_provides that the mails of the United States shall be carried in American-built vessels, if practicable. In 1909 annual subsidies amount- ing to $46,907.220 were paid by the leading maritime nations, France pay- ing $13.423.737; Great Britaln and her colonies, $9,689,384; Japan, $5,413,700. France is the premier subsidy natidn, or was up to 1914. Great Britain pays $5,000,000 annually for carrying the foreign mails. In 1915 Japan paid $12,400,000 in subsidies for overseas navigation, and $1.250,000 for coasting and near-sea service. This has been a powerful factor in building up the Japanese merchant marine. This pay Was for both mail service and direct subsidy. The United States grants no sub- sidies; only compensation for the transportation of foreign mails. Un- til 1920 the great bulk of this com- pensation was paid to foreign steam- ship lines. Much is pald to them now. The cost of transmitting the United States mails to and from foreign countries has increased enormously. 1From 1902 to 1911 the cost averaged | : between $1,125,000 and $1,450,000. From 1914 to 1920 it averaged be- tween $3,150,000 and $4,125,000. In 1920 it was $4,002,193. Canada, New Zealand, Australia and South Africa pay large amounts an- nually in the form of mail subsidies. If section 34 of the Jones merchant marine act is repealed, the American merchant marine must be maintained by a system of subsidies. ‘Will- Congress adopt this program and grant subsidies? EUROPE: AND THE ARMS CONFERENCE. (Continued from First Page.) 4. Europe is now faced with this most absurd and laughable situa- tion: Whereas the entente powers and President Wilson had sol- emnly announced the advent of disarmament after the war, there are actually more men under arms now than before the hostiliti started. The smallest and poorest states maintain the biggest armies and are constantly intriguing among themselves for the conclu- sion of military ententes and alli- ances. Poland, always in a state of unrest and systematically adopt- ing an attitude of provocation to- ward her neighbors, although re- duced to extreme poverty, never- theless persists in increasing the payroll of her employes and of her soldiers. She has now more em- ployes than Germany had before the war and a moré numerous army than that of Austria-Hun- gary in pre-war days. Great Brit- &in " and Italy alone have loyally of interests and ideals. She has en- countered many of the problems, ex- perienced many trials and dealt with Ithe same questions th!{ have occu- {pied this country during the past iyears. * % x K Brazil was an ally during the war, and she has always shown a generous appreciation_ of the North American and a real friendship for the United States. During the first century of her independence the bonds of mutual interests have been strengthened, and she has even patterned her form of government, her constitution and many of her Institutions after our own. | ‘One of the interesting features of the Brazilian exposition is the plan. backed by the American Chamber of Commerce _of Brazil, the American colony of Brazil and other Americans interested in Brazilian trade, for the presentation to Brazil on the part of the American people a monument em- | blematic of the affection held by the people of the United States for those | of Brazil. The memorial is to be an unofiicial gift, and the funds are to come from private interests entirely. A substantial fund already has| been appropriated by the Americans | in Brazil, and an organization with headquarters In New York is in upon here as an important event in Bra-| Icrflmfling importance of the Erowing,countries were charge of procuring additional funds. Secretary Hughes is one of those who have indorsed the project. A site has been offered by the city of Rio de Janeiro for the monument. located on the Avienda Presidente Wilson, overlooking the harbor of Rlo, considered the most beautiful i the 'world. 2 The statue is being made by Charles Keck of New York, a noted sculptor. The design consists of a figure in bronze, symbolic of friendship, sup- ported on an imposing pedestal of stone. At the base are four figure, George Washington and Abraham Lincoln, representing the United States; Jose Bonifacio and Rio Bran- co, representing Brazil. The lower part of the pedestal has three ba: reliefs, one depicting the signing of the Declaration of Independence; an- other showing Dom Pedro 1, declaring Brazil's independence of Portugal at the Ypiranga river, and another an ai- legorical scene of the lasting friend- ship of the two countries. * ok % % i Paul C. Standley of the United ’S(aten National Museum will leave { Washingtdn early this month for « {botanical collecting trip in Central | Amer] under the auspices of the National Museum, Harvard Univer- ysity and the New York Botanical Garden. _ He will spend four or five montim {in Guatemala and Salvador, collect- !ing specimens of plants and making {notes upon their uses. The data s | obtained will be used in the prepara- ition of d descriptive and fllustrated jaccount of the flora of Central 1 America and Panama, which is to be published by the United .States Na- tional Museum. * ok k% Another _scientific _expedition _to South America, composed of five American and three British scientists, has reached its destination in Lima. Peru, preparatory to beginning the first studies ever made to determine { the physiological changes which en- 1able people to live In high altitudes. This investigation is being financed by the Royal Society of London, the Carnegip Fundaiion of Edinburgh. |the Rockefeller Institute, ‘Harvard Medical School and other American institutions. * ok ¥ % A dispatch from Panama which has reached Washington tells of the pro- posal of Jose Santos Chocano, poet laureate of Peru, who in a recent ad- dress advocated a “Bolivian federa- tion” to be composed of Panama. Venezuela. Colombia. Peru, Bolivia and Ecuador. He prophesied that | with the natural resources at their disposal the group would become in- dependent in all respects. He ex- plained that he chose the name “I livian Federation” because all the liberated by Gen Bolivar. * % % % While official confirmation lack- ing in Washington, it is reliably re- ported that the city of Buenos Aires is seeking a $50,000,000 loan in New York, which would be separate and distinct from the recent loan of $50.- 000,000 to Argentina and the addi- tional loan of the same figure which has been discussed recently. Fifty million dollars being considered a large loan to a republic of Argentina’s size and resource, it is considered rather improbable that the reported negotiations for $50.000,000 to the city of Buenos Aires would go through. * ok k¥ It has come to be something akin to habit on the part of many to “knock” our exporters and traders in South America to such an extent that the credit due those who-khave suc- ceeded against odds is forgotten. This lack of appreciation, the Na- tion'’s Business points out. is shown not =0 much to the men of our own day as to the pioneers of the past. who are so far forgotten that it is frequently stated that the United States has just entered the field of foreign trade. Citizens of the United States, how- ever, were doing business in Mon- tevideo as far back as 1799, and in Buenos Aires at least as early as 1802. Our furniture exports to Argentina began in 1810, and a ‘“carriage of North American make” was rolli along the streets of Buenos Aires in 1810; and ever since 1806 the United States colony there has celebrated the Fourth of July with a dinner United States citizens were active in Chile as early as 1808. and by 1810 there were enough of them in Rio de Janeire for two of the “estimable young people” to be married. and practically demobilized, reduc- ing their armies to the normal peace footing. On the other hand, the United S!nte?. Great Britain and Japan vied with each other in increasing their navies. What is the situation resulting from these indisputable facts, and how can it be met in order to avert the grav- est consequences? * t * ¥ 5. Germany has more men than and other state in continental Eu- rope, and is the most densely pop- ulated of large European countries. She has lost her merchant fleet, her colonies, her most valuable agricultural lands, almost four- fifths of hér iron and all her com- to pay an indemnity which every- body knows she is unable to pay, because her financial ruin and the collapse of the mark must neces- sarily be followed by an economic paralysis and the ruining of pro- duction. In order to obtain raw materials, Germany's only outlet is toward Russia. And why should Poland, disorganized as she is, g0 on acting indefinitely as a wedge between Russia and Germany? 6. Up to the present, in order to guarantee the fulfillment of the treaty, an interallied army of occu- pation, in reality, consisting al- most_exclusively of French and Belgian troops, has been main- tained on the Rhine at the expense of Germany, the cost being far more than that of the joint armies of Germany and Austria-Hungary before the war. Germany and the other losing countries, even the poorest, have been subjected to a series of controls which have com- pletely deprived them of the privi- leges and characteristics of sov- ereign_ states. The cost of these controls often surpasses the pre- war budget of some states, and in many cases the controls assume the form of barefaced pillage of the finance of countries already ruined by the war. * %k x 7. After having made the mis- take of leading people to believe that Germany and the other losing countries were in a position to pay indemnities amounting to hun- dreds of billions, the entente now finds itself in this embarrassing position—that Austrla, ' Hungary, Turkey and Bulgaria are not oniy unable to pay anything at all, but are clamoring loudly for help. As a result of Germany's paying a small account of the indemnity, her credit has been ruined and her mark has fallen to zero. Every- body has been convinged that the present system of indemnities is not only absurd, but actually detri- mental. In the meantime, the win- ning countries have been unable to and Italy cannot pay what they owe to the United States of Amer- jca and to Great Britain. Neither capital nor interest are they able to pay, and still they press Ger- who has lost everything, many, mercial organizations abroad. Nev- I ertheless, she has been tied down pay their interallied debts. France i for the payment of an indemnity nine or ten times larger than the interests of the debts which they themselves are unable to pay, al- though winners of the war. How a suitable solution be found to this problem? 28, . Russia, who s not a van- quished enemy, but a fallen friend, has been attacked and circum. ~vented in every possibzle way Attempts were first made to recon- stitute the anclent regime. Then Russia was blockaded and isolated. But the resurrection of the old regime is extremely unlikely, and the blockade has been almost as harmful to Europe as to Russi ‘Without recognizing the soviet government (which would be great mistake), would it be possi- ble to lay down the principle that its recognition is subordinate only to the respect and observance of international laws? In other words, is it possible to solemnly repudi- ate, once and for all, that Shylock policy which subordinates the re- sumption of relations with Russia to the latters recognition of the pre-war debts contracted by the czarist government? *x%x*x 2 9. The collapse of Europe neces- sarily causes a state of great de- pression in America. For the most important center of production is always Europe. After the war there are about thirty states all showing a marked tendency to iso- late themselves. There is a gen eral attempt at cornering raw ma. terials; there is an ominous de- crease in proauction, coupled witn an increase of consumption. The . United States has acted wisely in refusing to lend any more money to the states of Europe. By grant- ing fresh credits to further a pro- gram based on folly it would have rendered itself responsible for new disorders und fresh ruins. But how can we now build up a new regime of life? 10. Now that the enemy has been vanquished and the con- querors of the European continent sée not only their prosperity, but their very existence seriously men- aced, would it be possible, under the influence of democracy, to find a new formula of friendly co- existence, thus repairing the grav- est errors committed on both sides and preventing the decadqnce of Europe and the economic tuin of the world? These problems cannot be dis- cussed; some of them are not fit matter for discussion; others could mot be discussed without placing in an embarrassing position those taking part in the discussion. But ‘we must always hold them in mind. ‘Those taking part in the Wash- ington conference should persuade themselves that rhetoric can serve no useful purpose, that the time for empty declamation has passed, and that humanity awaits a word of truth and a new sense of life, after so much falsity and so much death. \ (Copygisht, 19210