Evening Star Newspaper, October 24, 1926, Page 51

THE SUNDAY STAR, WASHINGTO: C’.. OCTOBER 24, 1926——PA:RT 2. BRITAIN IN CRISIS, HOPES | FOR AID FROM DOMINIONS Imperial Conference Will Disappoint - London If Trade Boost Does Not Follow, Say BY SIR PHILIP GIBBS. ONDON.—Interests in the United States and Europe in trade and politics will be influenced by the conference of British do- minion premiers now meeting in London. It is not a family conclave for flag- Wagging purposs These statesmen from overseas have come to discuss with England :nany subjefts of seri- ous importance in world affairs. The rapid development of empire trade and resources, the speeding up of Dritish emigration to Canada, Aus- tralia Mercl inians d_South Africa, closer com- relationship between the do- nd the mother country and tne organization of the British film fdustry for exhibition throughout the empire are put down on the agenda for immediate discussion. It any of those objects can be| achieved they will have considerable effect upon worid trade outside the British empire by increasing compe- tition and creating new sources of Wealth. In other ways this imperial conference may dffect the lives and livelihood of nations outside the Brit- ish dominions, especially in Europe. Guarantor of Peace. During the past few years, and ewpecially during this year, England Ras been the chief guarantor of peace 1A Europe by signing the Locarno mact, bringing Germany into the Teague of Natlons and organizing the weneral plan of European peace, based npon pol 11 understandin; and eco- nomic interests. That heme, still very fragile, depends very largely upon Great itain’s prestige and po ltical strength. It would collapse | like a house of cnrds it England were akered by internal strife or by any king of her imperial unity. nts now plowing their st, German in- ancing their books, many mill of people’ looking for- ward to of peace and recon- find would ion their secu atened and t treaties repu ated if Great Britain were deprived of upport from young nations under her flag and left to hear her burdens alone. At the present time England has many world responsibilities and grave Anternal troub!e: 1 strike, still dragging ¢ i <] is draining mer domestic sources of wealth and ®dreating a_social crisis of alarming gravity. Unemployment of her best nanhood is sapping her economic and | moral strength. Something must be done to stop this rot, which is par ing Great Britain’s industrial ities and jeop: ing her influence i Europe. Looks to Dominions. 1t is «t this time of crisis that Fng- Iand looks to her domin to rally loyally to v e her ¢ e of her | f 1 burdens, ineun rily in their defense, and to e political and econom’e troubi end effective co-op: el w5t of all her immediate needs is some | ractical way of traasplanting some millions of her population to those ! overseas dominions, where they could | gain livelihood for them- selves and build up new markets for British goods. Unfortunately for England there are many obstacles in the way of this hope. Her own labor leaders are in- tensely hostile to emigration believe that social revolution, ful or otherwise, would never vived if England is deprived of her surplus of labor. In Australia there is equal hostility to any large-scale settlement from the mother country, | because their unions and socialist poli- | ticians are jealous of opening their | doors to Bri working men lest wages should fall and their political power be weakened. These dominion premiers, now in London, are anxious to give loval sup- port to Great Britain. Mr. Mackenzie | King of Ca and Mr. Bruce of Aus- tralia are very much concerned with the industrial situation in England. 1 have reason for believing they are hoth prepared to give practical and financial assistance on behalf of their | governments by taking greater shares of England’s present burden of im- | perial defense oeful | | tralia. | lain, s Observer. | of giving practical co-operation in the scheme for state-aided immigration. There is no talk or thought of po- litical conflict between England and the dominions. The Canadian premier had hardly set foot in England before he ridiculed and repudiated any idea that Canada is moving toward absorp- tion with the United States. “The relations of Canada with the mother country and other parts of the empire could not be better than they are at present,” he said. That is true, no doubt, in its larger aspects of loyal- . but there is certain causes for anx- wl\ in England because of claims for equal status and national indepen dence. which will be discussed by Canada’s premier and by other do- minion: Already Canada halls Vincent Mas- sey as her Ambassador in Washing- ton. She has chosen a brilliant per- sohality who is warmly admired by all who know his character and ideals. But that post at Washington may lead to difficulties and misunderstandings with the British Ambassador unless there is great tact and good will on both sides. It is an open secret that Canada is hostile to any interference from England in her domestic affairs and has firmly decided that the lives and fortunes of Canadlans shall not be thrown into any European furnace without full consideration and consent of her Parliament and people. I fully sympathize and agree with that point of view like most other Englishmen, but it will be difficult to define exactly where Canada’s actions are free and independent of the empire’s interests as a whole and where England's for- eign policy and vital needs touch an interests and demand Cana- pport. Same Problem Elsewhere. Exactly the same problems arise re- garding Australia, New Zealand, South Africa, Ireland and other dominions. Sir Austin Chamberlain, represent- ing British foreign policy, will present a report to these premiers from over- s explaining fully and clearly Great Britain's IL&DunsSblHNes and pledges in Europe. They are guarantees of peace, but if ever they should be broken by France or Germany, Great Britain would be called upon to back her word by force of arms and all her financial resources. In that case would Canada hold aloof? Would Australia say “This is no Ambassadors_or consuls remain touch with hostile powers? If that were to happen Great Britain would find her family of nations had depart- ed from her. Her own might would be dethroned. Without her brawny sons from overseas she would be lonely and betrayed. In England’s mind and heart that is unthinkable. To avoid such an historic tragedy which would end her greatness and dian s smash these sentimentalities which alone keep her empire together, Great Britain is ready to grant all claims to separate action by her do- minions, provided action is limited to their own national interests and be- comes common action with the old mother country when any part of the empire or any vital interest of the h race is threatened by hostile Position of Ireland. Ireland already has representatives in foreign capitals. It is probable that in the near future Canada, Aus- tralia and other dominions will act as eperate nations in all affairs of di- ect interest to themselves without recognizing any British authority except the supreme symbol of the crown. It is bound to come, and this | conference in London will hasten the coming of complete independence in self-government. England is an old mother who ¢an- not keep her grown-up sons tied to her apron strings. But what Eng- land expects and has not yet fully received is the financial and spiritual | support of these grown-up nations in her own old age and present stress of troubles. That is the moral asnect not fully realized either in Canada or Aus- It may be urged by Premier n and Sir Austen Chamber- if they speak other words, than | flattery and the homage of an old country to lusty youth. (Copyright, 1836.) Baldw Traffic prerls Are Cheered in Task For Safety by Meetmg'Wlth Hoover causes; an inquiry which will go deep- Iv into all phases of the matter and which it is hoped would add vastly to the store of knowledge in this very vital conne It is proposed to <t up a board of investigation in co- operation, with stablished en, type of study. The report : committee clicited much favorable comment from the delegates and also from Col. A. B. Barber of the Cham- ber of Commerce of the United States. . Ba 1s been a leading spirit | nd it was | his opinion, as expressed on the floor, | ihat the causes of accident reports ‘vpified the kind of activity most de- stred. Another committee statement which was heard with no little interest was rhat on “public Instruction and driv-| er's manua The point was made | hat the co-operation of the newspapers | of the country should be obtained In | all matters of traffic safety publicity, | and the delegates at I agreed with the committee that such co-opera tion is imperatively essential to the success of the entire movement. Prep- aration of a manual which may be fol- lowed by drivers and chauffeurs in all States also was urged a: im- portant step in t consummation of | | 1s.” | having the fundamental goal of both Hoover conferences. The meeting was productive of per- haps the most highly significant re- sults in that the various committees were appraised of the work being ac- complished among themselves, as well as to bring to the attention of com- mitteemen the things which are hap- pening in the different States as a result of the efforts of the conferences. In other words, the meeting afforded a splendid opportunity for a general size-up of the whole situation, en- abling those actively engaged in the work to view conditions in the large as well as in detail. In this respect the joint gathering must be considered as accomplished an important objectiv Looking at the meeting from the broadest point of view, it is the belief of Secretary Hoover that it re-awaken- ed interest, stimulated attention and brought to a focus once again the many vital elements which have arisen all through this safety work as it has been attacked by the confer- ences, As a result of the obvious value of this gathering, another prob- | ably will be held before the year is out. Unless all signs fail, that conference will witness the submission of more encouraging reports: reports which will bear the mark of enlivened activ ity, born of the meeting just closed. Europe Now Is Looking to America, - For Guidance in Public Health Work (Continued frol duce or entirely eliminate a public budget for health education in prefer- ence to a reduction in some other program calling for expenditure of public money, according to Dr. Rogers. | High Standard Demanded. Health workers find such ideas of | ¢ incomprehensible, the Gov- “economy ernment’s hygiene expert told the Washington Council of Social Agencies | last week. A good standard of public health is essential to the national the opinion of recog- | sicallyisa * of nations, any way one looks at it, they point out. This country has made encourag- Ing progress in establishing school and municipal playgrounds for chil- dren over 6 years of age, but the health of children of pre-school age has been sadly neglected, statistics show In the National Capital, for example, it has been found that more than 80 per cent of the youngsters beginning school each year are afflicted with physical defects—most] ising from malnutrition or dental diseases. {2 Dr. Joseph A. Murphy, chief medi- cal inspector of the local public schools, attributes this situation to | lack of proper health education in the home. He believes that much of the responsibility for this disturbing con- dition rests with the fathers and mothers, who seem to find but little time to devote to the physical welfare of | their children. Dr. Murphy has evolv- ed a plan correcting this condition in future generations. He proposes that the children of today, who are the parents of tomorrow, be rigorous- Iy trained in the fundamentals of child hyglene through proper school educational methods, these funda- mentals to include, most of all, diet and dental care. Next Generation Will Benefit. The rising generation thus will have been carefully equipped properly to rear a new race of healthy, happy children, free from many of the defects which now cause so much concern to public health authorities. ‘Working toward a similar end, the Chamber of Commerce of the United States has just come forward with a proposal for a national health cru- to_invelve not mereli-a “health » Note: This is the third of a series of interviews on our present taz problem. In preceding articles, both Federal and local tazes have been characterized as outragedus- ly high. In this article Mr. Root declares the manner of our tares is worse than their size. BY WILLIS J. BALLINGER. HE biggest question for busi- ness in this country is the question of taxes. The great- est menace to our prosperity is the menace of taxes I have presented, in a previous in- terview, the view of William Fortune, supporting the charge of President Coolidge that the local governments are overtaxing the people and last week I gave the reply of Eli See- bert, defending lo- cal taxation and charging that the Federal Govern- ment is the real tax oppressor Now I give in the paragraph printed above the opinion of another busi- ness man. He is Charles F. Root. president of the American Associ- atlon for Scientific CHAS. F. Roor. Taxation. Mr. Root is a business man and a publisher as well as a stu- dent of taxes. He has been for years an important figure in the trade jour- nal field, where, in addition to his own large interests, he has been able to see the problems of the business com- munity. What he says here is there- fore the verdict of a man who has spent a lifetime in the study of taxes as a practical business problem. Question One of Methods. Here are some of Mr. Root's con- clusicns briefly stated: Is is not a question merely of whether taxes are too high or not. It's a questlon of the methods of tax- ation.” “We have got to get down to the problem not merely of cutting taxes but of completely reforming them.” “It makes no difference whether taxes are too high or not. If they are improperly and unscientifically levied, they are too high no matter how low they are.” “Taxes as at present laid are a pen- v on business success.” ‘What we need is a thorough re- organization of our local taxing sys- tem.” ‘When I asked Mr. Root to go a alt business of ours?” Would their | little more fully into these criticisms, in he replied: “I am not alone in these views. Roger Babson is looked upon as an astute observer of business. He said recently: “Our unscientific tax systems which have grown up in our States are, and I say it with emphasis, the most de- structive force that is attacking the purchasing power of the Nation.” Producers Til-Treated. “What is the object of our organiz- ed business life? To produce wealth and to produce it with profit to all concern- ed. Yet under our tax systems we treat the producers of wealth as we do nuisances. The more they produce the more we make them pay. The more taxes we take away from those who produce the more we reduce the pur- chasing power of the country.” “And yet, Mr. Root,” I ventured, “according to many, the people are constantly demanding more schools, more roads, more public baths and libraries and public orchestras and so on until the cities are compelled to keep raising taxes. How can you escape these taxes?” Perhaps you cannot,” was the re- BY HENRY W. BUNN. HE following is a brief sum- mary of the most important news of the world for the seven days ended October 23: * Kk ok The British Empire.—The imperial conference opened in London on Oc- tober 19. In connection with every one of these conferences the cry has arisen that if the empire, hitherto held together, as it were, by, intangi- ble bonds, is not to disintegrate, the constitutional relations of the com- ponent states must be precisely de- fined and a machinery provided for continuous consultation and co-opera- tion, especially as regards foreign re- lations; and this time that cry is louder than ever before. Still no def- inite answer can be given to the ques- tion, What is the empire? On the other hand, there are lhose who contend that, though there is an answer it is not to be formulated in words, it is an identic answer ren- dered by the hearts of an overwhelm- ing majority of the subjects of the b whether in the mother coun- ¢ or the daughter commonwealths; that as in certain fables, to question would be to destroy. With diametrically opposite ends in view, Premier Bruce of Australia and Premier Hertzog of Sodth Africa are pushing for a definite formula- tion. There is no question, of course, concerning domestic autonomy; that is complete for each component state of the British commonwealth. Nor is direction of its foreign policy abso- lutely denied to a dominion. Far from it. The Irish Free State has long had a minister, Canada is to have an envoy at Washington, with the acquiescence in both cases of the British government and Par- liament. But, however tacitly, the diplomatic scope of these officials is sufficiently understood to be a lim- ited one. Last Spring, however, Premier Hertzog in a famous speech declared that the only link between South Africa and Britain was the personal one of the crown, and that “international independence” for South Africa would result in ‘“‘closer and more cordial co-operation” be- tween that state and Great Britain; and at the opening session of the im- perial conference he expressed him- self to like effect. Premier Bruce of Australia, on the other hand, asserts that acceptance of that doctrine would soon be followed by disruption of the British common- wealth of nations. He is for a strong machinery to insure continuous close consultation and co-operation between the daughter states and the mother country in respect of both foreign and intra-imperial relations. It may be assumed that New Zea- land’s premier sees eye to eye with Premier Bruce, and it is generally supposed (though I think some doubt on this head is permissible) that Presi- dent Cosgrave of the Irish Free State|and the question whether the right is in complete accord with Hertzog. Assuming, then, a clean-cut division of sentiment as indicated above, the attitude of Premier King of Canada = week” or lie observance of passing character, but designed to engulf the entire Nation in a wave of “hygienic enthusiasm’ of lasting and impressive qualities. Europe already is awakening to the thrill of this health renaissance. The 0ld World, at present, is reaching out to the United Rates for counsel, jthe case of the Australasian domin- |ish versus American films and the HOW TAXES INTERFERE \VITH PROFITS PERCENTAGE OF NET PROFITS OF BUSINESS PAID OUT IN TAXES o_10 %cvllure and Related Industries [| Mining and Oumymg Transportation and Public Utilities Construction Finance, Banking and Insurance Wholesale and Retail Trade Manufacturing ply. “But do you think it makes no difference how we raise those taxes? Tell me, if you had a 200-pound sack of meal to carry, do you think -it would make no difference how you carried {t? Would you load it on your shoulder or strap it to your leg? Now 1 say that if we must raise these taxes we should do it in the way that will hamper business least. ~We must carry the burden on our shoulder and not.strapped to our ankles.” City Reflects Country. “How do taxes hamper business?” I put that question next. “Well,” said Mr. Root, “let us take the business of farming. There has been a lot of talk about the farmer lately. The people in town may think the farmer and his problems are very far away from them. But when the farmer’s business is bad he has less to spend and the man in town who must sell him feels it. Now under our present system the harder a farmer works the more he builds up his farm, the more fences and build- ings he puts on it, the more we tax him. Take two farmers on adjoining farms. One works hard, faithfully, intelligently, and makes his farm valuable. The other works very little and very inefficiently. What is the difference in these two farms? The only difference is that which the farm- ers themselves create. Each man gets exactly the same from the Govern- ment. But the hard-working, thrifty farmer is' made to pay much more for what he gets than the thriftless and inefficient one. Our tax system puts a premium on inefficiency. Loss Is Serious. “Is this trifling? When you stop to consider that approximately 40,000,000 people of the United States are de- pendent, directly and indirectly, upon farming it is 4 momentous question for our intelligent business minds to reflect upon. If it meant only one shirt less a year to each of the 40,000,000 or one pair of shoes less, or one less of anything, it would mean a decrease in our national purchasing power of the most serious proportions. ‘At present, under our unscientific tax laws, taxation is levied on farms on the amount of labor the farmer has put into them. Now a farm is made up very largely of the labor put into it. In fact the labor value in a farm, its buildings, fencing, orchards, should be of peculiar importance. Here is his latest utterance on the subject: “It wouldn't be wise to be too ready to encourage new methods of pro- cedure or structural changes in our relations. The empire, as it evolves, will find what it needs without me- chanical assistance, and certainly without revolutionary schemes.” The conservative London Morning Post agrees with Mr. King and urges the conferees to devote their chief at- tention to economic problems rather than to “those more abstract ques- tions of intraimperial constitutional relations, which, however interesting in themselves, can be rightly solved only by the gradual process of evolu- tion.” I cannot but think that the British gevernment would prefer that the constitutional issues be sidestepped again; that the empire “muddle along” a further bit; that government to con- tinue to observe a most cautious policy as to foreign commitments, cherishing the hope that whether or no the dominions should be so formally obligated they would rally to the mother country in her future need. It should, however, be borne in mind that the functions of the im- perial conference are purely consulta- tive and advisory. It i5 not to be assumed that should a majority, (by states) declare in favor of Gen. Hertzog's views effect would be given to those views; whence the break-up of the empire or, at any rate, cessions therefrom. It has yet to appear that there is a majority sentiment for the Hertzog program in any of the dominions, even in the Free State. And why not speak plainly? For reasons (chiefly concerning British se- curity) known to every one Great Britain would not allow the Free State to secede from the empire, and it is extremely unlikely for several reasons (the consideration of the route to India being the chief) that South Africa would be allowed to secede. Canada, of course, may go when she chooses, bt that hour is not yet. The conference is scheduled to sit for six weeks and it will be pleasant and profitable to follow its proceedings so far as they are disclosed. Appar- ently, the chief matters before it, in addition to the constitutional issue, are: Imperial communications and transport by sea and air, imperial de- fense, imperial preference, the Lo- carno pacts (shall the dominions add their guarantee), emigration from Great Britain to the dominions in such volume as substantially to relieve | the condition of super-saturation of population in the mother country and. by the same token, to accelerate the development of the dominions, and, in ions, to enhance their security; Brit- old racial problems (Hindus and ne- groids). The status of the governor general' of appeal from dominion courts to the judicial committee of the priviy council shall be maintained are mat- ters likely to be considered in con- nection with, or independently of, the | grand constitutional issue above con- sidered. * kK x Norway.—In a national referendum the Norwegians have voted 516,000 to 407,000, for abolition of prohibition | and substitution therefor of local op- Per cent tools, et cetera, is about 80 per cent of the farm value. The average farm has very little location value; its value is determined, as a farm, by the amount of its improvements and its fertility—and it takes labor every year to keep up the fertility. If you don’t think so try to buy a farm and see how the value varies according to its improvements. So, annually, the farmer is taxed cn the labor he expends on his farm. We punish the farmer for his thrift and ability , and reduce his purchasing ; power by that much for our manu- facturers. “What should we do? Well, sup- pose we exempted the farmer from taxation of his labor and the products of his labor we would stimulate pro- duction even though the farmer paid ?. higher tax upon the value of his arm. Steady Work Needed. “Unless the farmer keeps up this incessant work upon his farm year in and year out. it falls in value. But in the city a man may allow a plece of vacant land to remain idle for years and each year it goes on in- creasing in value. Nothing could better {llustrate the present un- scientific charatter of our taxation than this fact that the same law which robs the farmer out of. his industry pays a premium to the city man on his idleness. “Now take the case of the city business man. Look at the figures: In 1924 there were under construction in the principal cities of the United States $3,253,520,289.90 in buildings. On all of these buildings taxes are levied, and the tax rate varies from nround a little over one dollar—in a few exceptional communities—to as high as $4.99 per each $100 of the building’s value. The average f{s probably somewhere around $3.00 for each $100. This means that, added to the cost of these buildings must be the taxes which, at the reasonable average approximation of 3 per cent, mean that the builders of houses have to pay—for the privilege of add- ing to the business prosperity of this manufacturing Nation—an additional | sum of $97,605,608.00! “In other words,' for the right to| buy from the manufacturers of this Nation the manufactured goods needed to build houses there must The Story the Week Has Told first imposed by the Storthing as a war-time measure in 1917. In 1919 a referendum perpetuated it, raising the alcoholic percentage to 14. In 1921, in consequence of threats from Portugal, Spain and France (the which countries had been wont to exchange their wines for Norwegian fish) to exclude Nor- wegian fish from their markets, the Storthing raised the allowed alcoholic percentage to 19. Even so moderate a limitation has not found favor after a trial thereof. Reasons assigned were increase of drunkennes, flouting of the law by way of smuggling and private manufacture, general increase of dis- regard for law, damage to the public health by consumption of an fllegiti- mate stuff called “spirit” and cost of enforcement. * k ok X Belgium.—There seems little doubt that a second effort definitely to sta- bilize the Belglan franc is to be made in the near future; this time after ade- quate preparation. According to our information, arrangements are, being made for extension of important cred- its to the Belgian National Bank. by be paid an additional tax fee of al- most $100,000,000. And this is for but one year, 1924; and this kind of tax against the manufacturers of building materials is collected each year there- after. It is apparent that this is an unscientific tax system that is a most serious menace to manufacturers in that line alone. “Nor is this the whole story. Each of these manufacturers, in his own home town, where he carries on his business ' and actually makes his wares, is subjected to an additional tax against his manufactures. The more he manufactures the more taxes he pays; his factory is taxed—the better is it the higher the tax; his machinery is taxed, he pays a fran- chise tax, an income tax, various and sundry license taxes—and all of these taxes are added into the price that is paid by the house builder and buyer. Thus all building operations are made more expensive—and with the natural tendency of such higher costs to re- duce the amount of such products that are sold. Thus, in his turn, the manufacturer has a lessened market and makes less manufactures, there- by employing less labor; and labor, thus earning less wages, has less money to spend in the general mar- ket of all manufactures. Question One of Business. “This whole question is one of sim- ple good business. We can help busi- ness by making taxes least burden- some to business. “I have already quoted Roger Bab- son. Let me quote him again. He sald in a recent article on taxes: ‘Taxes are pald from surplus, not from gross income.’” Then he goes on to say: ‘Directly or indirectly the cost of government absorbs a very large portion of surplus of the individual, and thereby vitally affects recre: ational and educational life, invest- ment and building up of capital ac- count and attainment of financial in- dependence., Where public expendi- ture constitutes a first lien on surplus account, it increases by perhaps 50 per cent or 100 per cent the period during which the thrifty man must work to -bulld up a surplus account which will support him in his old age. “That is why I say I want to see taxes not merely reduced but lifted oft the backs of industry and thirft.” “But,” I asked, “how are we to do this?"” Must Interest Public. “Many remedies have been sug- gested. It is a big problem and re- quires study. I think we must have the public mind directed to the un- sclentific, messy and woolly-witted methods of taxation under which we exist. We must get people to think not mer'ely about high taxes but about burdensome and crippling methods of taxation. Then the States and cities can provide bodies for studyving the subject and finding intelligent ways out. “For instance, the taxing of land values is one method proposed. I know many persons will cry ‘single tax!” at this. Of course I think we are now too intelligent a people to be frightened by names. But I am not speaking of the single tax. Such an intelligent and eminent authority on political economy as Prof. Irving Fisher is not a singletaxer, but he believes in taxing land values rather than improvements and industry. “The great aim is to take the burden off of effort, off of produc- tion, off of manufacture and industry; to distribute the burdens of taxation according to some sensible plan so that they will be at least felt by the communities. Our tax systems in every State need thorough overhaul- ing in the interest of the business man, the farmer and the wage earner. ‘We have drifted too long in a mud- dle of unscientific taxation. We must extricate ourselves from the snarl. .‘3.:'.’. I am speaking as a business could be to severe. Let Mr. Wheeler look to it. * ok ok ok A Plea.—Seldom has the appear- ance of any document in the public press attracted more attention than | that on October 20, of “A Plea” for the removal of restrictions upon Eu- fopean trade. What really attracted so much at- tention was not the character of the document (similar pleas have been published before and some not less happily worded), but the two-column array of signatures thereto, including many of the greatest names in indus- try and flnance of 15 nations of Europe and of the United States of America. The plea is in harmony with “the spirit of Thoiry,” with that powerful tendency of which the most striking manifestation to date was the recent pan-European congress held at Vienna under the inspiration and direction of Count Coudenhove- Kalergi, the which congress gave its blessing to the count’s pan-Europe program, which has for its goal the Ppolitico-economic federation of Europe —not merely a European customs the central banking institutions of the United States, England and the European continent, to be followed by flotation of an international loan in the neighborhood of $100,000,000, at least half thereof to be offered in the United States, under the auspices of a syndicate headed by J. P. Morgan & Co. * K ok % China.—As usual, our information concerning the doings in China is dis- appointingly meager. Apparently_the Cantonese under Gen. Chang Kai- Shek have had important successes against Gen. Sun Chuan Feng, super tuchun of the five “lower Yangtsze” provinces, but it does mot certainly appear that the latter is done for. One is glad to hear that Wu Pel Fu, hav- ing reorganized and_recruited his strength north of the Yellow River, is about to make a diversion in aid of Sun Chuang Feng. The Cantonese leaders are exploiting to the full the Mythus of Sun Yat Sen, worth 1,000 battalions to their cause. That name is a rallying cry as potent as St. George to Englishmen or Santiago to , Spaniards of old. Lovers of China are grieved to learn that the Cantonese are leveling the ancient walls of Wu Chang. * X X ¥ United States of America.—Our for- eign trade balance for September was favorable by $105,000,000, exports con- siderably exceeding those for any previous month of the year. Our bal- ance for the first nine months of this year was favorable by only $87,000,- 000, as against $423,600,000 for the corresponding period of last year. Perhaps we are not lending to for- | eign countries as fast as could be wished considering our superfluity of i gold, but we are lending a good deal. According to the Department of Com- merce, during the first nine months of this year we lent to foreign coun- tries (new capital refunding opera. tions not considered), $728,000,000, this being 70 per cent of the total loaned in 1925. Germany was the heaviest borrower, taking nearly a third of the total and over 50 per cent more than the rest of Europe together. It is asserted that Queen Marie is responsible for the new vogue of wine shades in women's garments; all shades of red wine, but burgundy in particular. This is a supersubtle mode tion. Prohibition of liquors ef alcoholic content greater than 12 per cent was union, but a United States of Europe. The plea has provoked the asser- tion of counter-arguments, has whipped into fame a logomachy al- ready in progress. If that flame is kept continuously and substantially fed through the rolling lustrums ahead, a United States of Europe may emerge. The plea applies to Europe alone. To see in it, as many do, criti- cism of the United States. is to see what is not there. Quite the con- trary is true. The plea contemplates for Europe elimination of economic barriers between the States thereof corresponding precisely to that ab- sence of such barriers. between the States of the United States of Amer- ica, which is a main explanation of the unexampled prosperity of the lak!rr S to whether or no universal f; trade might be a desirable mm’.:: step, that is quite another question. * K ok % Miscellaneous.—The weekly state- ments of the Bank of France continue to show steady improvement in the condition of the bank and that of the treasury; modest, but definitely re- assuring. A total of 25,295,000,000 francs collected in French taxes during V;;l‘; ;i;:tn:or‘;lo%mths nthlBZG. as against 18, or the corres) - riod of 1925, EfRbilals A 3,000,000,000-franc loan for the benefit of the French sinking fund has been oversubscribed. For the first time since the estab- lishment of the Czech Republic the large German minority of 3,500,000 in that state is now represented in the Prague cabinet. That remarkable new state takes up its problems one by one, coolly considers them and ef- ficiently solves them. She solves them, observe, without thought of a dicta- torship. Her record is peculiarly reas- suring to hopes of democracy. Mgr. Ignatz Seipel is again chan- cellor of Austria; a fact upon which Austria is to be congratulated. Still no news of importance from Poland or Spain; presumably the cen- sorship 1id down hard. For the present, at least, the strug- gle within the Communist party of Russia between the section in power, headed by Stalin, and the section in opposition, headed by Trotsky, is over. of ~circumventing prohibition for which, po language Zeprot 'rmtak)h-. an;l lhewmh:‘;sdoppnamcn chiefs have formally no Stalin of thetr - unconditional-gurxendan SENATE SOON TO MEET TO TRY FEDERAL JUDGE Will Sit in English Case as Impeach: - ment Court First Time in BY JERRY O'LEARY. OR the first time in 13 years and the tenth time in the his- tory of the Nation the United States Senate will convene within a few weeks as a court of impeachment for the trial of a Federal official. The impending case is that of Fed- eral Judge George W. English of the eastern district of Illinois, against whom the House of Representatives last April voted five articles of im- peachment, involving proceedings in bankruptey cases, alleged usurpation of authority over State officials and alleged improper treatment of mem- bers of the bar. Before adjourning for the Summer the Senate went through the prelimi- nary steps of administering to its members the special oath required and by receiving the charges of the House and the answer of Judge Eng- lish. In his answer the judge denied all of the allegations recited in the five articles and asked “that he be discharged of all matters and lhlnz‘i alleged against him in said articles.” Ready to Proceed With Trial. ‘With these formalities completed, the Senate will be ready to proceed with the trial when it reconvenes on November 10. The House will not meet until the usual time in Decem- ber, which will give the Senate prac- tically a month to devote to the im- peachment trial before the legislative session gets under way. The prosecution in an impeachment trial i3 conducted by a group of members of the House of Representa uives, who are called the House man- &gers. The officlal against whom the charges are brought is represented by counsel, as in any court procedure. The Senate has a special set of rules for its guidance in conducting impeachment trials, which indicate the form of procedure. An outline of them is timely with an impeachment trial about to begin. The rules pro- vide, for instance, that the presiding officer of the Senate may rule on all questions of evidence and incidental questions, which shall stand as the judgment of the Senate unless a Sen- ator asks that a formal vote be taken, in which case the question is sub- mitted to the Senate for decision. The presiding officer also has the option of presenting a question to the mem- bers for a vote in the first instance. Presiding Officer to Rule. All motions made by the parties or their counsel are addressed to the presiding officer, and under the rules he or any Senator may require that it be in writing. Witnesses, the rules say, shall be examined by one person representing the party presenting them and cross- examined by one spokesman for the other side. If a Senator wishes a question to be put to a witness or to offer a motion, Thirteen Years. the rules provide it shall be reduced to writing and put by the presiding officer. The doors of the Senate are kept open during the progress of an im- peachment trial unless the Senate shall direct that they be closed during deliberation on decisions. After all witnesses have been heard —and indications are there will he a long list of them in the forthcoming case—closing arguments are mada & in any court case. The House of Rep resentatives, as the prosecuting agency, is entitled, under the ruies. to open and close the final argumenta. Then comes the final questi~n cf whether the impeachment is fo be sustained or the accused persoh a quitted, and on this the rules provide for the yeas and nays, with the stipu lation that the votes of two-thirds of those present is necessary to sustain a charge. Previous Trials Cited. The nine impeachment trials con ducted by the Senate in the past in volved one President, one cabine: member, one Senator and six judges. The following is a summary of the cases: ‘William Blount, Senator from Ten nessee, charges dismissed for want of jurisdiction, he having previously re signed. The case was pending during December, 1798, and January, 9. John Pickering, judge of a United - States District Court of New Hamp- shire, removed from office; case pend- ing from March, 1803, to March, 1804 Samuel Chase, assoclate justice of the United States Supreme Court, ac quitted; case up from November, 1804, to March, 1805. James ‘1I. Peck, jidge of United States District Court in Missouri, ac quitted; case up from April, 1830, to January, 1831. West H. Humphreys, judge of United States District Court in Ten- nessee, removed from office; case ex- tended from May to June, 1862. Andrew Johnson Acquitted. Andrew Johnson, President of the United States, acquitted:; case extend ed from February to May, 1868. William W. Belknap, Secretary oi ‘War, acquitted; case extended from March to August, 1876. Charles Swayne, judge of United States District Court in Florida, ac- quitted; extended from December, 1904, to February, 1905. Robert W. Archibald, associate judge of United States Commerce Court, removed from office; case ex- tended from July, 1912, to January, 1913. When President Johnson was tried the Senate was presided over by the Chief Justice of the United States Su- preme Court, as provided for in the Constitution. The Johnson trial re- volved principally around his action in seeking to suspend Edwin M. Stan- ton as Secretary of War. France Blames America for Plight And Fears Foreign Yoke From Debt (Coniinued from First Page.) against the Americans held respon- sible for the ruin of France. And I cannot disguise my convic- tion that France is slowly but surely approaching the ultimate disaster of national bankruptcy and complete repudiation. The confidence of the people has been destroyed, there is | little hope and there is no real lead- ership to do now what Clemenceau did in 1917. When Poincare came in he found that the Chamber was two to one against the ratification of the debt settlements and the Senate three to one. He found, one must find generally, a feeling in France that even present ruin would be more tolerable than what seems to be the alternative, namely, enslave- ment to America for two genera- tions. I am not here engaged in defend- ing the French point of view or in any sense justifying it. But it seems to me of utmost importance that it should be clear to the American peo- ple what the French people, all of them, believe of America. They be- lieve that we have resolved for our own profit to enslave France, to con- trol it by financial levers and to use the debt claims as a means to p sess ourselves of all that is best most prosperous in French finance and in French business. “The en- slavement of Europe,” which seems an odd and even fantastic phrase to Americans, is one of the most fa miliar and accepted all over Europ but nowhere more than in France, The resistance to the American debt settlement is not a govern- mental or primarily a political thing. Business and finance in the main advocate ratification; as a mat- ter of sheer opportunism the politi- clans are divided. The true objec- tion comes from the heart of the mass of the people, who talk of the American invasion in 1926 as they did of the German in 1914 and with- out finding any reason to explain American hostility sorrowfully an- nounce it. * ok ok ok “Better bankruptcy than foreign servitude,” that in a very real sense sums up the present sentiment of the mass of the French people to- ward the American debt question. “We are willing to pay what we can pay, but never without an agree- ment that we shall not be asked to pay beyond our capacity.” And al- ways in the end in discussion with Frenchmen one comes back to the same question: “Why does America wish to destroy us, why the hos- tility? It cannot be merely busines because in the end it is bad bus ness to destroy a great customer.” And always behind the question is the inevitable suggestion of some deep and sinister motive, some de- sign to seize the control of Europe, some combination of dollar im- perialism. | been exhausted, | resemble the process of bailing ernment of “all the talents” which came when all party combinations had just as helpless as its predecessors; it is just as divided as to the remedies; it is, in fact, just as much the victim of circumstances. It is indulging in a variety of neces- sary but minor economies, but they a leaky boat with a teaspoon. They do not know whether the debt settle- ment could be passed through Parlfa- ment if they should try; they do not know whether they should try. A ministry of national concentration and of “all the talents” is just as - helpless as was Herriot or Painleve or Briand. Before this article can be published in the United States.the franc may have fallen enormously, it may have collapsed, although no one expects any such colossal change. It may have fallen only a little, but the same situation of uncertainty will almost inevitably remain, and the belief that for the still mmt-nduu. ruin of France the United ates is exclusivel re. sponsible will have de converts within and without K net * ok x K I have been in France ann: for all the years since the war. For the past foyr vears I have found the situation worse each time, it was WOl se last Spring than the year be ; it is infinitely worse now than st Spring. There is not on the sur- face the smallest indication of any olution, of any man or measure which would bring relief. It is co ceivable that in a fit of desperation, on the wings of a new panie, Poin care, who is still wavering, may force the debt settlement through, but I dé not see how that can save France. France, Belgium, Italy—all three for varying reasons—are on the edge of financial collapse; if one goes all will certainly go. 'Politically the Ital- ian situation is strongest, economical- ly the French is best, but the mone: tary situation of all three seems al- most hopeless, and in all three nations the responsibility is fixed upon us for our debt policy—as it is in Bri tain, suffering terrifically from its coal strike and still maintaining fts debt payments. Perhaps I can best express what [ mean as to the French situation by saying that from the moment I en tered France until that in which I quitted French territory [ found no well Informed person who had any real hope, any unmistakable confi dence in the future. contrast I encountered an almost fatalistic resig nation to ultimate ruin, accompanied by more or less passionate resent ment of that American policy, which was universally regarded as respon- sible. (Copyright. 1926.) . Women Create Problem For Irish Free State The franc falls mainly because the French people who have money have | lost confidence in it and have taken | their money across the frontiers. It | falls because the burden of debt is too | heavy, and it is impossible to balance | a budget while a currency is falling s0 rapidly that the additional returns | of a new tax are neutralized over- | night by a fresh fall of the franc. The present business activity is in the | main a delusion, as every political economist knows, because it is no more than a classic symptom of in-| flation and in the end represents a real export of capital. * X X % The cost of living mounts as the| value of the franc falls, the conditions | of living of masses of people become | more difficult, the possibility of social | unrest and disorder increases. But dis- | turbing beyond all else is the tragic | sense of uncertainty. There is no man in France, however, placed in finance or business, who would venture to| forecast for you what may have kap- | pened by this time a month hence. Ail | fear, a few hope, but no one pre. tends to know. The Poincare government,. the gov: The Senate of the Irish Free State has no power to defeat any act passed by the Dail. It can, however, delay operagion for 290 days. Conflict be. tween the two houses is generallv avoided by compromise to avoid this delay. But one case has-arisen on which agreement proved impossible. The constitution prescribes absolute equality of man and woman. This created some embarrassment in the |appointments to the civil service, { which are by competitive examina- tions. Considering some offices un | suitable for women, the government passed through the Dail an act giving the cabinet ministers a discretion The finance minister declared that he could not send a night patrol of | women to prevent smuggling on the | Ulster border, and gave several ex- amples of feminine unfitness for posts wolmen might gain by examination. The Senate sided with the women, in-. sisting _on complete equality. The government stood firm, and by the lapse of the 290 days the bill u now,