Evening Star Newspaper, December 9, 1928, Page 50

A Dawes Plan for (Continued From Tii Page.) women and children were beaten and woused. 3 Not only are hordes of soldiers qua~- teréd upon wretched towns and villages, but requisitions are made on them of | smoney and goods in the name of the Nanking government. These funds never reach the treasury, but are em- bezzled on the way. In Peking 2.000 prisoners are unfed; the keepers have no money to buy food and are unpaid themselves. The much- advertised schools cannot open; there are no funds for heating nor for pay- ing the teachers. Often thousands of civil government employes have not re- cpived any wages for months. The whole organization of govern- ment hes gone to pieces during the 17 years since the overthrow of the Man- chus and the proclamation of the so- called “republic.” The last penny is squeezed out of the unfortunate tax- payers in the villages and towns, with hardly any pretense of legality. At first taxes were collected by a governor for several years in advance, while the next governor did the same thing, pay- ing no attention to the tax receipts of his predecessor. Now the wealthier in- haebitants are assessed according to their supposed ability to pay—and are Jailed until payment is made. Impris onment, in China not only means physi- cal suffering. but often death, as in many places the prisoners receive food and attention only from their familics, and the jailers have to be bribed to per- mit even that. Economiec Side of Picture. So much for the suffering of China's fmmense population. Now let us take a brief look at the economic side of the picture. The whole situation is much worse than that of any Western European country at the end of the World War. The “War Lords” of the North and South for years not only have used the railroads for military purposes, disre- gardipg the crying need for the move- ment of freight, but they have taken the receipts to pay their troops, leaving nothing_for employes' salaries or re- pairs. Rails are worn out, ties are rot- ten, bridges have been destroyed. en- gines and cars are useless for lack of essential repairs. It will cost more than $50,000,000—perhaps double put the railways in condition. Tax receipts of the Nanking govern- ment are entirely insufficient to pay the expenses of the army and civil govern- | ment—even if the funds were not em- bezzled or allotted te generals to'pay their armies. The customs and salt monopoly revenugs are assigned for the payment of foreign and domestic loans of past governments of China. ‘The credit of the government is worthless, owing to past defaults and the anti-foreign policy of the Nanking Natfonalists. ~ Since 1894 it has been necessary to secure all loans upon rev- enues collected by foreigners in the Chinese service, as the notorious graft- -ing of Chinese officials of all ranks, from President down, mekes both foreigners and Chinese unwilling to trust them with funds. While the nation was a prey to civil war the governments of both the Na- tionalists and the Militarists had a valid excuse for neglecting the welfare of the people. But the recent sweeping victories of the Nanking government now enable the Nationalists to take steps to relieve the crushing misery of the whole country—with the exception of a few favored spots like Manchuria, where Japanese influence has spared the country from calamity, and Shansi, under the “model governor,” Yen. Young Idealists At Head. ‘The Nationalist government, however, ¥ largely composed of young idealists, often educated abroad, whose main ob- Ject in life is to carry out new theories which are quite unsuited to existing circumstances, or to’ Chinese character and traditions. Instead of concentrat- ing on saving those who today are dying af starvation, they are devoting them- selves to writing new constitutions to add to the others of the same kind, which have not worked. Virtually nothing has besn done to carry out any of the much-advertised paper reforms of disbanding the useless and dangerous army, improving agri- culture and industry, organizing educa- tion and a civil service, currency reform, tax reduction, the ending of tion and bribery, road building, the ing of canals, the building of flood dikes, motor and cart roads, and railway con- struction. Back salaries of military and civil employees are still unpaid, few get their current wages and a special - uated income tax is imposed upon those fortunate enough to get any payments. General Dissatisfaction. ‘There is general dissatisfaction and disappointment throughout China at the failure of the Nationalist govern- ment to improve social and economic conditions. Even its own adherents are Solid Gold Lady’s WRIST WATCH 14kt., 15 jewels, ree- $15 tangular shape, a very special value at OTHERS TO $200 Gent's Open-Face WATCH 14kt solid gold, 17 $35 jewels, Waltham OTHERS TO $150 movement, Special at .. Gent's STRAP WATCH Elgin_move. $13.50 ment. SPECIAL’ TO $100 AT. We Carry a Complete Line of All Standard Makes of Watches Sterling Silver T Sterling Silver Mi Sterling Silver Cigarette Seth Thomas Clocks... ENGRAVING FREE A § FOR CHRISTMAS. Jeivelers 1317 F Street N.W. E DWARDS & that—to | China? grumbling. Its problems grow more pressing and dangerous each day, and yet the officials waste their time on talk and paper plans. They attribute thex‘x: misfortunes to “foreign imperialism and thus try to evade responsibility. What is indispensable is to restore the | credit of the Chinese government and ; | to renew confidence in its leaders. Both |are entirely wanting, and no plan yet advanced by the Nationalists seems cal- culated to improve r-~tters. On the contrary, all their policics seem designed to make it impossible to apply the only possible remcdies, | The first nced of China is the recon- | struction of its existirg railroads and | the building of new ones, combined with | the bullding of highways and disband- ment of the army. This program would afford employment for the soldiers and give them an alternative to banditry. Some Problems Ahead. Hundreds of millions would have to [be paid for these public works and | flood control. A low estimate would be $500,000,000. It would take at least 1$100,000.000 to give $50 to each soldier and pay his way home. This would have to be paid at once. The faminc- stricken regions should be fed through | the Winter. Something should be given | |to the teachers and civil servants. The | | prisoners and police should be taken | | care of if order is to be restored. Some |of the shorter railread lines would re- | | quire at least $20,000.000 each to ut | them in running ‘order, not counting back wages. |~ Where are all these hundreds of millions to come from? China today owes about $500.000.000, this including loans, to which must be | added the unpaid interest, the floating debt and seve:al hundred millions in | forced loans from Chinese bankers and | chambers of commerce. Perhaps the | total is about $1,000,000,000. The pres- | | ent revenues are insufficient to pay the | current expenses of the government, in- | cluding the interest on loans secured on | the customs and salt monopoly. The | receipts from the new tariff and other | sources will ;not balance the budget. | | _The Chinese government is bankrupt. | | Past defaults have wiped out its credit. | | Neither foreigners nor Chinese will | | lend more. i Bankers are Cautious. | | The mein errand of Mr. Sun Fo, son | of Sun Yat-Sen, the “George Washing- Iton” of China, former minister of | finance and now minister of railways, | during his recent visit to the United | States, was to endeavor to borrow these necessary sums from American bankers. He says that he found them “interested, but cautious.” The bankers told him their terms. The cutstanding debts of the Chinese government must all be paid or founded | before any more lcans would be ad- | vanced. This means that money must | be provided to pay the bills of Ameri- cans and other foreigners, the huge | floating debt and the arrears of wages | and salaries. No one knows the amount | of these. Compromises probably will have to be reached on the salaries and wages, and a commission will have to pass upon foreign claims. The corruption and embezzlements of the Chinese officials of all classes make ( foreigners unwilling to lend except upon | definite security, where the receipts, like these from the customs and salt mo- nopoly, are collected by foreign officials in the Chinese service and deposited in foreign banks. Chinese: officials and banks cannot resist pressure from gen- erals and other high officials who need | the funds. But one of the main objects of the Nationalists is to get rid of th for-. eign officials and replace them by Ch! EST. 1879 Christmas Specials in QUALITY Charming is the jewelry that comes from this reputable store —and rebiable as well, for we sell only what we can co . tiously recommend for quality. A great variety of fine gifts to select from. Come early and take vour choice, A 50.point stome, perfect and white, set in platinum. An exqu Spe: 517 OTHERS TO $2000 Diamond BAR PINS from $25 to $500 Diamond FLEXIBLE BRACELETS $25 to $800 We carry a_complete line of the latest styles in Ladi nd Gents' fancy stone rings. ...$25 to $100 L2815 to $50 ...86.50 to $25 ..$1250 to $100 MALL DEPOSIT RESERVES ZANNER C THE SUNDAY STAR, WASHINGTON, D. C, DECEMBER 9. 1928—PART 2. nese. of credit will be gone. Foreigners have no confidence in the young Nationalist leaders and their pol- icies of driving foreigners out of the Fhineee service, of taking away the | toreign w. iiscsante and cancessions and of subjecting the foreigners to the c~v- rupt Chinese courts. These facts may make it impossible for the Nationalist government to secure the money and competent engineers, financiers, experts and teachers, without whose experience and skill the necessary reorganization cannot be made. Even Dr. Sun Yat-Sen realized the situation, for in his book, “The Three Principles of the People,” which is the Bible of the Nationalists, he wrote: “If | we wait until we ourselves have enough capital before we start to promote in- dustry, the process of development will be exceedingly slow. So we shall cer- | tainly have to borrow foreign capital to develop our communication and trans- portation facilities, and foreign brains and experience to manage them.” The same type of plan which reha- bititated Germany would bring about the revival of China. If the authors of the Dawes plan were to visit China at | the request of thé Chinese government, bankers of all countries would accept their findings. Any system of reor- ganization they might recommend would have not only the weight of iis own merits, but of their distinguished personalities as well. The young Na- tionalist leaders could adopt their rec- ommendations without LERPEREREREREZRERERERECRERERERVERE %%%%%%@%%%;% “losing face,” With the purchase of end in addition, your No. 873 ORIOLE A very attractive popular model. Six enamel ; full enamel linings. W%’%@’%@@’%%‘%%2’éfi%%%’é%%’&%%’é%%%W%%%%%%%%%Wm%%%’%@%‘%@%— 4 Bk i Fof | If this is done the last remnants 16x18-in. ¢ deferring to the acknowledged financial experts of the whole world, where it might be difficult for these leaders to nut ,into cffect the plans of éven as eminent an individual as Prof. Kem- merer, Some Things Certain. | A carciul investigation of the whole | subject, of course, would precede any | recommendations, but certain conclus sions seem almost certain. | In the first place, foreign bankers | would insist upon the collection by ex- | perienced foreigners of all the rcvenues | assigned for the payment of interest | and” charges upon the existing loans and new ones. The proceeds would | have to be deposited in foreign banks until Chinese banks had gained the confidence of the community. The in- creased customs revenues from the new taritf would at least double the present income from this source. If the’sys- tem now operating in the customs were installed in the salt monopoly, as has so often been recommended, the reve- nue would be about tripled with no extra cost to the consumers. If the same arrangement were extended to the spirits and tobacco taxes, it would bring in another $100,000,000, which is now dissipated before it reaches the treasury. . In Germany the railroads were re- moved from the general government ad- ministration and unified under a sepa- rate corporation. If this were done in China the income would be greatly in- creased, great economies would be pos- NEW SHOPPING HOURS: 8 A.M, to 6 P.M. Beginning Tomorrow! r the convenience of those employed, otir New Business Department will be open daily (including Saturdays) from 8 AL to 6 DAL, until December 22. day for years to come. Gatland, Tappan and Smoothtop GAS RANGES (With Oven Heat Control) ‘What more appropriate gift than a MODERN Range with OVEN HEAT CONTROL to replace that old, worn out and out-of-date stove? You will make no mistake in selecting_any one of these four natlonally-known standard makes—ORIOLE, GARLAND, TAPPAN and SMOOTHTOP. any Range at its regular price (with oven heat control), we will make— A Liberal Allowance for Your Old Range choice of one of a number of useful articles—our Christmas Gift to You. Pre-Christmas Range Sale That Offers Substantial Savings At 8 a. m. tomorrow morning we shall place on sale two of our most popular style ORIOLE Ranges at price reductions (Cempletely Installcd sible in operation, excha of cars and locomotives would be permitted and gen- %rl:’l e};flcl;x:y would be at leut‘floublgd‘. s has nWmnnytmen. uf always rejected by the Chinese. There are possibilities of income and stamp taxes under certain conditions, while the land taxes could be reserved for the provinces and cities. Administration of Finances. The commission would be expected to | produce a complete, detailed plan’ for | the administration of finances, includ- Iinn a reform of the currency and a banking system modeled after the Fed- eral Reserve System of the United States, with perhaps somée features | copied from the central banks of Europe. A scheme for preaudit as in Persia and the Philippines would be necessary, as well as devices for insur- ing the honesty of officials in the financial departments. It would, of course, be necessary to have international control, as ‘in Ger- many, of the revenues required for the service of the huge international loan, nished by the United States. It seems probable that the Chinese government could be assured, by adopt- ing the plans recommended by a “Dawes Commission for China,”, of ample rev- enues to pay its expenses, including in- terest on its existing and future loans, | with a surplus for public works. If the government received the taxes actually | paid by the people, it would have enough now. Additional revenues which would result from the development of most of which would have to be fur-| | mines, agriculture and industry, with safety for life and property and an hon- cst and efficient administration, would be amazing. Consequences Are Cited. The consequences of such a reorgan- ization would be a complete change in the whole economic organization. At first there would be great importations of machinery and other means for im- %:’oving agriculture and industry. Ex- rts would be enormously increased. The demand for labor in industry and agriculture would elevate wages and raise standards of living. Plenty would replace famine; prosperity would drive out misery. China would revive as Ger- many has done, for the greatest wealth of China is the character of its peo- ple. And if the Chinese ple are given a chance they will work miracles. Practically every one who know: China is enthusiastic over its potentiali- tles. The great agricultural, mineral and industrial resources of the country, combined with the unusual intelligence, industry, perseverance and thrift of the people, would make it quite possible for the ravages of civil war and famine to be repaired in a relatively short time. Under proper methods the recovery of the Chinese people from any catas- trophe is one of the most marvelous things of the age. The whole of Cen- tral China was devastated during the Tai Ping rebellion of the last century. The loss of life at that time has been estimated at from 20,000,000 to 50,000, 000. In less than 50 years the ravag had been obliterated and the rapid in- The Modern Servant-(3 A S - Cooks THIS Christmas, let the gift be a modern Gas Appliance for the home. A gift that will relieve the busy housewife of all care, and will not only be welcomed and appreciated on Christmas Day, but every HERE, at Gas Appliance’ Headquarters, are all the new appli- ances; come in tomorrow and make your selection; we will arrange terms of payment to suit you on any appliance you select. Note the crease of population had more than made up the deficiency. Even during the recent civil war, trade, agriculture and manufactures ha'v;c continued in spite of every diffi- culty. | Vast areas now uncultivated because | flood dikes have not been repaired could be opened to profitable farming. In | one case, an American engineer con- | nected with the famine relief, by in- | telligent expenditure of $200,000, pro- ' tected from the annual floods a district upon which crops valued at $5,000,000 were grown the next year. The operating expenses of Chinese railways are so low that they pay enor- mous profits from the start, even if their rates are exceedingly low. Shall the self-conceit of a few young | idealists and their anti-foreign propa- ganda, quite contrary to the precepts and teachings of their revered master, be permitted to rivet the chains of famine and misery on 446,000,000 hu- man beings—nearly one-quarter of the human race? Should not one of the first acts of the new President, the victorious Marshal Chiang Kai-shek, be to communicate with Owen D. Young and ask him to arrange to visit China with his former assoclates to rehabllitate another great nation and devise a “Dawes plan for China"? . A total of 2,976 languages spoken | throughout the world is given by an| expert from carefully compiled statis- | tics from the various countries. The Humphrey Radiantfire Portable or Fireplace Inset Comfortable and healthful heat when and lace up-to- gift for the special offers on several of the appliances shown below. Ruud, Pittsburg and Loveko GAS WATER HEATERS (Instantaneous—Automatic) Here s a most useful gift for the home, and one that will be enjoyed for years to come b every member of the family. 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