Evening Star Newspaper, August 4, 1929, Page 29

~ Editorial Page EDITORIAL SECTION he Sunday Shar. Part 2—8 Pages VAST BURDEN OF DEBTS SHOWS NO ONE WON WAR Glory Dims as Weight of Enormous Cost Presses Nations, Says Writer. BY FRANK H. SIMONDS. ITH the termination of the French debate over the question of the war debts one fact at last emerges clear and ‘unassailable. Viewed from the financial side, there was no victor in the last war, and measured by the continuing costs of the conflict in taxes there is little to dis- tinguish the plight of the defeated from the state of the successful. If one assumes that, as a consequence of the Young_plan, German obligations have been fixed and the conditions of the settlement will be met, one can with fair accuracy summarize the whole situation. Of the great powers immediately con- cerned in the conflict, exclusive of the Austrian empire, which has disappeared, and the Russian, which is for the pres- ent out of count, Great Britain clearly presents the worst case. Her national debt, which was inconsiderable before 1914, today amounts to some $38,000,~ 000.000. If the Young plan and the settlement with her recent allies guar- antees to the British reimbursement for the sums to be paid to the United States amounting to some $4,000,000,000, she must_herself shoulder the major bur- den of $34,000,000,000. French Case Hard to Estimate. The French condition is somewhat more difficult to estimate, as a conse- quence of the fact that France has al- ready. by revaluing her franc, reduced the total of her national debt by four- fifths. But one must perceive that this process has amounted to no more than a capital levy. Despite this heroic operation, the domestic debt of France remains in excess of $12,000,000,000, while she owes abroad sums which, given the present value of her settle- ments with the United States and Britian, stand at some $5,000,000,000. As France will receive from Germany enough to discharge these debts and something to meet her reconstruction costs, she finds herself today with a net domestic debt of above $10,000,000,~ 000, as against $6,000,000,000 in 1914 and, in addition, she has lost an even Jarger sum incident to the depression of the franc. Germany, for her part, having paid some $3,000,000,000 on account of rep- arations, is now bound to pay & further sum_representing a capital amount of $9,000,000,000, making a total of $12,- 000.000,000 chargeable to the war. The Young plan total is several times larger than the national debt of Ger- many in 1914 and, in addition, inflation and repudiation have resulted in a capital levy even greater than that of France, which has not only wiped out the liquid capital of Germany, but has doomed her to be a debtor nation com- mercially for an indefinite period. What United States Shouldered. Looking now to the situation of the United States, it will be perceived that, although we were a late comer, only the most prejudiced could believe that our belligerency resulted in profit. At the close of the war our national debt had risen from nothing to $26,000,000,- 000. Since that time we have paid off approximately $9,000,000,000, of which more than $1,000,000,000 was repaid by allied debt service, but there remains a total of very nearly -$17,000,000,000. As against this sum, ihe present value of the debt settlements is around $7,- 000.000,000. Thus we have still to find in taxes the principal and interest of $10,000,000,000. . It is true that before we became & belligerent we did enjoy a period of prosperity and, through the sale of war materials and foodstuffs to the nations at war, we did add very considerably to our national capital. No reasonable and competent expert can, however, support the thesis that our profits in that time were anything like the $18;- 000,000,000 in national borrowings which we were left to pay off by domestic taxation at the close of the conflict. For the future, then, o modern in- dustrialized nation can fail to perceive that any war must be for it a losing venture on the financial side. It is true that on our side of the Atlantic a good deal is said about the gains of the European victors in territory. But aside from the French profits incident to the recovery of the rich mineralized regions of Lorraine and the agricultural assets of Alsace, it may fairly be doubt- ed if any great power has found its territorical acquisitions anything but a drain upon its treasury; and the French gnln of course, does not even remotely alance the capital losses of the conflict. Again, while Germany was stripped of her commercial fleet and the ton- nage largely allocated to Britain, the result was little short of a calamity for the beneficlary, for Britain was supplied with a tonnage largely in excess of the needs of & world paralyzed by the strug- gle. Britain has thus had to maintain a great fleet of uln? ships, during a time of low and relatively restricted Ireights. Her shipbuilding industry di- rectly and her iron and steel plants in- directly have suffered from the absence of orders for new craft. Finally Ger- many has been forced to rebuild her fleet and has, as a result, acquired a | wnolly new commercial armada, built on the latest models. The fact that the Bremen has now wrested the blue pennant from the Mauretania is a sig- nificant indication of German progress and, since the Mauretania is of pre-war date, of British paralysis. ‘What is most significant about the consequences of the World War on the financial side is the fact that, territory aside, what was lost by the defeated has in very small part been gained by the victorious. On the contrary, Europe collectively lost the position of primacy, which it had occupied in the world financially and commercially. ‘While the several countries of that continent were engaged in a form of co-operative suicide, necessity and op- portunity impelled the Asiatic and South American countries, long de- pendent upon Europe for manufactured articles, to develop their own factories, and the United States, both while it was neutral and in the immediate post- war period when its own productive capacity remained unshaken, was able in part to supplant both Britain and Germany. European Partnership Possible. No sane man can argue that on balance the war has resulted in the re- duction of the number of national quarrels and racial issues that have menaced European peace ever since the American and French Revolutions first launched the modern principle of n: tionalism and the doctrine we now de- scribe as self-determination. Yet it is | worthy of more than passing note that at the moment when we are about to observe the fifteenth anniversary of the outbreak of the World War, the Foreign Minister of France, who has been many times its premier, not only advocates European partnership, but is met, not by opposition to the proposal, but rather by doubt as to the feasibility of what is generally perceived to be necessary. Thus while the World War at last revealed the unspeakable horror and agony of modern war, not merely for the soldiers but for civilian populations as well, the liquidation of the war, all the period from 1919 to 1929, has with Increasing clarity emphasized the finan- cial as contrasted with the human losses. And two generations which had no part in making or fighting the war are still to be confronted by the bill, | which will be equally formidable for the neirs of those who won and tnose who lost. Only Debt for Future. ‘The generation thal went to war with the expressed resolve to achieve a result that would save their sons from a similar tragic necessity have accom- plished little beyond transmitting to their descendants the bills for this ad- venture. While the legend of glory in- evilably grows dim with passing years, the reality of the tax bill cannot lose its vitality for at least 62 years, dur- ing the larger portions of which it will steadily grow in proportions. ‘The French people have been the last to surrcnder to the facts and dis- miss the illusion that the vanquished would pay. They have defended the old thesis with all the obstinacy their poilus displayed at Verdun and with all the brilliance their generals revealed at the Marne. But it has been a losing | battle. The struggle that began with the invasion of the Ruhr has ended with the ratification of the debt set- tlements and the acceptance of the| Young plan. There is then more than passing significance in the fact that, in the period which 15 years ago saw the out- break of the World War, Europe should be discussing’ the Young plan, France ratifying the debt settlements and great public on both sides of the Af lantic reading “All Quiet on the West- ern Front.” (Copyright, 1929.) Great Waste Ended by Manufacture Of Paper From Cornstalks and Cobs Chemistry has achieved another of |carbohydrates, of which about two- its great triumphs, and the world will |fifths are crude fiber, constituting the be the richer for it. This time it is cornstalks which have received the en- riching attentien of the chemist. News- papers have just been printed on paper made from cornstalks, a book is being printed on cornstalk paper, and the time is probably mot too far distant when Mr. Average Citizen will be eat- ing his corn muffins and reading a magazine made of paper grown in the same field as his muffins. Corn is the greatest agricultural crop of the United States. In value it ex- ceeds that of the combined wheat and cotton crog!‘ in spite of the fact that much of the corn crop is wasted. For the corn cobs and cornstalks are just as much a part of the corn crop as the kernels, but it is only the latter which are fully utilized. ‘The area under corn cultivation in the United States is about 100,000,000 acres or 156,000 square miles. The combined corn fields of the United States would form an immense plot 1,000 miles long and 156 miles wide without any waste space. The crop is about 2,750,000,000 bushels of corn, or 23 bushels for every man, woman and child in the United States. The value of the crop is about $1,700,000,000 per anfnum. Enormous Tonnage. The tonnage of cornstalks and cobs produced is enormous. Their chief use at present, if so wasteful a disposition may be called a use, is to provide a certain amount of fertilizer when burned. To a small extent the cobs are being used to provide a chemical known as furfural, which has several important uses, and is having its uses extended as it becomes more widely known. But furfural cannot in the immediate future use more than a trifling fraction: of the ccbs available. It s long been recognized thal cornstalks contain a material. which can be converted into paper pulp. The demand for paper pulp is large and steady and able to take up as much as the cornstalk industry could pro- duce even if it were highly devemm. But although it was recognized t cornstalks could yield ‘a suitable pulp for paper making, still the commercial aspects had not been worked out, and these presented serious difficulties. The cornstalks contain a little ofl, about 3 to 4 per-cent of protein, some mineral matter, 40 per cent of moisture when fleld dried. and about 50 per cént of t | per, material suitable for conversion into paper pulp. At most the stalks yicld 20 per cent of paper pulp and probably less in ac- tual practice. To make a ton of pulp at least five tons of stalks must be gathered, hauled to the factory and chemically treated. It is easy to see that a well planned system of gather- ing and transporting stalks must be employed in order to make such a ven- ture profitable. The problem seems to have been solved, however. The importance of this may be realized from the fact that if all the cornstalks of the United States were utilized the farmers would profit additionally to the extent of $300,000,000 to $500,000,000 annually. Besides, whole forests of trees would be saved from the lumberman’s ax. This would be conservation at its best. We would have the by-product material, cornstalks, converted to a useful prod- uct, whereas otherwise it would go to waste and be permanently lost, while our forest resources, which do not perish if left standing, would be saved to the extent that cornstalk pulp replaced wood pulp. Claimants to Be Many. We may now expect that all corn- growing areas of the United States will step forward with irrefutable arguments to prove that they are the logical sites for new cornstalk paper pulp factories. However, suitable water supplies and power facilities must available, among other things, in order to pro- duce a suitable site for a paper mill, and experience with the new material must be obtained as its use spreads. ‘The Danville, Tll., News issue of De- cember 15 was printed entirely on corn- cago, America's oldest agricultural pa- also had its December 15 issue rinted entirely on cornstalk paper. A undred tons of cornstalk pulp were required for these issues. The corn- stalk paper. The Prairie Farmer, Chi- |- WASHINGTON, D. C, BY RAYMOND LESLIE BUELL. HE simultaneous suspension of certain naval construction by the British and American gov- ernments is another indication of their determination to arrive at & naval agreement. On July 24 Ramsay MacDonald an- nounced to the House of. Commons that work upon the Surrey and Northumber- land, 10,000-ton cruisers, whose keels were laid down last year, would be sus- pended. He also declared that the 1929-30 naval program, which called for the construction of one more 10,000~ ton cruiser, would for the time being be held in abeyance. Thus the British government has suspended construction of three 10,000-ton cruisers, as well as certain lesser vessels. On the same day President Hoovey announced that he had suspended work upon the three cruisers started in Gov- ernment navy yards, the construction of which was authorized in the 1929 Navy law. This law provides that 15 cruisers shall be laid down by July 1, 1931. It declares that the President is author- ized to construct these cruisers in ac- cordance with a program under which‘ 5 cruisers shall be laid down during each of the fiscal years ended June 30, 1929, 1930 and 1931. President Authorized to Act. President Hoover has interpreted this law to mean that he has discretion to lay down these cruisers any time before July 1, 1931, Moreover, the law also provides that in the event of an inter- national agreement which requires ap- proval by the Senate, the President is authorized to suspend, in whole or in | part, any of the naval construction au thorized by the act. ‘The action of the British and Amer- ican governments in temporarily sus- pending the construction of 10,000-ton cruisers is an earnest of their good in- tentions—a proof of their sincerity. It also seefis that President Hoo¥er's ac- tion has strengthened the political po- sition of Mr. MacDonald, whose free- dom in regard to a naval agreement is restricted by a strong naval tradition in England and by a triangular parlia- BY DR. JULIUS KLEIN, United States. N the thriving community of Louis- ville, Ky, 30 grocery stores go out of business every month and 32 new add that this astonishing “mortal- ity curve” in retailing is not by-any means unique or peculiar to that city. It reflects a situation all too common small retailers everywhere in the coun- try. The revelation of it in this partic- ular instance simply means that the business community of that enterpris« courage to attack this problem of defec- tive distribution and to determine reso- lutely to go to the bottom of it, no mat- ter how unpleasant the process may be. forward-looking merchants approached the Department of Commerce to ask for assistance in making a thorough diag- nosis of the woes of the Louisviile gro- and experts from the department staff were delegated to take charge of the survey. As work progressed it soon be- came evident that the problem was pro- element in the city—not simply retail- ers, whose ranks were being so drasti- cally decimated, but also for wholesal- ers and jobbers, for bankers and real which were dependent upon their ad- vertising revenues—in fact, for every element in the commercial activity of the city. Assistant Secretary of Commerce of the ones are opened. Let me hasten to throughout the sorely tried ranks of our ing metropolis has had the acumen and ‘With that in mind, a number of its cery retailer. A fund was raised locally foundly significant for every business esiate operators, for the newspapers ‘The work had not progressed far be- stalks from the fields of Illinois farmers came back to them in the form of nted matter, and we may hope in e future that farmers will more and more read papers grown in their own corn fields. The farmers within 12 miles of Dan- ville are said to have received llm M{mm-mreomhln,m m of §3 to $5 per acre for their corn § | (Copyright. 1920 mentary situation in which the Labor party lacks a majority. At the same time the belief has been expressed in some quarters that Presi- dent Hoover is determined not to build any of the 15 cruisers authorized by Congress in the 1929 act except the two already contracted to private yards, regardless of the question of parity. ‘The fear that the present administra- tion at Washington has surrendered the American demand for equality should be dissipated by Prime Minister Mac- Donald’s statement to the House of Commons on July 24 that Ambassador Dawes and he h: ed “upon the principle of parity” and by Secretary Stimson’s statement on the next day that the doctrine of parity “is the only doctrine by which two proud and inde- pendent nations” can agree to be friends. ‘There is no doubt that the American government is committed to the gfin ciple of naval equality or parity with the British government, and there is no doubt that the British government has accepted this principle. It is no less certain that the United States is com- mitted to a second principle of naval reduction. both countries now is. Can these twin goals of parity and of reduction both be achieved? British Ahead in Cruisers. This question can be answered only after an examination of the British and American naval strength. As far as battleships are concerned, the British and Amer: fleets are ' substantially equal, in accordance with the terms of the ‘Washington naval treaty of 1922. There is no such equality, however, in regard to cruisers and destroyers. In cruisers the past inferiority of the United States is well known. Between 1890 and 1905 the United States laid down 22 cruisers, but for the next 13 years it ignored this type of vessel, con- centrating upon battleships. Today all of our pre-war cruisers have passed the 20-year age limit, and only 6 of them are in commission, 4 being in the spe- cial service squadron in the Caribbean, fore the news of this rather unusual ex- periment spread to other centers. Be- fore long the national organizations, not only in the grocery trade but those asso- ciated in other fields of distribution— the various associations of wholesalers, advertisers, publishers and bankers— soon realized that for the first time in the business history of the country there was being undertaken a !homuxh,olng diagnosis of the entire organism of our distributive system. & Here was to be staged an expert clinic of the most comprehensive and thor- ough type. Indeed, subsequent events have proved that these expectations were_thoroughly justified. The name of the Louisville Survey is now generally recognized throughout distribution cir- cles as an effort the reacttons of which are penetrating into all of the far-flung ramifications of our distributive ma- SUNDAY And the question before | — 1 in the Asiatic fleet and 1 at the New York Navy Yard. Finally, realizing that its Navy was overbalanced with battleships, United States between 1918 and 1920 began the construction of 10 cruisers of the Omaha class, each having a dis- placement of 7,500 tons and carrying a main battery of twelve six-inch guns. In 1924, two years after the Washing- ton Conference, Congress authorized the construction of eight 10,000-ton cruisers, a type authorized by the Washington naval treaty. In that year all of the leading naval powers began the construction of the large so-called treaty cruisers, and the inciplent naval rivalry since that date has involved this type of vessel, which did not ex- ist before the Washington conference. Fifteen Cruisers Authorized. In 1929 Congress authorized the con- struction of 15 more treaty cruisers. |1t this _program is carried out the | United States by 1935 will have in its |navy 10 six-inch-gun cruisers of the |Omaha class and 23 eight-inch-gun cruisers of the treaty type, making a | total of 33 cruisers, having a tonnage of 305,000 tons. | In contrast the British Empire has built and is building a total of 64 cruis- |ers, with a tonnage of 407490 tons. Thus the British government has nearly twice the number of cruisers as the United States and a superiority of about 102,000 tons. ‘The ratio in cruiser ton- | nage (assuming the construction of the |15 treaty cruisers by the United States) between the United States and the Brit- ish Empire is 8—6.61. These calculations | are based on the building programs be- fore the suspension of construction as |of July 24. According to these figures, the Brit- ish navy is superior in cruiser strength |to the United States. In view of the rapid obsolescence of many British cruisers, this superiority is really not as great, however. as it seems.” Upon | the “outbreak of the World War there | were 114 cruisers in the British navy. | This number was judged essential to protect the food supply of the British Isles and the communications of an chinery. It is no exaggeration to say that it has become a symbol of deter- mined curative effort against what long has been recognized as the gravest in- firmity now afflicting the business body of the Nation. And the gratifying thing about the undertaking is that it was not a dem- onstration of superimposed erudition— not a series of solemn oracular emana- tions from the mysterious seclusion of remote academic laboratories. It was & collaborative undertaking, under ex- pert guidance from the outside, it is true, but nevertheless with a major portion of the actual work of the in- vestigation carried out by those most concerned. For instance, when it came io the analysis and tabulation of the extent to which retailers were acquainted with the intricacies and imperative necessity of inventories, it was no uncommon thing to find wealthy merchants work- ing until midnight in their shirt sleeves down in some dingy corner grocery tabulating the affairs of the establish- | ment and going over its operations (or | ather the lack of them) with its be- | wildered but grateful owner. ! The whole undertaking was an ad- mirable though decidedly novel demon- the | fle MORNING, AUGUST 4, 1929. What Naval Parity Means Pre;ent Standing of American and British Navies—Widest Difference in Cruisers empire that covered a quarter of the population of the world, which had been threatened by a hostile German eet. Replacement Delayed. Many of the British cruisers reached the age limit during the World War. But during that period it proved im- possible for the British government to carry out a full replacement program and by 1921 there were only 56 first- line cruisers in the British navy, many of which would soon reach the age limit. Although German sea power had been destroyed by the treaty of Ver- sallles, the disturbed political condi- tion of the world did not, in the view of the British government, justify the postponment of a replacement program. Consequently the Conservative govern- ment of 1923-4 adopted a program which called for the construction of a |total of 52 cruisers of which eight should be constructed during the first year. Before these cruisers could be laid down a Labor government had been voted into office. In February, 1924, Prime Minister MacDonald announced that instead of laying down eight cruisers that year, his government would lay down five—of the treaty type—for replacement purposes. This decision was attacked by the Liberal party, which declared that it was foolish to talk of “replacing” small cruisers with 10,000-ton eight-inch-gun cruisers. Nevertheless the Labor and Conserva- tive parties combined to put this pro- gram into effect. 1In the election of November, 1924, the Conservatives were returned to power. The whole cruiser question was now studied by a cabinet committee presided over by Lord Bir- kenhead. As a result of its studies, government announced in July, ilding program calling for the laying wn of 16 eight-inch-gun cruisers within the next five years, or about thrée such cruisers a year. in the opposition. denounced this pro- gram. He frankly admitted that his government in 1924 had agreed to the (Continued on Fourth Page.) Why Many Stores Fail Clinic to Analyze Business Maladies Conducted by Department of Commerce With Striking Results stration of what real -community spirit can accomplish. Louisville has set an example in this field of commercial sanitation which might well be emu- lated elsewhere. In fact, the metiods developed in this clinic are already being applied in other cities with de- cidedly encouraging results. Story of Significance. The operations by which this task was accomplished comprise a story of peculiar significance and contribute in- valuable aids to the solution of this paramount business problem of ours— wasteful distribution. ‘That_infirmity has been sapping the strength and vitality of the Nation to an amazing degree—all the more alarmi because its symptoms have been only vaguely sensed. All too fre- quently not until the unfortunate vie- tims are in the “morgue” of the bank- ruptey courts have they been aware of the seriousness of their situation. In the days of some dread plague in the Middle Ages, when medicine merged with alchemy and black magic, the terror-stricken unfortunates resorted desperately to all sorts of wild extremi- ties to stay the spread of the grim de- (Continued on Fifth Page) Ramsay MacDonald, who was then | CENTRAL AMERICAN PEACE BY GASTON NERVAL. URING the past few weeks rather alarming news has been received in Washington as to “ relations between Guatemala and Honduras. News agency reports, private letters and official com- munications of the two governments have been the subject of comment here 1in political and diplomatic circles. One day there is news that Honduras is pro- testing to the government of Guatemala, alleging that the latter is occupying with military forces territory pertaining to Honduras. The next day coines news oi a Guatemalan protest in regard to incursions by Honduras in territory of the former. Constant reports come that the situation is serious, and the friendly relations of the two countries are at the mercy of possible incidents between th2 small garrisons occupying the two sides of an indefinite boundary line. ‘The boundary dispute between Guate- mala and Honduras is an old one, like all those which have arisen between Latin American countries since they de- clared independence and constituted themselves sovereign nations. During a long period this question lay dormant. The disputed territory had, until a short time ago, a very small population, with few natural resources and almost no agricultural and commercial development. The efforts toward economic develop- concentrated on the Pacific Coast re- gions, nearer to and having better means of communication with Guate- mala City or with Tegucigalpa, the cap- ital of Honduras. Two Extensive Plantations. However, about 26 years ago some that most of this region of virgin land production of bananas. Today two powerful companies have established extensive plantations on the Atlantic slopes of Guatemala and Honduras. The United Pruit Co. was the pioneer— the first to invest large amounts of cap- ital in the development of the banana indlstry, both in Guatemala and Hon- duras, and its plantations now extend to Costa Rica and Colombia. After- ward came another corporation, the Cuyamel Fruit Co., which obtained ex- tensive concessions of land from Hon- duras and wields great influence in that country. The Guatemalans state that the lands conceded by Honduras to this company include much territory wh?ch belongs historically to Guate- mala. On examining an agricultural map of Central America, it is seen that the two companies hold adjacent conces- sions in many sections, which explains the competition and rivalry between them. The United Fruit Co. lands in Guatemala extend to the right bank of the Montagu River, the great water route of this country. The Cuyamel Co., under the protection of the Hor- duran government, is extending its holdings quietly, but tenaciously, up to the same right bank of the Montagu, constructing, little by little, railroad and tram lines, seeking to get nearcr the river. It may be said, therefore, that the question between Guatemala and Hon- The first, principal and oldest one, is based on the claims of both states to extensive territories, calculated, at the maximum, at about 20,000 square miles. The second, involved in the first, has to do with the rivalry between the two fruit companies, and the periodical ad- Vi y the Cuyamel. And ated the dispute, it has served to lend it a seriousness which it did not before possess. | Long Discussion. | Efforts have been made at various i times to settle the question amicably. :About 1917 the two countries decided to {name the United States as friendly i mediator and to hold conferences in ‘Washington, under the auspices of the mediator, which took place in 1918 and 1919. The discussions were long. There were presented royal orders, cedulas of the Spanish kings, orders of bishops, title deeds, maps, historical works, etc., etc. Guatemala, through her docu- ments, claimed the lands which the King of Spain assigned to her in a cedula of 1563, confirmed, as shown by Chandler Anderson, legal adviser, by another cedula of 1564. Honduras, however, argued that the latter cedula annulled the first, and demanded the establishment of the line as set forth, for the purpose of military defense of territory, in a deed made out in 1745 in favor of Col. Juan de Vera. The dis- cussions continued long, but no agree- ment was reached, for the mediator decreed that, before making any rec- ommendation or passing judgment on the matter, a scientific survey should be made of the territory in dispute. Under the auspices of the National Geographic Society such survey was made, and reports on it were added to the voluminous mass proofs and allega- tions which both sides had submitted. A sort of provisional line, based on a partly defined status quo, was estab- lished by the two countries, and ever since there have been sporadic attempts to reach an agreement, Honduras maintaining her claim to the Valley of the Montagu and Guatemala insisting, as a minimum, upon a boundary line running along the tops of a range of mountains, called, in part, “Merendon.” ment of Guatemala and Honduras were | duras has two quite distinct phases. | | THREATENED BY DISPUTE Boundary Quarrel Between Guatemala _and Honduras Grows to Alarming Proportions. In 1923 there was formulated in Washington, among the five Central American nations, a_series of treaties, sponsored by the United States. At that time the Ministers &f Guate- mala and Honduras declared that their governments had agreed to submit the boundary question to arbitration by the President of the United States. Neither Mr, Harding, incumbent at that time, nor Mr. Coolidge, who suc- ceeded him, seemed very desirous of undertaking the arbitration, although without openly refusing, and later di- rect negotiations were again begun be- tween Guatemala and Honduras. After that came the period of “frontier in- cidents,” if they may be so descrived. In 1927, upon a new advance being made by Honduras, Guatemala rein- forced her garrison the frontier |town of Chachagualilla and stopped operations on a railway line which had been begun by the Cuyamel Fruit Co. American as Mediator. Public opinion became somewhat heat- ed in both countries, and after further negotiations the governments agreed to hold conferences in the town of Cuya- mel, in which the mediator—the United States—should be represented by one of its most competent diplomats, Mr. Roy T. Davis, now Minister in Costa Rica. Honduras was represented by a commis- sion which included Mr. Coello, under- secretary of foreign relations, and Mr. North American promoters discovered | was admirably suited to large-scale Lainez, at that time Minister of Hon- duras in Guatemala. Guatemala in- | trusted the defense of her interests to & | commission composed of an eminent | jurist, Dr. Carlos Salazar, and Gen. | Juan B. Padilla, prominent as an en- | gineer and military officer. It was hoped that the mediator might establish a better defined provisional boundary line between the two states, but, this was not done. After mature consideration and a detailed study of all phases of the matter, the Government of the United States at last took a very important step. Definitely putting aside the idea that at some future date the matter would be submitted for the arbitration of the President of the United States, the Sec- retary of State sent identic official notes to the foreign offices of Guatemala and Honduras, in which he advised both parties to submit the question jointly and unreservedly to the decision of the arbitral tribunal established by the con- vention of February 7, 1923, a treaty which unites as well as binds both. To this tribunal full power would be given to fix the dividing line between the two republics, taking into consideration their political, economic and commercial in- terests and to set the amount of any compensation which it might find equitable and proper from one party to the other. ‘The procedure established by the treaty mentioned, later supportgd by the Gondra treaty drawn up at the Pan- American Conference of Santiago, and also by the treaties of conciliation and arbitration of Washington, affords every guarantee of impartiality, and offers perhaps the most perfect method yet devised for the pacific_settlement of international confiicts. The attitude of the United States merited, theréfore, the highest praise of international jurists of the whole world, and it was believed that the conflict would be settidd, in time, in acordance with the decision of the “friendly mediator.” Honduras Still Hesitates. In Guatémala, as required by the national constitution, the suggestion of the United States was submitted to Congress, where, after thorough discus- slon, it was accepted wholly and un- reservedly. In Honduras, no decision has been reached, and unfortunately there is perceptible a certain reluctance to_accept the procedure indicated. For the good name of Central America, it is to be hoped that before long Hon- duras will accept this proposal, and the long and troublesome conflict will be scttied in accordance with the just and equitable procedure * recommended by the United States, under the most modern practices as to human rights. ‘The gravity of the situation which this conflict creates between Guate- mala and Honduras should not be overlooked, neither should it be ex- aggerated. Only persons moved by local excitement, or ill-informed news- paper writers, have ever mentioned as possible or probable a war between the two countries. As was stated a short time ago by a Guatemalan diplomat and writer, Mr. Jose Tible Machado, “Guatemala and Honduras should not forget that they are sister nations, united by bonds of blood, of race and of religion.” The attitude of the peo- ple is not belligerent. In Guatemala, where in former times, following the policy of absolutist governments, the people were kept in the dark as to the importance of the gquestion, it is now openly discussed and commented upon. In that country secret diplomacy has come to an end, and the results have been most successful, since, without manifestation of war spirit or any disorder, the whole nation has joined with President Chacon's government to defend, calmly and serenely, the rights of the country. In Honduras, now that a new administration is tak- ing over the government, headed by men of ability and high ideals, it may be predicted that the government of President - Mejia Colindres will also favor methods of conciliation. At least, that is the hope of those who believe that this conflict will be ended by peaceable means. American Universities Attractive to French A great number of French university professors are ready to fulfill American ents. Dr. Guy, head .of the University of Grenoble, and Dr. Marcel Aubert of the French national mu- seums, lare going to Harvard University. Prof. Jean Marie Carre of Lyon Uni- venigr going to Middlebury College and Dr. Fortunat Strowski, at the Sor- bonne, member of the Institut de Prance, will lecture at Columbia Uni- versity. Many other well known French to_Montreal, ‘To- ronto, Havana, Mexico City, Rio Janeiro and Buenos Aires. Northernmost Church . Soon to Be Erected ‘The world’s northernmast church will be erected during the Summer at Ca) ‘York, native- settlement on the north- ‘western of Greenland, it has been announced in Coj . The orig- inal fund for the construction of a church building was two the sale of several hich brought a total of = Additional contributions from ive Free State Army Cut To Save Large Costs The Pree State Army has now been reduced to 502 officers and 6,474 in other ranks. Five or six years ago the army numbered over 50.000 and cost well over $50,000,000. The gov- ernment claimed that this cost was le | due to the trouble involved in starting the state on its career, and accordingly, instead of meeting it by taxation an- nually, charged it to capital account. Only what was estimated as the rea- sonable normal cost of such an army as the state should have was paid for out of taxation provided in each year's budget. This normal cost was fixed at $7,500,000. This year the cost has at last been brought down to this amount. The army is now stabilized, and its members can count on it as a regular profession. Accor to Desmond Fitzgerald, minister for defense, the Free State Army costs less in propor-