Evening Star Newspaper, April 3, 1932, Page 27

THE SUNDAY STAR, WASHINGTON, e GERMANY’S HOPE SAGGING, D. C., APRIL 3, 1932—PART TWO. ROOSEVELT GAINS POWER THROUGH OTHERS’ FAILURE Smith’s Equivocal Candidacy, Garner’s Errors on Tax Bill and Murray’s Defeat Make H By MARK SULLIVAN. | OV. FRANKLIN ROOSEVELT of New York approaches closer ¥ and closer to the Democratic | N\ presidential nomination still does not have it “in the bag.” as the political phrase goes, obably will not before the conven- Em meets. The number of delegates 5t favoring him, and more than that the number of leaders who favor keep- ing the situation open, are in the ag- gregate probably enough to make sure the nomination will not be determined until after the convention assembles. | If this were a Republican race—in | which the nomination is made by & majority—it would be almost possible now to say Roosevelt has the nomina- tion won. But in a Democratic con- vention it takes two-thirds to nomi- nate. In spite of any number of dele- gates Roosevelt may have—any number within likelihood—he cannot be sure | of the nomination until the balloting | is under way and the required two- thirds have voted for him. This is a year of gusty political pas- slons, and the favoring tide that Roose- velt apparently has as of today can readily turn. Most of the delegates Roosevelt has been getting so far come from rural States, those having no large cities. It may be that the primaries in States like Massachusetts and Pennsylvania may reveal that Roose- velt is less favored by the city type | of vote. The big city vote in the | Northern States is very necessary for Democratic victory in the election and | any sign of comparative weakness on | the part of Roosevelt in the cities would handicap him when the convention comes. In sum, Roosevelt recently | and ss of today is going strong. He | is still, however, subject to many con- | ditions which will reveal themselves in future primaries or arise unexpectedly between now and the convention. Smith's Effort Futile. Roosevelt has been much favored re- eently by three developments having to do with three of his opponents. Three men who were expected to have considerable numbers of non-Roosevelt | delegates seem now likely to have fewer | than was at one time anticipated. | Ex-Gov. Smith of New York has | not been able, under the conditions he | imposed upon himself, to turn anything near the whole of his personal popular- ity into delegates for himself and op- posed to Roosevelt. When Smith, on | February 8, announced his willingness to let his friends elect delegates for | | | and p im a Standout. States are, it is true, comparatively small, and their weight in the national convention relatively minor; neverthe- less the aggregate of them will be enough, with Roosevelt's strength else- where, to make Roosevelt very formid- able in the convention. Garner's Chances Decreace. Roosevelt has been favored also by recent developments attending the can- didacy of Speaker Garner of Texas. Even the most loyal admirers of Gar- ner, and the most ardent hopers for his nomination, are obliged to admit that developments about his leader- ship of his party in the House, center- ing around the sales tax, have dimin- ished his availability for the presiden- tial nomination. Probably Garner is happy that it is s0. The talk of him for the presiden- tial nominaticn did not arise with him nor near him. For reasons apparent to close observers at the time, and now obvious to everybody, the ex- ploitation cf Garner at this early date for the presidential nomination was distressing to him and to others intel- ligently interested in his fortunes as Speaker. The putting forward of Garner for the presidential nomination was a detriment to bim in his present func- tion, the Speakership. It created the danger, and in some cases the actual- ity, that Garner's actions as Speaker would be interpreted. in the light of a presumed wish on his part to be Presi- dent, and would, therefore, mar his reputation for disinterested’ judgment in the leadership of his party in the House. One example is easily recognizable. | ‘The most conspicuous advocate of Gar- ner for the presidential nomination was Hearst and the Hearst press. Hearst also was the most conspicuous advocate of the sales tax. Conse- quently, when Garner as Speaker and as leader of his party in the House indorsed the sales tax, and when it was remembered that Garner as an individual did not like the sales tax— in that combination of circumstances the suspicious or the malevolent were able tacitly to charge that Garner's official indorsement of theesales tax had some relation to the advocacy of | him for the presidential nomination by | Hearst Ignored Personal Feelings. The charge was unjust. Garner ac- cepted and indorsed the sales tax in spite of his personal convictions, as the only immediately available method India—DBritain’s Lost Empire? English Statesman Discusses Many Problems That Must Be Faced by His Government. “PRAYERS AT SUNRISE"—RELIGIOUS CUSTOMS HAVE BEEN THE BASIS FOR MUCH BY J. M. KENWORTHY, Member of British Parliament for 13 Years. T bottom, social grievances actu- A demanding political reforms. The language- of liberalism and democracy is used. But the racy. Parliamentarianism is an idea imported into Asia from western Europe. It is exploited by India's politicians in ate the intellectuals of India in Orient has never understood democ- order to win a recognition of equal culture. All these things have been brought to India by the English. And Indians admit it. Yet the English are hated. Individual Englishmen are re- spected and loved. But, as & race, we are c >tested. | ~The Moguls were cruel and ruthless, ‘barbarmns from the steppes of Eastern | Asia, with a veneer of Persian culture. | Yet the Indian peoples tolerated their |rule. The English, not the Indians, overthrew the Mogul dynasty. | __The answer to the riddle is that the him, the conservative estimate was that | of balancing the budget. Garner in Smith would assemble at least 250 dele- | this respect did mot differ from Leader gates out of the total of 1,154 It is|Rainey, who, as an individual, strongly now doubtful if Smith will aswynble, | opposed the sales-tax, but as a respon- under the conditions he imposcl on |sible leader of his party, having the himself, as many as 125 delegates. duty f‘of balancing the budget, was The severe handicap to Smith lies in | willing to accept it and fight for it the conditions he attached to his posi- | If the record of the detriment to tion in the race. He said he was will- | Speaker Garner, arising out of the ing that his friends should elect dele- | sales tax episode, is to be ccmplete, it gates for him. If he had stopped with | must include the fact that the par- that statement he might readily have | ticular way in which Speaker Garner recelved the 250 delegates thai were | acted about the sales tax had the effect estimated at the time, or even more. | of losing him some support. The sum But Smith added two conditions. He |of Garner's actions, when the crisis said he was “not a candidate’ and | arose, had the effect of making him would not make a campaign. The |appear to lack decisiveness in his role first of these conditions put him in an |of leader. On the first day of the equivocal position. He became at once | crisis he issued a public statement, say- a candidate and not a candidate That | ing, in effect, that the important thing condition, standing alone, was pretty was to balance the budget and that the near fatal means of balancing it did not matter. Leaders, workers and voters all over | A day later, and undoubtedly under the country who are ardent for Smith | pressure, Garner made a second state- personally, and who would joyously and | ment, saying he was for the sales tax. in large numbers have gone to the polls The total of the two statements raised to get the presidential nomination for -a contrast between Garner and Rainey. him, were “cold” to the idea of giving Rainey’s position was identical with him delegates merely for an intangible, | that of Garner—Rainey as an individual | unexpressed and not understood pur- |did not like the sales tax. But as an pose associated with clothing him with | official leader of the majority party in | power in the convention. E;fil Ho;me. ;h]:rgeid wil}l‘x !}:’e dresponsi& y for balancing the budget an Delegates Only Tepid. otherwise managing the Government ‘The second of Smith's conditions, | properly, Rainey was willing to accept | that he would not make an active cam- | the sales tax—and also to fight for it paign, deprived him of the opportunity | forthrightly. of going into the States and making | Rainey—and also Acting Chairman | specches and otherwise using the re- | Crisp of the Ways and Means Commit- status socially. | Moguls made their homes in India, When the history of the British Em- pire comes to be written by impartial historians analyzing past events and their causes, the failure to treat Indians of equal education and culture as full citizens of the British Commonwealth will be stressed as the prime reason for the loss of an empire. For the empire of India is lost already. With good management, wisdom, courage and a little luck a United States of India may find it advantageous to remain within the British Commonwealth as an equal partner with the status of a dominion, like Canada. But if the present London-Delhi policy of timidity and vacillation continues, India is lost as surely as the former American colo- nies. England, with all her wealth and resources, will have held India for a few years longer than a century and a half. The Moguls, a band of mili- intermixed socially with their subjects and, above all, governed through In- | dians. Frequently the commander in | chief of the Mogul imperial army was | a Rajput Hindu. Only in recent years | has & handful of young Indian officers | been given junior commissions in the British army in India. No Indian officer today commands even an Indian battalion. The Mogul Emperors ap- | pointed Indian natives to the highest posts—viceroys, governors, ministers of finance. One Named Governor. been app-inted governor of the prov- ince. Only one Indian, tRe same gen- tieman, has been made a member of the British House of Lords. ‘The Moguls made no social distinc- | tlons at their courts. There is a rigid | social barrier between English and In- tary conquerors, with no outside aid to dians, and it has become worse rather draw upon, held India for three cen- | than better, despite efforts by far- turies. What was the secret of their |sighted British statesmen to break | markable magnetism and his extraor- dinary power of speechmaking to ac- quire” delegates where contests arose. ‘The net result of both of these handi- caps upon Smith is that it is doubtful if he will have as many as 125 dele- gates, and the delegates he gets will be only tepidly loyal to him. The dele- gates Smith gets in Massachusetts. for example (and it is probable he will get many there in spite of the handicaps tee—had the manner not of bowing to the storm of opposition but of defying | it. Because of that Rainey and Crisp came out of the episode with increased | admiration both from those who favored | the sales tax and those who opposed it. | Crisp particularly became the outstand- | ing hero of the fight. When Crisp, after being defeated on the sales tax, | offered to abdicate his position of lead- ership. the applause that came to him he imposed upon himself and his | from both sides on this question was a {riends), will not be available to Smith | really remarkable demonstration. to do with as he pleases. If, as is com- 9 monly understood, Smith is opposed to eouevelt's Stremsth Grows nominating Gov. Roosevelt, the Massa- | . The sum of all this, as respects the | chusetts delegates who come in Smith's ‘Democrmc presidential nomination, is name will decidedly not go with him to | that the status of Garner has been di- minished and the chances of Roosevelt the last ditch in opposition to Roose- | Pl ~ | correspondingly increased. As it seems Yelt. The Smith delegates from Massa- | COrTespondingly tnerensed. A3 12 Soems chusetts will not be “anti-Roosevelt ) t | tion' will be confined to his own State, Ofiepates. On, the contrary, as to MADY | meres with the possibility of California of them, Roosevelt wi circumstances Smith has thrown about | Cattering delegates from varying States. | e rocs S, o | And even the delegates from Texas will the situation, many of his_delegates |70 BIER KO0 CETRENS LR, o e velt | from Massachusetts will be ready to g0 | goje e, o 20V, AN o Bl | to Roosevelt pretty early in the con- | Rosecvelt 1 10 o sironger posttion ention. ; than at any time since he and his To put in broader terms the impedi- | frienas' started after the nomination ment Smith has set up in front of him- | N other one candidate can be said o self, he has let it be understood that |pe making headway against Roosevelt he is opposed to nominating Roosevelt, | A1) Tho headway that is being made by but he has not put in words, 5o far, any | gnvbody is being made by the New York | Teasons for his opposition. (I say he | Governor. This is the natural conse- E:aq Jet it be understood” That may | quence of his unique position. He is | be 3 seang Dheme T‘;ncmfsal(léplg :fi 1: S0 | the only candidate making a Nallloxh} ::“ T'"‘"“” tively that Smith is op- mg}e organized drive to get the nomina. | sed to nominating Roosevelt, for iliar one ex- | 8mith has not publicly said so himself) | precaed i the et axions o | The consequence is that Smith has | can't beat somebody with nobody." The | created a detriment to his own position | axiom is not always understood. It | in the public mind. In the lack of any | means that when one candidate is ac- statement from him as to reasons, much | {ive, energetic, outstanding, with a Na- of the public assumes that Smith's op- | tion-wide organized campaign in his Position to Roosevelt (admitting that he | penalr, it is pretty difficult—though not Is opposed), must be based on some- | apsolutely impossible—to defeat him thing in the personal relations of the | with the sum of several candidates who, two men. Almost certainly that 8s- | howeve: g and admirable as 5 strong and admirable as indi sumption is unjust to Smith | power? They did little or nothing for down the inhibitions. India materially; did not introduce railroads, sanitation, roads, mighty irrigation works, honest justice, popu- lar education, better methods of agri- And it has be- come worse since the Suez Canal was cut and the sea passage to India short- ened to 17 days. the long, dangerous three months’ voyage round the Cape of Good Hope way the only means of communi cation, tlle Englishmen in India made the country their home. They frater- nized with Indians of their own class and similar culture. Many established relations with Indian women, regular and irregular. These matrimonial alli- ances, whether legal or illegal, enabled the English officials merchants and sol- diers to understand the minds’ of the | people they ruled. Nowadays service in India is only a series of periods of duty between ILL-FEELING —From an etching by Charles W. Bartlett. IN INDIA. These English communities, since steamers began tb run through the | Suez Canal and the Imperial Airways|'® lhns brought India within nine days of | London, have tried to import the | atmosphere of the English suburb or garrison town into India. And they have | succeeded. The contempt the English feel for the “natives” is partly in- | instinctive, partly acquired. One reason | for it is as follows: For the first 50 or 70 years of their overlordship in India, the English did not interfere with the religious customs | Only one Indian, late in the day, has | minortty. Fhe “leaves.” English women flocked to India to be with their husbands—or to find husbands. They help to form little | of the people. We came as traders; | and tzade was our principal interest. | Also, it is a fixed policy of the home cliques, closed corporations, communi- | government, interpreted faithfully by ties devoted to gossip and intrigue. And | its pro-consuls abroad, not to interfere the women especially, with their nar- |in the religious life of our dependent rower outlook and less liberal education | peoples. But one of the Indian social than the men, despise and cold-|and religious customs particularly out- shoulder the Indian fellow subjects of raged English opinion. It was the self- the same King-Emperor. | burning of widows, the suttee. The Here and there are high-minded, Indian widow was expected to throw generous-souled English women who herself on the funeral pyre of her dead do form sympathetic relations with their | husband; she acquired merit thereby Indian sisters and_treat Indian gentle- | in the eyes of her co-religionists. The But they are in the practice was put down by the British, minority. The wives of high officials | but only after great difficulty. The try to cultivate friendly relations with | Propaganda accompanying this reform the people their husbands govern. But | caused generations of English people the mischief has been done. The process | to despise the Indians. 11 school of alienation between the two races has | children in England learn gone too far. The majority are too busy with bridge, riding, tennis, dancing, e story of | suttee. i Other social and religious evils, which novel reading to find time to understand | many Indians themselves admit to be the people among whom they live and | £¥ils. and of which much has been from whose taxes their husbands and |heard lately, help to cause this feeling fathers dragy their salaries and pensions. | of ccntempt, to encourage Englishmen, An Englishman in any official position who now forms-an alliance, regular or irregular, with an Indian woman is damned so far as his future career is concerned. | and especially Englishwomen, to despise their Indian fellow citizens. But this | explanation, even if it were understood. would not reconcile Indians to the | (Continued on Fourth Page.) U. S. PROVES OF PAN-AME SINCERITY RICAN POLICY State Department’s Refusal to Back Mon- cada Plan Hailed as Victory for New Stal}d. BY GASTON NERVAL. N important page in the history of inter-American relations was written a few days ago, when the State Department declined to be made a party to a politi- A cal plot aiming to serve the personal | designs of a Central Anferican Presi- dent. | The refusal of the State Department | to give its support to the plans sub-| mitted by President Moncada of Nicaragua has been received with frank approbation by Latin Americans in this country. | And it will meet, I am sure, widespread applause throughout the Southern | republics. Circumstances which I explained in previous articles had made this, as I said before, a test case for the so-called new Latin American policy of the United States Seeks New Understanding. For the last four years the State Departmgnt had been correcting mis- understandings and following toward Latin America an attitude distinctly different from that of previous ad- ministrations. ‘The principles stressed by this new attitude had been: Non-intervention, equality, Tespect for the soverelgnty of smaller ‘countries in the continent and the two representatives of | good feeling carefully built up during the last four years. The alarm which the Nicaraguan with the future of inter-American relations is readily understood by pointing out the consequences which would have resulted from the State Department's support of it. In the first place, the non-interven- tion policy would have been altered, because the approval by the State Department of President Moncada’s plans to substitute elections for a constituent assembly for the scheduled presidential elections next November, would have entailed the maintenance | of Marines in Nicaragua and perhaps, | the sending of additional forces to carry out such plans. Secondly, the sovereignty of the ignored, because a foreign power, through force and through the moral influence which her vast Caribbean interests give her, would have aided the officials at present in the govern- ment of Nicaragua to impose upon the | Nicaraguan people policies which are entirely unpopular with them. ! institutions and_the normal political development of Nicaragua would have | been halted, because the constituent assembly proposed by President Mon- cada, probably made up of his friends, | was to “legalize” his re-election or the scheme spread among those concerned | Thirdly, the progress of democratic | better understanding of their internal | extension of his term for two more | viduals, are not active on an organized, Considers Possible Victory. It must be assumed that Smith, on public grounds of principle or legitimate political expediency, regards the nom- inal of Rocsevelt as less desirable than the nomination of some others But Smith does not say this publicly. | Probably he cannot say it publicly. He is obliged to remember that, after all, the nomination of Roosevelt is a possi- bility. Smith, looking forward to that Foesibility, must naturally hesitate to go on record with any statement detri- mental to Roosevelt, which statement, if put out now for the purpose of pre- ventidg Foosevelt’s nomination, might be used later in the campaign against the Republican nominee to reduce the chances of Roosevelt’s success. Smith, in short, is in a different position. The et of it is that the number of delegates elected for him is going to be far short of the true measure of his popularity emong the rank and file of Democrats And as respecting Roosevelt, the net of it is that Smith's participation in the prenomination campaign is going to be | much less detrimental to Roosevelt's fortunes than it was generally expected to be. Roosevelt also has been favored by | the failure, so far, of Gov. “Alfalfa Bill” | Murray to develop strength (except in | his own State, Oklahoma) in the West. | In all the States west of the Mississippi, | omitting ‘the three distinctly Southern States—Arkansas, Louisians and Gar- | ner’s Texas—and omitting also Califor- | nia and Missouri, with possibly one or two smaller States—in all this territory, | Murray was and is the only men offer- ing active, organized opposition to Roosevelt. Since Murray was beaten in | the one State In which he and Roose- | velt met In a direct, face-to-face con- test, North Dakota, it is apparent that | Roosevelt is likelv to get substantially all the delegates frcm this whole terri- h cally by defsult. These |made by the Central Statistical Insti- Nation-wide bagls. Italy’s Census Cut By Revised Figures| ROME —Because of irregularities in the returns the result of the census of Italy made last year has only just been published. It shows a population of 41220434, as against the estimated 41,923,000 The principal irregularities occurred in Sicily. where a number of public officials have been discharged by per- sonal order of the Duce. It is sald that these officials, whose salary is based on the number of persons admin- istered by them, willfully increased the census returns in order to increase their salaries correspondingly. The difference of more than half a million between the actual figure and the estimate will modify the forecast tute that by the end of 1941 the popula- tion of the kingdom would be 46,182,000 inhabitants. rising to 49,633,000 by the end of 1951 and to 53,197,000 by the end of 1961 The Protestant denominations are objecting to the results of the census according to religious beliefs, which show 41,000,000 Catholics, 82,000 Prot- estants, 48,000 Jews and 17,500 “with- out religion.” The Protestants point out that the question put wes, “In what religion were you baptised?” instead of, “What is your present religious belief?" (Copyright. 1932.) e Murray Takes Lessons. Prom the Indisnapolis News. Alfalfa Bill is getting & whole lot of interesting experience i the primaries. politics. ‘The high lights of this new policy had been: (1) The new interpretation of the Monroe Doctrine, reverting to its original meaning, minus the corollaries and distortions which have discredited it in the past; (2) the reversion of the State Department to the Jeffersonian theory of recognition of revolutionary governments, which paid a tribute to the sovereignty of the Latin American peoples and their rights to choose their own govern- ments; (3) the refusal of the State Department to meddle in the do- mestic quarrels of some of the Latin republics, even when American interests were in danger, as in the Cuban, Honduran and Salvadorian revolutions; (4) Secretary Stimson's announcement warning Americans endangered by rebel activities to withdraw from the interior of Nicaragua and not to expect other armed protection than that which | the Nicaraguan government and the local authorities could afford them; (5) the gradual withdrawal of Marines | from Haiti and Nicaragua, and the State Department’s promise that the last Marine will quit Nicaraguan soil immediately after the coming presi- dential elections, and (6) the reluct- ance of the department to further interfere with the internal affairs of Latin American politics, as evinced by the faillure here of interventionistic moves by Cubans and Panamans in the last few years. Moncada Sends Proposal. When all these acts were beginning to amend the errors of the past and regaining the lost good will of the Latin Americans, two confidential representatives of President Moncada of Nicaragua had knocked at the doors of the State Department and submitted 8 proposal the carrying out of which would have destroyed precisely all the | years, this being now forbidden by the constitution. { Would Have Caused Strife. Fourthly, the maintenance of United States | which would have been necessary to permit the realization of Moncada’s designs, and openly in contradiction of the repeated promises of with- drawal early next year, would have been the cause of renewed internal strife in Nicaragua, and probably a new and bloody civil war. Fifthly, the spirit of the Central American treaties of 1923—which only recently were upheld by the State Department in the case of Salvador— would have been violated, treaties specifically provided against re-election or perpetuation in power | and label constitutional reforms to this effect “a menace to the peace of said republics, whether they proceed from any public power or from the private citizen: X Sixthly, the success of President Moncada's plan, with the help of the United States, would have encouraged political maneuvering to bring about personalistic, anti-democratic govern- ments in other Central American nations. In general, it would have meant a reversion to the old-fashioned methods of treacherous, petty politics, which had apparengy gone forever from Latin Americafl countries. And the United States would have been made an accomplice in such unfortu- nate conditions. Finally, the resentment of the Nicaraguan people against the United States, rather agsinst the Government of the United States, would have been considerably strengthened by the State Department’s support of plan in dis- agreement with the Nicaraguan eon- (Continued on 'Fourth Page. Marines on Nicaraguan soil, | for the| Nicaraguan people would have been | JAPANESE HIT CRITICISM, ASSERTS CARNEGIE REPORT Burdens Prevent Perfection of Any Policy, Peace Fund Study Concludes. Evils Laid to Versailles, HE Present Economic State of Germany,” is the subject of the April issue of “Interna- tional Conciliation,” publish- ed today by the Carnegie En- dowment for International Peace. In the preface Dr. Nicholas Murray Butler, president of the endowment, writes: “The world-wide economic depression, accompanied by unemployment to a de- gree unprecedented in history, renders particularly timely the six objective and scientific studies contained in this docu- ment on the subject of economic con- ditions in Germany from the points of view of agriculture, industry, transpor- tation and communications, ~public finance, and banking and credit. The several authors, who are eminent pro- fessors of economics at six important German universities, made their investi- gations under the auspices of the Ger- man_Research Union—also known as the Union for German Science—which undertook this systematic and scientific survey for the purpose of determining the underlying causes of the prevailing high rate of interest in Germany and the effect on the economic life of the country. “A volume containing the complete results of the investigation is being pub- lished by Gustav Fischer at Jena under the title “Causes and Effects of the High Rate of Interest in Germany.” Max Sering. professor ol economics at the University of Berlin, writing on “Agriculture,” says: “The World War left the German people in & much worse economic con- dition than they had ever known. The losses of territory reduced the area under cultivation by 15 per cent, and the forest area by 11 per cent, Ger- many’s net loss of population amount- ed to 7.6 per cent, if we take into ac- count the return of about 1.6 millions of Germans from abroad and from bor- der territories. The average available | area of fertile soil for each member of the German nation was thereby sharply contracted. “In spite of these difficulties the farmers of Germany have been able not only to attain but to pass the pre-war level of intensive cultivation. The har- vests from 1928 to 1930, inclusive, were approximately as great as in the last years prior to the war. The live stock resources of the country have again been built up and afford a greater pro- duction than before the war. Some Needs Oversupplied. “German agriculture today provides not merely the required supplies on a large scale, but even furnishes a sub- stantial oversupply of rye, oats and potatoes. The demand for meat is mostly covered by home production, but the hog supply is excessive and a sub- stantial volume of corn, barley, vege- tables, dairy products and animal fodder must be imported. “The fact that the soil of Germany, by no means fertile on the average, is now giving a greater return than before the war is an accomplishment hardly less brilliant than those of the chemical, electrical, steel and machine industries, although far less recognition is accorded to it by the general public. “Scientific and technical advances have had very wide influence through experimental stations, courses of in- struction and special advice. All this has contributed to the result that farm- ers, in the years since the end of the occupation of the Ruhr, and finally of the Rhine, have found it possible more and more to adapt their ent to the changed conditions. In t! period there has been a drift to relatively cheap means of production, such as the use of commercial fertilizers and fighting plant diseases. The mechanication of agriculture has made great progress. 4 ASKING U.S.TO CO-OPERATE ‘Doubts of Friendship Created by Condi- tions in This Country “Shiunso” Warns. OKIO.—Under the heading “The United States Should cg-og- ate With Japan,” the “Shiunso,” a reactionary soclety, whose membership is not ~ publicly known, has published a statement of policy in the form of an advertisement appearing in all Japanese newspapers in Japan. The society is one of sev- ehal organizations of the kind existing in Japan more or less closely linked with the growing Fascist movement in | the country, which has developed side by side with the increasing power of the military group. ‘The latest statement of the “Shiunso” reflects the extreme nationalistic view- point held by the reactionary groups in this country identified with the Fascist movement. The statement. as translated into English by the society, follows, in part: “Japan Wwill audaciously walk the path of what she thinks right, irre- spective of what outside pressure should be brought upon her. She will not deviate from the just path, even though isolated by other nations. This has been the fundamental eternal for- eign policy that makes Japan a coun- try of the righteous and the noble. It is in the hearts of the Japanese race :'hnt ours is the leading Oriental na- on, Assalls Apologetic Ministers, “We greatly lament the fact that the views expressed by the former and the present foreign ministers—and for that matter the former and the pres- ent prime ministers—regarding present Sino-Japanese conflict have been highly unworthy of this great empire. Their apologetic tone and their abject spirit, probably born of their failure to comprehend that eter- nal principle, are t@uly regrettable. It is well known that at the time of the outbreak of the Manchurian mcident, under the former cabinet, the policy of the diplomatic officials was marked by such vacillation the weak-kneed atti- tude as to breed suspicion and misun- derstanding on the part of the United States and other nations regarding our real motives and intentlons in Man- churia. “What we are attempting in Man- churia and Mongolia is to protect our just rights and interests and to pre- serve the peace in these regions. Now let this undeniable fact fall on the ears of China and other nations: ‘We gave China territorial sovereignty in Man- churia out of our good Will' When Japan risked her very existence by waging war with Russia, China stood idly by and declared her neutrality to the four quarters of the world. By this act alone China abandoned her claim to the territorial sovereignty of the re- gion. At the same time Japan, who paid such tremendous sacrifices, both in human lives and money, rightly came into the )mumlon of the area. But instead of keeping It under her arms e it back to China. Thus, claim to the territorial right in Manchuria originated in Japan's spirit of benevolence. Treaties Basis of Demands. “In view of this historical fact, Japan has 0 far entertained no territorial de- signs for Manchuria excepting that she demands the observance of her treaty rights and interests. Chinese have been the | | Will Follow Right Path “Audaciously.” in the habit of attacking Japan regard- ing the so-called 21 demands, but they have no cause to complain against this country if the question of territory is taken into consideration. On the con- trary, they should rather be grateful to us. “Although we are glad that the Shanghai incident is nearing a solution, let it be understood once and for all | that any solution must not involve the abandonment of our right to protect |cur own interests in China. We shall, moreover, insist on China’s funda- mental departure from her unjust policy toward this nation. We must insist on China’s apology on her past ingratitude and wrongs. “Japan possesses a perfect right to | cause China to reconsider her mistaken | Policy toward this nation. The exercise of such a right is the manifestation of our good will. If China realizes her mistake and approaches us with good will we shall be only too glad to forget her past record and unite with friend- ship again. Our country is ready to as- sist her in her work of internal unifica- tion. We believe that other nations should co-operate with Japan in push- ing forward this policy.” Foreign Attitude Termed Unjust. “Unfortunately, however, the League of Nations and the United States have taken up the false appeals of China against this nation, due chiefly to their lack of proper knowledge regarding Far Eastern affairs, and have tried to pro- test against this nation. If they are not really ignorant of Chinese affairs, they must harbor some ulterior motive for assuming such an unjust attitude toward Japan. “As for the United States, we have { many points to doubt her about. Her discrimination against Japanese immi- grants, the limitation of Japan's capital naval vessels to 60 per cent of hers by the Washington treaty, the limitation of Japan's auxiliary naval vessels under 70 per cent of hers, secret interceptions of Japan's cablegrams by the United States in connection with the Wash- ington Conference, impolite and unre- served proposals and protests she filed with Japan during the past many years regarding Manchuria, wherein Japan has special rights and interests; the unfriendly attitude her Government is taking toward Japan recently and the recent agitation among her citizens de- manding an economic boycott against Japan are a few instances about which we entertain doubts. The Americans’ feeling toward Japan as evinced in these instances is far from impressing favorably the Japanese people, who are definitely determined to walk the righteous path of humanity. Japanese Aggression Denied. “The Americans may say that they hate only the aggressive attitude of Japan. But we want to make it clear that nothing can be more absurd than charges of this sort that have been di- rected against Japan by the foreign powers during the last few decades. A perusal of the Japanese history and Japan's map will convince one of the fact that Japan has been far from being an aggressive nation, as may be clearly seen % the scanty instances of Japan ued Fourth Page.) | “But it must be bogne in mind that the areas capable of a very highly de- veloped cultivation of the soil in Ger- many are extremely limited.” Kurt Wiedenfeld, professor of eco- nomics, University of Leipzig, analyzed the industrial situation in part as follows: “The war and all the developments of the post-war period completely ug::t this harmonious development of indus- try and capital resources. Prom top to bottom the industrial structure was split and endless gaps appeared that have not been closed. A great deal of terri- tory was taken from Germany, and the loss of most of it represented for indus- try within the country far more than might be signified ordinarily by the shifting about of a political frontier. “How great a blow to German indus- try was involved in the nearly universal liquidation of German property abroad after the war needs hardly to be men- tioned. And yet a brief reference to this is indispensable in view of the fact that new buildings and warehouses, as well as other equipment, had somehow to be procured in order to start up business again in foreign markets. “Obviously, the capacity for export trade of all industries was affected by these different factors, but particularly affected were the industries dealing with the more characteristic higher- quality merchandise. In the case of this class of industries a really thor- ough knowledge of the technique of production is required and the advice not merely of an agent, but also of an expert as to the uses to which the com- modity may be devoted must likewise be secured. “A very substantial volume of the ex- port trade of Germany consisted of ob- jects in this general category, and this trade has regularly required. as much since as before the war, the existence of fully informed agencies in foreign markets ready to furnish information | and substitute parts and the like on the shortest possible notice. Reorganization Impossible. “It is no less true of English firms and those of the United States of this | class in their foreign operations. It goes without saying that the re-estab- lishment of offices and agencies through- out the world in the first years after the war was altogether impossible for German manufacturers. As a result the export trade in general tended to be shifted in a not inconsiderable de- gree from especial types of manufac- ture, in which Germany had either ex- celled or at least equaled foreign styles and standards, to semi-manufactured products or mass products destined to enter the world market merely in gen- eral competition. “It was natural that this develop- ment should bring about a marked shift in the equilibrium within the German industry itself. “But the technical difficulties in the way of the normal restoration of indus- try have been nothing compared to the tremendous obstacles constituted by the mass of reparation obligations with their paramount command over the re- sources of German capital formation, ‘Today many branches of the quality of Germany have been unable to stand up under the load of economic and physi- cal burdens imposed upon them in con- sequence of the Versailles Treaty, and many of the mass production industries find it exceptionally difficult to meet the pressure of the internal ecomomic conditions of the country. “All German industry is relenfla:fl driven to aim at export trade at costs no matter what competition must be overcombeemlen gz!relen markets and ‘!:; matter w] r Germany’s own capaci to absorb foreign goods steadily de- clines. The high figures of unemploy- ment, which adequately reveal here as well as elsewhere the economic tion of industrial countries, make it clear that we are dealing with internationdl situations and that the chaos of the world market today in some substan- tial measure is to be attributed to the | collapse a”t the industrial structure of Beckerath, professor of economics at the University of Cologne. “The network of communications of Germany today stands far below the level of efficlency and compieteness which must be achieved if the rest of the economic machinery of the country is to function successfully and the narrow margin of balance between our earning capacity and our indispens- able requirements from abroad. “The scarcity of capital aval at any regsonable rate, for these enmfer- prises is, of course, a by-product of eur general economic confusion as well as of the immense drain upon the savings of the German people each year through the reparation clauses. The limitation of capital for the improve- ment of services has had the effect of slowing ug the distribution of goods. Vital to the maintenance of economic life in Germany, in a sense even more striking than in the cases of most other countries, transportation and other com- munications must be furnished with capital, in the future, at & cost within Prof. Walther Lotz of the University of Munich, writing on “Public Finance” after reviewing Germany's financial difficulties, says: “However disco these conclu- sions with regard to the effect of the high rate of interest upon the public of Germany must be regarded in a gen- eral way, there are a few more hopeful and cheerful aspects of the situation for the future. “If after the revision of the obl tions of the Reich and of the Treaty of Versailles it should prove possible to reduce the load on the budget, and if new taxes and a further drastic reduc- tion of expenditures should make pos- sible the restoration of a balanced budget then the outlook would be sub- stantially improved. Above all, the im- provement of the technic of public bor~ rowing, in line with the conclusions reached as a result of recent investiga- tions, would make it possible to organ- ize and develop our public finances in a more practical and durable fashion.” Under “Banking and Credit,” Prof. M. J. Bonn of Handelschochschule, Berlin, writes: “The high rate of interest between 1925-1930 of from 8 to 10 per cent han had exceptionally grave consequencef for the banks and for foreign commerce. As far as retail trade was concerned, the influence of a high rate of interest has probably been exnmnud. In foreign commerce it has to the financing (in some cases exclusively) of the export trade by foreign banks, especially by English banks. The rates of interest quoted by them are probably identical with the rates demanded from native concerns of the same standing. Credit Made More Expensive, “But the obligation of settling his foreign exchange accounts includes certain amount of risk for the merchant and makes credit more ex- competitors. Moreover, the scarcity of capital from which he suffers and -of which the high rate of interest is merely the outward expression discriminates against German traders whenever an extension of terms of payment is de- manded. He must either sell his gaods more cheaply, to counterbalance - the additional cost of long credits, or insist on earlier payments.” Karl Diehl, professor of economics at the University of Freiburg, gives the general conclusions as to Germany's economic situation. He states: “The high interest rates are due not to economic causes, but to causes that ;:ug;xitf outside the ;mflnlc category. cal causes are of primary impor- tance. The interest rate does not ade- quately reflect the relations of demand hnncl supply upon the credit market, but it is in large measure affected by & definite increase in the economic rate of interest, or what we call the pure rate of interest. This addition the rate of interest is a sort of premiuf for risk. Shortage of Capital Keeps Rate Up. “It is not the fluctuation in the an- nual addition to the world’s gold supply or like factors, but the of capi- tal, which must be held responsible for the continuing high rate of interest in these years. The maldistribution of among the different nations, which is 8 consequence of the unnatural flow of capital resulting from interferences of political character, is a vital factor in determining the high rate of interest. “The tremendous competition for cap- ital drew foreign funds into Germany, yet not enough to meet her require- ments. Somithin[ :I':f 1!,00&‘000,000 marks of foreign capi ‘were in the years 1924 to 1928 (according to Deutches Institute fur Konjunkturfors- chung). Savings, however, were each year more and more difficult as new heavy taxes were developed. “The peoples of other countries bear heavy burdens and most of them share with us today the confusion and un- certainty of economic disorder, but it is not_excessive to claim that no country in Europe or a, whatever its price level and whatever the purchas- ing power of its currency, imposes effec- tive rates like these upon its citizens. “And it is only natural that when the State, in fulfillment of obligations which it has assumed in order to as- sure the continued integrity of the na- tional sovereignty, exacts heavy sacri- fices from the people, it shcv'd find it- self obliged to assume also very heavy burdens of a social character. One cane not ask the German people to make the sacrifices they have been called upon ing at least a bearabl ence. Seventeen years ago 11.5 per cent of the aggregate national income went into taxes and social expenditures, and in 1929 28.6 per cent was so employed. Situation Today “Unwholesome.” “The shortage of capital, then, ex- plains the exhorbitant interest rates that have aggravated our economic life over the last few years, and the short- age of capital is explainable only by the draining off of our economic re- sources to satisfy the stipulations of the successive instruments based upon the treaty of Versailles. “The transfer question is today, as it has always been, a question of sub- stance, & question of resources and the power over them, and not a mere tech- nical detail. “And Germany has, after all, trans- ferred so much in these 12 years that the world can give her the slight con- ?:}:;‘on‘ at least, of conceding good “The economic state of Germany to- any major issue, foreign or d 3 “No economic act of take place in chance of working, of avoiding grave consequences for mankind.” Fish Sleeps 314 Years. Prom the New York Sun. A scientific experimenter has fish asleep for the past three and a half Germany. An analysis of rtation and communications s giveR,by Erwin von years, thus destroying the