Evening Star Newspaper, May 7, 1933, Page 23

CORDIALITY IS KEYNOTE OF ROOSEVELT PARLEYS Atmosphere of Talks With Herriot and . MacDonald Noticeably Better Than Other Recent Conferences. BY FRANK H. SIMONDS O single detail in the conversa- tions of the British and French statesmen and journalists who came to Washington for the recent conferences was at once. more striking and more discouraging than the estimates they supplied of the contemporary European situation, riot British and French alike agreed without the smallest hesitation or reservation, that this situation was bad almost be- yond exaggeration and that the state of mind in March, immediately follow- ing the Hitler triumph, had been the worst_since the World War. M. Herriot in his talk with President Roosevelt made no concealment of the dangers which had resulted from the triumph of the Nazis and he made clear as well the perils which would attend’ even the undertaking to discuss the question of territorial revision. The Polish Corridor—that most dangerous of all the questions—was discussed with utmost frankness as was also the fact— too little recognized on this side of the Atlantic—that in_this matter French influence upon Poland was of the slightest. Nor was there any question that the French believed their spokest man had found a sympathetic hearer. In talks with French friends, I found them without exception ‘agreed upon the fact that the rise of Hitler fore- shadowed a new war in Europe. The difference of opinion came solely over the question as to whether that war would be, in their own words “tomor- row, next month or next year.” In fact, they all spoke of it with a kind of fatalistic ecceptance which was not the least disturbing circumstance of the Washington affair. » British No Less Impressed. The British on their side were obvi- ously no less impressed by the extent of the crisis in March. It was their belief that the excursion of MacDonald to Rome, despite the subsequent failure of the MacDonald-Mussolini four-power plan, had constituted a substantial con- tribution to removing immediate threats to peace. But this belief did not ex- tend to the conviction that any perma- nent barrier had been erected against hostilities. By contrast. the French on their side pronounced the Roman adventure | a mistake in its:lf and a continuing cause of trcuble. Under the surface there was no evading the French con- victicn that eveats in Germany—the excesscs of Hitler and his Nazi follow- ers—had enormously improved the French situation both in America and in Britain. “Why should we waste money on propaganda in Anglo-Saxon countries,” one distinguished French journalist inquired, “when our work is being done for us by Hitler cvery day and far better than we could do it for ourselves?” Another striking _circumstance was | the obvious recognition on the part of Britons and Frenchmen alike that the | €events of the past two y:zars have prac- tically abolished the League of Nations as a factor in the preservation of world peace. For both there was a| common perception that the period in which that whole conception of peace | by international understanding and col- lective action which the, League illus- trated was at an end. Only force was henceforth to count, in their judgments. As always in similar conferences and conversations, there was the same eagerness to discover some sign of American readiness to take an effec- | tive part in the organization of peace, accompanied by the same difference of opinion as to the usefulness of mere consultative pacts. For the British, such an American undertaking seemed to promise something real; for the French. it was a gesture which they welccmed but only as a gesture. It was not in their minds a reason for reducing their heavy artillery or re- stricting their other means of defense. Atmosphere of Unreality. It was, however, this underlying gense of apprehension and unrest which gave to the whole affair- a certain atmosphere of unreality. On the part of the Americans, attentian was directed to issues such as that of stabilization, tariff adjustments and similar ecoromic and financial ques- tions. While the British were acutely, and the French measurably, interested in these discussions, both saw clearly that agrecment even of the most tenta- tive sort made here would at once be exposed to the destructive tendencies of present Continental political condi- tions. No one who came in close touch with either the British or the French who came to Washington in official or journalistic capacities could escape the conviction that while economic prob- lems played a role, political were far more important. In theory a gréat discussion was taking place here about issues which were recognizedly born of economic and financial consequences of the Great Depression. But it was really the question of peace which over- bore that of prosperity. It would, then, be an obvious if familiar mistake to imagine that the consent of the United States to im- plement the Kellogg Pact by any agree- ment to consult in case of crisis or to vest with the President the right to ‘waive American neutrality in case of aggression, would prove any material contribution to the security of the na- tions which feel themselves in peril or a deterrent to nations which be- lieve that they must have treaty re- vision before there can assured order. 3 Once more, as at most other_inter- national meetings in which the United States has participated, there was the same absence of any community of views. The Americans were thinking only of economic and financial ques- tions. ‘The French, of political, quite as much as financial, and of economic not at all. The British were half-way between both, striving to get the French to think economically and the Ameri- cans to reason politically. Another circumstance which added to the unreality of the affair was the | Have you not fact that neither MacDonald nor Her-’| was in any sense representative of his own country, and both the British and the French were left with the im- pression that President Roosevelt had lost control of his domestic situation. ‘When—while the visitors were still on the ocean—the United States I off the gold standard, the first im- pression among the foreigners was that they had been the victims of a clever maneuver. But the second inter- pretation, later accepted by all, that the President had been forced to take this step because of domestic circum- stances was no more reassuring. The impression that while Mac- Donald and Herriot talked in Washing- ton the real masters of British and French policy were acting in London and Paris detracted incalculably from the importance of the meeting in the eyes of all but a portion of the Amer- ican audience. Nor did the skill with which the President subordinated the debt_question du the first days of l}‘lt discussion ish this impres- sion. Conscious of Situations. Underneath the sprface it was pointed out with disquieting frankness that MacDonald and Herriot were both in Washington not because the British or French cabinets had de- liberately chosen them, but only in response to the indicated desire of Mr. Roosevelt, who had for a moment acted to choose foreign ambassadors, but without being able to make these rep- -resentatives truly representative. And both MacDonald Herriot were acutely conscious of the embarrass- nh-:nu of their respective situations af me. In the larger sense the sudden shift of the United States from the gold standard abolished the possibility of any practical achievement at Washing- ton because it precipitated a new issue and an unforescen problem. More than cne Englishman expressed to me the view that it had been a stroke of luck that the arrival of the delegations had come just after the reversal of Amer- ican policy, since it nede it possible to reassure British and French publics that the change had been due to do- mestic reasons exclusively. But nens concealed the shattering consequences of the change so far as the fortunes of the conversations themscives were con- cerned. As for the President himself. he scored 2 personal success not only with Herriot and MacDonald, but also with the rank and file of the visiting for- eigners. Cn the other hand, no such success was achieved by the presiden- tial advisers whose approach to ques- tions of supreme world importance pro- voked not a little eyebrow lifting. Thus under the surface there was an inev- itable tendency of the British and French to draw together in the face of a new and puzzling phenomenon. a ten- dency disclosed in London and Paris more than in Washington. To the onlooker it was evident that the feeling between the representatives of the three countries was more pleas- ant than usual. In fact, I have never seen. an international meeting—and I have, been present at most of the more important gatherings in recent years— where th= general atmosphere was bet- ter or where the element of suspicion was less prominent. There was no dis- coverable distrust between the British and French, just as there was no fool- ish doubt of either on the part of the Americans. Nevertheless, it was not possible in private conversations to discover any- thing but a polite and pleasant skepti- cism as to the pracfical results. Mac- Donald, Herriot and Roosevelt unques- tionablv acquired useful knowledge. of each other. But in all minds there was the same question as to how long Mac- Donald would last, whether Herriot could come back to power and to what extent Rocsevelt would be able to con- trol an increasingly unruly Congress. seemingly bent upon inflationary and other heretical adventures which took both the British and French experts bv surprise and left them more startled than impressed. Discussions Overshadowed. Always the discussions were over- shadowed by the universal recognition that events in Germany made disarma- ment impractical, that conditions in the debtor nations made further debt pay- ments unthinkable and that the Amer- ican descent from Mr. Bryan's “Cross of Gold” had created a new problem which it would take weeks if not months to adjust. And back of all; else was the black shadow of another war. Psychologically, this Washington meet- ing was the most successful I have seen. The Roosevelt smile was rein- forced by a superb burst of Spring weather and the French were treated with a tact and sympathy which has been lacking in official relatiens with them since the war. If MacDonald, sHerriot and Roosevelt had been Kings, able to impose pro- grams upon which they could agree on their respective nations, practical pro- gress might have been assured. But each had to confess his limitations to the others. All had to keep their ‘eyes fixed upon their respective legislatures and as a col juence there was an in- escapable sense of futility. along with degree of friendliness certainly not aj prcximated in any international meet- ing in the post-war era. (Copyright. 1933.) ‘Churchill Again Is in Spotlight; Premiership Ambitions Are Hinted LONDON.—In allying himself with former diehard Tory foes to try and prevent the granting of too big a dose of self-government to India, Winston Churchill is back 2gain in the spotlight. And once again shrewd commentators are repeating what they have said so often in the past. that he still has the premiership bee in his bonnet. Whatever Churchill's ambition. his squat, powerfully built figure will not move out of the limelight much in the months _immediately ahead, and his voice will be raised often against what he stigmatizes as a policy of weakness, of capitulation, in India. It is no pew experience for this vet- eran politician and officeholder to make common cause with former antagonists. He entered Parliament &s a Conserva- tive in 1900, later made his name as a Free Trader, and then turned Tory again. He is still in the Tory fold, but recently has been playing a lone hand because he desired freedom of action on the Indian issue. His titular leader, Stanley Baldwin, labels him a reversionist to the pre-war Toryism in which he was brought up. Others have described him as a hard-boiled imper- jalist. At any-rate, the policy he has espoused on the Indian ' issue is so diehard in texture that Tory irrecon- cilables who fumed when Baldwin made Churchill chancellor of the ex- chequer in 1924 have virt Tecog- nized him as their leader. Oddly enough, some of those who | thing follow in his wake in resisting the cre- ation of a federal government in India opposed the Churchillian stand in favor of self-government in South Africa and, more recently, self-government.dn the Lish Free State. | The late Lord Oxford was credited with the remark about Churchill, “He has genius without fidgment.” And if keen students of politics are right this mcrcurial individual will not reach the m’emlerahlp gou! in diehard company defense of a reactionary policy on India. For the time being, however, he is giving politics a dramatic interest if he is not increasing his political stature. " (Copyright. 1933.) Italian Colonies Fail To Attract Settlers ROME, Italy.—The utter uselessness of Italy’s colonies as outlets for the country’s constantly expanding popula- | Wi tion is revealed in statistics just pub- iished, according to which only 55.950 white Europeans now live in the four D &mflum ing sums which ?’m mmgnn"t has poured into €0 in its power to encourage. fallure of the colonies to provide homeland for Italy’s-excess population goes far to explain, if it does not jus- tify, the persistent Fascist claims for colonial 0 THE SUNDAY STAR, WASHING'I;ON, D. C, MAY 7, 1933—PART TWO. It Diagnoses America’s Ills = WasMnyon Institution Has Aided Many State and Federal Efforts Toward Economy. <% BY GEORGE W. GRAY. NE cannot follow very far the current ml:xmudo{he political reorganizat! an len- tific'attack ‘on basic econamic problems without encountering the name of the Institu- tion. pshire plan, h'e‘ s "3'7’ }"r'n: ,” for exam ‘Governor 'Een actually gn been s “divided responsibilty for. spencs mer y for spend- ing State money has been unified and centered in him: taxes have been re- duced; the budget has been balan Still more revolutionary changes are now under consideration, but even in its limited application the New Hamp- shire plan has quickened the efficiency of State departments and institutions 40 & degree that has attracted outside attention. Today the old New Eng- Jand commonwealth presents an e ample of administrative competence rare in this age of tax-ridden citizens and floundering statesmen. “Gov. Winant had an idea that con- ditions were ripe for a change for the better,” explained one of the officials, “and he called in the Brookings Insti- tution to make a survey.” Other States Seek Advice, Other States, too, have been calling in the Brookings Institution. There is Missicsippl (lagt year it balanced its or the first time in 25 years) and North Carolina (the Heels have lately shaken off the legislative accretions of a century and set their administrative house in order, to the great relief and applause of taxpayers). Alabama is following in the same direc- tion, with & recently completed Brook- ings survey as its chart in plotting a new course, while in February Iowa summoned the same political scientists to make a thorough physical exami- nation of its body politic. Last year former President Coolidge was_appointed chairman of a distin- guished committee to feconsider the economic position of the railroads and competing agencies of transportatioh. Mr, Coolidge turned immediately to the Brookings Institution, engaged its econcmists to make the factfinding survey from which his committee could sift their conclusions—and the recent- ly published and widely quoted report of the National Transportation Com- mittee is based directly on this expert inquiry. When the Senate in 1928 authorized an investigation of unemployment, cer- tain Senators feared political use might be made of the inquiry. There- upon Senator Couzens proposed that the Brookings Institution be requested to make the investigation, and the opposition melted away. After the Brookings report was delivered, the Brookings investigator was appointed ec&nt:r.ic counsel to the Senate Com- mittee. Aided Indian Affairs. It was the same way with Indian affairs. At the request of the Secretary of the Interior, specialists of the Brook- ings Institution made a study of the social and economic conditions of American Indians and summar their findings in a report “Eight hun- dred pages of the saddest and truest annals of the Indian that have ever been written,” said a member of the Blackfoot Tribe. “But the light of a better day is about to shine upon my people.” [} And so one might go on down the list of outstanding problems, and fre- quently find in the background the ubiquitous name of Brookings attached to the fundamental report on the sub- Ject. But why should this unofficial organ- ization be the agency to which govern- ments and economic committees turn for surveys of their own problems? How did it get started in this curious business of fact finding? In a word, what is the Brookings Institution? One cannot answer these gquestions impersonally. Emerson said that every great institution is “the lengthened shad- ow of a man.” and if ever his defini- tion applied it does in this case. In Washington, where I found the Brookings Institution housed in a spa- cious new $500,000 home on Jackson place, they point, first of all, to a boy. For Robert 8. Brookings was just 17 years old when he started West from his Maryland birthplace, an eager, restless, ambitious, moneyless youth. He found work in S. Louis with a wholesale hard- ware house. That was in 1867. Five| years later he was a partner in the firm. Under his dynamic drive the business became a dominant one throughout the West. By 1896 Mr. Brookings was 46 years old and a muiti- millionaire. He decided he had enough of money-making. He would retire and devote himself to public service. Appalled by Conditions. Between this decision and the estab- lishment of the Brookings Institution are several intervening events, but per- haps the’ crucial one was Mr. Brook- ings' connection with President Taft's Commission on Economy and EfM- ciency. The business man was appalled by the looseness of Government finances, and particularly by the lack of a Fed- eral budget. He found every Eurcpean country had a budget; therefore it was not something inherently alien to gov- ernment. He used his personal influence to back up the work of the Taft Com- mission. Pinally the Taft Commission expired for lack of funds. Mr. Brookings was determined that this thing should be seen through. He put up some money of his own and induced some of his friends to put up money, and with this fund in 1916 established the Institute for Govern- ment Research. i That was the beginning—the seed planting of the Brookings Institution, though the name was not yet applied. Let us see how it grew. Dr. W. F. Willoughby, international expert on government organization and finance was appointed director; and the new Institute for Government Re- zearch buckled down to its self- appointed task of researching the Gov- ernment at the place where it stood in greatest need of such service. The institute made studies of fiscal prob- lems, both national and state; it ctudied the budgetary systems of Euro- pean nations; and a succession of pub- reports on these findings issued from its press. ‘Won Fight for Budget. As a Tesult of these investigations J Government. & series of reports on the organization and functions of the various Federal bureaus. It was one of the first to point out in detail the many duplica- tions of functions and personnel—and I have no doubt the drastic reorganiza- tion of departments now under way in is receiving no little help sober, blue-backed books in institute publishes its find- ominent member of the tion, after obtain- from the which the ings. Indeed, one pre Roosevelt administral Institution.” But government is, after all, but & segment of economics. 3 g, e W . e F THE NEW HOME OF THE BROOKINGS INSTITUTION IN WASHINGTON. —Drawn for The Sunday Star by E. H. Suvdam. the University of Chicago, was in- stalled in 1922 as director, with head- quarters in Washington, next door to the ol!lder Institute for Government Re- search. Saw Far-Reaching 'l'hr_ut. Dr. Moulton had recently published a discussion of the possible effects in America of the debt situation in Europe. ‘The war debt problem thus was fresh in his mind; it was one of the great- est unstudied economic tangles of the day, and he saw that its threat to the economic peace of the world was far- reaching—though few people at that time appreciated this fact. It appealed to him as just the sort of problem the | tensively by the framers of the Dawes plan, and official acknowledgment has been made of the service it rendered | in that connection. Foreign demand for the book was reflected in its quick translation into the German. Dutch and Russian languages. It ran into several editions. 1t was the outstand- | publication of its time in the field of | cconomics. The Institute of Economics had arrived! Established Standard. That first report was an augury of { what free and untrammeled research | could do in illuminating “the dismal | sclence.” It established a standard. | More than 40 separate studies have | since been made by the Institute of ized | decade ago, when the international debt Institute of Economics was established Economics, some cn its own initiative, taSackie- B0 he t:‘:l;d it. in collabora- : others at the request of outside agen- on one_of stafl assoclates, | cies: and in the 10 years “Germany’s Capacity to Pey.” | tacks on public problems. 1t fell like & bombshell into the self- | Mr. Brookings had expressed impa- confident, stand-pat atmosphere of a | tience with the closed circle of ihe typical university graduate school, | collectors_were vociferously talking of | which seems to exist mainly to teach | 100 per cent payment, on & scale in- | specialists to teach others, ad infini- | volving the transfer from Germany of | tm. Again he dug into his bank | billions of dollars of gold currency. | account. The result was the establish- | Immediately, and without the knowl- | ment in 1923 of the Robert Brookings | edge of the institute, a digest of the | Graduate School of Economics and | book was placed beiore the Reparations | Government in Washington. Commission. The book was studied in- | There were now three foundations Swedish Arms-Control Plan Seems in the National Capital that owed thei: xistence to this L 1927 llu; Tition, each of the -oonsti ution, eacl e ituent foun- dations continues as a g’un almost wholly on State problems—mainly be- cause the States ?uve called for help. It m the surveys of North Carolina, Mi ippi, Alabama and New Hamp- shire, and is now studying Iowa, Covers Broadest Fields. ‘The Institute of Economics continues to care for research in the broadest fields. Among its recent studies and published reports are inquiries into un- employment problems, the tariff, the Federal Reserve banking system, the farm co-operatives, the plight of the railroads, the League of Nati as an instrument of international co-opera- tion, trade stabilization, price main- **3ist iow » phay now a anx of in ators of the Institute of Emnomim en- in a mass attack on the prob- lem of the relation of profits to pros- perity. Is our system of distribution of wealth and income responsible for depressions? Or, more fundamentally can private capitalism be made to work without periodical breakdowns? The conservative, reading these phrasings of the problem, may rub his eyes in amazement. Why study such radicalism? - It isn’'t & question of studying radi- calism, or of taking any tradition for granted, but rather a need of ascer- taining the facts on a subject that is being increasingly controverted. One has only to point to recent activities in Congress, to justify the importance of such studies. Studies Trade Trends. What help it would be to the ad- ministration authorities if they had a really scientific report on this subject; an analysis of the trends of prices, wages, employment, output and all the |other factors that fly their distress flags in times of financial panic! It is such a report that the Brookings au- thorities are now working on. They expect to issue volume I, on produ | tion, next Autumn. Volume II, on in- | come and consumption, will follow in | the Winter. The concluding volume III, on maladjustments and recom- mended readjustments, will appear next Spring. - ! Incidentally, the Brookimgs Institu- | tion was csked to undertake this sur- | vey. The project, one of the most | extensive prcgrams for fundamental | economic research ever organized, is be- !ing financed as a two-year study by the Faulk Foundation of Pittsburgh. The project was begun in 1931, under the directorship of Dr. Edwin G. Nourse, and in it more than a score of promi- neni economists and sociologists are collaborating. Study continues as the training divi- sion of the institution. There is no tuition; on the contrary. the students, cr fellows, are paid a small stipend and are provided with board and room. There is no curriculum, no teaching faculty, no cjass room duties. Many Hold U. S. Posts. Many of the Brookings fellows have graduated into responsible positions with the Government, and you will find them today in the Treasury Depart- ment, the Pederal Reserve Board, the Bureau of the Budget, Bureau of Mines, ‘Buruu of Census, Home Economics Doomed as Commission Begins Study STOCKHOLM, Sweden.—While the ularly bad business for a social demo- three-man commission appointed to in- | Cratic government. | 2 vestigate the possibility cf nationzfizing | o, Socondly, Sweden's war industry is Sweden’s war industries has not yet got combines of France. England, Czecho- down to business, it is already being 5lovakia and Italy that reduction of its A dooe.| production would not make a dent in taken for granted that this social d2mo-" e international arms business as a cratic gesture will go the way of cvery "whole. Unless the other nations were other atiempt to control the trade i | to act simultaneously—as they are not war materials. | at all likely to do—Sweden would simply | be handing over its business to them }The same circle which has prevented | without accomplishing anything. eRective action in this direction here- | E tofore seems destined to forestall Per | High Standard Essential. For reascns of national defense it is Albin Hansson's group in its lttemp!; :::,,::'_::: ,‘;m"‘cdn: Lfl:{;&'i‘gfinn?f:: | nececsary that Sweden's war industries realization of any really definite and | be maintained at a high standard, and adequate program. this standard, in the opinion of ex- perts, can be maintained only by stiff Makes Government Responsible. competition with foreign concerns. ‘The moment the Swedish government | Finally, the acquisition of the .concerns took control of the nation’s war indus- now engaged in the manufacture of war tries it would be politically responsible | materials would cost the government for the sale of arms to any foreign na- more kronor than it has spent. tion. For fear of compromising itself, | as the “sacredness of private enterprise” the government would have to reduce is concerned, the present Swedish gov- exports considerably, thus decreasing | ernment has no scruples, at least as far production and increasing unemploy- | as the arms business is concerned: ment in Sweden. This would be partic- (Copyright, 1033.) Busy- ness BY BRUCE BARTON. N partial punishment for my sins I am one of the Gov- erning Committee of a charitable organization. Once a month we meet to give solemn attention to a variety of l:tm :ur'ecent meeting the general manager laid before us a defect in the plumbing of our principal building. It seems that the northwest bath room on the third floor does not receive its propex; lihare of hot’ e‘l’t,a:huét ffif;‘fi.&'fi‘}:& , the manager e o 1 at somebo%y should be responsible ht or th: ?grs’g:gng itfllglght. He produced a file of correspondence least two inches thick. » The first letter was from himself to the architect of the building. The second letter an: “In reply to ypurs of March 41, 1931, regarding a defect in the plumbing at the XYZ Institution we beg to state that we have this day communicated with Messrs. Hotte and Colde, the plumbing contractors who are responsible for laying out the system, and we beg to inclose copy of our letter. When we have heard from them we will communicate with you again. Thanking you for bringing this matter to our attention, and assuring you of our earnest desire to have every detail of the building entirely satisfactory, we are,” etc. This sounded . promising. Apparently something was going to be done, and ?uickly. But not so. There followed letters from the plumbing contractor to the subcontractor, and coples of replies; letters to the head office of the com- any that had supplied the equipment; ‘memos from the Kead office to the branch office; memos from the branch office to the service department; reports from the service department passing the buck to the contractor; letters from the contractor passing the buck to the architect: reports of conferences on the part of all parties, and so on ad infinitum. I record the incident with a certain sense of shame. I have many women readers, and they may draw the correct conclusion that this is a true picture of the way American men spend their time conducting the mysterious thing - called business. For me to make this revelation may be treason to my If so, in.the words of Patrick Henry, “make the most of it.” The sad truth is that we have cumbered the simple rocesses of human affairs with a gigantic mass of silly nego- Elluon, COIT dence and accounting. Business is ized to give the utmost possible employment to the largest number of people—to an excuse for men to leave home in the morning. I believe that everything essary to the lupgt:'t. com- fort and m%nm of the American people could be accom- plished in about five hours a day and four days a week. Much of the balance of our time is putter and patter; not business, but busy-ness. (Copyrisnt. 1933.) As far | Breau, Department of Agriculture, De- partment of Commerce, and in the In- | ternational Labor office. The fellowships are keenly sought after. For last year's appointments 150 | appiications were received from 20 na- | tions. Only 13 fellowships were award- ed. The limit is 20 for any one year. | When Mr. Brcokings died last No- | vember he was satisfied that his in- stitution was on a firm foundation. | His dream had been progressive; first, Government research; then the broader field of economics; next, the training of exverts in these specialties; and now, the gathering of all into one in- tegrated agency. Nor is this the end of the dream. “The prcgram of eventual development for the Brookings JInstitution.” said | President Moulton, “calls for the crea- | tion of further research institutes in | the social sciences as their desirability becomes unquestioned and as means for | establishing them are found. The board | of trustees already has approved in principle the establishment of an In- stitute of International Relations and an Institute of Industrial Psychology.” Illiteracy Is_Declared China’s Great Problem SHANGHAI, China.—China is a re- public, but it has no citizens, and with 80 per cent of the populace unable to read or write it is not to be wondered at that the country has made such a poor showing in the face of Japanese aggression. Such is the opinion of Dr. H. C.E. Liu, president of the University of Shanghai, who feels that Chinese themselves have contributed largely to the present plight of the nation. With such a high percentage of illiteracy, Dr. Liu feels that Chinese be taught loyalty to their own country, following which is the need for a well-rounded program for t inese in the true meaning of cl nship. Not until they had learned a few elementary lessons in re: g and ting and citizenship did Dr. Liu feel that China would be'in a posi- tion to overcome their greatest handi- cap, that of disunity. Granted that and a_“knowledge of where the na- tion's finances were going to” and Dr. Liu feels that Japan would no longer be_a national menace. Dr. Liu is but one of thousands of Chinese educators who, pricked by the national defeat in Manchuria and Jehol, are turning to the schools and the younger generation to instill new lessons of patriotism. (Copyrisht. 1933.) “Minus Man” Is Latest In Motoring Menaces Britain’s road accidents is added one “This is the class of is a public vi- | The Brookings School for Graduate | | ROOSEVELT DECLARATION GRATIFIES LATIN NATIONS Pronouncement for “a Healthy Flow of Trade” in Western Hemisphere Reassures BY GASTON NERVAL. 8 if the announcement of the policy of the good neighbor and the new interpretation of the Monroe Doctrine, contained in President Roosevelt's Pan-Amer- i ican day address, were not enough to assure the other republics of the Western Hemisphere of a “new deal” in Pan-American relations, the President added in his memorable speech: “It is of vital importance to every nation of this continent that the Amer- fcan governments, individually, take, without further delay, such action as may be possible to abolish all unneces- sary and artificial barriers and restric- tions which now hamper the healthy flow of trade between the peoples of the American republics.” That was the fitting climax for a declaration of policies in which the Chief Executive of the United States had just heralded the advent of a new era in inter-American relations. The promises of equality, respect for the sovereignty of the smaller Caribbean nations, non-intervention in their domestic affairs, and the mention of the Monroe Doctrine as a “Pan-American doctrine of coninental self-defense” had given new hope in the solution of political differences. But they would not have been complete without some reference to the economic phase of the problem. President Roosevelt realized that in this eminently economic age, and par- ticularly so in a period .of world-wide depression, no pronouncement on inter- national affairs could be complete if it overlooked the economic issue involved Two Other Reasons. Besides, in the specific field of Faxn- American relations, two other reasons existed why any scheme of greater understanding and co-operation among the countries of the Western Hemi- sphere at this particular time, had necessarily to take into consideration an improvement in their commercial interchange. The first one of these reasons is that the highly protective tariff policy of the United States dyring the past few years has aroused considerable resent- ment on the other side of the Rio Grande. The majority of the Latin American countries being almost com- pletely dependent upon their exports. any restrictions imposed on these by them seriously. The more so when foreign nations were bound to affect the nation erecting the high-tariff wall was the United States, in almost every case their largest customer. The resentment created by Uncle iSam’s high customs tariffs came to a head when the almost prohibitory rates of the Hawley-Smoot tariff act went into effect. " Latin Americans had warned of the harmful effects which might result. They had pointed out that the reduced buying power of the countries affected by the high tariffs | | purchases of American manufact; actured They had emphasized that high tariffs brought ill will and retaliations which might prove serious in the course of years. But the protests of Latin American exporters and the more re- sounding ones in behalf of international friendship and co-operation, subtly voiced by their diplomatic represent: tives in Washington, were disregard Conference Urged Reductions. The fourth Pan-American' Commer- cial Conference, gathered in Washing- ton soon afterward, disclosed that high tariffs had already begun their destruc- tive work. Consequently, the confer- ence pronounced itself for tariff reduc- tions and after a suggestion had been made for a two-year tariff truce, passed a resolution recommending the American governments to “grant each other, as soon as conditions of their domestic economy may permit, the greatest tariff advantages and the re- duction of domestic taxes on natural products * * ¢ either through multi- lateral conventions or special treaties.” Similar resolutions had already been approved by the Pan-American Recip- rocal Trade Conference of Sacramento, Calif., and by the world meeting of the International Chamber of Commerce at Washington, that same year. _Yet, only last year, two new and higher customs duties were enacted by the United States Congress, on oil and copper, two products abundant in South America. The reaction in Latin Amer- ica was widespread. In the Peruvian Chamber of Deputies, a motion was in- troduced asking the government of Lima to call a South American con- ference for the purpose of counteract- ing the high tariffs of the United States. Chilean newspapers suggested an economic boycott of manufactured goods “made in U. 8. A” A Cuban official added that “the British and would force them to cut down their | Republics. Japanese offer pleasing ad Argentina began negotiations for = trade agreement with Great Britain on & preferential basis. And, finally, the project for a South American customs union has been revived by Chilean and Argentine economists, with the avowed and official support of the government of Santiago. The second reason which stressed the urgency of giving new impetus to inter- American trade is that, partly due to those exaggeratedly high tariff- rates and partly to the world depression, totals involved in export and import trade between the United States and the Latin American countries receded last year to where they were more than 20 years ago. While in 1929 Uncle Sam’s commercial interchange with the southern nations amounted to nearly two billions of dollars, in 1932 it shrunk to & sum far below the average given for the period immediately preceding the World War. Exports Recede by Half. In 1913, the year generally considered the starting point in the tremendous development of inter-American trade which became one of the characteristics of the post-war period, United States exports to, and imports from, Latin America. amounted to a little over eight hupdred million dollars. Last year they ?fllld dropped to about one-half the 1913 gures. Exports to South America, alone, which in 1929 had passed the half- billion mark, declined in 1930 to $337,508,000; in 1931 to $158,691,000 and in 1932 to $97,131,000. And so with the totals of every individual item. Whether it is total exports, total imports, goods sold to a particular country, or raw ma- terials bought from another the record shows the same catastrophic decline. President Roosevelt knew of this un- precedented decline in inter-America trade. And he knew of the part played in it by the high protective tariff wall of the United States. It was most like- ly prompted by these two reasons, and his personal conviction that economic co-operation is one of the safest paths to political understanding, that he con- cluded his Pan-American day address advocating the abolition of “all unneces- sary and artificial barriers and restric- tions which now hamper the healthy flow of trade between the peoples of the An)\‘er‘im; republics.” ot since the days of Secre of State Blaine, founder of the t;l'reysenl Pan-American movement, had Latin Americans heard such a significant pro- nouncement in favor of inter-American trade from a high spokesman for the Washington Government. Yet, it was only logical that the man who had pledged his administration to the *pol- icy of the good neighbor” in its political relations with the other American re- publics should go on record as opposing “artificial barriers and restrictions to | the healthy fiow of trade” among them. This} is only the application of the policy of the good neighbor” to mat- ters economic and commercial. Declaration Called Sincere. And that President Roosevelt was sincere in his declaration and that he intends to carry it out in practice, may be deduced, not only from the fact that in his domestic policies he has so far demonstrated abundantly his ca- m’gfiy “;rx ;‘ngm,:ul .li-h: arnm u;e‘m\n vhich he has alrea tbgndu'tcnmfi ¥ e e of suc was the appoint- ment of cmdesl'fp;lull, veteran” con- gressional champion of low tariffs and life-long student of international eco- nomics, as Secretary of State. The views of Secretary Hull on the subject are too well known to need repetition here. Only a few weeks ago, during his first appearance before the govern- ing board of the Pan-American Union, Secretary Hull restated them with un- e S i T step e ¢ ional authorization asked by m%- velt to conclude reciprocal trade agree- ments with foreign countries, among which some of the Latin American na- tions will no doubt figure prominently. Finally, a further c« tion of the sincerity with which the President champions inter-American trade may be found in the invitations which he has just sent to the governments across the Rio Grande to participate in the Washington discussions preliminary to the World Economic Conference. These steps, in accord with the spirit of the Democratic platform, on which he was elected, are evidence of the fact that President Roosevelt does not promise in vain. He is a man, as the Poet said, who “promises much but sup- plements his promises wich deeds.” And that is the best assurance that the “new deal” in Pan-American re- | lations will not be confined solely to the realm of political principles and doctrines, important as these are. (Copyright. 19: | Real Test to Be (Continued From First Page.) lapse from which it will take Germany generations to recover. Some aspects of present Germany, especially the persecution of Jews, are a falling back into the Dark Ages. However—as to America today, we can say this: Inflation of currency (which is the only kind regarded as odicus by even the most orthodox) has not come. It may not come. All that has actually happened is that Mr. Roosevelt has been given discretionary power to inflate. And it is fairly well understood in Washington now that Mr. Roosevelt's wish for that power has to do with making his hand stronger and more flexible in the com- ing internatiohal conference, rather than for definitely intended use in America. Can Safely Rejoice. Inflation of currency has not come and may not come. If it does come, it |may be controlled. And if it comes and is arrested it need not be followed by collapse. The sum of which is to say that the present burst of business activity is i something we can safely rejoice in. If it is followed by collapse, due to an inflation of currency that has not yet happened, then that paralysis will be the beginning of her de; of another kind. The cycle of continuous depression that began in 1929 is, we can safely say, ended. The succeeding cycle, budding prosperity, is at hand, whether it will go on to fruit depends on how we handle it—and in large part on how administration at Wash- ington treats it. to restore faith. Not merely to pre- faith in him, but to restore faith in the broad sense. And not merely to build up faith in him as a wonder man, & medicine man who brought | back material Faith Is Larger Quality. Perhaps I can make clear what I mean by suggesting a difference be- tween faith and confidence. The com- mv.fi." that we have lost “con- ‘confidence rity. That would | Restoration of Faith of Public Is Held Faced by Roosevelt nearly four years. Confidence in that sense is just coming back. It expresses itself in rising prices of goods. Rising | prices of goods is the objective of the economic part of Mr. Roosevelt's course, and the winning of it now under way can be put in some part to Mr. Roose- velt's credit. But faith is a larger quality. Faith has to do with reliance upon promises, especially future promises, and par- ticularly promises that are impersonal. Consider a partial list of defaults in l;:l:g.ltmns which now cause lack of A great nation, France, is in default about paying some 19 million dollars which she promised she would pay the United States last December. This it is necessary to describe_as not un- avoidable default, for France could have paid. ‘The United States Government is in default on its undertaking to pay on demand a dollar in gold to every holder of a dollar in paper. This may be called excusable default. caused by emergency, and presumed to be porary. Test to Come Later. ‘The United States Government is in default on its specific promise to pay interest on its bonds in gold. This, like the other, may be regarded as excusable and temporary. Large numbers of banks are in de- fault on their obligation to return money which their depositors placed with them. Many insurance companies are in default on a pretty sacred obligation, the promise to pay on demand the cash value of the icies the people hold. Those breaches of promise, some or all of them affecting practically every man, W{‘i‘;: child m‘memm'iry. are a of cause of e's Jack of Tai Fot ity faith. And the best test of the ahead of us is whether it of ite of faith, a feeling that the kind of pessession a man can feel about is goods, something he h with his hand. e The test of this present burst of rity will come in the next phase. ity will be sound and perma nent when the people get back their faith that the obligations of institu- tions, including governments, will be lived up to. . (Copyright, 19038 sort on| sure toucl