Page
THR
A HONGKONG DAILY PRESS, FRIDAY, JUNE - 24TH, 1991.
re
had been obtained. ‹
ル
AN UNUSUAL BANK RATE. After remaining at 7 per cent. since
when Mr. Hughes so answered the Ger-solved to avoid at all hazards was assum- (under Presid 10 which went to Parisitary action and reopening of dis For Belgian the stake is only slight from 7 per cent, to 6 per cent, I.
This view point may be sintasized as follows: By reason of its loans, its credits and its foreign trade the United States is vitally interested in the res toration of normal conditions in the world. The total of loans amounts to something more than $11.000.000.000; the total of credits represents
at least $4,000,000,000. atako of $15.000,000,000 invested in Europe and there can be no prospect of any repayment so long as the reparations dispute continues to paralyze restoration. trade has shrunk to about half its recent dimensions and the country is passing through a period of acute economic de pression, due, in part at least, to the European disturbsauce.
capital.
It
consider
and solid.
And
of
-
not less ab-
even an apparent settlement
days.
worse."
\
EUROPE AND THE U.S. enemies What it further hoped was that Buhr and the acquisition of guarantees second which was not interested in pay in addition, they were bound to break the Garmany would send to Washington such of a material sort, which might insure meat but sought to pat Germany out of terms of the Upper Silesian plebiscite LBY FRANK SIMONDS.]
a-proposal as might, even if not in itself German compliance, but at the least the running for a generation or two, at provisiou. Special to the "Hongkong Daily Press.) completely or approximately satisfactory would provide France with some measure the least 10 hoped to strengthen the bands
aupply the basis for a new discussion-u of reparation, whereas, un to date, none of the former and block the course of the nations who wore Allied against Germany full 12 months-the Bank rate was re The interests of the several European April 15th, 1930- fortnight ago over the WASHINGTON discussion in Europe rather than in the
latter..
differ Recent days have seen the fra serious United States and between Germany and
In the ease of the British the Admin matter of life and death; financially in mail week. As a matter of historie-
widely
For Franco it is a duced to ale unusual level of 6 per cent. venture of the Harding Administration her European antagonists rather than existed in the State Department under London for any course which might hope not less than the sums fixed at London.rate has been in force only twice since But one is bound to note that there istration expected prompt welcome in speaking, to get reparations and to get interest it may be mentioned that this in the direction of participating in Euro between Germany.and the United States. President Harding, as there had in the pean settleinents. Up to the moment What the State Department was
fully open the way to postponement of A smaller sum means serl bankruptcy 1841. On December 4th, 1856, during the Americau
Wilson, 24 an appeal for American mediation asing or being maneuvred into a position under the surface there were elements in w
suspicion that ussions. It assumed that since Britain less
Crimean War, the Bank rate was lower- to make to new German proposal likely in which it would become either the guar France which opposed military action was excis more interested in the nite emnity is small, loss than a fifth of the minining at that level for a fortnight. In
But the Italian share in even than United our attention had been Concentrated antor of German good faith or the and would be glad to see the reparations Europe, and in forestalling any new dis more interested in getting the innrket of the following year the Indian Mutiny.
in French. while the British questions like Yay and Mesopota endorser of the German proposals. -upon
are actually mint Oil, which were economic rather dil not desire to mediate between Ger do not think I exaggerate when I say American and get to restrain French im termau indemnities,
It affair settled without appeal to Foch. turbances, British policy would rally to central Europe settled than in collecting rate on April 2nd from 6 per cent, the was responsible for an advance in the than political and governed our recent many and the Allies, it did not desire to that the Administration placed associates, not
not our German enemy.
pass judgment upon the German proposable reliance upon such information and, patience, provided only Germany seized But with the dening of the door for tions when made, it was uniquely in despite outward appearances, debted Mr. Hughes proffered opening to likely to welcome American intervention,
Thus Italy and Great Britain are most latter figure being maintained far 77 Germau reparacions proposal the new terested in undertaking to set in motion the domination of Poincare and believed ake a real proposal, something tangible whit Belgium and France must view reduction in the Bank rate was not Administration definitely undertook to again the processes of discussion, thus that Briand would be glad to be saved
this intervention with profound appre pony expected but was regarded as con- associate itself with the rest of the world preventing a breakdown of all discussion by American intervention. The point is ponded upon what the Germans would pension, precisely because it carries with siderably overdue, says the Financier
In the last analysis, however, all;, in the settlement of the gravest of all and the reversion to something
which sug- the remaining war problems. In taking this misuntsua step, what was in the creased dislocation of business in the the state Department was on firmer criticism from all directions with the then, of dividing the Allies, which would by lowering the Treasury bill rate from.
gested war and certainly
offer. entailed in- Finally, what of Great Britain? Here then the Administration com tour of Franco-Belgian receipts under the re-plain hint to the Bank of England that
If their offer were reasonable, certainty of the further, reduction On March 11th the thatceller gave mind of the President and his advisers, world to the obvious injury of the United pround.
parations payments. We run the risk, he favoured a policy of cheaper money who this inglaner were quite obviously States.
recognized that Great Britain evidence furnished by the proposal itself. in
was anxious to avoid any pallitary action. It did not purpose to pass directly upon also runs second dangence to act day to its current level we fail to see Mr. Hughes on the political and Mr. Now in this situation what was the view it perceived that there was great oppo- the proposal, but, preserving the fiction vious, namely of forting
serve a German end, quite obviously. We 6 per cent. to 8 per cent. Had the bank Hoover on the economic side!
of the several nations concerned! This was sition in many political circles in the of diplomatic procedure, to set inform-alone, which might give to her action that the Bank itself or the country rule come down on the following Thura- bound to be the decisive factor in the United Kingdom and that, in addition whole discussion. First of all what was the Gorman purpose? Was there a sin interests which made it only natural that
ally and take no step until the British.even more dangerous character. wore obvious selfish and materis! Freneb. Italian and Belgian Govern- cere desire on the part of Herlin to the British should not wish to see the receive the German proposals, not as out assuming responsibilities.
ment and
Lastly, and the point is of supreme generally would have been one penny the anid that they were willing to importance, we cannot go very far with- reach a solution, of the question, to find a French seated in the Ruhr and masters final. but as a basis for discussion.
It is true that since that date we have. basis which lay within the limits of pos of the best coal deposits of Europe
Europe sibilty from the German viewpoint! In
obviously the hope was that the Garnish for Mr. Harding and his Administration through a very auxiuas crisis. But thi
had the coal strike, with its threatened knows that it would be a great triumph extensions, and the nation has passed But Lloyd George had passed his word rest a word. was the We have then, at once, & ¦ London, takan in good guimbed at to Briand in. London. Moreover Lloyd Allied decision to be reached in advance the European tangle. In this respect crisis was not at any time of a financial
response would be such as to enable the
to achieve faith or was it George was aware that if Briand yielded of the decisive session of the Supreme his position is precisely that of Mr. Wil character. When the requirements of the one more German manœuvre ?
on this question he might fall and be Council of May 1st, when the German manship were trying to separate the care military action would be inevitable action would be possible to coerce the of Nations. In the second place, it is ander present conditions, the Bank rate If it was maneuvre. if formas states succeeded by Poincare. And with Poin default would technically occur and son at Paris, and we all know that rx gatherer had been satisfied there was. United States from the European asso- and Great Britain would be compelled defaulting nation.
Wilson was forced to pay for his League to inordinate demand for money, and as of the war, to make the United, to choose between seeing France set the Allies and thus to escape all payment, of restraint and rather abjectly follow and a world interest of transcendent im by the reduction of European claims the action of the Bank directors has been. There were, I repeat, the gravest sort plain that a settlement would be of great is merely a symbal, it might just as well
financial benefit to the United States. have stood at 6 per cent, as per cent. then it was quite obvious that the whole ing the France lead,
On the present occasion also we think undertaking would be fraught with grave Britain which would hay it American Hughes and his associates decided to expect us to pay our share. And even it "two bites at the cherry" is that the coal
Would not Great portante, and with that in mind Mr. against Germany. Europe will certainly too timid. The only excuse for making." dangers. Obviously, then, if the United States, believing that German faith was no bet restraining France and, at the same time,
There was sound, reason for gesture have
risks. having indicated its belief that Germany ter than it had proved on every occasion measureably absolve Lloyd George from
We may now. turn to the German res should still have to face the question of rate would andoubtedly have been lower- the sum of reparations were fixed, we strike is still unsettled. Otherwise the should Diy and, pay up to the utmost since July. 1914, and in that case we his promise to Briand.
It was, as might have been ex-the collection, with the same uncertained to & per cent. As it is, a further falt limit of reasonable possibility, and hav-might find ourselves once more in the
pected, characteristically vague and com- the Administration tabled upon plicated. SULM,
But when it was stripped of.
elements of German evasion, and Franch ing such Payment Germany need look for when Germany made her dishonest pence domain of economies and had been con- to pay $95,000,000,000 plus. the plus ode which belonged in the At Versailles the Germans had been bound no American support or approval, could offensive of 1916
and necessities. to bringing about an agree
There would seem to be less cohesion From the outset, then, there was danger sistently bedevilled by political com- representing the amount in addition to ment on the sum and the method of pay that we might become a German tool.plications. It believed the political con- $28.000.000.000 which
than that to which we are accustomed ment, not only would American interests although there was never any danger ditions were much that the Germans could Commission should determine upon.
between the policy of the Bank of Eng- the Reparations be served but there would be manifest that Mr Hughes would become by deli: not, even if they had wished to do it. London, in March, the German indebted IRRITATED & INFLAMED EYE to have been lowered a week ago, prier land and that of the Government, Other- advantage for the whole world. Consid beinte intent counsel for Germany; no make a direct proposition to their Euro
wise one would hare.expected the rate oring our interests, our right to speak one with the smallest knowledge of the pear foes which would be acceptable be-
ness had been fixed at $26,000,000,000, can be directly traced in many cases to Treasury bills, which went at an average- was undeniable.
Secretary of State's personal feelings cause of the domestic political situation 95,000.000,000 payment due on May 1st.the Sunday Motor trip and Golfing. The of slightly under 6 per cent.
$21,000,000,000,
addition
to the offer by tender of £50,000,000 There was a second olwinont of vital could believe this. importance. From the outset there was danger that our European associates influence, Simona and his arsociates per cent. foreign trade tax.
There was even graver in Germany, but that, under American ad
to that BUT bad best added & 12 a perception in the minds of all concern. might misinterpret our action in this might be able to make such a proposal, proposal sent to Washington the Germans contain a decided eye irritant. A sug-aved the additional £4,000,000 per In their dust from sections of the local roads Had the Bank rate been reduced ed that American action might be mis understood in Cernay, in Allied coun- public sentiment in the United
sense, and there was the final danger States would be obtainable only if she iented less than half the sum fixed at gestion for these trips would be to keep annum which has been added in perpet- earlier the tax-payer might have bec Convinced that aid from the United offered to pay $12,500,000. which repre tries and even at home. Thas the con might presen-ly react against apparent went to the limit of possibility Ger- London and at Versailles, and they the windshield up and to use a pair of uity to the interest on the National Blant effort of Mr. Hughes was to leave ail to Germany rendered by the State many might come through" no doubt in my mind, that while seek Department. Mr. Hughes determined to offer which would serve as the basis of ly they offered to pay $12,300,000 as com-
with an abolished the export tax feature. Actual Sun glasses. Sun glasses of any pattern National War bonds by Conversion loan Debt, owing to the replacement of ing an adjustment of the reparations risk all these dangers with the firm con- problem an
fresh discussions and saking it as a party vitally riction that his zeal feelings would not
pared at interest, the whole spirit
with $33,000.000.000 which the Re-with either Crookes, Luxfel. Fieuzal, stock ander onerous conditions. to the French, the Administration arations Commision Inter settled upon Amber, London Smoke, or Blue lenses semper in the end he mistaken and the end sought believed that Briand could face Foch and of the Adminstraton was pro-Ally.
as the final sum of indebtedness.
From every point of view the dear What the State Department hoped when
Poincare, could take a high stand against But As to the French point of view the Ad-military action provided it was disclosed approximately a third of the Allied figure from The Hongkong Optical Co., suces the stump in trade and was still more money policy has proved an unmitigated making an offer representing are obtainable at very moderate prices failure. It was largely responsible for it left the door open of a German, pro- ministration was less clear. It recogniz. that such an outd offend the United the Germans surrounded their proposal for Clark & Co., Manufacturing, and effective in checking a recovery. posal was that Germany might find ited that, on the surface of things, France States, who through the United States, with a multitude of conditions. easier. given her rebellion at Berlin and appeared united in the determination to Germany made a proposal which was seemed to indicate that the Allies, if they ent manufacturing optical establishment being made in the funding of floating
Them
Above her defiance of the Allies, since the Loo have done with German evasion, bad worthy of consideration. The State De accepted the German offer; would sur
Refracting Opticians-the most compet-all, it has prevented anal progress don Conference to make suggestions faith. downright dishonesty, that Franite partment thought that if tected two render all their powers of enforcement, through the Lined States than to sur-meant to seize upon the default of May elements in French opinion ones which including the occupation of German ter. Rond Central, (opposite to the Singer period of inflation which is at the root in South China-located in 53. Queen's debt and has consequently prolonged the render unconditionally to ber European sts a warrant for occupation of the demanded paymuut or punishmentaritory na fixed by the Treaty of Versailles. Sewing Machine Company. ADVT. (50% of the social unrest of the present day.
States
alone.
Moreover, in recent months our foreign ciate the champion of Germany against thus losing ai induenes and power of risks, but there was, too, an American but since it must be reached, if at all,
ponse:
ing also disclosed the fact that in resist situation Pre-ident Wilson had occupied the assumption, that the reparations prob all its mystery-it amounted to just thiimpatience, based upon French rights may be regarded as inevitable when the
contribute to
*
was worth the risk.
that
States
As
in
At
to 2
(Copyright, 1921, by The McClure Newspaper Syndicate).
labour outlook is clearer.
GREAT RE-VALUATION
SALE
4 DAYS ONLY
Commencing MONDAY, JUNE 27th to THURSDAY, JUNE 30th.
25%
DISCOUNT
OFF ALL
CASH
BILLS
FOR
4 DAYS ONLY
CASH ONLY. NO COD.
·
We have re-valued our Stock in accordance with the latest costs at present ruling in the home markets and have revised all our Selling Prices, THIS ALONE HAS
HAS REDUCED PRICES CONSIDERABLY, but in order to impress on the public of Hongkong that we are always the first to give them the benefit of low costs we are offering a
SPECIAL DISCOUNT OF 25%
FOR 4 DAYS ONLY. 25% DISCOUNT OFF
ALL CASH BILLS.
NO C.O.D. NO APPROVALS.
SPECIAL
BARGAIN
TABLES
HALF PRICE
AND
QUARTER PRICE
DO NOT MISS THESE.
CASH ONLY NO COD.
Whiteaway, Laidlaw & Co., Ltd.,
Hongkong