HOW WILL BRITAIN BALANCE HER
BUDGET?
RUMOUR OF COMPULSORY CONVERSION HAS
·ADVERSE EFFECT ON WAR LOAN.
NO DEFINITE DECISION AFTER FOUR HOURS' MEETING OF COMMITTEE.
[DRITION WIRELESS SERVICE]
...
RUODY, Aug, 19.
The Committee, consisting of the Prime Minister, Mr. Ramsay MaoDonald), the Chancellor of the Exchequer (Mr. Philip Snowden), the Foreign Secretary (Mr. Arthur' Henderson), the President of the Board of Trade (Mr. Graham), and the Dominions Minister (Mr. Thomas), which is to advise the Cabinet regarding the recommenda- tions of the committee, appointed in Ferbuary at the request of the House of Commons to review Nu-' tional Expenditure, met for the first time this afternoon and after a session of nearly four hours ad journed till to-morrow,
conversion, apart from damaging Britain's reputation for maintain- ing the sanctity of contraste, would be manifestly unfair to native holders of bonds, whose intereste would be whittled down while for eign holders would continue to fatten on Ave per cent interest.
The banks and the big insurance companies, who have promised the Government their hearty co-opera-| tion, can safely be trusted to ins sist span the proper course. Their influence can be gunged from the fact that their holdings of Govern- ment securities approximate to £500,000,000.
[THROUGH REUTRE'S AGENCY,]: LONDON, Aug. 12.
It is regarded as significant, . however, in view of the possibility of a three-party conference, that Mr. Neville Chamberlain, the Con- servative leader, deputising for Mr. Baldwin who is in France, 18 returning to London from Scot land immediately,
All Parties Discuss Bituation, (THROUGH REUTER'S AGENCY.]
LONDON, Aug. 13.
The Sub-Committee is in posses sion of the obsolvaticus of all Government Departments affected by the proposals of the Economy Committee, which is estimated to effect a reduction of expenditure
The prospects of a three-party conference on the economic situa next year of £00,000,000. The Sub-
tion were strengthened this morning Committee will decide, after a
by the unexpected arrival of Mr. study of proposals, the general Baldwin in London from his con- direction in which economics shalltinental, holiday. Mr. Neville be made in order to provide for Chamberinin
arrived from alsó the balancing of the next Budget,
Scotland and the two discussed for It is known that the Prime
two hours the attitude which the Minister and the Chancellor" aro
Conservatives will take up, while firmly rencived on securing balanced Budget, and it is denied
the Cabinet Economy Committee that there are any differences be-
was continuing yesterday's dolibera tlone at Downing Street with a view tween the Ministers with regard to the imperative necessity of
to the adoption of means for balanc anlanced British Budget, which the ing the next Budget. Daily Hernij! to-day described as an Integral part of the world financial security."
4.
#
It is understood that at to-day's meeting the Committer explored the whole ground and dealt genor. ally with the situation.
After tomorrow the Committee is not exported to meet again till Monday, when, it is hoped that it will frame proposals.
It is possible that the next step will involve consultation with the representatives of the two Opposi- tion parties, but nothing definito is known as to Government's inten- Lione..
Olty **Speculation.". (THROUGH RÄUTER'S, AGENCY.]
LONDON, Aug. 12.
The vital necessity of balancing the Budget remains in the fore- front of public discussion and in the absence of an official statement. following yesterday's meeting of the Cabinet Committee, the pursuit of economy is being carried on hy the investor. The next budget, in- déed, has already been tentatively balanced in City circles by a severe pruning of the social and defence
services.
The Socialist, however, quickly retorts that there shall pe no cute, but more taxes.
A Sporting Element,
A sporting element even may be introduced to rescue sterling for it is,,seriously suggested in serious quarters that a Biate Lottery Loan with yearly or half-yearly draws- for bonuses, might prove more profitable than Mr. Snowden's - conversion schemo,
In regard to the latter, the re ported split within the Cabinet and the openly "professed grasping views of many stalwarts among the Government supporters, have given birth to the bogey, of compulsory conversion and, though the iden is laughed out of court in responsible circles, there is many rentier resting on an uneasy pilow.
-British Funds Depressed." The rumour was sufficiently strik ing in the City yesterday to de- press British Funds The Five Per Coat, War Lena was especi- ally affectel, declining to the lowest point for several years.
Sir Herbert Samuel, who is do putizing for Mr. Lloyd George, was also busy at Liberal headquarters.
that Mr. Ramsay MacDonald will Subsequently it was announced
return to Scotland to-night to re- sume his interrupted holiday.
NEW RECORD FOR
BABY CARS.
MIDGET REACHES 105 M.P.H:
BRITISH WIRELESS BERVICE]
Rugay, Aug. 12 Driving a special car which he has designed after experiments in his workshop at his country estate in Northumberland, Viscount Rid ley (son-in-law of Sir Edwin Lut you at Brooklands to-day covered the flying kilometre, at a speed of 105.42 miles an hour and the fly. ing mile at 104,60 miles an hour.
When confirmed by the Royal Automobile Club these speeds will reak the records for the Baby Car Class established on Saturday by Mr. Leon Cushman in an Aus. tin Seven. Visccunt, Ridley's car is fitted with a 750 cc, engine.
CHILE MAY INCREASE
MORATORIUM. SUSPENSION OF DEBT INTEREST SUGGESTED.
[REUTER'S AMERICAN SERVICE}
NEW YORK, Aug 12, Messages from Santiago de Chile reveal that a recommendation his been made by the Chilean Cabinet to. Congress that the partial mora torium proclaimed in the middle of July to protect the gold exchange standard, should be completed by the suspension of the service on foreign loans
The Cabinot recommends, in view of the shortage of funds, a discou tinuance of the payment of interest on foreign debts, amounting to. thirteen million dollars for the
| balance of the present year.".
The Cabinet also suggeste neus
term notes.
A Formidable Question. (THROUGH REDTEE'S AGENOT;] SE
London, August 13. The contemplated. conversion scheme relates to the five per cent. War Loan redeemable at par at pension of payment of the interest: the Government's option in 1929, op the internal debt and on short- but- the fact" that over £2,000,000,000 of this loan is out- standing makes the conversion a formidable proposition. Moreover, the interest theroon is in a privi- OIL leged position in not having income- tax deducted at its source, benco' the iona ha proved most attractive to overacas investors.
A
Conversion, to a new loan bear. ing interest more in contonaauce with modern money rates ·is ́esti- mated to save the Exchequer £90,000,000 annually ji vel
RESTRICTION SCHEME. COMPULSORY “QUOTA SYSTEM.
[REUTER'S 'AMERICAN, SERVICU),
AUSTIN (TEX.), Aug. 12. The State Legislature had passed an Oil Conservation Bill to deal Unfair to Native Hondholders with the present over-production.
MAN LONDON, Aug. 13. - The Bill lays down a compulsory: It is the general view that the quota system for production by Government aan hardly launch a various poole, and also outlines scheme for voluntary conversion penalties for those opposing the without a cut-and-dried programme orders of the Conservation, Com of economy and that compulsory mision.
HONG KONG DAILY PRESS, FRIDAY, AUGUST 14, 1931.
LIKELY TO REMAIN A MYSTERY.
FURTHER RIOTS INI INDIA.
FOUR HUNDRED HOUSES BURNED.
(THROUGH REUTER'S LOKNOT.}.
Bompay, Aug. 13. Three persons were killed and' seventeen injured when Iour bun- dred Hindu houses were burned, during a communal riot at Dera Ismail Khan,
The trouble arose in consequence of a fight between a Muslim shop- kooper and a Hindu customer over prices.
Supporters of both com- munities, joined in the battlë,
Order has not yet been restored and troops have been despatched from Lahore.
ROUND-TABLE CONFERENCE.
NATIONALISTS DECIDE NOT”, TO PARTICIPATE.
THROUGH REUTER'S 'DENCY.]
BOMBAY, Aug. 13. The Working Committee of the Nationalist Congress has decided not to participate in the Round- Table Conference.
MR. LLOYD GEORGE,
.11.
EXCEPTIONALLY GOOD RECOVERY,
(BRITISH WIRELESB (KRVICE.]
LONDON, Aug. 12. Mr. Lloyd George he made an. exceptionally good recovery from his illness and operation, and it is
hoped to move him into the coun- try within a fortnight,
No further bulletins regarding the Liberal loader are to be issued.
WEATHER REPORT.
Yesterday's weather report, forecast and remarks, issued by the Royal Observatory at 5.50 p.m., Atated':
The depression appears to be central between Haints and tho Paracels stationary or moving slowery westward.
Local Forcenst:East winds, moderats to fresh; generally. overcast; rainy.
BRITAIN'S ARMED STRENGTH.
FULL DETAILS BENT TO
GENEVA...
[BRITISH WIRELESS BETVICE]
RUGDY, Aug. 12.
4
THORBURN CASE
DEEPENS.
CHINESE AGAIN DENY FOREIGNER WAS ARRESTED
UNOFFICIAL REPORT FOUNDATIONLESS?
(TH10JOH. REUTER'S AGENOT.]'
EUGENE CHEN EXPLAINS!
EMPHATIC DENIAL OF PROPOSED ARMS DEAL.
[THROUGH REUTERʼN AGUNDY.]
|
A NEW PEACE MOVE?
INAUGURATED BY LEADING OFFICIALS.
(Wah Tu Yat Pao.)
|
SERIOUS RIOTING IN BERLIN.
NEW MILITANT BODY UNEARTHED.
(CEROUGH REUTER'S ADENUE;}
BERLIN, Aug. 12. Serious rioting in Berlin lask night, causing numerous casualties. was succeeded to-day by consider able tension, and extra forces of police are being drafted into the capital to prevent the renewal of the disturbances to-night,
SHANGHAI, Aug. 13 Reports that a. posce conference is to be held at Shanghai to settle the differences between Nanking and Canton is denied in Govern- | Tokyo, Aug. 13. menti circles, both at Nanking and Before his departure from Tokyo Canton, but colacident with this Mr. Eugene Chen informed Reuter denial a peace, movement has been that he came to Japan to mako per initiated by some Nanking Govern Polico lorries are patrolling the sonal observations of Japan's atti- ment officials of whom Mr. Lix disturbed areas nad so far every- tude to Chias o na to obtain a Ching Hạin, a member of the Legin. thing is quist, though the situation SHANGHAI, Aug. 1 background on which the Canton Intive Yuan of the Nanking Gov is pregnant with dangerous possi
Government would be able to ernment, is the most prominent bilities The further Chinese official in formulate its Foreign policy, re-figure
Communists fired on police to vestigation into the Thorburn case cognising the importance of friendly According to Mr. Liw this move- day in Berlin, and also at Magde Sino-Japanese relationsho сти ment is unofficial and an appeal burg Lusnsburg, and Itzehoe, which was taken up on recent repre-phatically denies that he came here will be made to the people for their where altogether twelve soatation by the British Govarn to buy arms, intrigue against Nansupport, 50 at to rally public were wounded and sixty arcsted." ment, through. Sir Mites Lampson, king or offer Japan concessions in opinion, and bring pressure to bear House to house searches for artis
Manchuria in return for help. hae just concluded. It was com
on the contending factions, at Aachen and neighbouring towns
It is perhaps the first time that revealed the existence of a new ducted by the Vice-Minister of War
such a peace movement has been militant body calling themselve
"The Red Snipers Association.". at Boochow where, according to
suggested in the midst of a highly various unofficial reports, Thorburn
war-charged atmosphere since the directed against the Nazis and the conquest of the North by the Kuc Police, was last seen, and his accretary,
mintang. while one or two other members of his. Stift accompanied the Minister.
Reuter understands that his -- report to the Foreign Officej which will be handed to Sir Miles Lampson in the course of a day or two, throws no further light on the case, hor, indeed, adds anything material to, the previous Chinese Official Be- port.
Like the latter the Vice-Minis ter's Report mentions a fraens nedr Soochow between an unknown per Hon, or persons, and some Chiness. soldiers in which two Chinese soldiers were shot, the assailant escaping. It also reiterates the statement of the previous Chinose Official Report that there is no truth unofficial stories that a foreigner had been arrested and subsequently killed. No foreigner, says the Vice-Minister, was either arrested or killed....
JACK DIAMOND SENTENCED.
TORTURE CHARGE FAILS.
$15,000, BAIL PENDING TRIAL;
[REUTER'E AMERICAN SERVICE]
ONLY POSSIBLE IF CHIANG RESIGNS.
[CENTRAL PRES.]
CANTON, Aug. 13. Regarding Naaking peace offere, the Central Press learns to-day that peace is only possible when Marshal Chiang Kai Shek resigns.
New York, Aug. 12. Jack Diamond; the King of the New York Underworld, was to-day sentenced to four years' imprison maut and fined eleven thousand | CANTON TROOPS ADVANCE. dollare on charges of violating the
NO SIGN OF HUNAN ARMY,' Prohibition Laws.
Diamond has, however, bien re- lensed on bail (fixed at G.815,000) pending the hearing of an appeal against the sentence.
DIAMOND'S ALIBI ACCEPTED. New York-Jack. Diamond was
found not guilty at Troy last month of a charge of attacking and torturing Grover Parks, a lorry driver, on April 15, and was acquitted:
During the hearing Diamond heard himself denounced as tortur- er, kidnapper, bootlegger, gangster and public enemy before a jury of fa mers, workmen and small trades.
No Oficial Confirmation. Thus there is no confirmation from any official Chinese source of circumstantial evidence adduced in the report of Mr. Scott, the British Vice-Consul, who conducted invetti. gations lasting from, June 0 to 19, that a foreigner, whose descripti tallied with that of Thorburn, was seen at Soochow with his bands tied behind his back in the custody of Military Police, nor of the un-driving home after visiting a cider official reports, said to have been presa, accompanied by a boy nam- gleaned from Chiness prior to the od Jimmie Duncan. ärst Chinese official investigation, which added that a foreignor had his ear cut off, while other reports mentioned that he was injured in other ways.
However, the two Chiness offcial Investigations deny, s stated, that any foreigner" was Even arrested, thus what hap pened to young Thorbom la likely to remain a mystery 1..:
Answering the peccution's at tack, Mr. Daniel Pizor, chief coun- sel of the Diamond legal forces, told the jury that the defonce would prove an alibi, Ho, would, he said, show conclusively, that the Court had been listening to a fairy tale.
a tree and the soles of his feet burn- ed, but Diamond did not do it, because he was miles away on the night of April 15."
Aubi Defence.
*For all I know, he said, A statement by the British Go-Parks may have been hanged to ernment, giving details of the personnel and material of the Bri- tich naval, military and air forces, asked for by the Council of the League of Nations as a prelimin ary, to the meeting next February of the World. Disarmament Con ference, has been received by the League Secretary/at. Genova
It is expected that copies of the statement will be trasdated and ready for transmission to the Gor ernments participating in the Conference by Friday week, and that it will be published on the following day. The document ou cupies 100 foolscap pages,"
BRITISH TRADE FAIR.
PROMISE OF A BIG SUCCESS.
(BRITIEH WIRELESS BERVI(2.)
LONDON, Aug. 12.
[CENTRAL PRESS.}';
CANTON, Aug. 19.- The mobilization of the First and
has been completed and a general Fourth. Group Armies into Haean
location of the main forces of the offensive will be launched as soon se the scouting 'planes discover the Hunanese army.pl
northward and combine with the The First Group Army, will drive
persona
Fifty people, including & Com- munist Reichstag Deputy and to Town Councillors, all said to be long to the organisation, have been arrested.
GERMAN EXPRESS BOMB OUTRAGE.
"IRISHMAN" PROVES AN
ALIBI.
(THROUGH, REUTER'S AGENOY,).
BERLIN, Aug. 1.
Acting on the information of n shopkeeper, who was able to iden tify the piece of wire found on the scene of the wreckage of the Basl Berlin express, the police this morning arrested an alleged Irish ex-officer as chaser, suspected pur-
The wire was found attached to
purchaser is traced the police will the fuse of the bomb which caused such havou on the train, and if the
be well, on the way to elucidating
The man arrested to-day, how the mystery, ;..... ever, was in a position to prove his inaccence, and was released.
forces of the Fourth Group Aimy to storm the towns. of Hengyang and Chingaha, and push their troops further to capture the pro-MADDENING MOMENTS vinces along the Yangtze Valley.
When once the Canton and The Deputy State Attorney Kwangst armies reached as far General, Mr. Norton, who is prose.north as the Yangtsee Valley, the cuting, described how Parks was Fifth Group Army under the com-.
mand of the North-Westerngen- em's will start a simultaneous at tack on Nanking and thus Chiang's" stronghold will face two strong at- tacks from North and South.
"About midnight." he said, "a car approached then. In it were Jack Diamond, John Scaccio, an- other public enemy prominent in the liquor racket, and Marion No- borts, a fonaer chorus girl and aweetheart of Jack Diamond, who Кая the bed-room adjoing Diamond's, when the gangster was shot and badly wounded in a Now "York hotel,
"Grover
Hold Up By Gunman, "Diamond and Scaccio pointed guns and stopped the lorry" von tinued the prosocator. Parks and Jimmie Duncan put up their hands and diemcunted. The man struck Parks on the head and asked whether he was driving beer, or plain alcohol.. Parks told thom it. was cider, and Diamond wanted to know where he was taking it..
farm
Diamond and Scaccio then fore- ed him into the car, Diamond tak ing the wheel. On arriving at Diamond's
at Acera, miles away; Parks and Duncan were taken to Diamond's garage, where they were accused Grover Parke, a gnarled and of interfering with other people's grim-faced countryman, was the business-meaning Diamond's busi- chief vitness., He corroboratedness. with much detail the story of Dia. mond's alleged attack upon him. He swore he had scan Diamond many times and had no doubt about the identification of his 8 sailants Diamond, Seaceió, Jack Dalton (Diamond's chauffeur), and the girl, whom he identified ( as Marion Roberts from a photo- graph. Scaccio will be tried later Dalton and Marion Roberts are missing,
"They could not or would nat mond and Beaccio forced them to answer questions, whereupon Dia-
Tomove thoir shoes and socks. Lighted matches and burning pa per were hold against the soles cf their feet.
The Canton neroplanes soar over Hunan almost every day to recon- noitre" the movement of the Huaa troops. According to military re- perts, no trace of the Hunan army has been found in southern Hunan, since the advance of the First and Fourth Group Armies into their southern border,
The provinces of Humac and Kinngsi are expected to fall to the Nationalist troops without much opposition. The whole force of the Fourth Group Army is now raatsing at Chucnchow and Huang- sha Ho pending orders to move farther into Hunan, General Pei Chung Hai, the Vice-Commander- in-Chief of the Fourth Group Army, ia "directing his forces at fed- beadquarters in Kweilin,
It is stated that Hunan has only five divisions of troops for defend- ing the province and the soldiers are all badly equipped, and hack discipline, Furthermore, a portion of these troops harbour bitter fee- inge against Chiang Kai Shek.
General Ho Chien, the Military Governor of Hunan, has already tendered his resignation to the Nanking Government.
NO CONNECTION WITH RUSSIA.
"Parks and Duncan persisted] (From Our Own Correspondent.) that they did not know the where- abouts of any alcohol still. Then Diamond and Beaccio, in a state noose of a rope round his neck, and of fury, anized Parks, threw the flung one end over the tree, and lifted him with it from the ground. Parks seized a tree branch with his band to ve himself, but vory soon became unconscious,
After Parks had recovered con- scious in the garage Diamond said: "You're a tough old bird, but we'll give you one more chance to tell me, hence "They shoved something, hard at my feel the witness resumid, and they fired & gun so near that
Unmoved. Gangster. A great publicity campaign in. I could feel the whiz of the shot." The assault upon Parks was the connection with the British Indus, The boy, Jimmie Duncan, corro first of the charges in the five trics Fair, to be held next Febru-borated Park's evidence in its en- counts of the racketeers' indict. ary in London and Birmingham, tirety, pleasers are ment, The: proseentor described is about to be launched
The defence, produced a dozen how the gangsters cut the rope and removed Parks to 'n garago where
The organisers are tere pleased witnesses, including waiters, hotel at the fact that, despite the trade I olerks, and a New York psycho- | they revived him. Finally Diamond depression, 220,000 square feet out i analyst, to prove an alibi, Thoy of 300,000 available si. Olympia" | swore, that Diamond was in on Al- have already been booked, bany hotel at the time he was al-
At White City, where the entire British Textile Industry will be represented; the exhibits will cover some 100,000 squaro, fest, while in Birmingham: heavy industries will cover 280,000 square fast
and Scaccic placed Farks and Dunean in be car and drove them oway. They finally left them on leged to have kidnapped and the high road with their lorry, sanlted Parka, maka aka
which had followed in the charge of some of the gang ora
CANTON, Aug. 13, Mr. Fu Ping Sheung, Vice-Minis. ter of Foreign Affairs of the National Government in Canton, oficially denied that the Canton Government was in any way con nected with the Soviet Government of Russia, as has been reported in the newspapers,
MADAME SUN AT SHANGHAI
TO ATTEND MOTHER'S FUNERAL.
[TRÉGUOR, REUTER' AGENCY.
The Diamond Defonce Fund, it was reported has been increased. Diamond, smartly dressed in an from £10,000 to £16,000 by the expensivo suimmer sult, was appar- beer kings," who recognised that ently unmoved by the counsel's In London, the furniture sostion the conviction of Diamond would fierce denunciation, but Mr Dia Lis already 25 pay, cent, larger that. --menn-dipasrnese chikan dengerszenia mordantiwhite-at-the-mention-avening-From-Errepe, vid Biharia.“-
at the last Fair, and the toys and
campaign against the liquor racket of Marion Roberts.
in order to attend her mother's games section also in increasing.in New York State.
funeral.
(Continued on previous Column.)
SHANGHAI, Ang, la Madame Sun Yat Sen arrived this
Somebody
blundered/
They'd done everything, Mer wedding present was brougšu, down from the attic. The. cal was sent away for a few days. The cocktail shaker was hidden. Everything tooked lovely. And then....... thiravalanche of borror, Her, precious, not-to-be-done without “Ovaltine”. Rusks forgotten. Replaced by thou- ...these ordinary ruskos. those plain.tastelessthings...... They heard ber muttering through her forgnettes: Ske moaned for her “Ovaljine Rusks. She crooned their praisestoherself...delicious. scrunchy.......erisp.........so good far the digestion... Their timid apologies were drowned. They wondered miserably which of the Rest of the Family would get thể
Émoney.
OVALTINE
RUSKS
[airy 743