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THE HONGKONG TELEGRAPH.
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HONGKONG HOTEL GARAGE. (SHOWROOM)
Phone 27778-9.
Stubbs Rond.
The
Hongkong Telegraph.
TUESDAY, JULY 11, 1938,
TUESDAY, JULY 11, 1933.
و.
NOTES OF THE DAY PLANNED ECONOMY AND The Very Idea I
World Economic Conference pro- spects look a trifle brighter this morning.. No decision was ronched upon the all-important issue of the scope of the monotary discus sions, but the gold countries agreed to examine the problem generally with a view to the drafting of an agenda. This represents a distinct advance. The gold countries are, at least, prepared to listen to the arguments of the other side. Thla is the mood in which. mutual con- cessions are most likely to be ob tained. The problems were debat- ed in the House of Commons but they provided only one Interesting fenture, a hint from Mr. Neville
Chamberlain that the British
Government would be prepared to consider a return to the gold standard or an international tary standard.
to
PLANNED PRICE LEVELS.
Banking Privilege is To-day the Subject of Attack from All Quarters in Discussions on the World's Econo- mic Problems. Below is the first instalment of the other side of the question, as outlined by Mr. Benjamin M. Anderson, the Economist of the Chase National Bank. He subjects President Roosevelt's programme to critical examination.
NO. 1
CHILDHOOD DAYS. By Eddie "Glaxo" Kelly.
-man
A few years ago, a gentle- named Mr. Ring Larder pinched an idea we had been cultivating from childhood and produced a book called "The Auto-
Was never
We must be clear as to our obloc- tariffs and other trade barriers, biography of a Wonder tivos. To my mind, the great and choking the flow of goods across na-
Man." He did it without vital problem confronting the United tional borders. States and the world to-day is that The old economics taught that ex-offering the slightest excuse, of getting many millions of mon back cessiva credit and artificially cheap getting goods moving throughout the tion and the pilling up of unsound debts out of it.
work, getting business going again, money would generate great opecula and made a lot of money country, and throughout the world, which could not be paid and which, mone-increasing enormously the volume of in their qualitative, deterioration and Moreover, he
production in the world,, so that the collapse, would create crisis and panic. punished by the Society for the volume of consumption may also be But we spent the post war years, greatly increased. But among the especially from 1922 into 1928, in an Prevention of Cruelty. All of proposals which purport to have this
of credit at artificially low interest are not a fow which really look to rates, with rediscount rates held below ward different ends. There are, as the market instead of above the mar- usual, social revolutionaries who like ket as the old rules prescribed, and to fish in troubled waters, who would we generate a credit bubble and a seek radically to recast the whole speculative bubble, scheme of things and "then re-mould it nearer to the heart's desire."
THE CABARET PROBLEM
Much has been heard about cabarete lately, chiefly complaints of residents who nightly suffer from the symphonie (1) blaringe of the bands. On the other hand, there has been a complete, almost economic system, to shatter the sorry which has brought us untold disaster. hope of monetary roward in this
economic revival for an objective.there altogether unprecedented expansion which encourages us to produce
herewith the first instalment of "Another Biography of Another Wonder Man." the collapso of All this we will do without any
life and with a prayor on our lips that we will escape punishment. for it in the next.
John Stuart Mill knew the dangers both of excessive tariffs and of ex- cessivo credit. No now economics was needed to avert them.
Book One, Chapter One. Act Ono Scene One.
painful, silence on the part of Government concerning the pro-
Whatever else measures of this sort posed Cabaret Regulations. Two might accomplish, they would not, in months ago we were promised them the near future, restore production
The old economics taught that in- "In a fortnight". The promise is and consumption in the world, or set ternational debts must be paid pri- still a "dobt unpaid" on the legisla- men to work. And there are many marlly with goods and services. It tive account of the Hon. Mr. G. C. more moderate proposals which, while taught that the debtor country, in the Alabaster. In the meantime, a they might or might not be meritori-period when it was horrowing, would Kowloon resident has appealed to ous in themselves, If adopted in a have an import surplus, but, that the Court for assistance, and has tranquil time when the general when it began to repay, it must have economic machinery is functioning been politely, but not at all co-well, would, none the less, interfere goods than it consumed, and it taught world during a time which future an export surplus, sending out more We were first born into this vincingly, told that pending the with economic revival if adopted to that a creditor country, when the time historians will torm memorable.
day. There are schemes for the re- proposed "regulations"; nothing can be done to alleviate the position. distribution of wealth, which schemes ceive an import surplus, a so-called and the stock of all bandit cor- to receive payments, must re- In China a civil war was raging There has been ample time for may or may not have merit, consider-adverse balance of trade. But the old action. Residents have a right to ed as long pull measures, but they economics also knew, what the now porations was solling at a pre- some sort of protection, whilst the certainly are not revival measures. economics seems unwilling to admit, mium. There was a famine in cabarets are at present in
There are other proposals, growing namely, that it was good for a creditor Russia, a water shortage in Hong- out of the righteous anger of honest invidious position. "For their own
striko in Australia. Bakes they would prefer to know exactly what is to be their status, what privileges (if any) they are to enjoy, and to what extent they are to be subject to control.
an
JAPANESE DUMPING
The chorus of complaint against the dumping of Japanese goods is awelling. New Zealand, Germany and Australia have added their protests in the last three days, al
come
тел who have discovered iniquity, country to receive an excess of im-kong and a which are punitive in their nature, of trade the time "adverse balance The newspapers were prophceying and which can easily go so far as to of trade" under these circumstancin trouble in the Balkans and there impair the efficiency of existing phrase. The old economics taught was revolt in Mexico and Chile.
a meaningless and misleading economie machinery which is neces- when goods come into a country in It was summer in the Southern sary to facilitate revival. We must
Was
be clear as to our objectives. If, as payment of debts they do not reduce hemisphere and by the strangest an incident to revival measures, or if, the ability of the country to buy the coincidence, it was, at the same as contributing to revival measures, products of its own labour, but, rather,
hemisphere. You can see in an we can end old abuses and can im increase its total income and its total time, winter in the northern
The foreign goods prove the general economic system, consumption.
a bright future ahead of us. so much the better. But we must not coming in in payment of debts are sold instant that once that there was permit the present unhappy stato of in the creditor country, and the pro- the world and the present flux of be- ceeds in money are not taken out but, were, in fact, unique.
rather, are turned over as income political opinion. to' wildered
Wo
As we look back on those good
though what satisfaction they are capitalized by those who advocate new people within the creditor country, in- old days, we feel a pang of regret.
we can
"RACKETEERING”
to
IN HONGKONG?
and untested economic theories in the creasing, their incomes by the same likely to obtain, it is difficult to making of hazardous experiments, amount in money as the goods which imagine. Japan is the one country This sick economic world of ours is a
como in in payment of the debts, and The startling drop in the axles which has maintained a reasonably patient in a hospital, ut a subject for leaving them with undiminished buy of Government Monopoly oplum high level of prosperity during the experimentation in a laboratory. And ing power for their domestic products, But the new economics seems to be is gathering pace rather than world-wide depression. Her ex- if, as I believe is the case, improving, despite the intensive when those of all other countries mesures sur tried and tested men- these matters, seems to be afraid of ports have increased since 1929 cure this patient by tried and tested returning to seventeenth and oigh- measures, surely we have no right to teenth century policies with respect to campaign directed towards the have diminished on a rapidly sures and to turn the patient over to goods, afraid of production, afraid of auppression of the divan. The growing scale. To invite her to
a new school of physicians who have income, and afraid of an abundance latest figures, which we believe surrender her business activity. known to work.
stop selling, is to invite her to
some theories that have never been of goods for consumption.
AGE-OLD FALLACIES. • to be reliable, show that the The complaints of unfair competi- In medicine, when radical new
The old economics knew very well revenue from this source has tion may be fully justified, dropped to below $2,000 daily, Her answer is that despite the
allegation less than a sixth of the gross costs tip that she is selling below income from sales prior to the wealth is increasing rapidly. adoption of the new policy. The Japan seems to have discovered significance of this cannot be the secret that while the value of lost. If the decrease in gales of goods and commodities consum newly produced goods exceeds that represented a decrease in con-ed, there is little to worry about sumption, the Colony could bear nationally.
it simply means that smoker's
*
The fuss they made of us! We remember poor old father calling his friends together and proudly announcing our arrival. They all clapped him on the back and said "Good old Kelly."
"Well," said father, "Lot's go and wet the baby's head."
"Leave one there for me," we called out as they trooped out to McGinnty's pub..
"All right, Son" he said. measures are proposed, it is at least;
The neighbours came round to the common practice to try them out that it was absurd to try to expect on animals first, and then, after long any definite equivalents in imports and and careful experimentation, to my exports to batween two particular see Old Kelly's son bathed for the them out tentatively on human beings. countries. It understood triangular first time in undistilled alcohol. We must certainly ask the new schools and quadrangular trado. It knew that We remember many of the Dad's of economic practitioners to try things if a country's general balance of trade old friends broke down and wept..
as they witnessed the ceremony. out on a small scale first, tentatively with the whole world was in proper and cautiously, before they ask us adjustment to its creditor or debtor to transform the whole economic position-things-were going right, and that. nothing need be done about it.
In March, 1903 we met Esther.. system radically.
The new economics seems to be veer-Esther was our first sweetheart, ing strongly toward the notion that
OLD AND NEW ECONOMICS.
and
were only
a formal declaration, so we kept out soul-stirring love to ourself.
it with an approving smile, but TOMATOES, AND PATRIOTISM the failure of the so-called old with every particular country must be time when she reads this. We We have heard a great deal about the volume of exports and imports which she will learn for the first
are leaving one kind of opium indefatigable American Civil Liber trines. I think it can safely be said discouraged with every country which two) to know the exact wording of
One of the queerest cases the economics, and the need for new doc-regulated, and that trade must be were too young (we which they do not want because ties Union has set inckied would that there has been no failure of the does not buy more from us than it old economies in this post war period, sells to us.. It is not pleasant to see it is dearer than and inferior to seem to be that of the labour agita-
because so little of what the old this recrudescence of sixteenth another. It also means
that tor who has been accused of defil- economics advocates has been done. soventeenth century fallacies!
The old economics taught that there ing the American flag. He was ad- The old economics taught, and teaches, they are able to get the cheaper dressing a meeting, suitably be that tariffs should not be unduly high, is no such thing as then the power and better brand. Since we last dagged and decorated, when
with production. It taught that the power A and that goods should move examined the situation which group of ex-service men showered reasonable freedom across national to consume grows out of the power to
(Continued on Next Columna.) the speaker with ancient eggs, de- borders. The post war period has produce, that consumption grows out has arisen from the closing of cayed tomatoes and such like. The scen a steadily mounting body of
*
TICKET TO MONECOPOLIS
the Hongkong factory, it has charge against him says he used an developed features which are American flag to wipe from his faco sufficient to cause grave concern. trickiing eggs which took lodge- stray bits of squashed tomatoes and The smuggling organisation is ment there. His defenders rotort perfecting its system and a that he wiped his face with a problem is being created for the handkerchief, and that the flag was Colony very closely approaching defiled by the flying missiles them- that of the United States under selves. But even if the charge was Prohibition. In 1 milder true, it is difficult to get indignant about it. A man who gets an un- fashion, it has always existed. cooked tomato omelet in the face is To-day, with only unwanted likely to wipe it off in a hurry, and opium legally obtainable, it has to use the first thing that he can lay been intensified tenfold. In its his hands op. different way, the situation bears an astonishing resemblance to the American scene under the operation of the Volstead Act. No better example of 'the way The moonshine stills are ro human thought runs to extremes presented by illicit opium boiling can be seen perhaps than in the "factories." Smoking dens are recont Ideas which have been as numerous as speak-casies, advanced about the city of the The only thing missing is future, Mr. Frank Lloyd Wright, "racketeering" and it is not at extreme with his vision of the the architect, has gone to one all certain that the Colony will
broad-acre city, where overy not experience the "racket" family would have its acre of accompaniment to the game of ground and everybody would be defeating the Revenue Officer. back to nature again. And now With a craving greater and more the prediction is made that the will be dangerous than alcoholic liquor city of the future to cater for, the emergence of "a monccopolis, a single, vast, un- rival gangs seems a logical out-burnable, high bullding, whose come. We are not creating a corridors are streets, and whose bogey. Stories of "protection" light, ultraviolet, and ventilation
ontiroly are
artificial." This in certain areas have already monster called monecopolle, it renched us. The case with
seems, is the inevitable outcome of which illicit opium is obtainable progress, the progress which is In olube and boarding-houses is making possible the conditioning natonishing. It also suggests of air, the building of windowless Kline of investigation which factories, and other modern might be pursued with developments. But who that looks advantage
authorities if forward to the morning stroll
roblem-
from home to office would give this Up for the artificial comforts and CAR PARK Yatmat the monacopolis?---
they are to tackle thi seriously.
Oh, don't make me tell a toll-him--I-don't-800-
urkd. Can't
Many a night we cried ourself to, sleep over Esther. The way we looked at it was that if we couldn't see Esther, our old man wasn't going to Siesta either. So we made him walk the floor.
Our second love affair was with Marion. But she was the Marion kind; if you get what we mean.
Just now we've got a date with Jennie. With a bit of luck we will be back here in time to write. to-morrow's column.
of production. A man producing one. commodity, na automobiles, contri butes to the supply of automobiles, to be sure, but equally contributes to the demand for wheat, for silk, for cotton and for other commodities: which he wants. And the man pro- ducing cotton or cotton goods con- s tributes to a supply of these things, but also to demand for silk, for sugar, for automobilos and for other things which he wants. The old economics recognized that things could be pro- duced in wrong proportions, some things too much, others too little and
old,
that then great abnormalities and tortions would come. The ola economics recognized that
when
you had overproduction of certain things and underproduction of other things, the terms of exchange between them could be on deranged that the buying power of the producers of the exces sivo commodities would sink very low, and then even the underproduced com“. moditica
acom would
to be over- produced, because they could not be,
But it sought the remedios in better balance and better proportion, and not in a general contraction of alf production. The old economics saw purchasing power growing out of pro- duction, and it hold that a good equilibrium antong the various - elo- ments of production meant largo SE- grogate purchasing power, which could take care of large aggregate production. The new economies reparates production and buying power. It looks on goods on the one hand and buying power on the other. hand as separate and 3: Independant things, and proposes artificial ins
mä (Continued on Paad 4 AAE