U.S. FORFEITS
$100,000,000
IN
By Ilarry W. Frantz
SPAIN
United Press Staff Correspondent
Washington. July 20.
The United States faces a possible financial loss as result of the Spanish nearly amounting to Civil War $100,000,000. quite apart from the Jack of income resulting from the revere curtailment of American ex- ports to Spain.
During two years that elapsed July 19 since General Francisco Franco the rivil inovement precipitated
against the Popular Front govern- ! ment, investors and merchants of this country have eagerly awaited of Spanish hostilities acessation which might avert further louses and uf to revalorization possibly lead existent
But claims
investments. Curreal approsal of these items is impossible until the outcome of the war is known
At present, inuncial
opinion in
this country is not very optimistic concerning a prompt termination of homlities. The course of events has suggeste some experts that the
10
Spantaly Struggle might be eumpared which to the American Civil War Insted four years from 1861 to
Deep-oled bliterness and wh
phical
among differences
Spunters themselves might bu
moderate in shorter
thought, but
IL time.
199 in- foreign country
vulvertent In the Spanish strife
vastly implicate the situation
When the Civil War began, there
were no Spanish governmental dollar 4-pie - bond issues outstanding
The value
of United States direct investments New York Senator
in Spain was omcially estimated at
about $80,000,000. This mount in Takes Own Life
cluded Investments in 23 ma
munific-
Industries estimated ot
CUT 000, in 12 distributive fus-
tries amounting to $1,440,000. In six petroleum companies
of $1,370.000
and in fourteen miscellaneous enter- prices. $61,300,000. The latter figure included telephone services, in which the
and International Telephone Telegraph Company was A large participant.
Or
ed
cotton 13
un
product.
destruction
Mr. Julius Berg Kills Himself Before Facing State Summonses
New York, July 20.
THE
HONGKONG TELEGRAPH, TUESDAY, AUGUST,
Against încreasingly
hoavy odds this Japansso col- umin pushes onward through Central China. It is made up of trucks, cavalry and soldiers on foot and is one of the many Japanese rinite attempting to co-ordinate the forces in northern and con- tral areas, Military obaer- vors believe, however, that with China's leaders nasert- ing their armics can and will fight indefinitely, Japan- ese morale and finances are failing rapidly and that al- ready there is a sharp differ- cace of opinion in Tokyo över the war's continuance,
1088.
JAPAN READY Face & Bath Sponges
FOR LONG
WAR IN CHINA
UFS
'His Majesty Haile Selassie'
CLAIM
Wins Appeal
AGAINST CABLE COMPANY
have o Hade Selassie's right tu lawsuit deali with in the English And in courts has been established.
judgment given in the Court of Appeal he was referred to as "his
Hugle Selassie Mujesty Emperor of Ethiopia."
the First
NEW SEARCH FOR MISS
Haile Selassic and the King of Italy EARHEART?
are rival claimants to EL Bum of
£10,613 alleged to be due from Cab'e
meny
the
By Carroll Kenworthy United Press Staff Corresponden!
Washington.
Contrary to the popular impression
in many places, Japan is well pre- pared nancially to wage long -costly conflict
China 1t Against
afciai necessary, according to Japanese soures here.
Untapped gold reserves, productive gold mines, a large invisible balance of trade and ample margin for addi- tional taxation comprise part of Japan's financial · resources. It was enid.
Yakichiro Suma, Counsellor of the Japanese Embassy, was the author of this report, prepared for the Academy of World Economic and comprising the first official Japanese financial outline available here since the "war" started
เบ
Suma estimated that his country could expend safely
much 19 12,000,000,000 yen for at least four years in prosecution of the war, whereas the military budget for the war this year was only 4,800,000,000 yen. (About 31⁄4% yen equal 1 doilar). STRONG POINTS
Japan's strong points in Anance. according to Suma, include:
1. An annual production of gold valued at over 100,000,000 yen in normal times and the prospect of in- creasing ; to 700,000,000 yen annually In the near future;
2. Profit of 1,000,000,000 yen now available from the stabilization fund 99 result of having maintained the Hold reserves at their original valua- tion when the yen was devalued in (931;
9. Adequate gold reserves for the avte circulation despite this prefli
btained by devaluation;
Large capacity for additional taxation in which Sum anid:
10
"The present national debi of Japan could be increased considerably with out departing from cound principles of amortization. An increase of five billion yen in the annual tax revenues of Japan would have no more serious A sensation was created here to-day
effect than to reduce the standard of by news of the suicide of Senata
living to the level which prevailed The extent to which the foregoing Julius Berg, a Democrat member for
In 1932,
A tax increase of this lavestments have been reduced in the New York State, who took his
magaitude could meet the interest value through physical
and amortization charge on an in- own life in his office early this after- capitol depreciation obviously
crease of about 58 billion yen in the cannot be known definitely until the noon.
nation debt, if necessary the Jupan military struggle has ended. In any On his desk was found a summons
A search for Amelia Earhart und ese people are able to bear war ex- case, the loss will be very substantial, to appear that same afternoon before
this degree.' Capacity for the issuance of large When the Civil War began, it was Mr. Thomus Dewey, Attorney-General and Wireless Ltd., under an agree her navigator, Fred Noonan, lost last penses estimated that
bond issues in view of the fact that Spain had
ment for a radio-telegraph service July in the South Pacific, is planned not yet for the State of New York, who was
as soon as necessary between Addis Ababa (capital of to take place
only 203,000,000 yen was needed in provided for United States products.
to notify him of several charges Abyssinia) and Great Britain,
arrangements can be made, to the amount exported there
in spite of the spectacular hunt the recently authorized issue of 258.- about $20,000,000, Exchange was in against him. Mr. Berg had been im-
the 000,000 and instead of issuing the The company do not deny that the made by the navy following
balance arrears on some commodities as much pleated in several unlawful dealings money is due to whichever is the fateful ending of
round-the-bajal the
Government allowed As 200 davs. but American colton
in Ethiopia, but world fight,
commercial companies power
the plane's hop several on
which were issur bonds
"readily fairly weli covered, as Spain regard. New York World Fair and apparently when the case came before the lower | from New Guinea to tiny Howland absorbed" although bearing only 4% exporters were said to have been connection with the forthcoming sovereign
Miss Earhart's of
interest; indispensable had used his influence to obtain re-court, Mr. Justice Bennett held that Island,
been satisfied per cent, mittances against the right for him had no jurisdiction. He said that friends have never
6. A per capita national debt of so decide in Haile Selassie's favour that all, that could be done was ac-
only about 122
yen whereas the Current information indicates that to sell liquor in the premises of the would, in effect, be deciding against compilsheri.
the italian Government's claim.
Some of them feel Miss Earhart United States per capita debt is 1.050 the possible loss on this account may Fair. be much less than $20,000,000, which
The suicide of State Senator Berg Haile Selassie's appeal against this and Noonan may sull be alive, cking in yen and tht British about 2,887 in may have been an over-estimate.
7. The fact that of the total foreign neis generally considered here as on decision was allowed and the action out an existence on some atoll un-yen;
the navy planes, which The National Foreign Trade Council admittance of guilt and has profound was remitted to the Chancery Divi-worked under exceedingly, difcuit debt of Japan of 2,200,000,000 yea at
New York in 1937 organized y shocked Democratic circles here. sion for hearing.
conditions of weather and a time least 1,000,000,000 yen is held by committee representing American in-
Sir Wilfrid Greene (Master of the limit act
their Japanese "so our obligations to foreign by
supplies terests having blocked
creditors are strictly limited." Spain, and it is said that claims of Senator was connected with several Rolls), giving judgment, suld nother-ship carried.
recent radical reduction in about $7,000,000 have been register-other personalities more or fess linked company pleaded that, because of the Mr. Dimity, president of the Ame
national unfavourable visible with: Tammany Hall, and who are conquest of Ethiopia and this coun-la Earhart Foundation of Oakland,
notably try's recognition of the King of Italy is an old-time friend of Miss Earhart balance of trade by means of shar prosecution now. The Loyalist Spanish government |
a proposal James Heines, former chairman of 6 Sovereign, the right to recover the and was closely associated with her curtailment of imports and coupled bas sald to have made
with that reduction the enjoyment of in the anal trip in a business capucity, Inst year looking toward settlement Tammany, who is believed to have money had become vested King of Italy. He added:-- been instrumental in the
"Many
of the opinion an invisible balance of 230,000,000 people are of these claims on busis ut cashee
organization
to search for yen annually to which the merchant of the US$1,000,000,000 small amounts,
lottery "The Italian Government are not a that an expedition payments for
Fred Noonan marine is the most important con- bonda for the remainder. The launched by the famous gangster, party, or a necessary party to these Amelia Earhart and
should
to clear be conducted
up tributor. claimants rejected
Dutch Schultz this proposal,)
Twenty other per-proceedings, and the only question is
ADEQUATE RESERVES probably on the belief that accep- sons, of lesser standing, are implicated whether the company are able to the mystery surrounding their dis-
Suma sold that the Russo-Japanese appearance in flight from Loe, New tance of government bonds
in the same affair by the Attorney-pay Halle Selassie. would
Guince, to Howland Island, on May war cost Japan 2,000,000,000 yen when invalidate the claims in the event General, Mr. Thomas Dewey, who "The King of that General Franco should triumph announced that he intends to proceed brought before this court, and there
Italy cannot be 21, 1937," said Mr. Dimity recently. Japan had liquid resources of only At the time Miss Earhart's plane 1,000,000,000 yen. finally over the loyalist government. to a "thorough cleaning of News no rule of law that can deprive disappeared the Navy Department
York's political life.-Havas.
To-day, he said, Japan's monetary Ameng less Important United
Haile Selassic of his right to make came forward and offered its ser- reserves are
are estimated of 30 billion States-Spanish financial disturbances
his claim here.
vices and ships to conduct a search, yen, or a 30-fold increase since the resultant from the Civil War was
"This action does not seek to bring It is well-known that the navy and time of the Russo-Japanese war. Of the discontinuance of American
made as thorough the Italian Government or the King coastguard
he estimated "the nation amount, tourist
expenditures in Spain
of Italy before these courts; nor does search as was humanly possible un- would be able to spend from 2,000,- amounting to from $1,250,000 to
and unfavourable 000,000 to 3,000,000,000 yen annually it seek to interfere with their rights. der the hurried $1,500,000 annually. When the war
The fact that the King of Italy has conditions prevalling at the time, but without difficulty." broke out an active tourist campaign
put forward a claim to this money in its very nature, it could not be He quoted a prominent Japanese was in progress.
conclusive. by asserting that it is vested in him conclus
not believe that any per- does not affect the position."
be son participating in it would He added that it would not be willing to say that right to deprive a private individual possible chance
there was no that. Misa Earhart
ed with this commitice.
funds In
and
remittances
It
under
is believed here that the late!
"Buddha Girl” Explains
Miss Anthea Hollick,
the
"I do
the
3.
the
that
Spanish immigrant
the blonde from this country to Spain, which English girl whose photograph (laken amounted in 1935 to $0,825,000, also with her seated in the lap of a statue have been largely disrupted. This of Buddha) caused, protests in Ceylon, of his right to have his claim tried in and her navigator may have landed i could meet military expenses of about is of special disadvantage to Spain has arrived in London,
the
in view of the fact that sirnar funds
She has come home to buy from Spanish immigrants In Latin irousseau for her wedding in Colom- American countries probably have bo, next year, to Mr. Lamont Wait, been largely reduced through ex who took the offending snapshot, changa control operations.
When the liner Ormonde colled at Financial chicles here are keenly Southampton Miss Hollick said: interested in the possible rate at which the Spanish peseta may be There was not the slightest iden revalued if and when the terrible of insulting anyone's religion. It was civil strife comes to nn end. The just an ordinary sumpsiot of the peseta was above its par value of Buddha and I happened to be in it. 19.3 cents U.S. during the World "We have lost none of our English | war, but was sub-par in the post-friends in Colombo na a result of the war period. It was quoted around incident--and we have not come
these courts merely because a claim on one of the little known or still
foreign Sovereign, had been put forward on behalf of a junknown islands of that South Sea
area," Mr. Dimity concluded.
British
Oil
Well Gives
500 Gallons a Day
Between 350 and 500 gallons of oil a day are now
13 cents when the Civil War broke home because of any ill-feeling in being produced at the Anglo-American Oil Company's
out.
The Federal Reserve Board
cently gave a nominal quotation of
the
any
Colombo.'
experimental well at Dalkeith, Midlothian.
Oil was struck on June 27 and the three and a half barrels secured that day was good quality oil.
economist's estimate that Japan, on a
of basly resources and of spending to that of the major comparable European powers in the World War, 12 billion уст a year for not les than four years.
"In making this estimate," he said, "no account was taken of the re- sources of Korea; Formosa, the other colonies or of Manchukuo,
"A comparison of this potential spending capacity with the amount which is now being spent Indicates that Japan has financial reserves which are more than adequate," he said.
New 18-Ton Air Transport Plane
St. Louis, Missouri. The Curtiss-Wright Corporation is developing a new 18 ton air trans- 30 port plane, designed to carry phere at a speed of 237 miles an hour, it was announced here recently.
First flight tests are scheduled for this autumn.
5.0 cents for the loyalist govern- amount of the loyalist government's ment's peseta, with reporting
gold reserve, which has been one of: actual transactions. Reports here
the major assets of that government indicated that Franco's poseta during the terrible civil struggle.
A bank of Spain report published valued more highly in London and
An official of the company said: "It is not what would bo Paris than L governmental unofficially said that gold assela ng
of April 30, 1938, were 1,000,000,000 described as a large well. It is not flowing of its own power. pesoin,
pesetas, compared with 2,202,000,000 Long continuance of the civil war on August 1, 1938. The same report We are still on production tests, and when we know more presumptively would lead to lower gave silver ussels at 549,000,000 about the well we shall instal special pumping equipment, quotation on the peseta, and its ngainst 650,000,000. The Bonk of futuro stabilization at a rate for be- Spain notes in circulation were re- "It may be that it will never pro- drilling is now being done by the low the historical value.
ported to have increased from duce more than 20 to 25 barrels a Anglo-American company, but geo- logical survey is going on in the Mid- Another matter of extraordinary 8,573,000 pesotos on August 1. 1930 day, but it is not possible to tell."
Dalkeith is the only place where lands, Derbyshire and Yorkshire. interest abroad is the location and to 9,212,000,000 on April 30, 1938.
The well has now yielded between 10 and 50 barrels (36 passengers through the sub-stratos- gallons each).
According to Vice President and General Manager Charles W. Franco of the St. Louis division of the cor- perntion the plane will be a twin- engined type, carrying a crew of four, and having room for 600 cubic feet of baggage in addition to space for 30 passengers.
Whiteaway's have just unpacked a new range of sponges in attractive colours which will be found extremely useful in the toilet room.
"SPONTEX" A new sponge which is a vast improvement on any sponge hitherto made or grown.
from 81.05 to 53,05 cachi
Rubber SPONGE GLOVES in all colours
Price $1.25 each,
ANIMAL SPONCES FOR KIDDIES. colourful range.
In an amusing and Sure to tempt children to their baths.
from $1,25 to $3.50 ench
Rubber Sponges in very pretty colours. Oval, round and square shapes.
from 75 cis, to $1.25 each
"MENTMORE" FOUNTAIN PENS. A pen which really serves its purpose. A range to suit all styles of writors. popularly priced at $5.25 cach
*SPECIAL PURCHASETAlso just received
PIPE SHOWING SECTION
NOI
NOT
N
LIKE SMOKING THROUGH (CG
OF
DR PLUMB'S SUPERIOR BRUYERE PIPES
HYGENIC COYER
TO SE REMOVED
BEFORE MGRIND
INEET SHOWS HATENT ALOMNIUM COOLING DEVICE
NY4
195
a shipment of the popular
DR. PLUMB'S PIPES
Special
Price:
$2.95 ea.
Another very good pipe-
The BARONET G
CAMBRIDGE
PIPE
$1.95 ea.
In asst. designs,
Whiteaway, Laidlaw &Co., Ltd.
K. LEIGH & COMPANY
SALE
OF GROCERIES IN PROGRESS.
Sweet Mixed Pickles "C.H.B."
12 Fl, Oz.
Twiglets Biscuits "Peek
Fren"
Milk "Carnation' large tin.. Por Doz Vinegar "C.H.B.“
. Por Bot, $0.45
Per Tin.
Klim, 5 lb. tin
1.20
2.84
Por Bot. .65
Bananas, Fresh
. Por Tin.
Per Lb.
9.38
.04
CALL EARLY
ENTIRE STOCK FRESH
FOR A GOOD SELECTION
AND
GUARANTEED
A wide and varied Assortment
147 DES VOEUX RD, CENTRAL
K. LEIGH & COMPANY
PHONES 24872 & 32990.
THE
HONGKONG
PENINSULA HOTEL;
HONGKONG HOTEL; REPULSE BAY HOTEL;
& SHANGHAI
ASTOR HOUSE; PALACE HOTEL;
HOTELS
LIMITED.
In association with the Grand Hotel des Wagons Lits, Paking
Page 15Page 16