Friday,
HONGKONG TELEGRAPH
Moutrie Pianos Good Used Cars
ARE. MADE WITH THE FINEST
MATERIALS UNDER
EXPERT BRITISH SUPERVISION
The New "REGENT" Model
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IN MODERNISTIC DESIGN
$42500
INSTALLED IN YOUR HOME
ON
PAYMENT OF A SMALL DEPOSIT
MOUTRIE'S
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at-
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་
TO BE HAD AT ATTRACTIVE PRICES!
VAUXHALL 14-6 SALOONS.
1034, 1937 & 1030 models STUDEBAKER Fixed-head Coupe and Roadster 1930 CHAMPION DE LUXE SEDAN WITH RADIO HILLMAN MINX
CHRYSLER ROADSTER—1936 CHRYSLER SALOON–1937
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Jimmy's
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China Bldg., Hongkong.
Hankow Rd., Kowloon.
OPENS TO-MORROW at the
KING'S THEATRE
SHERLOCK HOLMES'
"Wotion, the needle)**.....as the master of a thousand mysteries dores challenge the Beast from Hall that terrorizes two young lovers in ag nightmare of horror!
SIR ARTHUR
DOYLES
QUADVENTURES:
ON THE MOOR!
CONAN THE HOUND OF
THE BASKERVILLES
---RICHARD -
· DASIL · ———— ——— WENDY.
GREENE RATHBONE-BARRIE
(Sherlock Holmse)
and NIGEL BRUCE LIONEL ATWILL
{ase Wation).
JOHN CARRADINE BARLOWE BORLAND - BERYL MERCER HORTON LOWRY - RALPH FORBES
BOOKING Tel. Nos.
A 20th Centwey-Ban Pictora
AT THE
THEATRE 253 13 & 25 3 3 2.
THE
HONGKONG
PENINSULA HOTEL;
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& SHANGHAI
ASTOR HOUSE; PALACE HOTEL;
HOTELS
LIMITED
In association with the Grand Hotel des Wagons Lits, Paking
Needed Urgently
MEN'S, WOMEN'S & CHILDREN'S
CLOTHING
Hongkong Benevolent Society
11. Ice House Street.
THURSDAY
MONDAY
10 am to 12 Noon.
HONG KONG HOTEL
GARAGE
Phones: 27770-0
Stubba Rd.
1037, 1938 and 1939 models
The
Chongkong Telegraph.
Wyndham St., Hongkong 'Phone 26615 November 3, 1939
Nazism And Neutrals
PEOPLES and Governments in
ta inflame.
the neutral countries must be deeply grateful for the zeal of Nazi Germany to declare itself their protector. The spectacle of a benst of prey gnawing at one victim pro- testing that it will cherish all the mangled crenture's kith and kip la so encouraging. Recent efforts of German propaganda neutral feeling against British pro- vention of the entry of supplies to the Reich are doomed to fallure. When the Berlin wireless screams of an "ultimatum" and of "hawica pressure", it is not well Inspired. On whose head those caps fit all the world knows. Neutral countries need no information from Berlin of British contraband control and the discussions about it on which they -were- engaged-with-us.--Ten days ago it was announced that while using belligerent rights to the full to stop contraband from reaching the enemy, we should do all in our power to facilitate bona fide neutral trade. The neutral Powers were invited to discuss the problem in order to reduce dislocation of their commerce to a minimum. Conver satlons have been most friendly, and we have undertaken that every cffort will be made to supply neutral needs. What uso Nazi-lam pro- poses to make of neutrals, and what commercial freedom she will leave to them, even if she abstains from violating their frontiera, han been explained in the most serious columns of the German Press. Hungary has received a warnin, that she cannot be allowed to manu- facture for herself goods of the type which Germany wants her to
„Serðu ÁIMBEN 10 7
PARIS
(blacked out)
November 3, 1939,
18 THIS THE LAST OF THE UMBRELLA?.
is still gay
ARIS, City of Light, has become just one more of to-day's clics of dark- ness. But there is no darkness of the spirit here,
Maybe, it is a little queer to us, as night falls, not to see the city picked out with gally Bghted café terraces, the Place de la Concorde ablaze with
old-fashioned 114
ate
lamps. the Champs Elysées looping up to the Unknown Soldier's tomb. like necklace of gleaming jewels.
But the cafe terrace are all
There crowdeit.
Laughter and music. People still stroll up and down the Boulevards and wide avenues in the warm summer afr. And if there 18 Sess many hearts there is no givin
The citizens of Paris hare excelled themselves. Life is going on normally. even if ameals patrol with gas masks es un welmets slung over their shouklers; even if our gay curtains have been replaced by black blinds,
E spirit of the streets Is the same. The big Llores are still gay, their nutside counters piled with summer materials, with shoes and parasols and
of scent
Restaurants #TC A full awing. hough in many of them two-thirds the staff have already been mobli- Led.
Many of the small shops, family ties for the most part, are closed to-day, for out of many families father and son have both left together for
their posts.
The largest sales are, of course, all sort of AR.P. materials
But beauty products, too, are End- ing a rush sale. The Parisienne, true to tradition, is determined to look ber best come what may.
Out of the forty-six tenants in my block of modern terro-concrete flats, But only three of us are remaining. the concierge. "a torge. Jolly woman whose husband.Jelt to-day to join his regiment, is staying on to look after
Us
"Someone has got to see that you're comfortable," she said. "And it's
nice to know you're here."
Paris, like London, is just deter mined to carry on."
Jose Shercliff
take in exchange for food supplies, Pro-German Sent
The United States Government, boforo Ite entry into the last war, was deeply concerned to secure the
To Prison
full freedom of the seas for Ameri- tendencies was, at Barnet, sentenced A man alleged to have pro-German
can trade. Conceptions of nentrato three months' imprisonment for lity have much changed in the striking a constable with a stick and United States. The law there now kicking him.
walls and
imposes narrow limits on any trad- The policeman said that the man, ing with belligerents. It is not for painter, of Trevor Close, East Barnet, Arthur Morgan-Bacchus (43), house us to offer a forecast of the develop, was arrested an complaints that be ment of American feeling or policy; had been wandering about New Bar- but of desire to supply Germany roads, inclung people to attack him.
net, writing slogans on |with fighting power there is no
and causing public disorder. trace in the United States to-day. He had a passport indienting that We were able, as the last war pro- he had made several visits to Ger- ecoded, to obtain the co-operation many, as recently us June and July. of a number of the neutral Govern. ments in preventing the entry of goods into Germany while we secured them what they needed for their own consumption. Agree ments were made with Switzerland, Holland and Denmark on the basis
The Special Branch at Scotland Yard, added the constable, had cer tain Information about Bacchus, but this could not now be disclosed.
Bacchus sold that for six years he had been a speaker for the British Union of Fascists.....
of the quantities which they had ping. Thaso⠀⠀ tactics of fawless proviously required. Germany en- putrage sho employed from the out- joyed a good donl of neutral not of the present: war.. We may sympathy in 1914, and for some be confident that it will be possible time It endured. She has none to before, long to restrict-Germany's day. - What remained to her in 1910 imports as severely as in 1918, and
she lost by declaring an Indiscrimin- with the good will of all the civi-
ate submarino campaign on all ship. lised world,”
War Chest Strategy
N economic resources Britain and France have m vast superiority over Ger- many. Therefore economic strategy is bound to be of crucial importance in the war.
Our own internal economic strategy must have two aims: First, to produce as much as possible of everything necessary for the war; and, second, to use as little as possible for inessential purposes,
Throughout the усага 1914-1910 the Government used about half the whole national income for public pur poses, and about 40 per cent, of it for war purposes.
Almost certainly we shall have to uso a lilgher proportion in the threG- years struggle which the Government is now planning,
To gain control of these resources the Government may either take over directly the industries and trades con cerned, and purchase the necessary supplies at a fair price; or it ean attempt to buy them in competition by pouring out huge sums of new money created by various methods of - nation.
Inflation-beyond a certain mevil- able point is the wrong way of pay- Ing for war.
CONTROL of supplies, and prices is the right method. It was forced upon us in the later part of the last war, and it was here that the great- est successes of war-time economic polley were achieved. Food, shipping. and all the essential industrial male- rials were controlled by the end of the war.
Here the Government has started early and well this time. The Min- latry of Supply has power to Ax prices and tako over supplies wherever neces- sary, and has already acted, for, in- stance, in the case of sleek
The Food Defence Department wil do the same for our food supplies, and in the case of sugar, potatoes, and other commodities, regulations have already been introduced. Rationing will probably have to follow at a rather inter singe.
Only petrol is so far being rationed In a manner which will seem drastic to the section of the public which usea it. But petrol is the most obvious material which is at once mainly im- ported and essential for almost all war-
by
DOUGLAS JAY
like activities. After the control of supplies, the next step is actual control of Industries, Bo far, the Government has taken control of the railways, though it also now has power to requisi- tion ships at a fixed price. Railway facilities will be commandeered by the Government at a fixed price, and the capacity left over to the ordinary public will necessarily be cut down.
IN the last-war mallway stockholders wero lowed a certain percent-
In the age return on their capital. next three years this certainly should not be above the average retum actually received since, say. 1920..
I hope the Government will go very much farther in establishing outright control, particularly in the engineer- ing, munitions, and alreraft indus- tries. If the nation is to fight enthu- Alastically and whole-heartedly for three years, we must be able to feel certain that small sections are not profiteering out of the emergency:---
But the only way to be certaŭ) is for the Government to own the produc- tive assets in the war trades, and con. duct them on a non-profit making basis, as we already do by one or an- other method in the case of the rail- ways, the aircraft "shadow" factories. and the Government dockyards and ordnance factorica.
Meanwhile, the public can help by voluntarily consuming lesa wherever possible. Up till a few months ago. there was no public virtue in saving. and the man who spent his incomo bencilted the community by helping to bring idle workers into employment.
Now all that is changed once more, and our task is for the moment to consuma less as well as to produce more. Clearly those with the biggest incomes must make the biggest sacri- Aces. Pubile opinion and war taxa- tion should both help to ensure that this happens.
At the same time care will have to be taken not to create winecessary, un- employment in the Arst few months.
Another essential aim must be the maintenance of our expert trade,
GRIN AND BEAR IT
By Lichty
guess junior had a wonderful time at your party--I've never
seon him, so sick before!”
without which we cannot pay for essential imports.
That is why those working for ex- ports are themselves in the front Une of the economic struggle. Provided that the submarine menace is de feated. the importing power of Bri- tain and Friher should give them their greatest single superiority over Oer- many.
Tegether. Britain and France pro- bably hold £5,000,000,000 of gold and foreign securities with which we could pay for importa, Germany can have little more than £50,000,000.
In order to conserve these foreign reserves, our Government has acted quickly in forbidding any further pur chases of gold or foreign securities by residents in Britain, and is compelling all those who hold any already tỏ register them with the Government.
As the need arises, these assets will be taken over, and pounds sterling will oo pald in compensation.
Herc. It is a pity that the Govern ment apparently proposes to give com- pensation at an exchange rate which flaws a 20 per cent. profit to those who sent their money out of the coun- try before the war began.
Surely thin is an initial piece of pro- fiteering, which Bir John Simon should penalise severely.
-FOR-in-his-forthcoming- supplementary Budget Sir John has to find means of obtaining another £536.000.000 for war expenditure when we are Dorrowing £500,000,000 already.
Who is to make the sacrifice neces- sary to transfer these imment: zums Timat into the Government's hands? is the most vital problem of war finance, and the Government's polley will be judged accordingly.
It was in Budget policy that the worst financial mistakes were mado in the last war.
Enormous
Dorrowed. Actually. £6,850,000,000 was raised by borrowing between 1914-1919, and only £2,750,000,000 by taxation.
$125GA wero
Do not imagine that borrowing on this scalo somehow magically avoids the necessity for anybody making: D sacrifice. On the contrary, such bor- rowing requires the creation of big amounts of new money, and so puta the burden very, tapklly on those least -able to bear it by raising prices, and by expanding profis faster than they can be taxed.
Worst of all it leaves an enormotis debt interest burden after the war, which drains away all the money that might otherwise be used for social services. Democracy will not bo'worth fighting for if we make social progress after the war impossible.
SIR JOHN must keep this.li inind above
e everything else. Inso far as he borrows, the sacrifice will como mainly from those with small incomes. In so far na ha imposes direct taxes, it will some mainly from those with furga.
Let him, therefore, tax to the most drastic, possible, extent, and add an annual tax on expital fortunea, to our oxisting taxes on incomes and' profis. Let the Armaments Prodita Duty be extended to cover sil exécas profits,
Finally, in so faz na we mist borrow, let us borrow at a very low rate of interest. The worst blunden, the Government has made so far has been the reiging of the Bank Nato from 2 to 4 per cent,
This has schiered nothing but to make a big presmi to the City at the expense of the taxpayer by ruling the sost of current borrowing and by mak- Ing 11 very difficult to rules long-term „détence joinE ON ADY PERSonable terms.
In 1814-18 bly suns of money werW grested by the banks, lens by them to the public al high interest rates, and than Tent on to the Clararnment, by the public at milli higher rates.”
Tuoro was barer the slightest fustin- |cation for paying such a tribute to the banks, and that mistake, "above" all others, should be avoided this time.