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Morgenthau & Public Debt

..

Friday,

HONGKONG TELEGRAPH

November 8, 1940.

Canada's New Governor-General NEW

Looks Confidently To Future

....

OTTAWA, NOV. 7 (REUTER)—THE MAGNIFICENT RESISTANCE DISPLAYED BY THE UNITED KINGDOM WAS STRESSED BY THE EARL OF ATHLONE, GOVERNOR-GENERAL OF CANADA, IN A SPEECH FROM THE THRONE AT THE OPENING OF PARLIAMENT IN THE DOMINION HOUSE OF COMMONS.

WASHINGTON, Nov. 7 (Reuter).—“We have just begun to re-arm," declared Mr. Henry Morgenthau, Secretary to the Treasury, when he announced that the Treasury would ask Con- gress to raise the statutory debt. limit by an estimated $15,000,- 000,000 in order to meet the costs of the national defence pro-said:

gramme,

Mr. Morgenthau, speaking at a press conference stated that this Increase in the public debt limit would be sufficient to carry the Treasury through the fiscal year of 1942.

Asked if the Increase was consider- ed sufficient for the next four years, he replied in the negative, neserting that the United Stoles had only just begun to re-arm.

He added that the Treasury would recommend to Congress that future Issues of Government securities should be taxed and he hoped that Congress would make both Federal and local government obligations taxable, though this would only! apply to future issues.

Increased Taxes Mr. Morgenthau stated that the debt increased would very likely be accompanied by increased taxes, though he did not think it possible to establish a "pay as you go" basis.

He explained that as the defence programme getx

Into full swing, the question of increasing prices and pos elble inflation will arise, but he did 1ot fear inflation..

After Mr. Morgenthau's statement, the stock market became strong and! active. Wall Street is regarding the statement ELS baving inflationary Rspects.

Berlin Is

Bombed

In Bad

Weather

SPECIAL TO THE "TELEGRAPH"

LONDON, Nov. 7 (UP).The R.A.F., flying blind through heavy clouds and storms to ward Berlin last night, bombed the important acro-engine works in Berlin's Spandau district, and also the railway freight yards northwest of the Capital.

Weather conditions made it Impossible to record 'detailed observations of the results.

After stating that little of freedom was now left in Europe, the Earl of Athlone "Force and fear have been supplemented by subtle intrigue. International tension has been heightened by the alliance between the Axis Powers and Japan.

"Other events, however, of] greater significance, have served to confirm our confidence in the cutcome of the struggle.

"First and foremost has been the magnificent-resistance of the United? Kingdom. For four months Great Britain has constituted the front line of battle ngainst the forces of aggression. The spectacular advance

Sino-Japanese Peace Rumours Are Denied

CHUNGKING, Nov. 7 (Reater)-Concerning the rumour of the enemy has been halted by tie that the Chinese Ambassador in Berlin, Mr. Chen Chich, cabled Indomitable spirit of her people."

The Earl of Athlone added that in a German recommendation of a peaceful settlement with Jap- the face of a common perll there had, an, and further, that there was a discussion of the recommen- arisen a closer association and an dation by the Chinese Supreme National Defence Council, a Increasing measure of co-operation categorical denial is issued to-day by the spokesman of the

Chinese Foreign Office. the British Commonwealth.

between "America and the nations of

The spokesman describes the

GERMANS story, he "absolutely without

LEAVE TURKEY

-Espionage

ANKARA, Nov. 7 (Reuter). The Air Ministry said that three of Germany's main Inland harbour-A number of German nationals

understood Duisberg, Mannhelm and Ludwigs-are

to be Prices Soar

haven, all on the Rhine-were attack. NEW YORK, Nov. 7 (Reuter)-ed, as well as the oil refineries at pectedly leaving Turkey,

It is thought that this is con- Reacting to Mr. Morgenthau's state-Leuna and Homburg; railway junc-

with the arrest at ment, stocks, bonds and commodity lons at Pretzsch; railway yards at nected prices sky-rocketed in one of the Hamm, Mainz and Cologne; a factory Istanbul of an unknown number

milles northeast of Cologne;

of people, all or mostly Turkish biggest days of trading for several 20

factorles near Dusseldorf; the nero- months.

on suspicion drome at Bolltz and the dock area at nationals,

espionage.

The stock market ticker was run- ning two minutes late at the close and recorded guina as high as eight points. The turnovor exceeded 2,000,000 shares.

Steela led the upward swing which more than overcome yesterday's losses resulting from the re-election

President Roosevelt. of

Bullishness also appeared in the Chiengo grain market, where wheat at one time sonred as much as four cents in the biggest single day rise of the year.

Villagers See Vision Of Christ

SPECIAL TO THE "TELEGRAPH" LEWES, Eng. Nov. 7 (UP)Ten, persons the village of Firle to-day reported seeing a vision of Christ in the sky which they interpreted as a British victory.

Dunkirk,

foundation."

Invaders Withdraw CHUNGKING, Nov. 7 (Reuter).- Further Japanese withdrawals from China are predicted in the near future by observers.

Following the Chinese occupation of Nanning and Lungchow and the withdrawal of Japanese troops from Kwangsi province, Chinese are now

lacking Yamchow on the sea coast.

Mystery Of Attacked Convoy Silence Reigns

SPECIAL TO THE "TELEGRAPH" NEW YORK, Nov. 7. (UP)

The retiremey is resulting in The fate of the British convoy

One Chinese detachment is reported on Sunday. to have entered the town.

it of the Japanese from the Yangtse Bnex-

renewed Chinese activities in the which was attacked in the middle German Shanghai and Nanking areas, of the Atlantic by a

The occupation of Matang below pocket battleship of the Graf

is

› Chinese Klukanų! reported,

Spee class is still hidden in war- Artillery is stelling Ichang city.

Meanwhile half of the 400 Japanese time secrecy.

Shortwave listening stations planes which were concentrated at Hankow for the bombing of Chung-Government radio bureaux, which king early last summer are reported maintained a vigil since Mackay Rudlo picked up distress calls from to have been withdrawn to Japan.

and the British steamers, Ransltikl Ichang Still Held TOKYO, Nov. 7 (Reuter)-He-Cornish City Inst Tuesday, said they ports that the Japanese are about to had heard nothing further,

being An unconfirmed report is evacuate Ichang are denied here by a

clrculated here that British warships "Domel" dispatch from Ichang.

are silent.

of

The number arrested is re- ported to be about 40.

FRED PERRY Twenty Classes Called Up

DIVORCED

ANKARA, Nov. 7 (Reuter) Turks of milltary age who are not called to the colours with their respective classes for

compulsory

Chinese Successes. CHUNGKING, Nov. 8 (Central

and

Both ships sailed recently from un

LOS ANGELES, Nov. 7 (Reu-military training are now being News).Japanese troops at Mann-cast coast Canadian port and are be

ordered to report for training.

ter)-Helen Vinson, film star wife of Fred Perry, well known British lawn tennis player, was granted a divorce from him to- day.

Mrs. Perry told the judge that her husband was restless at nights and would argue and loudly slam the doers and throw furniture around.

"He would keep this up until 4 und 5 nm. It went on until I lost my appelite and weight and became very nervous," she said.

Perry was married to Miss Vinzon six years ago at Harrison, New York.

Roosevelt Receives British Buying Agent

Teach Children the

EKLEENEX HABITE

shan, Wangchintal. and Kwanmiaotu, lieved to be part of a convoy of over Twenty classes are affected, This is presumed to be one of the north-east of Ichang are reported to 40 vessels. measures foreshadowed by the Pre-have been driven away; aldent for strengthening the Turkish' ormed forces.

Democrats' Clean Sweep

Congress Majority

SPECIAL TO THE "TELEGRAPH" NEW YORK, Nov. 7 (UP).-The latest available unofficial returns to-day show that the Democrats hold 208 scats in the House and the Re- publicans 102. In the Senate, the Democrats hold 60 seats, the Re- publicans 29 and the Progressives one.

made another night raid at Tslaotso,

In north Honan Chinese troops Wants Elimination coal-mining town on thewestem Of Tax Exemptions

section of the Taokau-Chinghua Railway, on the night of November

3.

SPECIAL TO THE "TELEGRAPH'! A Japanese train was derailed und

WASHINGTON, Nov. 7 (UP)—The section of the railway track was Secretary of the Treasury, Mr. Henry destroyed.

Morgenthau, ennounced to-day that According to a report from Tunki, the Treasury Department will recom- the Chinese have recaptured Yang-mend to Congress that the kangchen, north-east of Liyang in exemptions on all classes of Govern- Klangsu. The Japanese Bed north-ment securities be eliminated im- ward.

mediately.

Craigavon Denounces False Stand Of Eire

Her Neutrality Imperils U.K.

tax

of Northern Ireland, has made the following statement on Mr. LONDON, Nov. 7 (Reuter).-Lord Craigavon, the Premier Eamon de Valera's speech:

Gandhi Abstains From Fast

Observers believe that the results foreenst closer Congressional CO- operation with President Roosevelt's WASHINGTON, Nov. 7 (Reuter). The announcement that policies, and also that the mid-west are assuming Republican leaders Mr. Arthur Purvis, head of the British Purchasing Commission greater party control.

The Administration is expected to In the United States, is at present conferring with President Roosevelt has aroused speculation whether the President may benefit from the auditinant members House gains, parti- not even now be considering further nid.

are regarded as sufficient to out-vole He has been back in the capi-the G.O.P., plus the Democrat bollers.

Victory Consolidated

"However deeply the attitude tal only a few hours.

NEW YORK, Nov. 7 (Reuter) of the Eire Government may be Mr. Joseph P. Kennedy, the Returns pouring in 24 hours after deplored, no one who has closely United States Ambassador to the presidential election continue to studied each successive stage in Britain, and Mr. Henry Mor-consolidate

President

Roosevelt's vic genthau, Secretary of the Trea-tory in 39 out of 48 states, but the policy of Southern Ireland sury, also called on the President simultaneously they gave Mr. Wendell can be in the least surprised.

"It has been evident all along that Willkle the biggest popular vote ever Įto-day.

Elre, while accepting concession after candidate. palled by a Republican After the conference, Mr. Purvis In told the press that he was flying tot over 47,000,000 votes so for re-concession from Britain, intended to

Willkie is just under 4,000,000 give nothing in return.

"In the midst of the war in which Britain shortly but would no doubt below Roosevelt, who has received

the Empire is fighting for return with more orders for war 54.5 per cent, of the total.

number of The

of Democratic re-existence, Eire clings to neutrality material.

Mr. Morgenthau stated that Mr. presentatives so far in the election is even though by doing so she is creat-It would appear that the ap- Purvis had merely visited the Pre-204, which is alx mare seats than ing difficulties for the one Power to peals by Congress leaders to whom she owes her present immunity Mahatma Gandhi not to under- sident to say good-bye before starting in the present Congress.

take a fast as part of his cam- unamcially reported that the from attack by Germany. Is for England.

Democratic Party candidate for the "Mr. de Valera's announcement Senate in New Jersey is Mr. James marks the culminating point in the paign of protest against the in- Cromwell,.

Minister 1. formerly

in process which we in the North have clusion of India in the war move- ment without her consent, have Canada.

foresten for the last 40 years." "Roosevelt's Victory

been partly. successful. NEW YORK, Nov. 7 (UP)-The populor vote at 3 p.m. to-day totalled:Roosevelt 25,040,401, Will- kle 21,472,040.

Give Kleenex to the young- eters to take to school... berkies for aniẞlly noses, for wiping sticky fingers. Only Kleenex has the exclu sivo "Servo-A-Tinus" Box.

It even a it serves.

in goy, cheerful colotes: Whils, Green, Orchid, Peach

For

FINEST

Fate Of Poles

Is Mystery

May Be Nazi Victims

Σε

The President now has 38 States with 440 electoral votes and Mr. LONDON, Nov. 7 (Reuter)Willkle ten States with 82 electorals. Uncertainty surrounds the fate

of Marshal Smigly-Rydz and Mr. De Valera On

Polish soldiers interned In

Their Majesties At Mersey Side

its

SPECIAL TO THE "TELEGRAPH" LIVERPOOL Nov. (UP)-Their Majestics the King and Queen to-day visited the badly bombed Mersey districts.

One woman weepingly told the Queen that her four sons had been killed. The Queen took the woman's hand in hers and the woman then SPECIAL TO THE "TELEGRAPH" - BERLIN, Nov. 7 (UP)-Referring said: "I shall not mind my lose as

long as we win the wor." to Mr. Churchill's statement regard-

During the visit, three air raid ing bases in Eire, Mr. Eamon de alarms were sounded. *

the porta Valera said: "We have

them back." and do not intend to give

"There can be no question of hand-

Rumania since crossing the Irish Bases frontier in September last year. Owing to German penetration of Romania the Polish embassy in Bucharest has been forced to leave, "Reuter" Jearns,

Pollah Before his departure, the Ambassador, Count Raczynski, pro ngainst the violation of inter-

tested

national

regulations In relation to ing the-ports over under any condi- Chilean Claims On

Antarctica

1

Yields To Friends WARDHA, Nov. 7 (Heuter).

In .an interview, Gandhi told "Reuter" that the iden of fasting was "still in, abeyance."

Another Arrest WARDHA, Nov. 7 (Reuter)- Brahma Dutt Ralnirmal, who started a novel form of passive resistance- en anti-war propaganda walk-te re- ported to have been arrested five miles from here.

Brahma Dutt is presumed to be Gandhi's third nominee for a limit- ed campaign of elvil disobedience,

Gt. Britain's Fascists And Italians

members

of the former Polish lons whatever and there can be no Government who

LONDON, Nov. 7 (Reuter)-Per- found refuge in question of handing them over as Rumania.

long as this nation remains neutral,"

SPECIAL TO THE "TELEGRAPH sons associated with the British According to International re-declared Mr. De Vallera.

SANTIAGO, Nov. 7 (UP)The Union of Fascista detained under the gulations, refugee soldiers should be

Not Aiding U-Boots

Chilean Government to-day claimed Defence Regulations totalled 700 of Interned until the end of the war on He added that it is a lie to say is Antarctica pelween the merl whom about 100 have been released. condition that they would not be that German submarines or any other dians of, 63 and 90 degrees west of When Italy came into the war, some 4,200 Italians were. Interned. 19 handed over to the enemy, stated the submarines are being supplied v

- with | Greenwich, Baba wakat Ambassador, and they should now be fuel and provisions in Eire ports. This does not include Little Of these about 700 Have been or were provided with facilities of transfer "Not only is it a lie but it is known America, but it dors include a small members of the Italian Fascist Party. to another neutral country.

to be a falsehood by the British pren Which Admiral Byrd explored To date 410 have been released. Government. Italf. Any attempt to and which Lincoln Ellsworth LONDON, Nov. 7 (Router),

The bring. Dressuroto bear on by over.Rom.

Governor of Mauritius states that ants, by Great Britain, would LONDON, NOV,7 (Reuter) belligerents, Omcers of the Punjab Police have only lead to bloodshed.A long as CHENGTU, Növ. § (Central News) permission is being sought to extend Kilit earthquake occurred in the term of the present législature at 11:19 pm, on Wednesday pending the introduction of a new agreed to a voluntary cut in pay of this Government remain in once we shall defend our rights/AMTOS 20 per cent, to provide a fighter plane

constitution. V for the defence of India trumpapura, Valera declared entres

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OPPE CENTRAL MARKET; QUEEN'S RD., Ch éphones: 120121 620447

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