1933-10-31 — Page 9

HONG KONG DAILY PRESS, TUESDAY, OCTOBER 31, " 1933.

AMERICA'S FINANCIAL

FINANCIAL POLICY

SEVERELY CRITICISED

BY FINANCIERS

"DELIBERATE ACTION TO FORCE

COUNTRIES OFF GOLD"

London, October 30, The Foreign Exchange Market opened nervously in conse- quence of the American decision to purchase gold in the world market. The dollar opened at 482 but fluctuated sharply.

New York, October 30.

Orthodox economists in Washington and on. Wall Street pre-. diet foreign reprisals with serious consequences if the United States plays a lone hand regarding currency and give the opinion that Britain will defend her trading position by trade currency measures, while France may place an embargo on gold exports or abandon the gold standard.

On the contrary, the "New York Times" learns that the White House conference strongly favoured a continuation of consulta- tion with the Bank of England which might portend ultimate stabilisation, at least regarding the dollar-sterling exchange.

The "Herald Tribune also hints at a working agreement be- tween the Federal Reserve Bank and the Bank of France.

It has not yet been decided how much gold is to be bought Reuter.

Paris, October 30, Financial circles regard Mr. Roosevelt's decision as a deliberate attempt to force gold countries of gold. An anonymous personage. reputed to be speaking on behalf of the Bank of France gives the oplelon that it is unlikely American buying will assume large proportions on account of the smallness of American credits here. He added, significantly. "Mr. Roosevelt's action makes it urgently necessary to balance our budget."-Reuter.

ROOSEVELT DISAPPOINTED WITH GOLD POLICY

New York, October 30. The White House correspondent of the New York Herald Tribune" reports that the attitude of Na- tional Industrial Reconstruction Administration circles is. com- pounded of "Confusion and Watchful Waiting" regarding the results of the First Week's Gold Plan. There are rumours/of re-i signations of a general shake-up at the Treasury and, the Federal Reserve Board.

It is learned that Mr. Acheson, Under Secretary of the Treasury. offered a legal opinion, which Pre- sident Roosevelt ignored in nouncing the gold plan.

an-

The Washington Post" declares that President Roosevelt is even ready to declare outright a cut in the gold content of the dollar if the experience continues to be incon- clusive.-Reuter,

T

To Raise Gold Price?

Washington, October 30.. President Roosevelt has au- thorised the purchase of gold abroad,

The announcement authorising purchases, followed a meeting be- tween President Roosevelt and his financial advisers.

Immediate purchases are ex- pected to be made through the Reconstruction Finance Corpora-

tion,

There are hints that President Roosevelt is disappointed at the fallure of his gold polley to ap- preciably affect the price of come modities.

AN INSPIRED SPEECH

London, October 30. " ...in an apparently inspired speech in Chicago last night, Pro- fessor Tugwell, a leading member of the "Brains Trust", assailed the concept of the gold standard as "sound money.".

He described its proponents as "mean Shylocks who wished to make a collection from their deb- tors which" could Se stored and made safe from the vicissitudes besetting the less cautious and the | less lucky.""

* UNREST IN HOLY LAND

Arabs Demand Leaders Release

Jerusalem, October 30. A tease situation still exists in the the Holy Land, following week-end of serious rioting, result ing in the death of two police officers and 25 rioters. Yesterday's casualties have not yet been esti- mated.

All the prisoners arrested in connection with the Arab uprising were remanded yesterday for 15 days, when they were brought be- at fore the British Magistrate Acre.

Meanwhile, the Arab Executive, many members of which are in custody, have passed a resolution protesting against the alleged illegal shooting by the police at Jaffa and demanding the release of the Arab leaders. They are sending the protest to the Leagus

NAZI STORM

TROOPS

Non-Military Charac- ter Doubted

Prague, October 29. In view of German insistence of the non-military character of the Nazi storm-troops, interest "is at- tached to the contents, of "The Storm-Trooper," a weekly official organ of the Nazi storm troops sold at bookstalls in Germany, as it contains signed articles on mill- Technique tary subjects, such as

"War in in the World War." South-West Africa," "Secrets of the U-boat War," the Colonial question, gas war fare and Ger- man and other fleets. It also has illustrated articles on military technicalities and so-called "De- fence sports," including long dis- tance marching. running and motor cycling.-Reuter.. CHUNG MING

ATLANTIC AIR SERVICES

of Nations and to the Arab Kings, Lindbergh's Recalled

It is reported, from. Damascus that all Arab papers there have been suspended.

The rioting, which broke out on Friday, was the sequel to the formation of an Arab politicial procession in defiance of the ban proclaimed by, the High Commis- sioner of Palestine, Lt.-Genéral Sir Arthur Grenfell Wauchope,

The most serious disturbances occurred at Haifa Jaffa, Acre, Jerusalem and Nablus,Reuter.

DEMONSTRATION IN PALESTINE

Declared to be Unjustified

London, Oct. 36. The present demonstrations in Palestine are not justified, declar- Professor Tugwell said that Freed Professor Neville Laski at a con-

sident Roosevelt's election was a ference for the relief of German mandate for the repudiation of Jews held in London and which orthodox governmental pronounce- } was attended by delegates from ments prior to last March.

forty-five nations.

They were now trying to show The Government of Palestine that heaped up corporate surpluses had erred on the side of over cau- and the over-concentration oftion in Its iminigration policy, wealth were not the life but the The "Arab population had -been death of trade..

to America

NORTHERN ROUTE, NOT PRACTICABLE

Washington, October 25. It was reported to-day that Col. Charles Lindbergh had been asked to terminate his visit in the British Isles as quickly as possible and return to the United States

RESIGNATION OF NO CHANGE IN MR. V SOONG

Owing to Disagree- ment With Chiang

(From Our Special Correspondent;

POLICY

Statement by Mr. H. H. Kung

Shanghai, October 30. Interviewed to-day. Mr E. H. King stated that he will follow the | same financial policy as Mr. T. V. Sodng after his assumption of the post of Finance Minister.

Canton, October 30. Following the resignation of Mr. T. V. Boong from the portfolio of

He added that he does not in- Ministry of Finance, it was learn- ed here to-day in well informed. tend to change any of the per- circles that the position of Dysonnel of the Ministry, although Ludwig Rajchman, liaison officer he could not help it if any insist of the League of Nations now upen quitting.

Mr. Kung is now sy, taking attached to the Ministry of Fin-

ance, has become precarious and over the affairs of the Finance that Sir Arthur Salter, British Ministry and will assume his new economic expert now on his way appointment on November to Nanking, is in similar predica-Reuter.

ment.

The reason, it is pointed out, is that the retirement of Mr. Soong is due to the repudiation of his close co-operation with the League of Nations by General Chiang Kai-shek, Chairman of the Nan- king Military Commission, and Mr. Wang Ching-wel, President of the Executive Yuan, both of whom have championed intimate friend- ship with Japan.

According to independent re- ports received here. Mr. T y. Soong was profoundly impressed by the friendship extended to him and by the British, American French governments during his re- recent visit to Europe and the United States and came to the conclusion that Chins should work in close-co-operation with the Lea- gue of Nations and the Western Powers in the reorganisation of the country.

to help the Department of Interior Admired by Govt.

to decide certain matters regard- ing the preparations for a com- mercial air service between the United States and Europe. „

Col," and Mrs. Lindbergh were in Inverness. Scotland, to-day and it is believed that they are hurry- ing their survey in response to re- cent messages.

It was learned that a proposal to build floating airports in the Atlantic, once deemed visionary, is now being seriously considered by officials in charge of the public construction fund. The plan, as proposed by a firm of well-known

contractors, provides for "floating airports at distances of about 450 miles.

They would be placed along the southern route to Borta in the Azores and one would be between Horta and Vigo, Spain.

A private corporation has al- ready submitted a bid for the con- largely increased, especially in dis-struction of the aeroplanes. "The He declared that incomes must tricts adjoining the Jewish die work could be handled under an be transformed into larger wagestricts Professor Laski hoped the appropriation of and higher prices for farmers and time was approaching when Pales

from the public construction that retail prices must be moderat- tine would be a common country

funds and would give employment ed."

for both races-Reuter.-

to 10,000, men, it was said.

CURRENCY RACE Meanwhile, there is a real peril of an international currency race. That such a race, already fore- seen in Washington, will result from the policy of old purchases abroad is also the opinion in Lon- dod, where it is pointed out that the war will be chiefly between the dollar and sterling."

The financial editor of the

A GRAVE PERIL ON YANGTZE

RED INVASION MAY CUT

COMMUNICATIONS “

!!

0830,000,000

com-

Plans submitted by the pany will be modified. if the pro- ject is accepted, it was said to- day. They provide for aero- dromes 100 ft, high with accom- modation for passengers in the event of emergencies.

Leaders

Nanking, October. 30.

In the course of a speech "at National Government headquarters this morning, in which he review- ed domestic and international development, Mr. Wang Ching Wel paid high tribute to Mr. T. V. Soong's untiring efforts in tackling tenis since the Mukden outbreak the Government's financial prob-:

the retiring Minister, he said, had in 1931. The accomplishments of

won the admiration of all the Government leaders.

Turning

to

the

the international situation, Mr. Wang regretted Ger-

withdrawal: from many's League, although he thought it un- Justified to say that Germany's cleavage of the peace structure of action had caused an immediate Europe.

Regarding the reports of a pos- sible resumption of diplomatic re- iations between the Soviet and the United States, Mr. Wang said the resumption would be a happy event from the standpoint of world and Far Eastern peace.

*

WILL ASSIST NEW MINISTER

Shanghal, October 30. Interviewed to-day, Mr. T. V. Soong refused to disclose the real: reason for his resignation, though he admitted it was not for health reasons. He declared he had long wished to resign but withheld from doing so because a suitable successor could not be found, which would seriously affect Gov- ernment credit. Now that Dr. H. H. Kung had accepted the post, he felt safe in resigning, bat he would give every assistance to Dr. Kung. Mr. Soong said he was still con- sidering the Government request that he remain on the standing committee of the National Econo- mic Commission, but had as yet come to no decision.

ARGENTINA AND THE LEAGUE

BY ARTHUR DAVIES

In these days of international gloom, when from irresponsible quarters the cry is sometimes heard that the League of Nations has proved a fallure and must shortly collapse altogether, it is worth while noting that the grea- test of the South American Re- publics - (though not in size, at least in commercial importance) has decided to end her long' the League estrangement from and to take full part again in all. its activities.

The Argentine Republic was among the first of the neutral states in the Great War to accede to the League's Covenant, and it Was excessive zeal rather than coldness towards the League prín- ciples that caused the rupture in 1920 that is only being healed to-day.

||

to

At the first Assembly the head of the Argentine delegation took an early opportunity to insist that if the League was to full its purposes of preventing war and. fostering international co-opera- "every tion it should be open State that accepted these purposes to join. As a fact Article 1 of the Covenant gave original member-.- ship only to those States which had fought on the victorious side and to certain named neutrala. Others i,e, in particular. the defeated nations-could only be admitted by a two-thirds vote of the Assembly and subject to speci- down al conditions to be laid with regard to its" armaments,

etc.

Mr. Soong concluded by declaring The Argentine delegate propos- that he was in the best of health |ed that this Article should be and did not need recuperation. He amended so as to allow Germany would remain in Shanghai. He or Austria or any other fully self- expressed gratitude to the public, governing State to join at once- who had wired to the Government upon its own free. choice alone. urging him to remain in office.- Reuter.

..

SALE OF JAPANESE RICE

IN SHANGHAI

Ban Imposed by "Patriotic" Bodies

the ban

Shanghai, Sept. 26.-Regarding on Japanese rice, Mr. Food Control Committee attached Chang Ping-hul, director of the to the Greater Shanghal Bureau of

Social

Many people even then sympath- ised with the Argentine amend- ment, but so soon after the War it was doubtless too, tough for some to swallow.

The Assembly decided to refer this proposal for amendment to gether with several others to a Committee, who would report a year later to the 2nd Assembly, sideration-annoyed the Argentine This postponement-even of con-

Government. They at once with- drew their delegation, and have refrained from 'sending others to

interests of her own prosperity of co-operation and international sees that the one body-through whom she can get this is the Len gue of Nations.

subsequent Assemblies, although Affairs, informed the more than once specially 'urged, to "North-China Daily News" yester- do so. day that the ban was not imposed by the Chinese authorities who The chief reason why at long had so far not issued any order last Argentina has resolved to restraining the merchants from return is to be found in the fact

the "patriotic organisations, Mr. dealing in Japanese rice. It was that she realises the need in the

Chang pointed out which had de cided upon the prohibition of the sale of Japanese rice, their con- tention being that the importation of a large quantity of foreign rice at a time when the country was suffering from rural decline would have adverse effects upon the Mr. Wang Ching Wet finally stressed China's desire for. peace,

domestic cereal much to the de- triment as peaceful conditions were essen.

of native farmers. Mr. Chang stated that a meeting of tial of the execution of China's, the Food Control Committee would construction projects. Reuter.".. be called either to-day or to through the artificial barriers. morrow to discuss measures for ❘ that have played and, are playing. dealing with the more than 20,000 so pernicious a part in the causa- bags of Japanese rice imported by tion and prolongation of the eight rice shops in Nantao several World Economic Crisis. days ago.

It may well be hoped that this. The Rice and Grain Dealers will be one of the results of the Greater Shanghai Chinese Cham-ing to Association, in a letter to

action that the Argentine is tak- draw nearer to Geneva, (Continued on precious column), London and Rome."

The company, however, said that the system of aerodromes could be built upon buoyancy

Nanking, October 30. Chinese reports state that the bases and that the air service troops of General Tang Yu Lin "Daily Herald" attributes the new. The Communist situation in Sze could be operated with fares and Liu Kusi Tang clashed at Chi- The "Washington Post" whose move to the fact that other coun-chuan is developing in an alarming lower than 0.8400 and still a pro- cheng, a short distance inside the proprietor is Mr. Meyer, a former † tries have been deliberately manner and the cessation of com-t could be made.

Great Wall in North-west Hopel Governor of the Federal Reserve operating to prevent President munications on the Yangtze with It was reported, but not con- The Board, also reports that President Roosevelt's gold plan from succed- Chungking is feared, according to firmed, by officials of the Pau- General Liu's refusal to allow hostilities resulted from Roosevelt's advisers are disap-ing.

information received from Hankow. American Airways that Col. Lind- General Tang Yu Lin's forces to pointed. The paper adds that

The Communista under Gen. Hobergh has definitely decided that pass through the garrison area they mean to raise the gold price There are good reasons for be- Lung, whose activities have carried the northern route is not practi- slowly to US.841.34 per flue ounce, lieying, says this commentator,

him all over Central China at vari- | cable with the present type of air- which will be equivalent to a 50 that the Bank of England and the ous times, have advanced into the craft and that the southern pute cording to their latest professions, per cent, cut in the gold content

Bank of France, co-operating, ac- Wanhsien district, and fighting is only should be considered now- of the dollar-Reuter.

tually bought dollars on each oc- reported with the suppression forces"United Press," casion that President Roosevelt near Wanhsien A detachment of

Secret White House Meeting

Washington, October 30. President Roosevelt's conference with his advisers lasted for three tended are under strict injunction hours. All the members who at

to say nothing..

..'

The White House statement is very vague "merely giving the an- nouncement that gold can be pur- chased abroad together with the names of those attending the Con- ference.

Observers are of the opinion that the extension of the gold campaign to foreign markets is a step forward to managed currency" ..and to virtual American control of the world's gold Others en- visage an international currency

race.

BANK METHODS

Clues Discarded

raised the internal gold price. suppression forces has been sent to LINDBERGH BABY CRIME

It will now be practically im-Pengaui and Peichow, with a view possible for such counter-action to succed unless the banks ате

in dollars which sooner or later prepared to speculate very heavily

will inevitably decline in valus.

The alternative is breaking the link with the trane and indirectly

with the gold standard.

The "Financial Times"

sees

threat to the industrial and mone- fary stability of other countries.— Reuter.

TO

"NO TIME FINISH WORK”

The step will undoubtedly in- M. Painleve's Last

crease the difficulties of countries still on the gold standard.—Heuter.

Silver Advocates Take Action

Washington, October 30.

Message

to heading of the Communists, but the situation is developing un- favouably for the former.

commandered all Chinese vessels in

The provincial authorities have Boston, Oct. 94Another appa

rent clue to the kidnaping and mur- Chungking available for military der of baby Charles A. Lindbergh, transportation purposes, and Gen. Jr., more than a year ago was un- Ho Lung's attempt to sever Yang-covered to-day, and then discard tae communications is likely to have ed, like all the others. serious consequences...

FOREIGNERS LEAVE WANHSIEN

The two generals are now loyal to the Chinese Government, ac-

-Reuter,

!

Perturbation in Shanghai

Sharghal, October 30. The Shanghai Chamber of Com- merce and other public organisa- tion have wired to the Government urging that Mr. T. V. Boong re-- main as 'Minister of Finance,

In the same wire they state that at this time of national crisis it is not wise to permit, Mr. Boong to quit his post.

The Shanghai market has been seriously affected by Mr. Soong's move and the public organisations: urge the Government to do every- thing, possible to induce Mr. Boong

Samples of Gorch's handwriting to remain. They have also appeal- were taken to compare with the ed to the former Finance Minister fier paying 850,000 in vain for the his resignation-Reuter, ransom notes that resulted in the himself urging him to withdraw recovery of his child,

MORE RESIGNATIONS

Lieut. James Finn of the New York police said information from John Gorch, who formerly lived near Col and Mrs. Lindbergh at Hopewell, N. J., provided a clue.

"Gorch provided us with names Hankow, Oct. 26. Continuing their tward ad, and addresses in New York," he "These will be checked. I vance in Szechuan, Hsu Hsiang said.

can't say what they may prove to chien'a "Red" troops have crossed

be," the Chukiang river and now are menacing Wanhsien, having occu- pid Tachu and Heikiang, accord ing to reports received here today. The reports added that all foreign missionaries and foreign employees But then New York police off- of the Custom House at Wanhsien Paris, October 30. are now taking refuge at Ichangcile announced later that Finn was convinced that the suspect had no

* Nanking, October 30, The silver advocates of the I had no time to finish my United Press.

connection with the crime.

The Executive Yuan to-day "re- United States Congress have an- work. I never have time now, but

The search for the kidnapers ceived the resignations of Messrs. nounced that they would meet at it doesn't matter. When one is

continues despite the many disap- Li Tian Sen and Chow Lin, the about, the middle of November to about to die, one likes to think A firm advertised for a clerkess,pointments. Last month there was two vice-Ministers of Finance formulate a united programme for that one leaves something that and next morning was overwhelm flurry when three men were at Renter an action to rehabilitate the youth will finally achieve."

ed with applicants. The office boy rested at Brussels, Belgium, when metal, unless President Roosevelt These words were uttered by M. was told to admit no more, they exchanged a note for $1,000 makes a move to atabilize silver Painleve, the famous. French Bhortly after this an aggressive pounds sterling that was thought be In the meantime.

statesman, in the last interviewady arrived, and pushing her way to be a part of the Tandbergh ber of Commerce, reported that it given by him before he died. past the others, demanded to see ransom payment, but after the had instructed the eight Nantao M. Painleve had suffered from the manager. By this time the State Department investigated this rice shops to cancel their con- heart disease for years. His three office buy had grown" deaf to all che proved baseless,

tracts with the foreign importing doctors decided Seaterday that he protestations, and had but one ***Police investigation revealed that firms through which they had pur- needed a long rest, but hoped he answer.

the note was stolen from a comu chased over $20,000 bags of rice would have a complete recovery Not to-day, madam," he said. signment of money on route from from Japan. The Association had The former Premier, however, col. But I'm his wife.”

Monaco to Paris. The appeals court also ordered its other members not lapsed and died in the early hours Not to-day, madam," was the confirmed sentences on the three for to purchase any portion of the of this morning-Reuter,

inexorable answer,

receiving the stolen, note,

newly-imported Japanese zice.

The group is composed of Bena- tors Thomas, King, Wheeler and Key Pittman.

They intended to press for Con- gressional action immediately when Congress meets in January, with an emergency programme and a permanent plan to be, ad vocated concurrently-Reuter."

...

the

It is noteworthy that with her readhesion to the League's Cove- pant synchronises her important commercial Treaty with Great Britain and another valuable one with Italy. It is expressly stated by Argentine representatives that the purpose of these is to break

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