1938-04-04 — Page 18

THE HONGKONG TELEGRAPH, MONDAY, APRIL 4, 1938.

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DEMOCRACY NEEDS

THIS TREATY

T

HE final and formal negotiations for an Anglo-American trade

-By

treaty began in Washington Sir Arthur Willert

last month. Sir Ronald Lind-

say, the British Ambassador,

and Mr. A. E. Overton, of the Board

of Trade, represented

Former Head of Foregin Office News Department

na-

Great Britain, Mr. Hull, the which will in turn increase the that practise economic American Foreign Minister, led danger of another war.

tionalism might be tempted to the American side.

Mr. Hull, therefore, has taken join the democratic freer trad- The negotiations aim at the full advantage of the Law pass- ing area. Then the way might lowering of the tariff duties be- ed by the Democrats soon after be open for another effort at tween the United States and they, came into power which au- general appeasement, for Great Britain. They have been thorises the negotiation of trade other Disarmament Conference, in progress informally for some agreements and the reduction of and so on. time past. They constitute the 60 per cent, in return for simi- ton will not be easy. The pri- American duties by as much as The negotiations at Washing- biggest attack yet made upon lar concessions from other coun- mary products for trade barriers and may be con- tries. He

which the sidered as the Anglo-American treaties, mostly

has made 16 such United States wants better tariff answer to the Van Zeeland re of the Western Hemisphere, in- clude such commodities as fruits, with countries treatment in Great Britain in- Tel. 27778-9. port.

cluding Canada. He now wants fresh, dried and tinned, timber, one with Great Britain for poli- wheat, rice, bacon, hams, She THEY originated with tical as well as economic rea- would also like concessions for t smaller group of manufactures. The first political reason is We are asking for concessions Hull, being good Democrats that his treaties are considered for manufactures such as

owners of farms and whisky, woollens, American by the

tweeds, cut- Liberals), would have lowered forests to have done more for lery, leather, lace, fine textiles, inherited from the Republicans to run on to the perilous rock the very high tariffs which they the industrialists than for them. earthenware, glass and ching.

Therefore, unless his scheme is as a duty of domestic policy. As

TSE TSAN TAI: AL 239 Hennessy

Read, Hongkong on 4th year. Funeral at Chinese Chris 1938, Tee Tsan Tai in his 671: fan Cemetery on 5th April, at

3 p.m.

The

* *

the United States. President Roosevelt and Mr.

(that is

to say.

sons.

* *

OUR demands confrunt

Mr. Hull with the op-

a country position of the great vested in-

it is, they have been actuated of their opposition, he must find by considerations of foreign policy as well. Like M. Van Zeeland, and many others, they

Thongkong Telegraph. feel that, unless trade barriers

MONDAY, APRIL 4, 1938.

REFLATING AGAIN

The decision to desterilise in- coming gold is the latest move of the Roosevelt Administration to encourage recovery by mone- tary means. It is a gesture; real recovery awaits the tle- cisions of private persons, par- ticularly corporations and inves- tors, to sink their money into) new productive ventures.

The gold policy of the Ad- ministration has become so com- plicated that only the initiated seem to understand its mys- teries, says the Christian Science Monitor on a topic of unusual interest and immense complica- tiona. But the difficulty is mere- ly {1 matter of terminology. Nearly fifteen months ago the Administration deckled sterilise incoming gold. merely meant that the boatlords of the yellow metal which were then coming to America were jimpounded in an idle fund. It was an expensive business, For the gold had to be bought before it could be sterilised; and this was accomplished by borrowing, a process which national debt.

to

was

to

This

added to the

enn be reduced, there is bound to be another world depression

doubt the sudden switch from

which is a terests which have been for two

sumer

which she also will soon be start- ing in Washington. Australia is sending representatives to Washington to negotiate a trade- agreement under which she hopes to secure tariff concessions on wool and other important pro ducts.

The Federation of British In- dustries is alarmed at the pro- spects of an increase of the com- petition of American products with our manufactures in the home market. But the increase is not likely to be large and should be more than offset by the tariff reductions which the

large con generations the creators and United States is contemplating

of beneficiaries of the primary protective system. The

American in favour of our manufactures. products rican demands cut across

ta

Ame-

The facts that the American

and that the balance of visible

make system of Imperial Preference

the tariff is far higher than ours him tariff set up by the Ottawa Conference trade is badly against us are concc 8 in 1932. Under that system we sions

We

on let many of the most important alleged as further reasons ducts; and Great Britain free of duty and The argument is unsound. It those pro Dominion primary products into against our reducing our duties in favour of American goods. ar place pretty heavy duties on the ignores two important points: the only same commodities when they first, that America's visible trade such coun- come from foreign countries. try avail-

The United States desires to by various invisible payments balance is considerably reduced able, Mr. Hull's second poli- tages. That worries such peo- that it is entirely wiped off by share these preferential advan- which she makes us, secondly," tical reason for a trade ple as the Canadian producers of the immense imports of tin and treaty with us concerns apples, pigs, timber, wheat, or rubber which she which Washington sees dried fruits.

Australian producers of our colonial possessions.

the broader possibilities the

in its crusade against

E

•

takes from

IN the United States the new depression has

It is, however, easy to exag- high tariffs. The trade treaties, it is argued, place, the United States is not gerate the danger. In the first have already made the asking for parity of treatment stressed the need for more United States the centre with the Domininos. She will foreign trade. Here, at home, of a great freer trading probably be content If, say, in discontent with rising prices area in the Western Hemisphere. If that area the case of a commodity which strengthens the movement for could be joined to the the Dominions and is taxed 20 of the Atlantic the opinion we allow in free of duty from lower tariffs; and on both sides similar arca into which per cent, when sent in by Imperial preference has foreign country, she could have when he links together freer grows that Mr. Hull is right. turned the Empire, and the duty reduced to 10 per cent. those European nations

trading, prosperity and peace;. who have either lowered

and when he demands

as ari their trade barriers or

essential step towards those ends are trying to do so coul

THEN there

are ways economic co-operation between in which be brought into the com- minions should be able to com- and the Dominions.

the Do- the United States, Great Britain bination, then one thing pensate themselves for Ameri- would certainly happen. can competition in the British operation, if the volume of in- The necessity for this co- The Democratic coun- market. Canada, for instance, ternational trade is to be in- tries would become more has already been given, under creased, is made very apparent prosperous and strong her treaty with the United by the facts that the English. States, important concessions speaking countries represent And another thing in the American market and about 40 per cent. of the world's might happen, Germany hopes to be able to increase them markets, that the United States. and other countries as the result of the negotiations and Canada do more trade to--

or.

All That Glitters...

was different.

Unlike the other men, he wore his

of

"Gold-digging's

gether than any other pair of countries, and that the United States and Great Britain come next.

store

It might seem peculiar that merer and Winthrop W. Aldrich the Administration should bor-waxed so eloquent, has failed to row money in order to buy gold try is undergoing deflation. No materialise. Instead the coun- which it straightway stored

KNOTTED SNAKE EXHIBITED Jaway. There was a method in

Taft, Cal. the seeming madness. When bewildering, but the permuta-raven amongst mulis. I saw him it.

the brake to the accelerator is In the typical South American bar

The latest snake story here con- the old man was as conspicuous as was the expressive way he described time in the past evidently tied itself

mug's game," gold is normally bought, it adds tions of the American economy the minute I entered.

cerns a gopher enake which at some the lending power of the have become bewildering,

in a knot but Inter was unable to At all the banks, which fifteen months ago

other tables sat dark-skinned men, but glitter to gold. It's all glitter. snakehood with the knot still led,

"Look," he said, "there's nothing untie itself. It eventually grew to- some handsome, Desterilisation was so enormous as to warrant

mostly of incoming graceful, but all South Americans regain your sight you and you're too had never tried the acrobatic stunt. lithe and The gutter blinds you, and when you and gets along as well as though It. the feeling that inflation was gold is a gesture because the rom skin to spine. But the old man old to make good use of your eyes As the snake is on exhibition in just around the corner. There banks are already amply equip

again.

window here, the story 1st fore, the sterilisation of gold red with lending power. Their clothes carelessly and his suit was and you're condemned to hard labour "You once see the glitter of gold

generally accepted as being true. an anti-inflationary step. [excess reserves before this stop much the worse for wear. His rugged for ilfe.

Ince was burned and browned and and never

You may work for a year It put the incoming gold out of was taken amounted to over wrinkled with the suns

see a speck

comes back he's a soft mark for any-- of metal. mony Then you strike lucky-perhaps and one who can look friendly. hurm's, or inflation's, way,,000,000,000.

new Jonds, and his hands were gnarled for a time you slave day and night The

broken-nailed.

"Look at me, m'indi I'm only thereby reducing by that extent move will merely add to these

gather He stared at me inarosely when I dest or nuggets.

together a few bags of fifty-five years of age and I look like the risk of inflation.

excess reserves. What is want- sat at the table nearest his, but after

seventy! I have prospected all over "Then perhaps you are robbed the world, and all I know is that ed, therefore, is confidence on a few minutes he came Desterilisation, obviously, has the part of borrowers to use the look

over and before you get backs to town. If not, nearly died of thirst in Australia, got: the opposite effect. Instead of funds already available to the

"You look as if you could speak You go back to the city to buy equip frost bite in Canada, malaria in Africa, and yellow fever in Brazil," he introduced penny you made in months, or years, You probably spend every

He suddenly grinned widely and He was English himself. toll, and then go back to your pounded, it is now allowed to the desterilisation of gold that and came from Yorkshire but that claim. Likely as not the thing glas angst a collection of very yellow

are pointed

two gold-filled teeth add to the lending power of the is the primary need to-day. It drink together, and he told me some with a ton of useless machinery and he said, "and I got that in New York.

was a long time ago. We had ajout the next week and you're leti vorl banks. This is an inflationary is the desterilisation of, coh- more about himself.

That's all I've got that glitters," move. Why go from anti-fidence. This will come when

a big hole in the earth.

No, m'lad, I'm finished with pros- inflation to inflation within ff-the entire community reenp

He was a prospector. He had teen montha?

"Sometimes you get a lot of gold Pecting. It's a mug's game."

Three months later I mat him on Because in that tures a feeling of social solidari-Prospected in Australia, in Canada, But there are different ways of guld- his way to Matto Grosso-to look: interval the feared inflation, ty, and not before. That is as searched for gold wherever rumour back to town with a "pllo" there are thickened skin could not hide

In Alaska, in South Africa. He had digging, and when a prospector gets for diamonds! But oven his sun- about which such pundits as true in other nationa as it is in But he had decided to give uplig for his gold. A man gets lonely when I spoke to him,

said thore was gold to be found, plenty of people who are ready to blush. that came up from his collar Colonel Knox, Prof. E. W. Kem- 'the United States,

prospecting.

when he's up country, and when he

---- Miller Wald

the incoming gold boing im-business community. It is nothish," was how

*

to

font.

*

**

to

the