1938-08-02 — Page 3

U.S. FORFEITS $100,000,000

IN SPAIN

By Harry W. Frantz

United Press Staff Correspondent

Washington, July 20.

The United States faces a possible financial loss as result of the Spanish Civil war amounting to nearly $100,000,000, quite apart from the Iack of Income resulting from the severe curtailment of American ex- ports to Spain.

During two years that elapsed July 10 since General Francisco Franco precipitated

the

govern- of

civil movement against the Popular Front ment, investors and merchants this country have eagerly awaited hostilities of Spanish a cessation which might avert further losses and possibly lead to revalorization of existent cinims and Investments. Current appraisal of these items in impossible until the outcome of the war la known

opinion

In

At present, financial this country is not very optimistie concerning a prompt termination of hostilities. The course of events has suggested to some experts that the Spanish struggle might be compared to the American Civil War which

four

успеа

cars from 1801 to 1885. Deep-rooted bitterness and philoso- phical differences Among the Spaniards themselves might bo moderated in shorter time, it thought, but foreign country In- volvements In the Spanish strlie vastly complicate the tuation.

When the Civil War began, there were no Spanish governmental dollar bond Issues outstanding. The value

of United States direct investments New York Senator

In Spain was officially estimated at

about $80,000,000. This amount

at

cluded investments in 23 manufac

Industrica estlinated turing $10,300,000, in 12 distributive indus- tries amounting to $1,440,000, in six of $1.370.000 petroleum companies Ο and in fourteen miscellaneous enter-i $61,300,000. The latter figure:

telephone services,

in which International Telephone and Telegraph Company was a large participant.

the

investments have been reduced in

(19

Takes Own Life

Mr. Julius Berg Kills Himself Before Facing State Summonses

New York, July 20, A sensation was created here to-day by news of the suleide of Senator

THE

HONGKONG

TELEGRAPH, TUESDAY, AUGUST | 2..

Against increasingly heavy odds this Japanese col- amu puslica onward through Central China, It is made up of trucks, cavalry and zoldiers on foot and is one of the many Japancae units. attempting to coordinate the foreca in northern and cen- tral areas. Military obser-. vers believe, however, that with :China's leaders assert- ing their armica can and will fight indofinitely, Japan. ese, morale and finances are failing rapidly and that al- ready there is a sharp differ- ence of opinion in Tokyo over the war's continuance.

READY Face & Bath Sponges

JAPAN

FOR LONG

WAR IN CHINA

'His Majesty Haile Selassie' Wins Appeal

CLAIM AGAINST CABLE COMPANY

Haile Selassie's right to have a lawsuit deall with in the English courts has been estabilshed. And in

Appeal he was referred to as "his judgment given in the Court of Majesty Haile Selassic the First Emperor of Ethiopia."

NEW SEARCH

FOR MISS

Haile Selassie and the King of Italy EARHEART?

are rivol claimants lo 3 sum of £10,613 alleged to be due from Cable

power

many

By Carroli Kenworthy United Press Staff Correspondent

Washington.

Contrary to the popular impression in many places, Japan is well pre- pared financially to wage # long .costly conflict against China if necessary, according to an official Japanese source 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 พย Bald.

Yakichiro Suma, Counsellor of the Japanese Embassy, was the author of this report, prepared for the Academy of World Economic and comprising the first offelal Japanese financial outline available here since the "war" started.

Suma estimated that his country could expend safety as

much N 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 3% yen equal 1 dellar). STRONG POINTS

Japan's strong points in fnance. 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 it to 700,000,000 yen annually in the near future;

2. Profit of 1,000,000,000 yen now available from the stabilization fund as a result of having maintained the gold reserves at their original valus- tlon

when the yen was devalued in 1031:

5. Adequate gold reserves for the note circulation despile this proft obtained by devaluation;

4

4.

additional

Large capnelty for taxation in which Suma said:

"The prese

present national debt of Japan could be increased considerably with- out departing from sound principles of amortization. An increase of five billion yen in the annual tax revenues of Japan would have no more serious ellect than reduce the standard of living to the

the level which prevailed A tax increase of this In 1932

could meet the interest tion charge on an in- crease of about 68 billion yen in the nation debt. It necessary the Japan- ese people are able to bear war ex-

degree." penser to this.

5. Capacity for the issuance of large

the plane's hope

the

The extent to which the foregoing Julius Berg, a Democrat member for value through physleni destruction New York State, who took his or capital depreciation obviously own life in his office early this after cannot be known definitely unt♬ the noon. military struggle has ended. In any

On his desk was found a summons ense, the loss will be very substantial.

A search for Amelia Earhart and to appear that same afternoon before When the Civil War began, it was Mr. Thomas Dewey, Attorney-General and Wireless Ltd., under an agres her huvigator, Fred Noonan, lost last estimated that Spain had not yet for the State of New York, who was

ment for radio-telegraph service July in the South Pacific, is planned

bond issues in of the fact that provided for United States products

between Addis Ababa (capital of to take place as soon as necessary only 203,000,000 yen was needed in notify to the amount of to exported there

him of several charges Abyssinia) and Great Britain.

arrangements can be made. Mr. Berg had been lin-

In spite

of the spectacular hunt the recently authorized issue of 258,- about $20.000,000. Exchange was against him.

The company do not deny that the made by the arrenrs on some commodities as much plicated in several unlawful dealings

rvy following the 609,000 and Instead of issuing the allowed Is due to whichever is the fateful ending of the round-the- as 200 days, but American cotton connection with the forthcoming | sovereign

moncy

In Ethiopia, but world fight, on

Commvernment commercial companies to exporters were sald to have been

bonds which were "rendity fairly well covered, an Spain regard-New York World Fair and apparently when the case came before the lower from New Guinea Issue

of Miss Earhart's absorbed" although bearing only 4% ed cotton

indispensable had used his influence to obtain re-court, Mr. Justice Bennett held that Island, fin

have never been satisfied per cent, interest; product.

mittances against the right for him he had no jurisdiction. He said that friends

to dreide in Halle Sclassic's favour that all that could be done was ac- 6. A per capita national debt of Current information Indicates that to sell liquor in the premises of the would, in effect, be deciding against complished.

only about 122 yen whereas the the possible loss on this account may | Fair.

the Italian Government's claim.

Some of them feel Miss Earhart United States per capita debt is 1,050 be much ices than $20,000,000, which may have been an over-estimate.

Haile Selassie's appeal against this and Noonin may still be alive, ekingin yen and the British about 2,887 in is generally considered here as a decision was allowed and the action out an existence on some atoll un-yen; The National Foreign Trade Council tence of guilt and his profound-witted to me Chancery Divi-seen by the navy plans diuit debt of Japan of 2,200,000,000 yen at 7. The fact that of the total foreign of New York in 1937

worked under exceedingly Medly shocked Democratie circles here. ston for hearing. committee representing American in-

of weather conditions terests having

and a time least 1,000,000,000 yen is held by blocked funds in It is believed here that the late) Sir Wilfrid Greene (Master of the limit set by the supplies their Japanese "so our obligations to foreign Spain, and it is said that claims of Senator was connected with several Rolls), giving judgment, said

creditors are strictly limited." the mother-ship carried. about $7,000,000 have been register-other personalities more or less linked company pleaded that, because of the Mr. Dimity, president of the Ame-

3. A recent radical reduction in ed with this committee.

with Tammany Hall, and who are conquest of Ethiopia and this coun-lia Earhart Foundation of Oakland, the national unfavourable visible The Loyalist Spanish government under prosecution now. notably try's recognition of the King of Italy is an old-time friend of Miss Earhart balance of trade by means of sharp has said to have made a proposal James Heines, former chairman of as Sovereign, the right to recover the and was closely associated with her curtailment of imports and coupled

vested in the Anal

with that reduction the enjoyment of business capacity, last year looking toward settlement Tamany, who is believed to have money had become

trip in of these claims on basis of cash been instrumental in the organization King of Italy. He added:-

"Many people are of the opinion an invisible balance of 230,000,000 payments for small amounts,

that and or the U.S.$1,000,000,000

expedition to search for yen annually to which the merchant

claimants rejected this

bonds

organized

The suicide of State Senator Berg

Dutch Schultz.

feltery

"The Italian Government are not a

an

ADEQUATE RESERVES

Suma said that the Russo-Japanese war cost Japan 2,000,000,000 yen when Japan had liquid resources of only. 1,000,000,000 yen.

for the remainder. The launched by the famous gangster, party, or a necessary party to these Amelia Earhart and Fred Noonan marine is the most important con-

proposal.

Twenty other per-proceedings, and the only question is should be conducted to clear uptributor, probably on the belief that

Recep-

sons, of lesser standing, are implicated whether the company are liable to the mystery surrounding their dis- tance of government bonds would in the same affair by the Attorney-pay Haile Selassic,

appearance in flight from Lae, New invalidate the claims in the event General, Mr. Thomas Dewey, who

Guinea, to Howland Island, on May that General Franco should triump announced that he intends to proceed

The King of Italy cannot oc 21, 1037," said Mr. Dimity recently. finally over the loyalist government. to a "thorough cleaning of New brought before this court, and there At the time Miss Earhart's plane Is no rule of law that can deprive disappeared the Navy Department

To-day, he said, Japan's monetary Haile Selassie of his right to make came forward and offered its ser-

reserves are estimated at 30 billion his claim here,

vices and ships to conduct a search. yen, or a 30-fold increase since the well-known that the navy and me of the Russo-Japanese war. Of "This action does not seek to bring|1t|

made as thorough the Italian Government or the King coastguard

that amount, he estimated "the nation of Italy before these courts; nor does search as was humanly possible un-would be able to spend from 2,000,-

and unfavourable 000,000 la it seek to interfere with their rights. der the hurried

Among less important United States-Spanish financial disturbances resultant from the Civil War was the discontinuance af American tourist expenditures in Spain amounting to from $1,250,000

tu

$1,000,000 annually. When the war broke out on active tourist campelyn

was in progress.

York's political life.-Havas.

"Buddha Girl" Explains

Spanish Immigrant

Miss Anthea Hollick, the reiniitances

from this country to Spain, which English girl whose photograph (taken

The fact that the King of Italy has conditions prevailing at the time, but without 000,000,000 yen annually put forward a claim to this moncy in its very nature, it could not be He quoted a a prominent Japanese economist's estimate that Japan, on a by asserting that it is vested in him conclusive. blonde does not affect the position."

"I do not believe that any per-banis of resources and of spending amounted in 1935 to $0,825,000, also with her seated in the lap of a statue right to deprive a private individual possible chance

participating in it would He added that

be comparable to that of the major it would not be willing to say that there was no European powers in the World War, 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 12 billion yen a year for not less that Miss Earhart could meet military expenses of about is of special disadvantage to Spain has arrived in London,

these courts merely because a claim on one of the little known or still thanking this estimate," he said, 1

at

foreign Sovereign. the had been put forward on behalf of a

When the liner Ormonde called ot

in view of the fact that similar funds from Spanish immigrants in Latin trousseau for her wedding in Colom

She has come home to buy American countries probably have bo, next year, to Mr. Lamont Wott, been largely reduced through change control operations.

ex who took the offending snapshot. Financial circles here are keenly Southampton Miss Hollick said: interested in the possible rate which the Spanish peseta may be "There was not the slightest idea revalued if and when the terrible of insulting anyone's religion. It was civil strife comes to an end. The just an ordinary snapshot of the peseta was above its par value of Buddha and I happened to be in it, 19.3 conts U.S. during

the World "We have lost none of our English war, but was sub-par in the post-friends in Colombo as a result of the. war period. It was quoted around incident and we have not

come

British

Oil

son

unknown islands of that South Sen "In area," Mr. Dimily concluded.

Well Gives

500 Gallons a Day

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 5.0 cents for the loyalist govern- ment's peseto, with reporting

Colombo."

amount of the loyalist government's any gold reserve, which has been one of the major assets of thut government

Between 350 and 500 gallons of oil a day are now

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.

The well has now yielded between 40 and 50 barrels (35 gallons each).

actual transactions, Reports here during the terrible civil struggle. indicated that Franco's peseta Is:

A bank of Spain report published valued more highly in London and anoficially said that gold assets an Paris than is the governmental

An official of the company said: "It is not what would be poocta.

of April 30, 1988, wore 1,600,000,000 described as a large well. It is not flowing of its own power. pesalas, compared with 2,202,000,000 Long continuance of the civil war on August 1, 1030. The same report "We are still on production tests, and when wo know more presumptively would lend to lower gave silver assets at 549,000,000 about the well we shall instal special pumping equipment. quotation on the peseto, and its against 850,000,000. The Bank of

We sh futuro stabilization at a rate far be- Spain notes in circulation were re- low the historical value.

"It may be that it will never pro-drilling is now being done by the ported to have increased from duce more than 20 to 25 barrels a'Anglo-American company, but geo- Another matter of extraordinary 5,573,000 pesetas on August 1, 1930 day, but it la not possible to tell." - foglial survey is going on in the Mid-. Interest abroad is the location and to 8,212,000,000 on April 30, 1939. Dalkeith is the only place where lands, Derbyshire and Yorkshire,

four

years

"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 reserven which are more than adequate," he Bald.

New 18-Ton Air Transport Plane

St. Louis, Missouri. The Curtiss-Wright Corporation developing a new 18 ton air trans- port plane, designed to carry 30

passengers through, the sub-strator-

phere at a speed of 237 miles an hour, it was announced here recently.

First

the fight tests are scheduled for

According to, Vice President and General Manager Charles W. France of the St. Louis division of the cor- poration the plane will be a twin- engined typo, 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.

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Rubber Sponges in very pretty colours. Oval, round and square shapes.

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"MENTMORE" FOUNTAIN PENS. A pen which really serves its purpose. A range to suit all styles of writers.

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