1939-11-03 — Page 14

Friday,

HONGKONG TELEGRAPH

November. 3, 1939.

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ARE MADE WITH THE FINEST

MATERIALS UNDER

EXPERT BRITISH SUPERVISION

The New "REGENT" Model

(FULL SIZED UPRIGHT)

IN MODERNISTIC DESIGN

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INSTALLED

IN

YOUR

PAYMENT OF A SMALL

MOUTRIE'S

$1. TIFFINS

at-

HOME

TO BE HAD AT ATTRACTIVE PRICES!

VAUXHALL 14-6 SALOONS

1934, 1037 & 1938 models STUDEBAKER Fixed-head Coupe and Roadster

1939 CHAMPION DE LUXE SEDAN WITH RADIO

HILLMAN MINX

CHRYSLER ROADSTER-1936 CHRYSLER SALOON—1937

All in perfect condition!

[

ON

DEPOSIT

YORK BUILDING CHATER RD.

Jimmy's

Also A la Carte

China Bldg.. Hongkong.

Hankow Rd.. Kowloon.

OPENS TO-MORROW at the

KING'S THEATRE

THROUGH THE-

GATHERING POG

ON A LONELY

ANGLISH MOOR

STALKS AN

UNEARTHLY BEAST

...ITS TRAIL

OF HORROR SO

TERRIFYING ONLY

SHERLOCK HOLMES

DARE FOLLOWI

Who next

Sir Arthur Conan Doyle's fascinating, spine-tingling,

suspense-taut

THE HOUND

OF THE

BASKERVILLES

"Votion,

the

needle!"

BOOKING Tel. Nos.

with

RICHARD GREENE BASIL RATHBONE

Las Sherlock Holmes)

WENDY BARRIE NIGEL BRUCE - LIONEL ATWILL

(at Dr. Webon)

JOHN CANRADENE - BARŁOWE BORLAND • BERYL MERCER - MORTON LOWRY • RALPH FORRES Disected by Skinny Benfield

AT

A 20th Century-Fox Picture Darryl Zanuck in Charge of Proshechan

THE THEATRE 25 313 & 2 5 3 3 2.

THE

HONGKONG

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HONGKONG HOTEL; REPULSE BAY HOTEL;

&

SHANGHAI

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HOTELS

LIMITED

In szivelation with the Grand Hotel des Wagons Lits, Peking

SPECIAL OFFER OF 1939 NEW CARS

VAUXHALL 10.4.2 only VAUXHALL 12-4.4.2 only

SPECIAL DISCOUNT OF 10%

Inspection and telais by arrangement

HONG KONG HOTEL

"GARAGE

Phones: 27778-0

Stubbs Rd.

1037, 1930 and 1939 models

The

Hongkong Telegraphı.

Wyndham St., Hongkong 'Phone 26615 November 3, 1939

Nazism And Neutrals

PEOPLES and Governments in

the neutral countries must be deeply grateful for the zeal of Nazi Germany to declare itself their protector. The spectacle of a beast of prey gnawing at one victim pro- testing that it will cherish all the mingled creature's kith and kin is Recent efforts of so enenuraging.

inflame German propaganda » to neutral feeling against British pre- vention of the entry of supplies to the Reich are doomed to failure. When the Berlin wireless screams of an "ultimatum" and of "lawless pressure" it is not well inspired. On whose heal those caps fit all the world knows. Neutral countries need no information front 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 de neutral traile. The neutral Powers were invited to discuss the problem in order to reduce dislocation of their commerce to a minimum. Conver sations have been most friendly, and we have undertaken that every effort will be made to supply neutral needs. What use Nazi-ism pro- poses to make of neutrals, and what commercial freedom she will leave to them, even if she abatnins from violating their frontiers, has been explained in the most serious columna of the German Press. Hungary has received a warning that she cannot be allowed to manu- facture for herself goods of the type which Germany wants her to take in exchange for food supplies.

The United States Government, before its entry into the last war, was deeply concerned to secure the

PARIS

(blacked out) is

IS THIS THE LAST OF THE UMBRELLA?

still gay

P

ARIS, City of Light, has become just one more of to-day's cities of dark- ness. But thero is darkness of the spirit here..

no

Maybe, it is a little queer to us, as night falls, not to see the city picked out with gally lighted café terraces, the Place de la Concorde ablaze with ita old-fashioned

lamps, the Champs Elysées looping up to the Unknown Soldier's tomb like necklace of gleaming jewels.

But the café Lerracca aro still crowded. There are laughter and musle. People atili stroll up and down the Boulevards and wide avenues in the warm summer air. And if there in sodness in many hearts there is no #loom.

The cliizens of Parla tave excelled themselves, Life is going on normally. even if officials patrol with gas maska

dm helmeta-slung over their houlders; even if our gay curtains have been replaced by black blinds.

·

E spirit of the streets

in the same, The big ***~atores-are-still-gay, their outside counters piled with summer Materials with shoes and parasols and atts of scem,

Restaurants are

futi AWAIIR+ Although in many of them two-thirds of the staff have already been mobil- ised.

Many of the small shops, family atairs for the most part, are closed today, for out of many tamilies father and son have bath left together for their pasts.

The largest Bales are, of course, all sort of ALP, materials

But beauty products, too, are find- ing a rush sale. The Parisienne, true to tradition, is determined to look her best, come what may.

Out of the forty-six tepanis in my block of modern ferro-concrete fints, only three of us are remaining. But the concierge, a large, jolly woman wituse husband left today to join his regiment, is staying on to look after

Someone has got te reo that you'ro "And it's comfortable," she said. nice to know you're here."

Paris. Like London, is just deter mined to

carry on"

Jose Shercliff

Pro-German Sent To Prison

A man alleged to have pro-German

full freedom of the seas for Ameri-tendencies was, at Barnet, sentenced can trade. Conceptions of neutra- to three months' imprisonment for lity have much changed in the striking a constable with a stick and

kicking him. United States. The law there now

Imposes narrow limits on any trad-Arthur Morgan Bacchus (43), house The policeman said that the mon, ing with belligerents.. It is not for painter, of Trevor Close, East Barnet, us to offer a forecast of the develop, was arrested on complaints that he ment of American feeling or policy; had been wandering about New Bar- nol, writing sloguris on walls and but of desire to supply Germany roads, inclung people to attack, him, with Aghting power there is no and causing public disorder. trace in the United States to-day,

Wo

He had a passport indicating that

many, as recently as June and July.

The Special Branch at Scotland Yard, added the constable, had eer-

tain Information about Bacchus, but this could no! now be disclosed.

Bacchus said that for six years ite

had been a speaker for the British

Union of Farelate.

We were able, as the last war pro- he had made several visits to Ger ceeded, to obtain the co-operation of a number of the neutral Govern- monts in preventing the entry of goods into Germany while secured them what they needed for their own

consumption. Agree ments were made with Switzerland," Holland and Denmark on the basla of the quantities which they had ping. Those tactics of lawless previously required. Germany en outrage she employed from the out- joyed a good deal of neutral set of the present war. We may sympathy in 1914, and for some bo confident that it will be possible time it endured. She has none to-before long to reatriet Germany's day. What remained to her in 1916 importa na severoly na in 1918, and she lost by declaring an indiscrimin- with the good will of all the clul-l ate submarine canipaign on all ship-lined world.

War Chest Strategy

resources

N economic Britain and France have a vast superiority over Ger- many. Therefore economie strategy is bound to bo 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 inessentini purposes. the Throughout

years 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 wo shall have to use a higher proportion in the three years' struggle which the Government is now pinnnug.

To gain control of these resources the Government may either take over directly the industries and trades con cerned, and purchase the necessary supplies ut a fair price; or it can attempt to buy them in competition by pouring out hinge numa of new money created by various methods of la- finlion.

InflationbiyandTMncertnin"

by

without which we cannot pay for essential Imports.

That is why those working for ex-

DOUGLAS JAY ports are themselves in the front line

like activities. After the control of supplies, the next step is actual contrai of industries. So far, the Government bas taken control of the railways,

of the economic struggle. Provided that the submarine menace is de- fented, the importing power of Bri- tain and France should give them their greatest single superiority over Ger

many.

Together, Britain and France pro-

foreign securities with which we could pay for importa Germany can have ite more than £30.000.000,

though it also now has power to requisitably hold £3,000,000,000 of gold and tion ships at a fixed price. Railway facilities will be commandeered by the Government at a axed price, and the capacity left over to the ordinary public will necessarily be cut down...

...

IN the last war railway stockholders

were al- lowed a certain percent-

Age return on their capital In the 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 a catablishing outright control, particularly in the engineer ing, munitions, and aircraft indus tries. If the nailon is to fight enth- inevit=""slastically and whole-heartedly-for

able point is the wrong way of pay. ing for war.

CONTROL of

supplica

and prices. is the right method. It was forced upon us in the later part of the inst war, and it was here that the great- eat successes of war-time economic policy were achieved. Food, shipping, and all the essential industrial mate- rinis were controlled by the end of the war.

Hero the Government has started early and woll this time. The Min- istry of Supply has power to fix prices and take over supplies wherever neces- sary, and has already acted, for in- stance, in the case of steel.

The Food Defence Department will do the same for aur 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 rither fater stage.

Only petrol is so far being rationed in a manner which will seem drastic to the section of the public which uses it. Bu: petrol is the most obvious material which is at once mainly im ported and essential for almost all war.

three years, we must be able to feel certain that smail sections are nos. profiteering out of the emergency.

But the only way to be certain 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 “ahndow" factories. and the Government dockyards and ordnance factorica,

Meanwhile, the publie can help by voluntarily consuming less wherever possible. Up til few months ago ikera was no public virtue in saving. and the man who spent his income beneflied the community by helping to bring idle workers inla employment.

Now all that is changed once more. and our task is for the moment to consumo less as well as to produce Clearly those with the biggest incomes must make the biggest sacri- fices. Public opinion and war taxa- tion should both help to ensure that

more.

this happens.

At the same time care will have to be taken not to cresta unnecessary un- employment in the Arst few months.

Another essential alm must be the maintenance

our export trade,

GRIN AND BEAR IT

of

By Lichty

guess junior had a wonderful time at your party--I've never

soon him so sick before!"

In order to conserve these foreign reserven, our Government has acted quickly in forbidding any further pur- chases of 'gold or forelgri securities by residents in Britain, and is compelling all those who hold any already to reglater them with the Government.

As the need arises, these assots will ba inken over; and pounds sterling will. ve paid in compensation.

Hero, it to a pity that the Govern- ment apparently proposes to give com pensation at an exchange rate which allows a 20 per cent proft to those who sent thel" money out of the coun. try before the war began.

Burely this is an initial plece of pro- "Atcering," whichy Sir John Bimon-should---

penalise severely.

FOR in his forthcomi:5 supplementary Budget find Sir John has to means of oblaining another £500,000,000 for war expenditure, when we are borrowing £500,000,000 already.

Who is to make the sacrifice accen sary to transfer these immense LUME Into the Government's hands? That is the most vital problem of war finance, and the Government's policy will be judged accordingly.

It was in Budget policy that the worst Anancial mistakes were inade in the test war,

Enormous suma were borrowed, Actually. £8,060,000,000 was raised by borrowing between 1014-1010, and only £2,750,000,000 by taxation

Do not imagine that borrowing on this scale somehow magically, avoids the necessity for anybody making a sacrifice. On the contrary, auch bor- rowing requires the creation of big amounts of new money, and so puts the burden very rapidly on those least able to bear it by zaling prices, and by expanding profits faster than they can. be taxed.

Worst of all it leaves an enormous debt interest burden after the war, which drains away 'all the money that might otherwise be used for "social services. Democracy will not be worth fighting for 1 we make social progress after the war impossible

BIR JOHN must keep this in mind abovo -overything, elso. In so

far as he borrowa, the sacrifice wil come mainly from those witti small Incomes. In so far as his imposes direct taxes, it will come mainly from those with large.

Let him, therefore, tax to the most draatio possible extent, and add an annual fax on capital. fortunes to our existing-taxes on incomes and profits, Let the Armaments Proflia-Duty be extended to cover all excem profită. ......

Pinally, in so far as we must borrow, let us borrow at a very low rate of 'Interest The worst blunder the Government has made so far has been the raising of the Bank Rate from 2 to 4 per cent

This has achieved" nothing but to make big;present to the city at the expense of the taxpayer by raiding the cost of current borrowing and by ina- ing it very diileult to raise long-term defence loans on any reasonable terms, In 1914-19 big sums of money were created by the banks, lent by them to the public at high interest rates, and then last on to, the Goremmet by the publlo at still higher rates.

There was never the slightest justifi" cation for paying eticis a tribute to the banks, and">that” maistahd, above others, should be avoided this time??