1940-04-19 — Page 16

Friday,

HONGKONG TELEGRAPH

April 19, 1940.

SAY GOODBYE TO

SHAVING DISCOMFORT

USE A

"SPEEKO"

ELECTRIC-SHAVER

THE LATEST PRECISION INSTRUMENT FOR QUICK AND EFFORTLESS SHAVING

FEATURING TWO SPECIAL ADVANTAGES

It can be used over an entire range of voltages from 110 to 250 volts.

It can be used on either A,C. or D.C. circuits.

OBTAINABLE AT:-

THE HONGKONG DISPENSARY

A. S. WATSON & CO., LTD.

RADIÓS

TEL. 20616.

INCOMPARABLE!

R. C. A. VICTOR

PERFORMANCE

QUALITY

VALUE

MOUTRIES

FOR ALL 1940 MODELS

TRIAL DEMONSTRATION AND HIRE PURCHASE TERMS ARRANGED

S. MOUTRIE & CO., LTD.

YORK BUILDING

Kodakk

-CHATER ROAD.

VERICHROME

Gets the picture where ordinary films fail

Swan, Culbertson & Fritz

Investment Bankers and Brokers

Members of New York Colton Exchange

Chicago Board of Trade

Manila Block Exchange

Winnipeg Grain Exchange

Commodity Exchange, Inc.. New York

Canadian Commodity Exchange, Inc., Montresl

New York Coffee and Sugar Exchange

Hongkong Sharebrokers Association

Shanghai Stock Exchange

SHANGHAI, HONGKONG, MANILA and BUENOS AIRES

Cable Address: SWANSTOCK

THE

HONGKONG

PENINSULA HOTEL;

HONGKONG HOTEL; REPULSE BAY HOTEL;

&

SHANGHAI

ASTOR HOUSE; PALACE HOTEL:

HOTELS

LIMITED

In association with the Grand Hotal das Wagons Lite, Peking

GOOD USED CARS

Vauxhall "28" Saloon

1035

Studebaker Roadster

1932

Studebaker Seđun

1034

Bulek Sedan

1935

Pontine Saloon

1037

Morris "25" Saloon

1937

Miles Price

39570 $1400,00

28122 $ 000.00

47110 131200.00

38847

33877 $1000.09

$2400.00

21117 $2500.00

20260 $2300.00

Studebaker Coupe

1037

Chrysler Sedon

1937

10424 $2100.00

Chrysler Roadster

1930

15352 $2000.00

Willys Saloon

1033

27499 $ 600.00

All cars serviced the same as for new cars ADDITIONALLY ------

4

All units of $1600 and over in valua carry the Hongkong Hotel Garage guaranice for three months.

Inspection and trial invited

Hongkong Hotel Garage

Phones 27778.9

The

Stubbs Road.

Hongkong Telegraph

Friday, April 19, 1940. Wyndham St., Hongkong

Telephone: 20015

THE prefx "Special to the Telegraph" is used by the "Bongkang Telegraph' to indicate news which is strictly copyright under the provisions of the Telecammanl- cazione Ordinance, 1036. Such news as bears the indication "UP”” la recelvad in Hangkong on the date of publication by The United Press Autociations, who re serve all rights and forbid republication, eliher wholly or in part without previous arrangement.

Britain And Europe

The totalitarian view of the British Empire is that it is an example of successful piracy. Europe is treated as the victim of its greed and urged to rid herself of a bully. There is a British view that the Empire is, on the contrary, an example of remark- able chivalry. Europe is expected to recognise this and to be grateful for our unrelisers.

Those who try to see the history of the British Empire as it would look to an Impartial Europeau would fix the truth somewhere belween the two views. The molives and methods of acquisition in the past have been much the sonic among all expanding European Powers. On the other hand, the strength and character of the British Empire have made it in some important senses a convenience to Europe.

In the first place, Britain's interest in Europe has been that of a Power whose ambitions were sailsfled out- side Europe. So far as Europe was concerned the overruling British desire was that Europe should fall under the power of a State strong enough to dominate her. In this case it happened that what suited j Britain suited also the several peoples .of Europe.

201

In the second place, British posses- sions scattered över the seas were not closed! to the merchants and traders เม้ other countries. Any nation, therefore, might well prefer that a territory whose resources and markels it did not itself control

should be in the hands of Free Trade Britain rather than in those of a

Protectionist rival. The German statesman Zimmermann declared, "Our rise depended essentially on the English polley of the Open Door." The British Empire was thus influence for peace..

an

From these facts there has grown up a school that speaks of a Pax Britannica on the model of the old' Pax Romana, and Europe is expected to cherish this legend as

end as gratefully as the Roman Empire was cherished by men of all races who enjoyed its shelter and

It is taken hospitality. It for granted that

that the

neutral nations must see that Britain is an unselfish Power. This is a dangerous illusion. The extreuse case put by the totall- representing the British

tarios

Empire as sinister

er figure Can Le

ww

are

answered from history if we

only for dialectical victory, concerned But that answer is not enough. What has to be said of

Our diplomacy since

1031?

What gounds

for confidence

did it give the neutrals? The round

arguments Mr. Chamberlain

dresses to the neutrals to-day might

been addressed to him

have

by

the neutrals in the days of ment. The collapse of collective security for which Britain must share with France the chief responsibility, makes a more vivid impression on the mind of Europe Thun those aspects of our history that strike the Sinngination 好意

Britain. To totalitarian.argument that Germany can unity and orgoniso Europe we must not reply merely by showing what kind of Europe would emerge from this treatment; we must show what we are ready to do to create a different Europe. We have to take an active and a leading part

in the economie task that was shirked or overlooked at the Pence Confer- ence of 1019.

It is not the longest but the longest

sword but the

purse

FIRST of all, we must admit that the war costs a great deal. It costs far more than the last occa- sion when we fought the Germans.

us

At this stage in the former struggle the war cost about £3 millions a day, as against £6 millions a day now.

The expenditure of the French was then £2 millions

a day, as against £414 millions

a day in this war.

Now, why is it that the war costs twice as much as it did last time?

The answer is a simple one. The

pay of soldiers and sailors is a bigger item of ex- penditure. Battleships cost twice as much to build. The Air Force has been added to our war services.

បទ

When war broke out the Air Force was eosting about a million pounds a day. That is the figure which Sir Kingsley Wood was spending in building and operating our airplanes.

There is also another chan- nel of war expenditure which did not exist in the last con- flict-Air Raid Precautions.

That is the service through which the passive defence of the civil population against the menace of air attack is organised. And there is also Evacuation, the cost of main- taining school children from the cities in country districts, where they will not be exposed to the same danger of bomb- ing by the enemy.

BUT although the increase in the cost of warfare is easy to explain, it has still to be faced. We have to meet the position that, in our own case and in the case of France. this war costs roughly twice as much as the last war. That is the situation revealed by comparable figures.

What resources have we got to meet this expenditure?

There is, first, the tax revenue of the country. In 1915 we were meeting less than one-quarter of the national expenditure out of taxation. That was the propor

The tion we paid out of income. rest we borrowed.

To-day we are paying half the cost out of taxation.

That is one tremendous advon- tuge which we disclose on this oc- casion.

It cannot be emphasised too strongly, or repented too often, that half the burden of Bie cost of this war is borne on current revenue.

That is equal to four times us much as we paid out in taxation in the same period of the last war. For Taxpayers should rejoice.

neurs that the more we pay now, the more confidence we can have after the war.

Other efforts will have tu Ix? made, too. We must increase our output and turnover. That is in- perative,

With that increase in turnover taxation. we must also increase Saving should be encouraged in every direction, so that borrowings by the Government will not depend upon the inflation of banking credit.

For my part I believe that the conduct of war economy will deter- mine the course of the war,

WE have payments to make abroad. That is where diffi- Indeed, culties may arise. that is the most important financial problem we have to deal with.

Our ability to meet that problem Is Immensely greater than it was in the last wor.

And here let me say that in Sir John Simon we have a Chancellor of the Exchequer who is able, cool, for-seeing, cautious and eco- nomical. And no more' can be said in praise of a good Chan- cellor.

Now let us array the resources at our command för making pur-

chases abroad,

►

that

conquers

THE RESOURCES of Britain are ample for the war campaign in which we are involved.

+

That is a proposition which, if it can be sustained, will do much to fortify and strengthen the courage and endurance of the British public. More important, it will instil confidence in the hearts of the great multitude of American citizens who wish us well and are anxious about our future.

It may even persuade some of them to buy our securities and to build up assets in the Empire.

Wo

And at all times we should express our gratitude to them for past friendship. should not hesitate to deal with them frankly. There is no use attempting to hide our views from them or restraining our opinions. The Americans will never thank us for pretending one thing to them and saying another thing among ourselves.

So here is a disclosure of the financial situa- tion of Britain as I see it.

By Lord Beaverbrook

in the total i am taking the Elverty of jachuding not only French but also Canadian resources, de so, not because I expect Canadian assets to be available for Britain's service, but because the Canadi war effort must be paid for by the Doninion.

.

Now what is the position with regard to the abilly of the Allies to pay for war material purchased in the United States? What re- sources do they command for this purpose?

There are the GOLD RESERVES of Britain. France and Canada, These amount to:

Britain

France

Canada

£500,000,000

750,000,000

54,000,000

Other British and

French countries. 130,000,000 A total of.... £1,434,000,000 Then there are the CASH HALANCES standing to the credit of Britain, France and Canada in the United States.

These amount to £317,000,000 f

about which Britain holda

one- half.

by

Liquid securities possessed The three stand at i Agure of

€355,000,000.

And the non-liquid securities

France owned by Britain,

and Carma can be reckoned at a total of £385,000,000.

So the total resources of the Allies, which would he available. for purchases in the United States, mount, if the Canadian resources are included, to a total of about £2,490 millions.

☆

★

THIS compares with a total of gold and dollar resources in 1914 of about £1,600 millions. It shows an immense increase in financial strength.

In the last war Britain and France bought on balance from the United States £2,300 millions' worth of goods all told. This is the total American sales to the Iwo chier Allied Powers after de- ducting

to the United exports to their States. If we with contine ourselves to the same sum, as I am con- vinced that we shall, owing to the development of

OWN raw materials, then, with Canadian inancial resources included, we have enough gold, cash and liquid securities to buy the goods we need.

our

We must also take into account our capacity to pay for some of our American iniports by means of exports to the United States, This capacity will, in fact, be greater than in the Inst war owing to the development of production in the Empire,

Then, In addition, those exports to the United States will Include sules of animal, vegetable nnd mineral commodities by the British Colonies and also the French Colonies. There is the very big export from Canada of metals and newsprint. There is the gold ex- port from Empire countries.

But it must be borne in mind that Canadian assets, of whatever des- cription, are not available to pay for Britain's purchases. And that

Canada's financial resources have been included in the totals given. Above. Against these Canadian assets there are, of course, numer ous holdings in neutral countries, notably the South American re- publies, which have not been taken into account.

It is my view that, since the outbreak of war, we have so for lost none of our American assets, There has been no reduction In them worth recounting,

☆

HOW has it been possible for us, in war conditions, to effect this husbanding of our resources?

There has, of course, been a sharp wartime decline in some of our nominal purchases from the -United--Slates-We-have-redured

our import of American tobacco, of cotton, of wheat and other co- modities.

In the case of tobacco we took in the month of October 1939, for instance, six million dollars' worth, compared with twenty-nine million dollars ir the same month of 1938.

as

The decline is, due, In some measure, to econoiny in consump- tion. To the desire to do without. But this economy is supplemented by an increase in production of tobaven in the British Empire.

Que dependence on Américon supplies of tobacco is thus reduced.

The value of the import of raw cotton which Britain can derive * from the Empire is more than three times greater than it was before the last war.

And although in that best war we brought more than half our imported whent from the United States, at a cost about £200 millions, the Empire can now supply all the wheat that we need.

Now we must take into account the production of vegetable, animal and mineral wealth in the British Empire.

The extension and development of these resources has been carried on in the last twenty years at a rate which far outstrips any other development in the world.

It is true that the progress has been unsatisfactory to men who have always been conscious of this vast treas house given into our keeping. 1 se treasure house that is known as the British Empire.

But while we cannot claim to have turned our single tulent Into ten, neither can we be dismissed as the servant unworthy of the master's confidence.

A

Let us look, then, at gold pro- duction. And here I wish to em- phasize that gold production not to be confused with gold stocks.

Gold production relutes only to the gold that is mined from the earth year by year,

The gold output of the British einpire was 14 million fine ounces 1914. It is 21 million ounces

now.

That is an Increase of 30 per cent in quantity. And it is a far bigger Increase when measured in mancy values.

For this must be taken into account:

Gold will buy more imports. For them it old in the last war. that reason, our purchases from abroad, will not be so expensive as they were. They will, in fact. cost much less in terms of gold. end tully slightly less in terms. of sterling.

☆

*

raw

OUR purchases of materials may be huge, but remember, in gold values, the price of raw materials is lesa. than half what it was in the

last war. This is startling,. but it is a fact.

The Investor's Chronicle, a most reputable financial journal, has re- cently made an extensive calcula- Ilon of the total Imports of raw inatorinis into Britain during the inst war.

It was shown that these imports represented 385 milion ounces of gold.

This journal then reaches the astonishing conclusion that a simi lar quantity of commodities, tak- Just prices it the outbreak of war,. rould be bought with 154 million ounces of Rokd.

But it is not in gold alone that the remarkable Empire develop- ment bas been demonstrated.. There

are

other many materials where increases of pro- duction since the lost war show far more striking results.

ร

row

HERE fu short table which I hope will reveal quite clearly the wealth and strength of the British Em- pire:

BRITISH EMPIRE OUTPUT

Nickel Copper

Bauxite

Year Year 1913 1930'

Tuns Tony

22,500

102,000.

94,000 500,000

(aluminium ore) 25,000 400,000

Rubber Cocoa

40,000 300,000

50.000

$15.000

that in It will be seen

every case there is a considerable in- crease the quantities of these commodities produced_in_the_Em- pire. The total result is an eight- fold increase in output.

And always there is an increase. in Empire production, relative to world output.

The position with regard to oil

Is different.

The Empire production is six million tons. Under the control of the Empire is a production amounting to perhaps 25 million tons.

The Empire production is about. the same in relation to total world output as it was in 1914. But we derive benefit from the 25 million tons produced outside the Empire" with our money.

It will be seen, then, that the sirength of Britain. Canada, and the rest of the Empire is so great. that it seems impossible that we can in the long run suffer defeat.

In fact, on economic issues the triumph of the Einpire is assured.

☆ ☆

*

WE pass at once to the dark forebodings about the future. sometimes held and expressed by business men reluctant to obligations.. undertake

new

The forebodings we can pro- nounce utterly unwarranted.. It can be said with supreme confidence.

SO

There is every hope, prospect. and expectation that from the war the Empire will emerge so strong

rich in

In raw materials, mineral, vegetable and mineral assets that it should afford a future Alle with hope and bright with the prospect of happiness and con- tentment to our people.

hope, too, that, even when the war progresses and we turn in an immense effort and concentration to fighting and destroying our enemies, we will at the some time develop our resources to the fullest extent,

Our raw materials, the produce- of the soll, und our animal "wealth, here at home, in the

Crown Colonies, and in other parts of the Empire, constituto our strength and Justify our confidence.

Such a development would in- volve us in forming a firm resolve to use our man-power to the utter-

most at home and abroad.