Show SEEN an HEARD around tho National Capital By By CARTER FIELD FIELD Washington ton President Roosevelt eU is adamant on the que question of the 5 J naval ratio r for the United Stales Great Britain and Japan There will be no yieldIng to Jap mesa Insistence on par sty so far as this Is concerned It If Japan Insists on increasing her ratio the n delegates will reluctantly sal for home permitting the treaty to tobe tobe be ahro abrogated But the net neat step will be that the United States wIll proceed to maintain nt at least the present differential by ex seeding to just that any building program Japan may attempt That Is Isto isto to say the White House would recommend recommend mend to congress such appropriations ns as would be necessary to accomplish that Zits would not come COllIe immediately unless Japan broke bloke faith b Starting to build before the expiration ot of the tWo tWo-j years two ears notice that the treaty provides must be given gh en before mod modi tying any section of It It so happens that Franklin D Roosevelt Roose Is perfectly familiar with the nasal nn situation He has never lost the Interest he acquired durIng the perIod ot of nearly eight soars ears he was assistant secs of the nas y na y Also It so happens that he has a great many frIends among the high naval of facers Most ot of them were ere juniors when hen henhe he was In the department and they have no trouble In finding his ear to today today day And It Is quite a sympathetic ear One vIsitor noticed recently a map on the wall of one ot of his rooms show showing ing the Far East Japan and the man mandated mandated dated islands which she denIes she Is fortifying but will not allow our shIps to visit and the Philippines The point Is that this administration does not belle believe Japan needs for de- de defensive purposes anything like Uke as large a navy as the UnIted States or Great Britain Any war which could possibly bly be Ima imagined between the United States and Japan would be fought In Inthe inthe the opinion ot of naval na experts of all countries In the western PacIfic Which means that the American fleet would arrive at the scene of action aft aCt aCter after er a very long journey WIth no forti- forti fortified fied base from which to operate and ot at which to take on supplies and even more Important subject to possible losses en route from mr air and submarIne attack even the little question ot of the bottoms of the ships being slightly fouled would detract enough from their speed In maneus maneU ering In battle to be become become come highly Important U S Vill Not Yield Another point on which the Amer AmenI can delegation at London Is not going to yield IS one made by both the Jap Japanese Japanese anese and British This Is the elimina elimination bon tion of S 8 lOch inch guns for cruisers Amer- Amer America America ica insists upon 8 inch guns Japan and Britain want the sIze limited to 6 inch the Answer British b and Japanese both have any number of fast mer- mer merchant merchant chant ships actually constructed with a aview aview view to mounting G Inch guns Such a ship would be helpless before a cruiser carrying 8 Inch guns but could give a cruiser armed WIth the same sIzed guns a fair battle Which means that If the caliber were reduced to 6 inch guns for all cruisers the British and Japanese would start with a tremendous super superiority It Is highly Important to realize In considering these London discussIOns on naval armament armament that the AmerIcan delegation has no posItive orders to arrn arrive e at an agreement At only one prIor naval nl conference was this the the case last one at London And that was as the duly time that our dole dele gates were enabled to refuse to accede to foreign demands Which may be bethe bethe the reason for the saying that has be- be become become come a that byword the United States ne never neer er lost a war or won a conference It may be of some Interest to note at this time that t at the only other confer conCer conference ence where our delegates did not have orders to reach an agreement Mr Roosevelt wa was also President Which Is Interesting ns as showing his realization bon tion of the situatIOn and ot of his willing willingness ness to take the only steps which naval officers Insist Japan understands Gold Content Stands President Roosevelt though makIng no promises has been so Impressed with the arguments ot of representatives of the gold bloc bloe countries or of Europe that there Is little likelihood ot of any further do of the gold content of the dollar donar for some time to come He still retains the power to devalue It 9 cents further In gold to the 50 per cent limit Imposed by But this power It Is almost certain will not be e exercised In the near future It will be held as a reserve weapon against any possibility of at things not going the way ay the administration hopes either In International or domes domestic tie tic affairs The President was told bluntly by bythe bythe the European countries still on the gold Italy standard France Switzer Switzerland Switzerland land Belgium and that Holland If the United States devalues the remainIng 9 cents authorized by law they will have no alternative as to their course elyone E of them would be compelled to devalue de its own currency further They pointed out that de despite the fact that Great Grent Britain and the United States have gone off gold trade still continues In terms ot of pounds sterling and dollars Also that Britain had given every Indication of keeping the pound at something like the pres- pres rate ot of exchange wIth the dollar And the British they Insisted are Very stubborn So that In all human proba probability it if the United Stites redu reduced ed the gold value v of the dollar by 9 additional cents Britain would at once put the pound lower to equalize Which would mean putting the pound do down don n about 45 cents in terms ms of at dol dol- dollars lars These reductions In value of the pound and dollar the gold bloc es told Mr Hoose elt would force similar action on the part of their countrIes Might Cause Trouble It Js is not a question of protecting their gold That could easily be done by other moans ns But the tho trouble would be that such a lowering of values ot of the CUll of their chief competitors tors In world orld markets would force them to reduce their own costs El Else e th they y would not be able to export any product which Is also pro pro- produced produced In the States St or Great Britain This Is nothing new ne as a matter of fact At the time tane the United States Mates went off gold the French told Mr Roosevelt they could stand a depreciation depreciation of the gold value ot of the dollar doUar down to a certain point but If It went vent to 50 cents they would be very relue- relue I obliged to reduce again the gold value of the franc The case applies wIth greater force to Italy and Is further ma magnified when applied to Switzerland and Belgium France Is more self supporting and amI self contained titan than any other nation In the gold bloc Ital Italy is obliged to todo todo do a great deal of Ung and even en then struggle n against an unfavorable balance of trade With the value ot of the dollar reduced further she izes a much smaller amount of ItalIan goods bought in America Comedy of Errors A comedy of errors has bas characterized the relentless march of the adminis- adminis administration toward vard more air tight control by the President and secretary of the treasury over the federal reserve board and comptrollers comptroller's There seems little doubt that Roosevelt and will accomplish their purpose pur- pur purpose pose in the long run but the slip ups are amusing certain insiders The errors all center around replacIng replacing Ing Comptroller ot of the Currency J F T OConnor O'Connor former law partner ot of Senator William Gibbs McAdoo and be- be before before fore that DemocratIc candidate for gov- gov governor governor ot of North Dakota OConnor O'Connor simply could not see why I he should do what com com- commanded commanded either as a member of the resen e a board or In running the nn na- na national bank b examiners of the country He could not be removed out ot of hand so to speak for several reasons Ho He HeI I had been duly appointed by the President dent and confirmed by the senate 1 So 0 Connor had to be kIcked up- up upstairs upstairs stairs decided to have him elected eJected federal agent for the Re-I Re Re serve sere bank of San Francisco a post post- POSitIon tIon which would not only take him back to his adopted state but would give him twice the salary he draws I as comptroller I Two members of the federal reserve board Adolph C C l Miller lIer and M S journeyed out to San Fran FranCISCO FranCisco SI CISCO to look Into the situation They found the bankers on the coast were s ery ery anxious to have Judge Wilson Mc- Mc McCarthy McCarthy I Carthy of Salt Lake City former mem- mem member member ber ot of the Reconstruction Finance cor- cor corporation corporation made reserve agent They also found that the bankers did not want ant OConnor O'Connor A Comic Note So when Secretary at- at attended attended tended personally a reserve board meeting and proposed the name ot of OConnor O'Connor for the reserve agent at the San Francisco vacancy there was a dIvision The vote stood three to three three as fol- fol follows follows lows For 0 Connor Charles CharlesS S Hamlin and J J Thomas Against Miller and George R James So was temporarily stalemated It was as at this point in the situation It may interest some bankers to know that the Impression was given very strongly to certain news agencies that the might turn to ton toa n a Central bank In short that It if It could not control the federal reserve board It would legislate It out ot of exist exist- existence existence ence and substitute somethIng that could be controlled But pressure was brought to bear bearIn bearin In one dIrection and another and just recently there was another vote by the same six men This time It was five to toone toone one for OConnor O'Connor the only man to hold holdout holdout out to the bitter end end being MU ler Which Is another phase of the com comedy comedy edy of errors For Miller has just comI been I reappointed n a member ot of the board his term haung hasing recently expired So er I Iery ery one had assumed that he would vote as the appointing power desired Apparently ho how ever he received his r reappointment with no stringy binding Wm him to vote lS as directed Which would trouble the administration a great dell deal dellmore more If It had not been able to per per- persuade persuade suade S and James to change their cotes ote Zhe final comic note came o 0 Connor hesitated about taking this ne new place As this Is written he has haSl not accepted nor promised to do iio 10 Cynics C rem remark Irk that he knows he CAn hold on to his present job but that he could be removed from the better pay pay- paying paylag lag ing San Francisco job on a moments moment's notice So o maybe written assurances will ba base e to be given I Copyright i |