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Show - S N NH + i . 7 7HRDntd H HRDntd * 1'6Und 16Und ' tli e eNATIONAL N NATIONAL TIONAL TIONALCAPITAL NATIONAL9APITAJ CAPITALfy 9APITAJCarterField CAPITAL 9APITAJ u.p up u.pWashington . fy fyCarter Carter CarterField CarterFieldu.p Field Washington WashuIgton . . . - - Far more illum mum illurri illuminating . inating mallng hating in appraising appralSmg what Is gomg going gomgon goingon goingon on in m Japan than thm : the spectacular spectacularcabinet spectacularcabinet spectacularcabinet cabinet resignations and the bid of ofthe ofthe otthe the army for Cor power was anmediately on nn an im immediately . mediately preceding action - the thehcensmg thelicensing thelicensing hcensmg licensing of exchangeThe exchange exchangeThe exchangeThe The mere words "mternatlonal mternatlonal 'mtemational mtemational "mternatlonalexchange "internationalexchange internationalexchange " 'mtemationalexchange ' exchange " tend to drive drJve the reader readerto readerto readerto to a-iother a iother a'1other a1other a'iother aiother ' ' - column , " , which hlCh e"Cplams eCplams explains e"Cplamswhy explainswhy explainswhy " why so little litUe space was given to tothIs tothis tothis thIs tremendously important devel development development development opment But , what .hat hat . happened in m Ja- Ja Japan Japan Ja * - pan showed beyond question that thatthe thatthe thatthe the island empire is in m serious eco eco- economIc economic economic - nomic trouble , trouble comparable comparableamong , , among the larger nations , only wIth wIththat withthat withthat that of Germany , , and with the same samereasons samereasons samereasons reasons underlying it in m part partWhich . . Which becomes curious when it is isremembered isremembered isremembered remembered that in much of the thetalk thetalk thetalk talk about the coming commg World war warGermany warGermany warGermany Germany and Japan are linked lmhed as asaJJIes asallies asallies asalliesWhat aJJIes allies aJJIesWhat alliesWhat What Japan did c11d , in effect , was wasto wasto wasto to say that except for very smallenc small smallArnnsnctinns Arnnsnctinns * enc hons nfnnc , nrL one onp COUld anything -nyih nyih - g- g gtoJapan - into to-Japan to Japan - Japan without WlthOUt i t thespecific he hespecIfic h e especific specIfic detailed deta1Jed approval for thattransaction that thattransactIon thattransaction transactIon of the government governmentThis . . This ThlS kind kmd of action is lS taken tahen by bynatIons bynations bynations natIons only for one reason-they reason they reasontheyare reason - theyare are having havlng difficulties getting gettmg the themoney themoney themoney money to pay for things thmgs the govern govern- government government government - - ment considers they must have haveHence haveHence haveHence Hence they decide declde to limit hmIt thelr their theirpurchases thelrpurchases theirpurchases purchases abroad in m e\ e every eery \ ery other otherhne otherline otherlineJapan hne line hneJapan lineJapan Japan must keep on buying buymg war warmumtIons warmunitions warmunitions mumtIons munitions and war supplies , she shefeels shefeels shefeels feels Obviously she must also keep keepon keepon keepon on buying buymg raw materials matenals Her fac- fac factorJes factories fac factories - - tories torJes must keep on OD v . working orkmg so as asto asto asto to provide provlde the exports to pay for forthe forthe forthe the war supplies There is also the thequestIon thequestion thequestion questIon of tax ta"C taC " revenue for the gov gov- governm gov-ernm gov ernm - . ernm ' ) nt lt t , but that can be brushed brusheda- brusheda brushedade a " * - de Governments Governml.nts Governmlnts . long since smce dlS dis dlScovered discovered discovered covered that they < . can .an an put ofl oft off that thate thatevil thate\il thate il e\ e e11 evil \ 11 day by forced loans-or loans or loans - - or b y yprmtmg yprinting yprinting prmtmg printing press money-as money as money - - as long as asthey asthey asthey they can hold off a breakdown m in inconfidence inconfidence confidence inside mSIde their own COUD coup couptries countries countriesOld trIes triesOld Old Axiom TrueBut True TrueBut But that never did go for lor dealmg dealing dealmgwIth dealingwith dealingwith wIth the rest of the , world . arId , , and both bothGermany bothGermany bothGermany Germany and Japan-and Japan and Japan - and for that thatmatter thatmatter thatmatter matter Italy during durmg the Ethloplan Ethiopian Ethloplanbusmessdlscovered Ethiopianbusinessdiscovered Ethiopianbusiness busmess-dlscovered busmess dlscovered business-discovered business discovered - discovered that the old oldaXiom oldaxiom oldaxiom aXiom is still sb11 true . . Foreigners mubt mU.t mUt must : . be paid for imports 1m im 1mports imports ports in m something somethmg Normally Normal1y it IS isgoods isgoods goods or services serVlces Occasionally , for forbrIef forbrief torbrief brIef periods , they can be paid m in mgold ingold ingold gold Japan has no gold to spare so soit soit It comes back bacl to goods and servicesHer services servicesHer Her need tor for greater exports e"Cports eCports " , WIth withwhich withwhich whIch to pay for Cor war supplies , has hasbeer hasbeer hasbee- hasbee hasbeefrantic beer " - frantic for several years now nowIt nowIt It is the underlying underlymg cause of her herruthless herruthless herruthless ruthless trade war , her slashing slashmg of ofprices ofprices prIces for cotton textiles texbles It is also alsothe alsothe alsothe the explanation explanatlon of why she is such sucha a good customer of the Umted United UmtedStates UnitedStates UnitedStates States , if l ! one considers only trade tradetotal tradetotal total figures . 3he .3he She has to buy here heremuch heremuch heremuch much of the cotton she processes processesand processesand processesand and then sells sens in m competition compebbon wIth wIthAmerIcan withAmerican withAmerican AmerIcan and British BntIsh textile mIllsWhIch millsWhich mills millsWhich Which is another reasonhy reason , why \hy hy \ the theteAtIle thetextile thetextile teAtIle textile lOdustr industry , } of the United Umted States Statescontinues Statescontinues Statescontinues continues to remain remam near the bottom bottomof bottomof of the class both in m profits and andwages andwages andwages wages , in m long hours for adults and andlo andin andin lo in employment of chlldrenBut childrenBut children chlldren childrenBut But even that foreign selling cam cam- campaign campaign . - paign palgn is lS not enough eDough Her govern government . ment has found that she must im- im import im import . - port less non war materials if l ! she she1S sheis sheis 1S is to go on buying the amount of war warmaterIal warmaterials warmaterial materIal materials : . ; , her army thinks thmks neces- neces necessary neces necessary - . sary . . So now , under the new orders ordersno , no one can impirt Jmp'1rt Jmp1rt ' anything anythmg Into IntoJapan intoJapan intoJapan Japan without the purchase bemg being bemgapproved beingapproved beingapproved approved The order is lS not worded wordedin wordedIn wordedin in that way , , but that is . what v.hat vhat It Itnmounts itamounts itamounts nmounts amounts to The order merely pre- pre prevents pre prevents - . v vents nts anyone any one from buying buymg Corelgn foreign Corelgnexchange foreignexchange foreignexchange exchange in m excess of a small smallamount smallamount smallamount amount without specific approvalIt approval . It foreshadows foreshado\\ foreshado foreshados \ \ s a very consider consIder- consIderable considerable considerable - able tightening tIghtenmg of the belts toi fOI the Japanese theJapanese people The next neAt step ex expected expected expected pected pectedIS is a further reduction in the thevalue thevalue thevalue value of the yen , which will opcr oper opcrate operate opcrate ate in JD thlong the th\ th \ , . long run to reduce the p\y p y pay pyof payof piyof " \ of every Japanese worker vorker aorker . , , EIther Eithe EItherfrom Eitherfrom Eithefr r from fr om the economic cconomlC standpoint standpomt or that orthat of world peace , it is not a pleas pleasant pleasant picasant ant prospectWall prospect prospectWall Wall Street RelievedWall Relieved R'lieved Rlieved RelievedWall ( " ' PresidentRoosevelt's PresidentRoosevelts PresidenRoosevelt's Wall Wan Wanstreet's street's streets ' reaction reacbon to President Presiden t ' Roosevelt's Roosevelts inaugural maugural address sur surpnsed surprised surprised pnsed prised New Dealers no little They The y Theythought Thethought thought the speech was a very Ilea Ileawarning clear clearwdrmng clearwarning r wdrmng warning that the old order had gone gon e gonef gonefOlever gonforever fOlever forever 01 ever , , and nnd that the revamping o oour of ofour ofour f our entire economic structure had hadJust ha hajust hadjust d Just begunBut begunBut begun begunBut But Wall Nall street bad had been eApect expect mg ing expecting eApectmg Itdid Idid drastic , , specific spc.clfic spcclfic spccifle . proposals I It t President'sdiscussion Presidentsdiscussion Prcsldent'sdlScuslon did not Dot find them in 10 the Ule Prcsldent's Prcsldents President ' ' s dlScuslon discussion ; : , and was trcmendously trcmendouslyreheved tremendousl tremendouslrelieved tremendouslyrelieved Y reheved relieved True , at the moment most mostof mos mosof mostof t of the news of a business busmess natur nat naturewas ii iiwas was goou good goouActually goodActually goouActually Actually , , no one on the mSlde inside insideas insideas , , as pointed pomted out in m these dispatches dispatche dispatchesweek dispatcheweeks dispatchesweeks s week weeks ago , looked for Cor any clear cut cutagend cu cuagenda cutagenda t agend agenda 1 < , , or for Cor th that 1t < matter a aagenda an anagenda anagenda n legislation legislabon legslation agenda of any sort , , outlining outhnmg legs legis labon lation for the coming commg sessionwas session It Itwas [ Itwas t was not on the cards and for Cor a verysimple ver very verysImple y , sImple reason The President did didnot didnot dl dlnot d not know kno\.l kno.l kno .l l \ . then , and does not kno knoyet know knowyet w .Yet Yet . , . precisely what he will doBut doBut do doBut But the inauguial maugulal inaugural address showed showe showedvery showevery showedvery d very clearly indeed the general na n a . ture tune na.turc naturc ntune of what tie he wants wantsjto to do dp , , a ai and nd . , I i that Utat outline outllne should not not . , . New Deal- Deal Dealcrs ' - . | crs ers are saying saymg privately , , have givenany gIvensny given | any sny such comfort to the thestock the stock mar mar-- mar- marIret market market - - ket Iret traders as they app apparently apparcDtly fly drewfrom drew drewfrom ew ewfn fn from m it itLet's it . . Let's Lets Lct's Lcts ' ' look at a n Cew few ( ew of these funda fundamentals . mentals In the first place , . the Pres Pres- President President . - ident made it abundantly abundanUy clear that thatbe thatbe thathe be he believes belleves the federal tederaJ government governmentcan can and nnd will do everything everythmg that is isnecessary Isnecessary isnecessary necessary to bring about the eco eco- economic eco- eco economic economic - - nomic reforms he has in mind , , and anddo anddo anddo do them without any changfc changE ; in the theConstItutioD theConstitution theConstitution ConstItutioD Constitution . [ Planned EconomyWhat Economy EconomyWhat What are those reforms ? The Thesame Thesame Thesame same old ODe-no ODe no one-no one one - - no speculative profits prof prof- proflts profits - its lts , , much smaller profits of aD a n a y ykmd ykind ykind kmd kind , higher wages , , shorter hours hoursno , no more piling up of surpluses bycorporations by bycorporatlons bycorporations corporatlons corporations , , no more waste mover- mover moverI movere"Cpanslon in over-expansion over expansion over- over overexpansion - e"Cpanslon eCpanslon expansion " of productive plants by byprJV3te byprivate byprivate I prJV3te private busmess-m busmess m business-in business in business - in shortplannedeconomy short-planned short planned shortplannedeconomy short - - plannedeconomy economy under government direc dlrec direc- direction direction - . tion tion"We "We We " have always known Imown , , " said saidthe saidthe saidthe the President , 'that that ' ' that heedless self- self selfmterest selfinterest self-interest self interest - - mterest interest , was .as as . bad moralsvc morals , \ we \vc vc knownow know knownow knownow now that it is bad economics economlCS " And then ' ' , This new understanding understandmg under under- underrrmes under-rrmcs under rrmcs . - - rrmes the old admiration lldmirahon of worldly worldlysuccess worldlysuccess worldlysuccess success as such " . Wherein Wherem he raps squarely in m the theface theface theface face the old Horatio Alger , Jr Jrphilosophy , , philosophy on which most of our ourpresent ourpresent ourpresent present economic royalists roya1Jsts were wereweaned wereweaned wereweanedEven weaned , . caned weanedEven canedEven Even more menacing menacmg is a line hne 10 in 10a ina ina a following followmg paragraph : "There There " can canbe canbe canbe be no era of good feeling feelmg saveamong saveamong save savemong among mong men of good wilL . . " HulPs Hull's Hulls ' WisdomTemporarily Wisdom WisdomTemporarily Temporarily , , for the purpose of ofgettmg ofgetting ofgetting gettmg getting speedy action , , Secretary of ofState ofState ofState State Cordell Hull showed great great'wisdom greatwisdom 'wisdom wisdom ' \ \ lsdom in making makmg his plea for con con- continuance continuance . - tinuance tmuance of the President's Presidents Presldcnt's Presldcnts ' power powerto powerto powerto to negotiate negobate reciprocal trade treat treat- treaties treaties . - Ie ies : . strictly on a world peace ldea idea ldeaMr ideaMr ideaMr Mr Hull became quite peeved at atfly atly atfly fly f ly specking speckmg when objecting obJectmg mmorltymembers minoritymembers mmorlty minority minoritymembers members asked about deblls- deblls details- details deblls"ether detailswt details detailswhether - - wt " , whether "ether ether " + imports wereuot were . uot .ot ot . lOcreased increased lOcreasedmore increasedmore increasedmore more than thaD e"Cports-m e"Cports eCports m exports-in exports in exports " - in thort Ihort short whetherUncle whether whetherUncle whetherUncle Uncle SamVa Sam \Va Va \ was : ; not getting gettmg "gyped gyped " " as a net result of the opera operation hOD of oftht ofthe ofthe tht the . treaties . . In the long run-though run though run - though perh perhaps perhapsnot perhapsnot 1ps 1psnot < not until untd the glamor of PresIdent PresIdentRoosevelt's PresidentRoosevelt's PresidentRoosevelt's PresidentRoosevelts Roosevelt's Roosevelts ' ' re election majority hasworn has hasv.orn hasworn v.orn vorn worn . considerably th111I1er-there th111I1er there thinner-there thinner thinner - there isplenty IS ISplenty isplenty plenty of trouble in m store for the theHull theHull theHull Hull policy . During the recent cam cam- campugn campaign campaign - paign pugn : there were many mdlcabons indications mdlcabonsU indicationsU indicationsttat U at farmers did not like the treat treat- treaties treaties . - ies les Moreover , the reaction agamst against againstany agamstany againstany any specific treaty is apt to be con con- concentrated concentrated . - centrated in m definitely defimtely denned defined areas areaswith , WIth the result that the polItIcalpressure politicalpressure politicalpressure pressure on the senators or rcpre repre rcpresentahvcs representatives rcpresentativcs sentahvcs sentatives from those areas may mayeasIly mayeasily |