| Show weekly beekly news analysis U S ma may y force orient peace through guam Def defense ensi gossip by joseph wo la bine v EDITORS NOTE when opinions are f expressed in ia these columns they us are those of 01 the news analyst and nd not necessarily of the newspaper asia on december 31 january 14 and january 19 respectively the U S britain and france warned japan that they disliked her violation of chinas cainas open door nothing happened so painful baethe was the silence that chinas cainas foreign minister wani wang chung hul 1141 finally suggested that democracies moc might be using the wrong tact tactics ids his proposal to follow these strong diplomatic notes with formal proposals of settlement even unto actual terms whit what foreign minister wang forgot is that neither the U S nor france nor britain yet feels obligated to beg for peace with tokyo but if japan would make the overture e and d that is precisely what the U S state department now seems bent on making japan do As the crow flies guam lies 1500 miles southeast of tokyo this C 1 C ocean PAN is TOKYO 1500 ml mi WAKE ISLAND ISLANDS alan da GUAM aa gJ ab AUSTRALI I 1 THE ISLAND OF GUAM mr lippmann stated the case square rn mile ile tract has belonged to the U S since 1898 lately becoming a potentially important base tor for pacific commercial aviation but since japan began flashing her fangs guam has become even more important as an outpost to protect americas back door the need tor for such an outpost is illustrated by japans illegal fortification of nearby mandated caroline and marianne islands official washington thinks japan is using outlaw tactics in her chinese invasion her illegal fortifications and of less importance to the U S by threatening to fish russian waters whether moscow approves or not when president Roosevel ts emergency defense program reached congress an item of was listed for naval air and submarine bases now this has been boosted to and of the sum would be authorized at guam for deepening the harbor making landing fields and enlarging marine barracks this drew from japan exactly the protest washington expected and wanted when tokyo objected that geams fortification would be an aggressive gres sive move the white house commented that columnist walter Lipp manns remarks just about fitted the picture congress should authorize the fortification of guam and then the state department should invite the japanese to discuss the question under article of the washington treaty nine pow er pact guaranteeing chinas cainas open door in this discussion we could say to the japanese if they do not wish guam to be fortified they might return to the treaty by dismantling fortifications in the mandated islands president roosevelt has remained tree free of the controversy by pointing out that congressional authorization tor for rearmament is one thing but that authorization is worthless without appropriations meanwhile the game of democracy vs dictator became still more bitter as japan at once tightened her belt and stuck out her tongue As the diet opened its new session in tokyo premier Kl kiichiro ichiro hiranuma announced 1 that wartime control measures would be placed on a permanent basis and 2 that japan has no alternative other than to exterminate those who fail to understand der stand her aim in china said foreign minister hachiro arita A rita what japan desires is the creation of a new order which is is to secure the permanent peace of east asia that is to say the construction of a new east asia upon an ethical foundation wherein japan man chukuro and china while each preserving her independence and individuality vi will stand united and linked together tor for active collaboration and mutual aid medicine until the new deal socialized medicine received little publicity last spring president roosevelt appointed an interdepartmental departmental inter committee to investigate health programs this group subsequently clashing with the american medical association and bringing to a head monopoly charges now pending ag against ainest the association predictions are that the U S will inaugurate its comprehensive public health program before the justice department gets around to hearing A M As A s case thereby lessening the kaiue value of this proceeding the prediction is bearing fruit in president roose belts long range health program just presented to congress the program beginning immediately dia tely federal state expenditures would be increased to annually by 1949 funds would go generally to help poor people receive medical and hospital care t to establish clinics encourage vaccinations develop maternal and child welfare clinics and stimulate dis ease control measures treasury in 1934 congress gave president roosevelt two broad monetary powers under one he could reduce the dollars gold content by 50 per cent though since 1934 the rate has been per cent under the other power the president created a currency stabilization fund with increment accruing from the governments ern ments reva revaluation leation of gold holdings originally estimated at the fund is used to protect the dollars value on international exchange preventing undue fluctuations both powers expire june 30 and the white house has already asked that they be renewed until the current presidential term expires january 15 1941 although lawmakers consider neither grant dangerous the mere fact that gold devaluation and the stabilization fund are powers is enough to make this years fiery eyed congress balk biggest opposition will grow out of the treas refusal to divulge even the size of the stabilization fund the two billion dollar figure being only a guess though softened by well substantiated reports that the government made about profit on the fund last year sen arthur vandenburg is expected to demand a full public accounting before voting approval germany dr I hjalmar horace greeley schacht gained a good world name by rescuing the german mark during postwar post war inflation he has headed the bank ever since switching over to despite its unorthodox policies of self suf fici ency which are diametrically opposed to recognized economic and political principles though ger banys finances have suffered through foreign trade losses doctor schacht was vas miraculously able to restore a measure of economic prosperity but this has been a personal victory won not through nazi merits but through schacht friendship because he held such a good name doctor schacht was able to travel in select foreign circles where nazis hitler goering and goebbels would not be accepted result he wangled many a foreign trade concession especially from england the belief that he may have been wolfish despite his cheeps clothing is further illustrated by the schacht plan for disposing of german jews 4 P GERMANYS WALTHER FUNK will dr schacht become a salesman whereby democracies would agree to stimulate consumption of nazi exports but doctor schacht has been summarily dismissed as president a sudden coup which observers can interpret in either of two ways pro schacht because of the unique confidence foreigners place in doctor schacht fuehrer hitler may believe him more useful as an international salesman than a banker since he is to remain in the cabinet without portfolio there are rumors he will attempt to peddle jews and exports abroad meanwhile speeding up the return of war lost german colonies anti schacht his successor to the bank presidency is dr walther funk economics minister who champions the barter trade principle this theory differs as night and day from U S secretary of state cordell hulls reciprocal trade system and doctor funks bunks appointment indicates germany will continue to expand her foreign trade along unorthodox barter lines but an even greater tear fear of german bondholders bond holders is inflation long a foe of excessive borrowing doctor schacht saw his financial suggestions abandoned time and again last year as the austrian an trend television british broadcasting corporation celebrating the second anniversary of television announces picture receivers are now being used in england MONEY idle credit resources of federal reserve bank members have reached an all time record high of DROUTH the ests dust bowl Is in its best condition since 1932 with 13 acres planted to cover cro crops pi and only acres expected to be subject to wind erosion this year CONVENT henceforth government troops may be billetter billet ted in the premises of austrian convents ARMY current increases in the U S army will boost the nation from tenth to eighth ranking in world military forces czech crisis and acquisition drew germany deeper into the red that inflation is coming may be indicated by the fact that 1938 saw currency circulation rise 20 per cent bank clearings 50 per cent and bank deposits 15 per cent agriculture when commodity prices drop U S farmers operating cooperating co in the AAA crop control program receive parity payments designed to maintain farm purchasing power under the first AAA parity payments came from processing taxes later outlawed by the supreme court under the second AAA parity payments merely increase the federal deficit since last winters congress made no provision tor for them this shortcoming was brought to congress attention in president roose belts recent budget message but even the president has failed to suggest means of financing the payments having merely stipulated that no new taxes shall be levied which increase the consumers burden processing taxes would do this but secretary of agriculture henry A wallace favors pulling this trick from the bag once more hoping a liberalized supreme court will approve the idea secretary of the treasury henry whose department must handle the deal opposes processing taxes since the administration cannot agree on a method of financing current parity payments of congress is in no mood to take the initiative it may well be that this indecision is responsible for revival of last years mcadoo eicher farm bill just reintroduced in house and senate respectively by north dakotas rep william lemke and sen lynn J frazier its crux minimum cost of production price levels would be established tor for domestically consumed farm products while all surplus products would be dumped on world markets for whatever they would bring proceeds less marketing costs would be returned to the farmer cost ot of production critics argue that removal of crop restrictions would glut the market drive prices down and force grain dealers to pay a large margin between the actual market price and the cost ot of prodoc tion price this margin it is maintained would eventually be assessed against the consumer transportation if U S au automobile to mobile traffic continues growing at its presen present A pace engineers figure huge annual expenditures are immediately necessary to keep highways in trim last year pennsylvanian Pennsyl rep J buell snyder asked congress to begin criss crossing the country with super highways two of which jagged noticeably on the map to reach an intersection near his home town representative snyders proposal was almost laughed out of congress but this year it has popped up again under sponsorship of Alaba mas rep henry B and minne botas sen ernest lundeen the plans three east west and six or seven north south toll highways would be built each feet wide with to foot rights ot of way spur highways would connect and emergency landing fields would be built at strategic points the financing reconstruction finance corporation would subscribe original capital stock of to a special five man board would issue government guaranteed bonds lion ds or debentures up to 0 a year for four years sponsors n think the roads would eventually become self liquidating through tolls and concession rights the purpose according to the bill to finance self diqui dating public works which will create additional facilities tor for national defense aid in navigation furnish employment for citizens now on relief decrease unemployment stimulate business recovery and promote public safety taxation two former U 1 S treasury sk st barles andrew W mellon and ands den L mills condemned the inequity of tax exempt federal state and local bonds since his soak the rich revenue proposal of 1935 president roosevelt has fought tax exempt securities and one other unpopular exemption that on federal state and local employees salaries if these exemptions could be abolished the U S government figures J it would net eventually annually from government securities plus from employ employees income taxes one day before the president offered this program to congress in a special message he sent treasury undersecretary john W hanes to pave the way before a special senate committee said mr H hang lan the time tor for action has I 1 cox con the constitutions sixteen euY amendment gives congress power to lay and collect taxes on incomes from whatever source derived th therefore the administration thinks statutory enactment rather than constitutional amendment will suffice later after congress has spoken the courts can decide whether its action is constitutional argued mr hanes tax exempt securities now permit many large income persons to escape income taxes entirely therefore they are unfair the in tax exempt securities now outstanding of which some e HANES the time for action has come come would be taxable is so formidable that it discourages investment in private enterprises iivo colo ing risk thus industry cannot coi pete As for income tax exemptions the U S supreme court has already set a precedent by ruling that salaries of such public agencies as the port of new york authority are subject to federal taxation As might be expected state and local groups jumped into the fight overnight argued the conference of state defense tax yield would not approach the immediate treasury estimate of a year moreover it would work hardship on states and municipalities by increasing financing costs the statutory procedure would be unconstitutional most important once congress power to tax income of state and local securities has been established a s situation could arise in which cor con I 1 gress would attempt to tax sag ats ON revenues argued toe the U S concah ence of mayors in a similar vein federal and state governments may recoup from income taxes the higher costs to municipalities in interest on their bonds 0 western newspaper union |
