THE MORNING OREGON I AX, TUESDAY, JANUARY 4. 1921
T
ACTION IS DEFERRED
Borah Resolution Up in Sen
ate Committee.
SECRET SESSION IS HELD
Sentiment to Include France and
Italy in Disarmament Negotia
tions Is Developed.
"WASHINGTON", Jan. 3. Reduction
In world naval construction was
taken up today by the senate foreign
relations committee at executive
bearings, which will be continued
Wednesday and which may run for
some weeks. -At the session today
final action was deferred.
The committee had before it the
Borah resolution asking President
Wilson to initiate negotiations with
Great Britain and Japan looking to
a reduction of 5u per cent in the naval
building programme of those coun
tries and the United States. It was
understood that considerable senti
ment developed to include France and
Italy, but this was opposed by Sen
ator Borah, who was said to have
argued that those countries would
follow the lead of the United States.
Great Britain and Japan, and that if
they became a party to the negotia
tions, a reduction of armies, as well
as navies, would enter into the dis
cussions. Hrltnln'a Aetlon 'orconat.
Great Britain, the senator was re
ported to have said, could be expected
to urge reduction of the French army
if she should consent to reducing her
navy.
Admiral Coontz, chief of naval op
erations, and his aides were the only
witnesses today. Committee members
said others would be called, but that
there had been no suggestion that
Secretary Daniels be invited to ap
pear. The secretary in his conference
with newspaper men reiterated his
opposition to the Borah resolution
and said that so far as he had been
advised President Wilson had taken
no steps looking to a disarmament
conference.
Admiral Coontz, senators said, op
posed the Borah resolution or any
other plan bused on a percentage re
duction in building, arguing a reduc
tion would fail to bring about any
equalization of naval power because
of the different size of the pro
grammes of the nations.
American Programme Flrt.
He said that the American building
programme was the largest and the
Japanese second, but that even with
the completion of the Japanese pro
gramme Japan's navy would have
only about half the strength of the
American navy. Great Britain's build
ing programme is comparatively
mall, the senators were said to have
been told, and unless it is increased
before 1921, the American navy would
About equal the British.
To expedite her programme, Japan
Is having three large battleships built
in England, according to Information
received by the navy intelligence
service and transmitted to the senate
committee.
Data as to foreign navies was pre
sented by Admiral Coontz. All prin
cipal powers, senators said they were
informed, were spending considerable
money to keep themselves informed
on the naval and military .activities
of other nations.
tal stock is owned entirely by the
United Srfetes. It was created during
hostilities for war purposes. The
temporary powers which it is now
proposed to revive were conferred
:n March, 1919, to assist if necessary
in financing of exports. The gen
eral powers of the cum oration expire
tfftC months after the term'natlon of
tiie war and the special powers with
respect to the financing of exports
expire one year after the termination .
of tht war. While we are technically
still in a state of war, it ur.ques- ,
tionably was presumed, when this
fcdded power was granted, that peace ,
would have been formally proclaimed I
before this time and that the limi- ;
tat'on of one year would have ex- t
pired
Kx porta Are DlMeilBaed.
"In May, 1920. in view of the fact!
that export trade had not been inter-
MH AT tON.RKSS DID AS ITS
DAY'S WORK.
Senate, by a vote of 63 to 5,
passed the war finance corpora
tion revival measure over the
president's veto.
Senator Edge offered a reso
lution calling for detailed in
formation concerning conditions
in the various European coun
tries. The immigration committee
heard arguments on legislation
designed to limit admission of
aliens.
Reduction in naval arma
ments discussed by the foreign
relations committee.
Admirals Counts and Long
giving the present strength and
construction programmes.
A resolution introduced by
Senator Norris calNrig for all
data concerning the furnishing
of funds to the Kerensky gov
ernment and subsequent finan
cial relations with Russia.
Senator Thomas spoke in fa
vor of making suitable repara
tion to Colombia for the loss of
Panama.
Consideration of the bill to
erect a government -con trolled
nitrate plant resumed.
House Sundry civil bill tak
en up; to be passed today.
GERM V DKUVERS KI1MA
French Told All To
Done to Fulfill
ible Has Been
Agreement.
pa
PARIS, Jan. 3. The German reply
to the French disarmament note of
December 31 was delivered to the
French foreign office today. It was
eeml-officially reported it answered
detailed observations made by tho
French document on German delln
quern. . in executing the military
naval and aerial clauses of Versailles
treaty an-d the Spa agreement.
The German note was said to be
Written generally In the spirit of its
concluding paragraph, which read:
"The government cannot suppose
that one wished to ask the impossible
of Germany in the Spa agreement.
Execution to the letter of that con
vention has shown itself to be impos
sible. The possible has been done.
The French government in its note
of December 31 sets forth that the
engagements undertaken at Spa have
not been strictly fulfilled, but the
German government reminds it that,
according to the allies' words, it
should be ascertained if Germany has
loyally executed the terms. The Ger
man government can say she has
done her best In all loyalty."
SENATE VOTES DOWN VETO
t ".nl inued From First Page.
Rhode Island, and Thomas. Colorado
and three republicans. Elkins and
Sutherland of West Virginia and
Keyes of New Hampshire. Senators
Glass, democrat. Virginia, and Edge,
republican. New Jersey, voted against
overriding the veto, but withdrew
their votes on account of having
pairs. Senator Penrose was paired
but announced he would have voted
to sustain the veto.
The president's message also was
read In the house. Representative
Mondell of Wyoming. republican
leader, announced it would be taken
up tomorrow at the opening of the
bouse.
(onridenre Pat In House.
Advocates of the bill, however,
expressed con f idence that the hoase
also would vote to enact the bill.
The house passed the bill 212 to 61,
or much more than the . necessary
two-thirds majority. Many of the
negative votes were cast by repub
licans. Before the president's message
reached the senate today, Senator
Harrison, democrat, Mississippi, an
advocate of the legislation, criticised
Secretary Houston, declaring that the
treasury head, according to news
paper reports, had advised presiden
tial disapproval of the bill without
Indicating such opposition when Mr.
Houston was before congressional
committees.
Senator Edge issued a statement
tonight declaring that the president's
arguments against the bill were
''absolutely unanswerable.
W in. mi MfNMitr Made Public.
President Wilson's message vetoing
the Gronna resolution to revive the
war finance coiporation was made
publi-; as follows:
"To the senate of the United States:
I am returning without my signature
S. -J. Res. 312. Joint .resolution di
rtttfns the war finance corporation
fca lake certain action for the celief
ef the present depression in the ag
ricu'tural sections of the country and
fltucr pjrvoses.
"The jc-nt resolution directs the re
viva) of the activities of the war fi
lls nee corporation. This corporation
is a governmental agency, its capi-
rupted. but had greatly expanded, and
that exports were being privately fi
nanced in large voumes, the war fi
nance corporation, at the request of
the secretary of the treasury and
with my approval, suspended the
making of advances.
"This resolution was passed by the
congress apparently in view of the
recent sudden and considerable fall in
prices, especially of agricultural com
modities, with the thought that some
Kuropean countries to which certain
products were customarily shipped
before the war might again be enabled
to resume their importation and that
larger masses of domestic exports to
Kuropean countries generally might
be stimulated, with the resulting en
hancement of domestic prices. I am
In full sympathy with every sound
proposal to promote foreign trade
along sound business lines. I am not
convinced that the method proposed
is wise, that the benefits, if any,
would offset the evils which would re
sult, or that the same or larger ad
vantages cannot be secured without
resort to government intervention.
False Hopes Are Feared.
"On the contrary, I apprehend that
the resumption of the corporation's
activities at this time would exert
no beneficial influence on the situa
tion In which improvement is sought;
would raise false hopes among the
very people who would expect mosj,
and would be hurtful to the natural
and orderly processes oT business ana
finance .
"Large government credits were ex
tended during the war to certain Eu
ropean governments associated with
us in the struggle. These ceased sev
eral months after the armistice, ex
cept for commitments already made.
They should not now be resumed,
either directly or indirectly. The re
cent Brussels conference, composed of
experts from many European coun
tries and from, other nations, itself
expressed the opinion that further
credits should not be accorded di
rectly by governments. 1 do not be
l eve that they should be accorded in
directly. Kxports Increase Reported.
"Exports of domestic products have
not declined since the armistice. On
the contrary, they have greatly in
creased. From an aggregate value be
fore the war of less than $2,500,000,
000 and of about $6,000,000,000 the last
year of hostilities, they rose in the
calendar year 1919 to more than
$7fG00. 000.000, and this figure will
probably be exceeded for the last cal
endar year. For the first 11 months
of last calendar year we exported
more than $7,500,000,000 worth of do
mestic merchandise. These have been
largely privately financed. The diffi
culty in the way of still larger ex
ports does not seem to ile so much in
the lack of financial ability here as
in Europe's lack of means to make
payment. lier productive energies
and the services which she renders
have not yet reached a point where
they balance the value of commodi
ties taken from this nation, and her
ability to furnish for additional ex
ports securities which business men
would feel justified in taking is re
stricted. The experts of the Brus
sels conference reported that 'one of
the chief obstacles to the granting of
credits is the absence in borrowing
countries of sufficient securities for
ultimate repayment.
Solution Ueelared Difficult.
"Until this obstacle is removed, it is
difficult tot see how materially larger
exports to Europe are to be made
even if exporters, aided or unaided
by government finance, stand ready
to do their part. it is remarkable
that Europe is able to make an effec
tive demand for as large a volume of
our goods as she is making. It is
gratifying evidence of her recovery
and progress toward full production
and sounder financial conditions. '
"Under the law. If the activities of
the corporation were resumed, no
direct advances could be made to pro
ducers and, if they could be, they
would not accomplish the objects in
view. They would not create demand
for our products. They could be made
only to exporters or to banks engaged
in financing -exporU and if they did
In some measure stimulate exports
they probably would not have the
effect apparently most desired of sub
stantially Increasing those of agri
cultural commodities. Already, with
the larger volume of exports which
Europe is taking from us. she is ex
ercising her option, of taking a
smaller volume of some of our prin
cipal agricultural products, such as
meats, presumably because she her
self has become more largely self
sufficient, or is again providing her
self with supplies from distant count
ries which, with the opening up of
shipping since the armistice, have
once more found their place in the
markets of the world.
More Taxes Held Possible.
"It is highly probable that the most
immediate and conspicuous effect of
the resumption of the corporation's
activities would be an effort on the
part of exporters to shift the financ
ing of their operations from ordinary
commercial channels to the govern
ment. This would be unfortunate.
It would continue the government as
an active factor in ordinary business
operations. If activities of any con
siderable magnitude resulted they
would necessitate the Imposition of
additional taxes or further borrow
ing, either through the war finance
An Unrivaled Sale and
a Wonderful Response
Yesterday our store was thronged with eager buyers in response
to the announcement in the Sunday papers of our
Golden Anniversary Jubilee
and Diamond Sale!
The first day's selling was indeed gratifying, running far beyond
our most sanguine expectations. Today, with augmented sales
force, we will endeavor to serve all who come to take advantage of
the telling price reductions on our entire stock of diamonds, jewelry,
watches, silverware, leather goods, etc.
Everything in the store is reduced, save only a few contract
goods, on which the manufacturer permits no reduction.
20 Reduction on All Diamonds !
Rue de
la Paix
Chocolates
c "Merchandise of cJ Merit Only"
Mail Orders
Promptly
Filled
$25 Diamond Rings $18.50
$50 Diamond Rings $38.50
$ 75 Diamond Rings $59.50
$100 Diamond Rings $79.50
Visit This Diamond and Jewelry Store N ow
White This Jubilee Sale Is On!
FRIEDLANDER'S
18711921
310-312 Washington Street
Between Fifth and Sixth Streets
Here Is an Announcement That Will Make Men Take Notice!
Our Great Entire Stock
of MANHATTAN Shirts
Reduced to HALF PRICE
Everything!
Full Dress, Tuxedo and Every-Day-Wear Shirts
Down they go! Prices fall with a bang just
when our stock is at its height .of completeness
the most comprehensive showing in
Portland.
FACT NO. I Corded madras, woven
cloths, silk striped madras, famous Solway
and pure silk fabrics.
FACT NO. 2 Shirts in all sizes and extra
lengths, made as only Manhattan Shirts
are made.
corporation or by the treasury. In
either case new burdens would be
laid upon all the people. Further
borrowing" would In all likelihood
tap the very sources which might
otherwise be available for private
operations or which the treasury is
now compelled to reach to mee cur
rent obligations of the government.
There is no question that the bor
rowing of the government should be
limited to the minimum requirements,
and that the government should not
be called upon further to finance pri
vate business at public expense. To
the extent that Europe is able to
furnish additional securities, private
financial institutions here will doubt
less find means of giving the neces
sary accommodation.
Wny Declared Opened.
"The way has been opened for add
ed legitimate efforts to promote for
eign trade. Financial agencies in aid
of exports, privately financed, have
already been planned to operate nnder
the act approved December :M, 1919,
authorizing the organization of bank
ment of a just peace in the world,
the cessation of fighting everywhere,
the more complete resumption in Eu
rope of the normal courses of indus
try, the return of her people to
sounder fiscal and banking policies
and the breaking down within her
borders of harmful restrictions."
BOOTLEG WHISKY KILLS 3
Death Follows in Wake of Arrests
for Drunkeness.
SEATTLE. Wash., Jan. 3. (Spe
cial.) Three men are dead at the
public morgue, the result, according
to physicians at the city hospital.
of drinking "bootleg" whisky. All
three had been arretted and taken to
jail, but their condition was such that
they were transferred to the hos
pital. The dead are Edward Parsons, 50;
R. S. Smith, 46 ,and Herman Hansen.
tl. Smith was taken to the hospital
Allen today as witness on behalf of
an applicant for citizenship.
"No," responded the witness, 'Minnesota."
Milwaukee's Richest Man Dies.
MILWAUKEE, Jan. 4. Ferdinand
Schleisinger, capitalist, reputed to be
Milwaukee's richest man, died today
aboard a train en route to California.
B AH. green
Holman Fuel Co.
Adv.
stamps ror caab.
Main 353. 660-31.
Braiding, embroidery hemstitching.
Booth's. Morcan blda. Adv.
i
i
( At Savings of 50c on a Dollar!
Street Floor Lipman, Wolfe & Co.
December 28, and died at 4:30 o'clock
inK corporations for foreign banking yesterday morning.
Kn i-t nuuo Hnn '.., . - , . liuQn i ttc A tl ., sa . 1 ; ,
business. One corporation has been
organized in the south and a second,
ol larger scope. Is in course of devel
opment. These agencies may be ex
pected to act as promptly and as lib
erally and helpfully as sound business
conditions will permit. Through re
liance of such enterprises, rather than
through governmen-t intervention, may
we expect to secure a return to stable
business relations.
"For many months there has been a
demand that war agencies should be
abolished and that there should be
less government interference with
business. I have sympathized with
this view and believe that it is ap
plicable to foreign trade as well as
to domestic business. I am of the
opinion that now. more than two
years after the armistice, the natiqn
should resume, its usual business
methods and return to its reliance on
the initiative, intelligence and ability
of its business leaders and financial
institutions.
AdjiiMtment Hrld Distant.
"We shall not witness an immedi
ate satisfactory adjustment of domes
tic and international trade relations.
The burdens of war are not lifted
when the fighting ceases. One sad
thing about war is that it leaves fee
hind it a legacy of economic ills and
of suffering from which there is no
escape. Conditions, however, are im
proving both here and abroad. The
difficulties with which we are now
confronted are of small consequence
in comparison with those which we
have met and overcome.
"Fuller restoration awaits the adop
tion of constructive measures of large
ronpr-quence: The secure establish-
Dr. F. A. Plum, at the city hos
pital, said the death of all three of
these men was due to alcoholism.
According to his version, they were
all badly 'jnder the influence of in
toxicating liquor, evidently of the
bootleg variety. Whether there was
any poisonous substances in what
they had been drinking he would be
unable to say, but it was doubtless
whisky of a vile character.
An investigation is being made by
police and coroner.
MINNESOTAN NO NATIVE
Woman's Reply
Hearing Refutes
it Citizenship
Geography.
SEATTLE, Wash.. Jan. 3. (Spe
cial.) "Are you a native born citi
zen?" John Speed Smith, United
States naturalization examiner in Se
attle, asked Mrs. Mary A. Adams, a
storekeeper at 1620 West Barton
street, who testified before Judge
J he Superfine Small Car
The custom made
"cut" of the body
has that charming
individuality in
keeping with the
matchless perform
ance of this finest of
American small cars.
WRA Y MOTOR CAR CO.
. 11th and Couch Sts.
Phone Bdwy. 3247
THE TEMPLAR MOTORS COMPANY
Cleveland, Ohio
Although the memory
of Goodness lingers
long after the price is
forgotten, we simply
must requote these
prices :
Club
BREAKFASTS
50c to 75c
Merchants'
LUNCH
60c
Table d'Hote
DINNER
$1.00
imperial
The "Flying Money" of
Dim Cathay
JONG ago
Marco Polo visited
Cathay, as the Chinese Empire
was known to medieval Europe.
Fabulous tales he told of his travels
and the wonders which he had
seen.
Much he marveled at the bank notes
which in the poetical language of
the Flowery Kingdom were called
"flying money." He tells us these
Chinese notes consisted of pieces of
cotton paper about a palm in length
and breadth upon which certain
lines, resembling the seal of Mangu
Khan, were printed.
These notes must have greatly facil
itated the early commerce of China.
For thousands of years Chinese
merchants have had their caravans,
their trade routes, and their far-away
customers.
Trade with the Orient was-never
more interesting and profitable than
today. Through our connections
with Oriental banking institutions,
we are able to offer a direct and per
sonal banking service in the im
portant trade centers of Shanghai,
Kankow, Hongkong, Changsha,
Peking, Tientsin and Canton.
THE FIRST NATIONAL BANK
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THE FIRST NCnONAL BANK WEST
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Does Not Stain
Greasy salves and ointments should
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