Image provided by: University of Oregon Libraries; Eugene, OR
About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 19, 1922)
THE MORXIXG OREGOXIAX. WEDNESDAY. APRIL 19, 1923 EGOilOIC JUSTICE Bondage Imposed on Soviet Government Held Wrong. VITAL ISSUE AT STAKE Adjustment of Claims on Basis of i Rehabilitation and Trade of Future Declared Safe. BY JOHN HATNARD KEYNES. Fellow and Bursar, Kings college, Cam bridge; editor Economic Journal, London author "The Economic Consequence of the A'eace and A Revision of, the Treaty." Copyright by the New York World. Air Eights reserved. Published by Arrange ments i , GENOA, April IS. (Special cable.) Germany's agreement with Russia to wipe out debts is wise in itself. but unfortunate in its method, and its occasion complicates matters. But it Is also a warning. - Chitcherin agrees in principle to recognize the debts. - Therefore an arrangement should be possible. But he draws back from acknowledging a paper liability which is more than his people are ready to bear and more than they think just in view of all that has happened. .' If the bolshevik faith were as bad as is popularly supposed, Chitcherin would readily buy immediate advan tage at the expense of promises which will cost nothing for five years and are easily repudiated then. Perhaps Uoyd George had calculated thus. Sensible Proposal Neresaary. If we practice on Russia what we already have practiced on Germany, and compel her under force of econ omic pressure to recite a promise, which she cannot keep, and which we know she does not mean to keep, we hall have disgraced ourselves. Our proposal must be sensible and practical, and one which both sides will think it advantageous to carry j cut complete. I think that such j settlement is possible. Manv schemes could be imagined, differing in their details. I outline a scheme in order to indicate the sort of thing which Eussia might accept it and we could ffer with advantages to ourselves. More than six-sevenths of the war debts are owed to Great Britain. We do not expect to be paid. Let us agree at once to set off these claims against Chitcherin's list of counter claims. v National Debt Are Unpaid. If the soviet power in Russia is recognized as the de jure government of the country, holders of the Rus sian pre-war debt bonds can prop erly claim this debt should be rec ognized, but many governments which recognize their debt are in arrears with its interest, and the history of the last 60 years is full of precedents of countries which suffered war mis Kovernment or revolution compound . lug with the creditors. Private investors who lend money to a foreign government take a risk and there is no principle In interna, tional law which guarantees them. Those who lent money to the czar's government took a big risk, and they will be lucky to get anything back. Russia, having recognized her debts, must be allowed, therefore, to com pound with her creditors. I suggest that new bonds should, after a five- year moratorium, carry interest at 2H per cent, which at an outside estimate of pre-war debts would cost eventually 20,000,000 sterling a year. Individual Claims foremost. There remains the question of com pensation to individual foreigners whose property has been confiscated. They have the best claims on the grounds of both equity and experi ence to an integral reimbursement, in spite of the terms of Russia's agree ment with Germany. Much detail is involved and differ ent cases must be treated on their merits. Wherever possible, the prop erties should be restored to their orig inal owners on a basis of partner ship or a profit-sharing arrangement with the bolshevik government, which the latter is prepared to offer. These offers excite much indigna tion. Tet they open the way by which foreign capital can re-enter .Russia with the much-needed extra security of common interest between the foreign industrialist and the so viet power. But it should be a part of the set tlement that where an arrangement of this kind cannot be mutually agreed upon, then the dispossessed owner should be entitled to receive bonds to the full value ofhis prop erty as determined by an arbitral commission; such bonds to carry 5 moratorium. Scheme Declared Modest. I feel confident the amount of such bonds to be issued would fall short of 200,000,000, and might not exceed half that figure. Such a scheme is .modest comDared with our nresent demands. But looked at coolly, it of fers a degree of satisfaction to Rus sia's creditors which a short time agn would have seemed almost incredible, j 'Indeed, there is not much reason to hope even now that Russia will grant . anything as good. But if we offer her something on these lines we will at least be talk- ' Ins sensibly and will be asking noth ing incapable of sincere acceptance. If Russia's creditors stand out for more, very well; they certainly will set nothing. , What inducements can we offer the soviet power for meeting us half way toward the principles of western Kurope? De jure recognition is the logical consequence of accepting the soviet as the legal heirs of .he liabil ities of the czar. If the Soviets are Tiot recognized as the government of Russia, we have no ground for de manding that they pay the czar's debta enormous and the the sooner we will in doing so is sooner we begin reap advantage. British Lmi Is Advocated. In addition a definite act which leads to tangible results may jolt the whole machine into motion. We must get a start by artificial assistance on a fairly substantial scale and then trust that business will run 'itself afterwards. I propose, therefore, that Great Britain grant to the soviet power as a part of a general settlement, a credit of 150,000.000 sterling to be spread over two years, the money to be expended on British goods to pro mote agricultural production, or for improvement of communications with the purpose of ameliorating the Rus sian famine, in the first instance, and encouraging export thereafter. i'ossiDly part of the goods might be furnished from Germany, their value to be credited to her against the sums due Great Britain on the reparations account. If any other government desired to join credit, so much the better. Settlement Might Be Restricted. It is not essential that every power need come Into this settlement. The terms outlined would be offered to the nationals of those powers which in return accorded de Jure recogni tion. If any country preferred to continue in the present situation. It would be entitled to do eo. I can understand the policy of repudiating the bolshevik govern ment altogether. ' But Genoa meets on a different presupposition. The whole thing may be futile. But If we are to treat with them at all, we must treat on realistic lines. It is with a sort of despair that one finds oneself back again in the dreadful atmosphere of Versailles, discussing a bondage of debt and insisting that as a first preliminary no other party shall make a public recital of what both parties kno to be false. BONUS BILL IM BE TEST OF PRESIDENT Harding Expected to Stand Firm for Sales Tax. in the BOND DECISION DEFERRED Recall Issue In Lane County to Go Over to November. EUGENE, Or., April 18. (Special.) The petitions calling for an elec tion on the question of recalling the unsold portion of Lane county's J2.000.000 road bond issue will not be filed for the primary election, accord- ng to announcement today by mem bers of the committee in charge, but will be filed so the question may be voted upon at the November election. The principal argument advanced for filing the petitions at this time was that it is desired that the county should go ahead with construction of the Rain Rock-Blachly section of the Eugene-Florence highway, for which $150,000 of the bonds were allotted. SENATE MORE YIELDING Increasing Willingness Is Shown to Accept leadership of Na tion's Executive. Candidate, 70, Withdraws. SALEM, Or., April 18. (Special.) J. M. Cross of Canyonville, who filed J lor trie Ollice OI rcJICDQUuiuvg imiu Douglas county at the republican primary election, today withdrew his declaration of candidacy. Ii his afr fidavit of withdrawal Mr. Cross said he would be unable to make the pace because of illness and advanced age. He said he was 70 years old and if elected would not be able to give the duties of the office the attention they deserved. Orpheum matinee today, 15-25-50-Ad. BT MARK SULLIVAN. (Copyright, by the New York Evening Post, Inc. Published by Arrangement.) WASHINGTON, D. C, April 18. (Sneclal.) Interest in the bonus bill exceeds interest in the tariff and allied to both these questions is one in which there is the greatest Inter. est of all, namely, whether Harding is going to assert leadership of con gress. A test on this question of Harding's leadership may arise out of the bonus situation. Harding has said in substance that he does not approve of any bonus bill which fails to carry with it a specific provision for raising the money to pay it, and has said further that the bonus plan which most appeals to him is one which carries the sales tax as the means of raising the money. If the senate should pass the bonus bill in substantially its present form or in any other form which does not take account of what' Harding has said, then it will be up to Harding either to veto it or to sign It. It is on the assumption tnat tnis nuemma will be presented to Harding that moEt of the present discussion turnu. Bets are being made as to whether Harding will or will not veto any bill passed bv a substantial majority through a republican house and .a republican senate. Bill May Be Changed. Those who believe in Harding's firmness and have observed his quiet, but steadily increasing disposition to be a little more self-assertive, say that if these circumstances arise he will use his veto, and are willing to bet money on their conviction. There is, however, the alternative outcome for Harding to assert his leadership now in advance of action by the senate, and lead the senate to change the present bill into a form consistent with his wishes. There are fairly good reasons for expecting this latter outcome. Harding, so far as his personal fortunes are con cerned, is now in a position to exert pressure on congress. The treaties arising out of the Washington con ference have been ratified and are out of the way. These treaties, as every body knows, will constitute the high spot in Harding's administration. It is the successful outcome of the Washington conference that will fix Harding's place in history. Practically every administration has some such outstanding characteristic In Wil son's first administration it was the federal reserve act, and in his second administration it was the conduct of the war. In McKinley's administra tion it was the Spanish-American war and In Cleveland's the preservation of the gold standard. With Harding feeling comfortable about the most important act of his career, he is now in a position to take chancefe with op position at the capital. Many close observers have noted an increasing self-assurance on Harding's part since the ratification of the treaties. Firmness Beneatk Urbanity. . Beneath his quiet urbanity is steady firmness. Senate coming around. The outcome of the debate in the house on the size of the na'vy is a mark of deference to Harding. But even more is there an increasing dis position in the senate to defer to Harding's leadership. It is easily orobaible that the senate leaders in their management of the bonus meae ure will consult with Harding atead ily and will try to arrive at an out come with regard to the bonus which will be satisfactory to him. One minor point of difference arises over the order of precedence. The more ardent friends of the bonus measure want it to have the right of way in the senate. But it is under stood that Harding prefers that the tariff should have the right of way. Bonus BUI Anticipated. Hearings by the senate committee on the bonus measure begin on Wednesday. There cannot be much doubt that a majority of the senate favors the passage of some kind of bonus measure within a reasonably near future. At the same time it is a fact that the number of senators who are willing to oppose the bonus altogether on principle increases daily. Two months ago the number was .hot more than 11. Today it is probably close to 25. If this trend goes on there may turn out to be enough senators in opposition to have at least enough power to prevent the passage in the senate over the presi dent's veto of a bonus bill unsatis factory to the president. Whether the senate would go far enough in its newly developing ac ceptance of Harding's leadership to swallow his proposal of a sales tax as a part of the bonus measure would today seem doubtful, and yet the cur rent may move strong enough to bring about even this. Certainly the most probable out come of the whole situation would seem to be. a bonus bill framed along lines of substantial deference to what the president regards as desirable. and de- nrTT I" nillRHnrn assume to dictafe the policy of such Ul-M I I UAIWIMUk a federal commission, or of the state ULH I I LL UI1HI.1ULII . FOR BASIN PROJECT OUTLET FOR MUSICAL TALENT IN AMERICA HELD LACKING Madame Mero, Who Plays at Heilig Tonight With Symphony Orchestra, Would Have Such Orchestra in Every Town- Credit to Russia Justified. But in addition I suggest, though with doubt and hesitation, that credit to Russia can be justified, not merely to induce a settlement, but for the sake of European reconstruction. Rus sia will not be able to borrow from bankers or private investors for some time to come. The political risk is too great. Business, therefore, will not get started without government credit. The United States being isolated. Great Britain probably is the only power now able to grant it. al though her financial position is good ground for refusing. I am generally opposed to a treas ury opening its purse strings, and I am not guilty of underestimating the need for parsimony. But nere is an opportunity for an expenditure which may have consequences altogether out of proportion to its magnitude. Russia will export food again on year earlier in this way than she otherwise would and the lower price of wheat will be enough to save ug a huge sum on our food- bill alone. An increase of 10 per cent in the supply available on the world mar ket may make quite a disproportion ate difference to the price. It will take a long time to bring Russia back u a food exporter. But our interest BT LEONE CASS BAER. YOLANDA MJiirtLI nas in dividual ideas upon topics, past or.esent and even the future, if one might make so bold as to re veal it. Ever since, as a great pian ist, she came from Hungary ten years ago, she has been an individ uality which fascinates the public mainly bacause she rarely gives out an Interview. wnen sne uoea eiwi to talk for print it is to the subject of music that she skillfully pilots her inquisitor, skirting .any others so deftly and surely that after a while the reporter becomes resigned and follows Madame's lead and talks on music. Embarrassment Is Enconntered. "When I first came to America I was interviewed on every conceivable phase of modern life. I was asked to give my opinions on the most as tonishing things and sometimes I would say honestly what I thought and the next day I would see it in the papers and people would write to me or at me and agree with me or disagree and I found it embarrass ing," said Madame Mero. "I think the personal side of an artist's life can not possibly be of consequence to her audience. Invariably I am asked about matrimony and if I think it affects the career of an artist. How can I tell? What 'Is good for one may be bad for another. "Matrimony is anyway and always a matter of the individuals who marry each other. Personally I am happily married and to a business man. an American who is non-musical in that he is not a musician, and knows little about music save that he appreciates good music. You read in one column of some artist whose career is made possible because of a right marriage and in the parallel column you read of some prima donna who divorces her husband because he Interferes with a career. There can be no law, no rule governing these things. "It is disheartening sometimes." said Madame, "to be asked for my favorite recipe, or how a luncheon should be served just before a recital, or what I think of free verse or Mar got' Asquith or bobbed hair for women, when I'm longing to spread the gospel of good music." Ruse Found to Work. Madame Mero sighed and when the fascinating Mero sighs you crowd back down your throat the ques tions that were trembling on your lips, and Madame, being very clever, sees that her ruse has worked and speedily smiles and launches into her loved subject, music especially as it is expressed in symphony orchestras. "Do you know who are the biggest contributors- to your symphony or chestra?" she asked. "It is the men who constitute that orchestra." she answered her own question. "To my mind they are more to be regarded and esteemed than the largest con tributor in moneys. They are doing more to bring music closer to the hearts of your Portland populace than any other group of citizens and every time " they play they plant a seed that develops and thrives. I am delighted to hear from local musical folk I have met since my arrival yes terday that your beautiful city is growing in its appreciation of good music Orchestra Held Important. I can easily believe, as I heard it said today, that the artistic and financial success made here recently by the Chicago Grand Opera company was a result of the propaganda of: good music spread by the concerts of your symphony orchestra. If thej public hears good music in its home town It can better appreciate the good music that comes as a visitor. ' People who did not use to attend ' opera go to it now, having- been edu- 1 cated In music through the sym phony concerts. To paraphrase. I would ask every city: 'Have you 'a symphony orchestra in your home town?' It is as important as parks, or drives, or playgrounds, and is much farther reaching in its results because it cultivates a love for the fine and true and beautiful. The soldier boys in the trenches were stirred by noble music and preferred good songs and children who come from ' homes where good music is heard invariably prefer that kind as they develop. America Abundantly Blessed. "America is abundantly blessed with musical talent, but deplorably lacking in an outlet for that talent. I look forward to a day when there will be municipal opera houses and symphony orchestras in every city. "People, generally speaking, would enjoy good music if they had a chance to hear it," opined Madame Mero. "I am convinced that public taste, if encouraged, will educate it self and that out of whatsoever is of fered it, the public will choose the best." Madame Mero is the guest of Mr. and Mrs. Henry L. Corbett while she is in Portland. She is to appear to night at the Heilig with the Portland Symphony orchestra, one of the best orchestras, she says, with which she has ever rehearsed. Support of Orchestra Urged. "If I have any message to give the people of Portland," she said, "it is to say that in supporting so tine an institution as the orchestra you have here you are building a nobler foun dation for a city artistic than ten million miles of graveled drives or landscaped hills. ,And no one." she added naively, "more than I admires drives and flowers and parks. The highway I traveled over, today was the most stupendous piece of road architecture and magnificent scenery I've ever seen. So it is not, you see, that I cannot love these things. It is only that I love music more." U. S. FINANCIERS ASKED J. P. Morgan & Co. Invited to Consider German. Loan. PARIS, April 18. (By the Associ ated: Press.) The allied reparations commission, it was announced today, has asked J. P. Morgan, & Co. to ac cept membership on the financial sub- commissfion, which will convene In Paris in a fortnight. Th meeting will coneider the pos sibility of floating an lintexnational loan for Germany. Orpheum matinee today, 15-25-50-Ad. Sound City Comes Around to Spokane?s Position. POLICY SET FORTH FULLY Future Action to Depend on Atti tude Taken by Conference to Be Held at Pasco. PTTGET SOUND BUREAU, Seattle, Wash., April IS. (Special.) The Se attle Chamber of Commerce has come almost alt the way over to a position in favoi of the Columbia river basin irrigation project. Action taken by the state development bureau of the chamber in executive session Monday night, and approved by the board of trustees today, pledged support to efforts for development of the pro ject as the nature of that effort is defined in a statemtnt by the Spokane Chamber of Commerce.. At the con ference, which has been called by Dan A. Scott, state director of recla mation, to meet in Pasco Friday, April 21, the Seattle chamber will be repre sented by a delegation headed by Frank Waterhouse. president, and Colonel Howard A. Hanson, chairman of the state development bureau. The Seattle chamber s decision to participate in the proposed state-wide support of the Columbia basin project is in rather sharp contrast to the atti tude hitherto assumed. Policy Not Reversed. It is' not exactly a reversal of pol icy, but is a considerable recession from the position previously taken in direct opposition to the project. It was on January 5. that the delegation of Spokane business men came to Seattle to ask help in raising -the funds' necessary for the employment of General Goethals, and it was 12 days later that the Seattle chamber went on record not only with refusal to contribute to the fund, but with declaration to the effect that the Columbia basin project ought not to be considered until smaller projects throughout the state had been developed. "Thereafter our policy as to all Co lumbia river basin matters, includ ing finance, will depend upon the re port of that commission, and the pol icy of the Washington state depart ment of conservation and development. Our opinion is that the report of such a federal Columbia basin com mission should recommend a sepa rate appropriation for the building of the project. We cannot, however. department of conservation velopment. I&xrfnsioa R ot Asaored. - Furthermore, while the foregoing states the policy of the Spokane chamber of commerce, we cannot commit ourselves or the Columbia basin project to the proposition that the Columbia basin project shall be indefinitely or forever excluded from participation in the 'funds of the McNary-Smith bill for the reason that the revolving feature of that bill contemplates the reclamation of all the irrigable lands of the west, and the continuance of the revolving fund created thereunder for a period of from 30 to 50 years or longer. A few days ago Charles Hebberd, representing the Spokane chamber of commerce, came to Seattle -and placed in the hands of President Waterhouse a statement of the policy of the Spo kane organization with respect to the basin project, as follows: "The Spokane chamber of commerce is whole-heartedly back of the McNary-Smith bill and wilt, as hereto fore, loyally support that bllL Attitude Is Explained. "The plan of the Spokane chamber of commerce with reference to the Columbia basin project, subject to the action of the Pasco conference, con templates applying to congress for a special act creating a federal Colum bia river basin commission to report on the project and providing a sep arate initial appropriation for that purpose. President Waterhouse submitted this statement to the chamber's bu reau of state development. The bu reau members wrestled with it in executive session, finally appending a resolution which the chambers trustees today approved as follows: Resolution Is Adopted. "Resolved, that we find the above declaration of policy of the Spokane chamber of commerce In general ac cord with the policy of this chamber, and it therefore indorses the state ment and pledges its cordial support to every effort directed along those lines for the earliest development of the Columbia basin project in addi tion to the smaller reclamation pro jects in this state." AENUS a I m, TT.r VENUS EVERPOINTED 1 filiN ( ani other Mechuiical Pencil T FAflQ ) 15cperW IMPERIAL PRINCE COMING Gus Meese of Knigbts of Kliorassan Due Here Saturday. Gus Meese, imperial prince of the Dramatic Order. Knights of Khoras san, will arrive in Portland Saturday and will be here several days confer ring with the 1923 convention com mittee. He will also attenid a cere monial to . be conducted by Abduhl Atef temple. The visiting official will arrive at the Union station at 2:55 o'clock Sat urday afternoon and will be escorted to the Imperial hotel by the brigade patrol and band and officials and members of the local temple. An hour later he will be escorted to the armory for the ritualistic ceremonies. This will be followed by a lunch at the armory at 6 P. M., when the vis itor will make a short address. Mr. Meese will be in, the city until Tuesday night. Plans for the bien- -SSSSSa- W '''71 T1 B soft H medium hard HB soft medium 2H hard 4H extra hard The name VENUS is your guarantee of perfection absolutely c rumble proof, smooth and perfectly graded; The cherished personal pencil made in all designs, large and small, from $1.00 up. Plaint gold filled-$3.0O Chased: silver filled $1.75 If your dealer cannot supply yarn, mite ms i Lead Pencil Co., 220 Fifth Ave., New York VENUS PENCILS are the largest selling quality pencils in the world nlal convention of the Imperial pal ace to be held at Portland will be discussed with the local committee. PASTOR TO BE INSTALLED Ceremonies Tomorrow at Vancou ver for Dr. C. E. Baskerville. VANCOUVER, Wash, April 18. (Special) Dr. Charles E. Baskerville, who has been acting pastor of the First Presbyterian church of this city, will be Installed at 8 o'clock Thursday evening. Several represen tatives of the Columbia river Presby tery will be present and assist in the ceremonies. Among those who are to take part will be Dr. T. Davis Atcheson of Ray mond, Wash, moderator of the Washington state synod; Dr. Stephen Phelps of Vancouver: Rev. A. B. Keeler of Seattle, superintendent of the Home Mission board; Rev. J. P. Marlatt, pastor of the First Methodist church, and Rev. C. C. Curtis, pastor of the First Christian church of Van couver. The public Is Invited to t tend and all ministers will have seats of honor on the rostrum. Seat Slashers Are Fined. MOXTESA NO, Wash., April It. (Special.) Charged with slashing the leather seat coverings in a Kay-H stage Saturday, Frank Warren and Henry Miller, loggers, were fined $20.20 each, including cobIs. by Jus tice Lewis B. Bignold today. The convicted men say they will appeal. Oregon City Couple to Wed. OREGON CITY, April 18. A mar riage license was Issued here today to Ernest I. Newman, 28. and Hazel L White, 21. both of Oregon City . Orpheum matinee today, 15-25-60-Ad. Orpheum rrmllnee trwlny. 15-25-M-Ad. Corns? O bbu Bluejay to your druggist Stops Pain Instantly The simplest way to end a corn is Blue-jay. A touch stops the pain in stantly. Then the corn loosens and comes out- Made in two forms a colorless, clear liquid (one drop does it!) and in extra thin plasters. Use whichever form you prefer, plasters or the liquid the action is the same. Safe, gentle. Made in a world-famed laboratory. Sold by all druggists. Free: Writ Bauer A Black, Chicago. DepLliS far valuable booic, "Cornet Care of the feet." RETURN. 'ENGAGEMENT. ' "A 'K-Js' CECIL B.' DeMILLE'S mL GORGEOUS PRODUCTION 1 ' M m "FOOL'S PARADISE" Lavishly , staged Brilliantly cos tumed and produced. Cast in cludes Dorothy Dal ton, Conrad Nagel, Theodore Kosloff, Mildred Harris and other noted stars. Only three days, so don't miss it. THRILLS GALORE! Director Knowles and the Columbia Picture Players are repeating the widely-praised score used with the premier pre sentation of "Fool's Paradise." COMING SATURDAY Agnes Ayres and Jack Holt in "BOUGHT AND PAID FOR" TODAY i