Electioneering Pause—Germany and U.S.A.—Von Papen's Quick Shot—Japan Strikes Too—Trade Barometer Slightly Up.

No Bang, But Out!

von Papen killed the new Reichstag before the new Reichstag could kill Von Papen. It was all very dramatic. Germany's Parliament came into being under the temporary Presidency of Frau Clara Zetkin, “Red Clara,” who in her inaugural address, prayed that she would some day perform a similar service for the German Soviet Republic. As the venerable Communist's age is reported by cable to be seventy-five, the German Soviet Republic will have to come soon if its godmother is to be she. With tottering footsteps she was led away from the chair, and the Reichstag faced the Monarchist-Republican issue, but not for long. As soon as an attack on his Government developed, Von Papen placed on the table the dissolution decree. It proved deadlier than a bomb. There was no bang, but out went the Reichstag.

Speak Again, People!

How long can President Hindenberg, General Von Schleicher, and Dr. Von Papen continue to govern Germany without a Reichstag majority? It has been suggested that there is no constitutional limit to successive dissolutions of a Reichstag that has no majority, or a majority of the wrong colour. So long as President and Chancellor are in step, they can, it is alleged, dissolve any Reichstag that they consider out of step. Of course, if the vote of the people were a fixed, invariable factor, a repeated renewal of the electoral appeal to them would not alter the result, and would not remove the deadlock. But, in these times, believers in the fixity of popular opinion are not as numerous as in the day when democracy was green. So the de facto rulers are asking the people to think again, and return the right answer.

Armaments.

While this domestic clash continues inconclusively, German foreign policy, unchecked by Reichstag review, proceeds as by proxy. Von Papen has agreed about debts (at Lausanne), but threatens to desert disarmament (at Geneva). A disarmament which is practised by Germany and merely preached by France has always been a target of German criticism There is an impression that a Hitler foreign policy would be very much more disturbing to Europe than is the present Berlin policy, yet in mid-September the London Stock Exchange finds the German situation disturbing enough to depress the market. It is thought that France reached the limit of her concessions at Lausanne, and that the Herriot Government could not survive any retreat page 10 at Geneva. Hence Britain's remonstrance, directed at Germany. The question is not so much what is ideally just, as what is politically possible.

The American Sphinx.

Perhaps it is as well that there is a German election campaign to balance the campaign in America. It seems unlikely that either of the U.S. Presidential candidates will dare to deal definitely with debts until the election is over and, since nothing can be done quickly, the elections on both sides of the Atlantic will help Europe and America to mark time. This year the so-called Maine barometer has registered the return of Democratic candidates; and there are people who think that Roosevelt will again become a world-name, as a quarter of a century ago. Who can say to what unforeseen point a Democratic Administration in U.S.A., plus economic pressure, might carry the world-problem in 1933? By then the effect of the Hoover extended currency and credit measures will be better known. It may be even more necessary for the United States to do something heroic next year than it is now.

Japan and the League.

If the Western world were not so preoccupied with its own economic salvation, it would have much more to say about the amputation of Manchukuo (Manchuria and other provinces) from China. Britain was once defined as “a small island off the coast of Europe.” It happens that some small islands off the coast of Asia, named Japan, are dipping deeper into the Chinese mainland than ever the English Edwards or the English Henrys did into Europe. China claims to have 474 million people, but at least thirty millions of them hive off with Manchukuo, now recognised by Japan as an independent State. Japan did not wait for the League of Nations report. Through her mainland possessions, plus Manchukuo, her military arm reaches in between the millions of Russians and the many millions of Chinese. And her squadron is again at Shanghai.

Russia's Trade Moves.

Russia's plan for a self-supporting Sovietism is necessarily modified by her present anxiety to sell in the world's markets. Nations which do not desire exports of Russian Communism, do want Russian commodities; hence trade is growing up, in spite of political obstacles. A year ago most people believed that Russia would attack Japan in defence of China; yet a recent cablegram declares that the Manchukuo developments have not prevented Japan from making a big contract with Russia for supply of Russian oil, “making Japan independent of United States supplies.” Again, Canada not long ago was placing an embargo on certain Russian goods, but now the Aluminium Company of Canada admits that, “in effect but not literally,” it is trading Canadian aluminium for Russian crude oil, to be refined in Canada in competition with U.S. products. Political plans bend before commercial realism.

Lower Interest.

“Cheap money, the historical solvent of depression,” continues to offer. It is estimated now that the British loan conversion to 3 1/2 per cent, will be accepted by the holders of all but 100 millions of the 2,000 millions conversion stock. The French Government has a big 4 1/2 per cent, conversion scheme on foot. Australia has the Hon. S. M. Bruce in London as Resident Minister, and loan conversion is admittedly one of his concerns. The Hon. W. Downie Stewart, after Ottawa, went on to London, in New Zealand's interest. Legislation in conformity with Ottawa decisions will be introduced in Dominion Parliaments. Australia has 106 millions of London loans bearing interest at £5 11s. per cent. Conversion to 4 1/2 per cent, is estimated to give Australia a saving of £1,119,609 per annum; to 4 per cent., £1,652,133 per annum.

Shipping Barometer.

Some indication that shipping is sharing in the slight revival of trade is now reported. Freights have somewhat improved. page 11 Of British tonnage, 14 per cent, is reported as laid up, but the laid-up percentages in most of the foreign mercantile fleets is higher than that. When Britain went off the gold standard, British shipping shared in the competitive advantage thereby created. Owners who have built up-to-date ships have thus reduced their operating costs. But British owners who have done that, and who have sold their older ships, have found that in some cases foreign buyers of the older ships have created a new competition by means of lower wages and standards.

Suicide as a Weapon.

The issue of the latest phase of the struggle between Gandhi and the British Government is obscure at time of writing, but the impression made by his threat to fast to the death is significant of the gap between East and West. Ordinarily, a British political negotiator proceeds along reasoned lines of compromise. He rearranges the political fabric till it appears to suit; and the proposal to give “the untouchables” separate electoral representation seems to have had no purpose other than political adjustment. Gandhi, however, professes to see in it disruption of Hinduism.

Daily Scene At One Of New Zealand's Chief Stations.
Flashlight photograph taken on the Christhurch station before the departure of the Ferry Train for Lyttelton.

His hunger strike (till death) has surprised the West, not only because it is new tactics but because it is a tactical plan which, if once successful, might be heard of again.

Pageant of Sport.

America's ability to win athletic contests is confirmed by the Olympic Games. While there is much ground for debate as to what is an amateur, and what degree of specialisation is desirable in amateur sport, it is admitted that the Olympic standards of amateurism are rising. Nurmi and Ladoumegue failed to pass the test, and Count de Baillet Latour is reported as saying that American Universities are now not so prone to finance athletic students. The last word will never be said on the thorny question of what is fair and what is unfair in the making of an amateur world-beater, but the Olympic contests are fair enough to be of great moral value. The Japanese made a good showing at Los Angeles, and negro sprinters did great things for America. Now, Canada has a coloured exponent in the arena of professional boxing, and his sparring partner is an English Lord's brother! In cricket, England is bringing new bowlers to deal with Bradman. Cochet yields his tennis laurels to Vines, whose only slip (Borotra) cost U.S.A. the Davis Cup.