Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-30
FREE TRADE TEST
IS DUE IN BRITAIN
London Conference Is Ex-
pected to Decide on Future
Economic Policy.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 3o.-whilt
Americans are watching Cleveland these
days to learn what decision the Ameri-
can Bankers Association will reach
about branch and chain banking, other
millions of people will scan the news to
see what the British imperial conference
which convenes in London under the
leadership of Ramsay Macdonald, will
decide to do.
r. B. Bennett, Canada's prime min
lister, who, in two months has kept
Canada breathless by his achievements
will be there for the first time. His
problem is primarily to find how Canada
can keep from drowning herself In
wheat In the place of Premier Bruce
of Australia, who seven years ago SUBJ
lmitted his British Empire tariff plan to
the conference, will be j. H. Scullin, who
Is trying to balance his national budget.
George w. Forbes, the first native
born premier of New Zealand. will have
the place of ex-Premier Coates.
The only two premiers who have at
tended before are w. T. Cosgrave of the
Irish Free State, the veteran of the con-
ference, and j. B. NJ. Hertzog of South
Africa, who still Stoutly insists upon
the inherent right to secede from the
British Empire whenever his country so
desires.
Free Trade or Protection.
Free trade or protection within the
empire, which is it to be? Around this
question. the British leaders will spend
many hours in discussion.
Protection sentiment is growing rap
idly in Great Britain, among all classes.
But free trade still has its able defend
ers. At the conference the free trade
principle will be brilliantly defended by
Philip Snowden, British chancellor of
the exchequer.
Great Britain is suffering from the
worst business depression in a hundred
years. Her millions of unemployed are
clamoring for work. She is the largest
free trade nation in the world today
the only one. viii she continue to hold
that position?
Labor Party Divided.
The Labor party is divided regarding
protection and free trade. So are the
Liberals. and, to lesser degree, the
Conservatives.
David Lloyd George, the former Lib
eral premier, made this significant
statement few months ago:
Equality and independence for the
young nations of the British Empire
are now an accomplished fact. :"
The next step Of equality is effective
unity. Make unity as effective as you
make equality If you don't the EN-
pire will not remain"
A prophesy and a warning, which
will not go unheeded, at this years i'm
perial conference.
Canadian Migration.
j. A. Stevenson, Canadian correspond
ent of the London Times, estimates
that since 1921 Canada has lost 1885,
900 OF her population, "four-fifths of
whom found their way TO the United
States"
There is hardly a home in Canada
but what has relatives living in various
parts of the United States. Many Cana
dams have found fame and fortune in
the United States.
James J. Hill. the empire railroad
builder of the Northwest, was one of
the earliest ones.
But not many Americans have gone
TO Canada and achieved great sue
cess. But there are some Mr.. Steven
son names few in current history.
Sir William Van Horne and Lord
Shaughnessy, the first two presidents
of the Canadian Pacific Railroad, were
both American-born. Sir George Per-
ley, Canada's high commissioner in
London during the war, and leader
of the Conservative party today, was
born in Vermont. Sir Henry Thorn
ton, president of the Canadian National
Railroads, was born in Ohio, and II. w.
Wood, president of the Alberta Wheat
Pool, dominating figure in the West
ern grain situation, was born in Mis-
eouri.
Today more than $500 ,0O0, 900 of
American money Is invested in Cana
dian enterprises. This is probably q
billion dollars more than the amount
loaned by Great Britain to Canada.
Says Mr.. Stevenson: There may
be occasional strains in the relations
of the two countries but, fundamental
ly, they have too much in common ever
to have any deadly quarrel"
Short Selling.
sIf there Is any difference between
short selling on the Stock Exchange
and short selling in the wheat pit, tell
me what it is" inquiries G. R..
The widespread publicity given 10
the Soviet wheat short selling in the
Chicago Pit naturally brings such in
o,iiries. There is a difference IN the
machinery of short selling in these two
cases, although the principle is the
same in both.
In the case Of selling short on the
Stock Exchange, the trader himself Is
obliged, under the rules, to deliver Lne
physical stock by a definite time WITHIN
% hours of the day of the short SAFE.
So the broker, to handle the deal, mus.
borrow the stock from q real owner OF
the stock or holder.
But not so in the case OF wheat. Inc
short sale trader In wheat merely deals
in q futures contract. The Chicago BOARD
of Trade provides for the delivery undeI
such contract that unless the contract
otherwise provides, where any commod.
itv is sold for delivery in speciflec
month. delivery of such COMMODITY may
be made by the seller upon such business
sales in the specified month as the seller
NAV collect. If not previously delivered
delivery must be made upon the las'
business day of the month"
Every short sale of grain in Chicago
by Soviet Russia, or by Canada, or by
any other country Is covered under tina
rule. II the actual wheat is not going U
be delivered-and there is no doubt tina
this is the situation with regard u
Soviet Russia-the contract will be GOV
cred in due time by purchases in tn
open market in the United States.
Thus, the Chicago Board OF Trad
will prevent short selling only by great,
restricting its contract dealing will
short sales. Not otherwise.
(CopyriEht, 1890. by North American News
paper Alliance.)
NEIM cEnIIOITIEc