The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-05
JAPAN TO ASK
/. U. S.FOR LOAN
IN MANCHURIA
American Money Is Wanted
to Exploit Vast New
Acquisition.
BANKERS SEE PROFITS
Move Expected to Arouse
Stern Opposition, on
Ethical Grounds.
BY WILLIAM PHILIP SIMMS
Seripps-Howard Foreign Editor

WASHINGTON, Feb. 5. - The
Japanese plan to make the people
of the United States their partners
in the exploitation of Manchuria.
AS soon as practicable, after con-
solidating their control over north
China, the Japanese will try to
float a loan, or loans, in this coun-
try to extend several lines of rail-
ways, open up mines, establish new
industries and otherwise develop
their new ASiatic protectorate.
Literally hundreds of millions of
dollars will be needed as fast as
the money can be raised. And the
American public, through the New
York banks, is regarded as the most
likely source Of new capital.
Loans Would Be Opposed
For these and associated reasons,
American banking circles are in
clined largely to look with some
favor upon Tokio's strong hand
policy in the Far East. 1t means
more order in business. 1t will open
the way for big profits on large
loans backed by the Mikado'S
mighty army and navy.
Any such loans, however, it is
predicted confidently, would meet
with tremendous opposition here,
and, for three major reasons.
First, the step, in effect, would
tend to make the United States a
partner in conquest, of Japan.
Second, it would involve us still
deeper in an area which observers
on both sides of the Atlantic and
Pacific are convinced will be the
scene of a new world war.
Third, it is a penny-wise, pound
foolish policy even for American
banking and business men them
selves. Every penny so invested, by
just that much, would help close the
open door" TO American trade in
China.
Chinese Market Grows
Commerce department experts here
regard China as Americas most
promising market. There is reason
to believe that in time it will sur
pass all others in Importance. On
the verge of a tremendous awaken
ing, she already is fast increasing
her purchases, and, equally signifi-
cH ~ - Il
is increasing steadily.
In 1913 only per cent of China'S
total foreign purchases were from
us. Last year our share amounted
to almost Is per cent.
Wherever Japan exercises control,
she soon monopolizes whatever trade
and financing her own great bust
ness and banking houses can handle.
This she manages to do by low
wage-scale all along the line, plus
an all-embracing system of govern
ment subsidies.
Thus, while immediate and hand
some profits admittedly are to be
made by financing the Japanese in
the initial stages of their exploita-
tons, every dollar is apt to be a
boomerang.
Sacrifice Future Gains
Once they get things going, the
bulk of the business passes into the
hands of their own nationals, and
dollar profits of the future are &C
cordingly sacrificed for the penny
profits of the present.
Politically, also, loans to. Japan
for her Manchurian enterprises are
on totally different footing from
similar loans to almost any other
people. The reason is that Japan's
Manchurian venture is not pri-
vate, but a government affair.
The South Manchurian railway is
owned by Japan. 1t is political in
character. 1t is to Manchuria what
the East India Company was to
Britain. It's president is the real
ruler of the country. No native
governor could last twelve months
if he refused to take his cue from
the South Manchuria-that is to
say from TOXIC.
Our Interest in China
Similarly Japan'S colossal indus
trial, mining, agricultural and other
interests in that part of the world
all are a part Of her scheme of
empire. This can be said without
criticism. That, it is admitted, is
her business.
But any vast outlay of American
capital to promote these enterprises,
it is observed, would make our in
vestors partners, directly concerned
with the political and military pro-
lection of such interests. either
against China or against Russia.
Therefore, it is pointed out, these
more or less temporary interests OF
few would, in the long run, clash
with the vastly larger interests of
Americas 120,000,000. For the chief
interest of the latter lies in produc-
ing more stuff in this country to
sell to the 450,00o,O0o people OF
China left free to buy what they
want in whatever market they
/ choose.
ANNIUERcAPV OBSERVED