Evening star., 1934-06-13

reciprocal arrangements respecting
tariffs, tonnage and port facilities,
the United States has invited retalia-
ton and detrimental measures on the
part of other nations through the i'm
position of prohibitory duties and
through the erection of unnecessarily
high tariff walls. Under this policy
American merchants and carriers in
the foreign trade have been brought
face to face with the ruin OF their
ventures. Under that policy our COM
merce has diminished more rapidly
than the commerce of our competitors.
The reciprocal tariff act comes late,
but it is hoped and believed not too
late to give opportunity for arrange
ments of mutual benefit-arrange-
ments through which we may buy
from others what we cannot econom-
ically provide for ourselves, and in
return sell to them the Surpluses for
which we can develop no domestic
market.
If there is any one foolish practice
which more than others contributed
to bringing on the depression which
began in 1929, it is the crazy and un-
restrained speculation which withdrew
for use in gambling funds needed to
carry on business and which culmi-
mated in boarding, business stagnation
and the breakdown Of credit institu-
tions, resulting in the reduced pur-
chasing power of the people and ap-
palling unemployment. The act of
1888 regulating the issuance Of securi-
ties has been modified in particulars
where experience has shown its terms
to be too harsh and restrictive, while
at the same time investors are given
access, through new statutes providing
for the control of transactions on ex-
changes, to information essential to
the formation of intelligent opinions
in the purchase and sale of securities.
The act also will restrict credit for
speculative purposes so that necessary
commercial and industrial enterprises
may not be unduly interfered with by
the excessive use of resources in reck-
less speculation. Marginal trading
hereafter will be prudently supervised.
There exists no ground for fear that
liquidation will be hasty or unduly
compelled The public should re-
member that there is no complete
remedy for a fool. No law which
human intelligence can devise can
safeguard against loss when risks are
taken What the President and the
Congress seek to do is to require hon.
esty and good faith, and in so far as
possible outlaw get-rich-quick schemes
through which the public has been
defrauded.
Naval Construction.
In the hope of ending competition
in naval construction. treaties were
negotiated in the Washington and
London Naval Conferences by which
the principal powers agreed to limit
their construction. Great Britain and
Japan built up to their limits pro-
vided in these treaties. but the United
States, in the hope of promoting
further reductions, permitted building
to remain at a practical standStill
until the act during the present ses-
sion, when Congress authorizes new
ships in numbers and sizes approx
mating the treaty limits. The Navy
is the first line of defense in case
of international warfare. While the
President and members Of Congress
hope that further conflicts on the
sea may be avoided no method Of as
Suring safety to our country has been
found without maintaining that meas
ure of strength on the waters which
will command the respect of other
naval powers as we'll as the confidence
of the American public in the ability
of its Government successfully to de-
fend the lives and property of our
citizens against attack from potential
foes.
The Federal Government has en-
tered the war against gangsters. The
Department of Justice is performing
its task in this particular aggressively
and effectively. Nevertheless 1t has
been found necessary to enact a
number of laws, each supplemental
of the other, strengthening the ma
tional authority as the only one
capable of Furnishing and restraining
those public enemies who pass quickly
from one State to another, robbing