Evening star., 1937-12-19
Panay Bombing Focuses
Domestic Problems
BY OVEN L. SCOTT.

And what was revealed?
Above all else there is seen the COM
parative power and prestige and invinci-
bility of the United States. The internal
squabbles and difficulties Of this country
quickly fade into insignificance when
contrasted with the squabbles and diff
culties of the other major nations of the
earth. Their very insignificance by con-
trast enables President Roosevelt to di-
vert attention from domestic troubles by
q single note directed to an Oriental
potentate.
Before they decide that this country is
going to the bow-wows because Govern
ment wants to make adjustments forced
by this very sad state of affairs in the
outside world American business men
would do well to scan the reports that
fow into Government departments from
abroad.
These show much of the rest of the
world skating on the thinnest sort of ice
&K y
Japan made highly expensive invest
ment in Manchuria. Her resources were
stretched near to the breaking point be-
fore she moved farther into China. That
countrys economic machinery is rapidly
moving under the full sway of an ire
sponsible military clique. An embargo
on credits and munitions and raw mate
rials, If placed by this country and Great
Britain, almost overnight could place the
Japanese In desperate straits.
Profuse apologies and kowtowing for
the sinking of an American man-of war
are to be read in that light.
Japan does not share the low esti-
mate OF the power of America professed
by some Americans. She may politely
tell the British to jump into the creek
as she has done-but her respect for the
President of the United States and what
he stands for is thoroughly healthy.
That respect for American policy and
regard for the strength of the underlying
American position is shared by other
hard-pressed nations OF the world.
II n
People of this country often are re-
galed with stories about the advantage
OF being business man in England and
OF the sound way in which the govern
ment of that nation runs things.
Yet reports flowing into Government
departments here show that British
business men are beginning to wish they
were In this country instead of at home.
British resources are strained near to
the limit OF a rearmament program that
Is adding to an already topheavy debt
structure. British business-according to
British authorities themselves-is near
the top OF major upward cycle with the
budget unbalanced. taxes near to the
breaking point and little fat on which to
depend when the downturn sets in.
Three months of steadily rising unem-
ployment in the face of an armament
boom leads to predictions that the turn
already has come.
More than that: England is nationaliz-
ing her coal industry She maintains
controls over banking policy, over the
iron and steel industry over agriculture.
over utilities and other major industries
that make this country's New Deal look
like an amateur performance On ton
OF all this, the British are almost certain
to become involved in any trouble that
breaks out in Europe
BY contrast, American business men
who are complaining that they lack con-
fdence in the future and consequently
must turn millions of workers into the
street would seem to have ample reason
for overconfidence
4 *E
The French are in financial difficulties
that continue to be acute They have a
labor problem that makes the labor prob
lem created by the c. l. O. in this country
appear simple. The state of their busi-
ness is heavily dependent upon foreign
trade, yet their prices and costs are ont
OF line with prices and costs of competi-
tors. Internally there is strong revo-
lutionary sentiment, and externally
nOwprfn1 lal
prepared TO spring at the drop of a hat.
In Germany, the nation rapidly is US
Ing up the substance of all of the people.
"A vast program OF rearmament is pur-
sued at the expense OF the living stand
ards OF the people. The State tells Ger
man business men what they can pro-
ouce, what they can buy and sell and at
what price. The state takes all profits
ABOVE SIX per cent, allocates raw mate
r1als, determines policies toward labor,
and, In effect, runs German industry as
directly as the central Russian govern
ment runs Russian industry.
Mussolini does much the same in Italy,
except that the Italian economy is less
highly industrialized and consequently is
more simple. Yet the Fascist Italian
government is about to make its second
levy on the capital of the country, TAX
ing ten per cent of everything that every
business man and every citizen owns.
Even so, industry is humming in both
Italy and Germany. There is little or no
unemployment. Heavy goods industries
are more active than consumer goods
industries. Much of the activity is in
preparation for war.
\
Contrast all Of this with the situation
IN the United States Here is Nation
free from the threat of hostile neighbors.
The national debt is debt that the peo-
pie owe to themselves and not to any
foreigners. More than half of the worlds
gold and much of its monetary silver is
within our borders. A powerful Navy as
sures against the remotest threat of in
Vaslon. There exists Superabundance
OF nearly all of those essential raw mate
rails that the rest Of the world is getting
ready to fight over.
In addition, this country possesses the
worlds biggest supply of skilled and eff
cient workmen. It's industrial plant is
unequaled anywhere. It's agriculture is
highly efficient and diversified. It's
transportation system is the best in any
land
Yet trade languishes, millions of men
remain out Of work, factories operate on
part time and the people are pessimistic.
Business men blame the politicians and
the politicians blame the business men.
The managers Of industry say they lack
confidence. They don't like the way the