* , AMERICAN FOREIGN SERVICE * JOURNAL * * 1 NO ROAST BEEF HERE What do you think your wife would say if she we’re buying food for your 20-cent breakfast snack happened to look over the Hotel New Yorker’s in our speed-counter Coffee Shop—or for your meat and grocery bills? We’ll tell you. Her first de luxe dinner in our formal new Terrace Res¬ remark would be, “My! you certainly pay high taurant. It’s always the best—whether we’re buy¬ prices for everything you buy!” And she’d be ing banquet squabs or everyday staples like sugar right. We do pay top prices—because we insist and salt. on buying and serving only the pick of everything Perhaps you’d think that because our food stand¬ edible. ards are so high, our meal prices would Take the roast beef on our menus. It’s be high. Quite the contrary. Prices in our all government-graded “prime” beef . 25^ reduction restaurants are as popular as the food to diplomatic and itself. As for the Hotel New Yorker’s and it’s generally at a premium. Some¬ consular service times we could save as much as fifty room standards, they are just as exact¬ NOTE: the special rate per cent by buying medium grades. But reduction applies only ing. And the rates are figured with an no, sir! It’s always the best—whether to rooms on which the eye on today’s pocketbooks. rate is $4 a day or more. HOTEL NEW YORKER 34TH STREET AT EIGHTH AVENUE • NEW YORK CITY Directed by National Hotel Management Company, Inc. • Ralph Hitz, President Private Tunnel from Pennsylvania Station OTHER HOTELS UNDER SAME DIRECTON: HOTEL LEXINGTON, NEW YORK • NETHERLAND PLAZA, CINCINNATI . BO OK-CADI LLAC, DETROIT • THE ADOLPHUS, DALLAS • HOTEL VAN CLEVE, DAYTON THE /^MERICAN pOREIGN gERVICE JOURNAL CONTENTS (FEBRUARY, 1936) COVER PICTURE WOODWARD & LOTHROP Photograph by Belden S. Howell 10th, 11th, F and G Streets Street Scene, Patzcua.ro, Mexico. WASHINGTON, D. C., U. S. A. THE CAUSES AND EFFECTS OF GOVERNMENTAL CONTROL OF FOREIGN EXCHANGE ”A Store Worthy of The Nation’s Capital” By James W. Gantenbein 61 DWIGHT MORROW A GREAT PERSONALITY .... 64 “To EXTEND OUR EXPORT TRADE” By Mahlon Fay Perkins .... 66 Would You Like THE DIPLOMATIC CORPS TOURS CENTRAL MEXICO By the Honorable Josephus Daniels 70 to Have Choice PRACTICAL ASPECTS OF TRADE AGREEMENTS By Jay Pierrepont Moffat _ 74 American Foods HUNGARIAN CAVALCADE By Cece Goddard 76 The Food Shop Offers a Most Complete PYRRHA: HORACE: ODES: BOOK I: 5 Stock—and Our Personal Shopping Translated by Herbert O. Williams 80 Service Will Choose for You NEWS FROM THE DEPARTMENT .... .... 81 NEUTRALITY (Photograph) __ 83 A POLITICAL BOOKSHELF Having good American foods in foreign lands is Cyril Wynne, Review Editor indeed a palatable pleasure. The Woodward & “Woodrow Wilson, Life and Letters” Lothrop Food Shop is most exacting, both as to Reviewed by Carlton Savage 84 quality and variety, in the delicacies it offers. Hun¬ “Neutrality. Its History, Economics, and Law” dreds of different vegetables, fruits, preserves, Reviewed by Francis Colt De Wolf 115 cheese spreads, fish, and hors d’oeuvres are here. “The Sino-Japanese Controversy and the League of Nations” Space permits us to mention but a few of our Reviewed by C. W. 116 canned foods—however, we will do our best to fill “The Education of Native and Minority any order you care to place. (croupsN 99 Reviewed by Yale O. Millington 118 Premier Apricots, No. 2 Vi tin ... 30c NEWS FROM THE FIELD ... 85 Premier Bartlett Pears, 1-pound tin 19c FOREIGN SERVICE CHANGES 88 Kings Fancy Peaches, No. 2V2 tin 25c BIRTHS, MARRIAGES - 90 Golden Tap Orange Juice, No. 2 tin 15c IN MEMORIAM 90 Premier Fancy Tomatoes, No. 2V2 tin 20c LETTERS 104 Lily-of-the-Valley Tiny Refugee Beans— No. 2 tin 25c CORINTHIAN GULF, Verse Premier All-Green Asparagus, No. 2 tin ... 30c By Mariquita Villard 110 Patriot Fancy Maine Corn, No. 2 tin 15c AFRICAN WIND, Verse Patriot Coffee, vacuum packed, 1-lb. can ... 35c By Edwin C. Kemp 110 CONSUL ISSUED COMMISSION TO CONSULAR Prices Subject to Change Without Notice AGENT 112 SERVICE VISITORS 120 Address your order or communication to Mrs. LAND’S END, ENGLAND Marian Tolson, Woodward & Lothrop, Washington, Photograph by Thomas M. Wilson 120 D. C., United States of America. She will person¬ TEN YEARS AGO IN THE JOURNAL 120 ally shop for you, and send your order according to your instructions. Issued monthly by American Foreign Service Associa¬ tion, Department of State, Washington, D. C. Entered as second-class matter August 20, 1934, at the Post Office, in Washington, D. C., under the Act of March 3, 1879. 57 IN THIS day of fast-moving motor cars, safety from blowouts and skidding is of vital importance. To assure motoring safety for you and your family, Firestone builds tires that are made blowout-proof by the patented process of Gum-Dipping. The scientifically designed tread will stop a car 15% to 25% quicker than other well-known makes. Take no chances, equip your car now with Firestone High Speed Tires—the Masterpiece of Tire Construction. Listen to the Voice of Firestone Monday evening over ShortWave W2XAF—9530 kc. yircstone 58 THE AMERICAN pOREIGN gERVICE JOURNAL To Patronize Our cAdvertisers Is to Insure a digger and ‘■Better GRACE LINE yournal for Our Service. "SANTA" SHIPS SERVE INDEX OF ADVERTISERS NEW YORK American Security and Trust Company__ 89 Atlas Engraving Company 117 KINGSTON, JAMAICA Bacardi, Santiago de Cuba 119 HAVANA, CUBA Baltimore Mail Line 99 Brewood (Engravers) 98 PANAMA CANAL ZONE Cathay Hotel—Shanghai 119 ECUADOR Chase National Bank 114 Chesterfield Cigarettes 60 PERU A Continental Hotel—Paris > 119 CHILE Crillon, Hotel—Paris 119 COLOMBIA Dunapalota Hotel—Budapest 119 Federal Storage Company 96 EL SALVADOR Firestone Tire & Rubber Co. 58 COSTA RICA France et Choiseul Hotel—Paris— 119 General Motors Export Co. 101 GUATEMALA Goodyear Tire & Rubber Export Company 93 MEXICO Grace, W. R., and Company : 59 LOS ANGELES Harris and Ewing 98 Hungaria Hotel—Budapest 119 SAN FRANCISCO International Telephone & Telegraph Co. 107 Le Boissy D’Anglas Restaurant—Paris 119 Manhattan Storage and Warehouse Co 90 Martinique Hotel 114 Mayflower Hotel 91 Merchants Transfer and Storage Company 103 Metropole Hotel—Shanghai . 119 Motion Picture Producers and Distributors of America, Inc. .. 111 Munson S.S. Lines 90 National Geographic Magazine 95 EUROPE-SOUTH AMERICA New England Mutual Life Insurance Co. 98 New Yorker Hotel II Cover via NEW YORK Pagani’s Restaurant—London 119 Palace-Ambassadeurs Hotel Rome 119 Through tickets at no extra cost Pan-American Airways, Inc. 102 Shortest,fastest route between NewYork and Park Hotel—Shanghai 119 Plaza Hotel 97 Buenos Aires, via Valparaiso and across the Rockefeller Center III Cover Andes by train or Pan American-GRACE Airways. Sapp, Earle W., C.L.U. 98 Savoy-Plaza Hotel 97 Regular service of de luxe, first class, and Sea Captains’ Shop, The—Shanghai 119 cabin class ships, meeting every demand of Security Storage Company of Washington 89 time and purse. Smith’s Transfer and Storage Co 115 Socony-Vacuum Oil Co., Inc. 113 Strasbourg, Restaurant Brasserie de—Marseilles 119 Tyner, Miss E. J. 98 Underwood Elliott Fisher Company 109 GRACE LINE United Fruit Company 111 New York, Boston, Washington, D. C., Pittsburgh, Chicago, Los LInited States Fidelity and Guaranty Company 111 Angeles, San Francisco, Seattle, and in Mexico, Guatemala, El United States Lines . 102 Salvador, Nicaragua, Honduras, Panama, Colombia, Havana, all Waldorf-Astoria Hotel IV Cover West Coast South American Countries, London, Hamburg and Paris. Woodward and Lothrop 57 59 JHE AMERICAN pOREIGN gERVICE JOURNAL iiiiili Pilliglill) ■Dun-curing Turkish leaf tobacco. The tobacco is strung ^ leaf by leaf and hung on long racks like you see here. he aromatic Turkish tobaccos used in Chesterfield cigarettes give them a more pleasing taste and aroma. CHESTERFIELb-A BLEND OF MILD RIPE HOME-GROWN AND TURKISH TOBACCOS 1 " 'tWl — ‘ i 1936. LIGGETT St MYERS TOBACCO CO. THE FOREIGN S JOURNAL PUBLISHED MONTHLY BY THE AMERICAN FOREIGN SERVICE ASSOCIATION VOL. XIII, No. 2 WASHINGTON, D. C. FEBRUARY, 1936 The Causes aud Effects of Governmental Control of Foreign Exchange By JAMES W. GANTENBEIN, Third Secretary, Santo Domingo I. MEANING OF EXCHANGE This essay was adjudged the best sub¬ various activities of Govern¬ CONTROL mitted on this subject in the recent ments, whether by restrictions, prize essay competition, referred to on AT THE first World Eco- interventions, regulations or page 692 of the December JOURNAL. , nomic Conference held at monetary policies, designed to Geneva in 1927, representatives interfere with the free func¬ of fifty countries, after agreeing that a return tioning of foreign exchange. The most conspicu¬ to the effective liberty of international trading ous direct terms are restrictions upon the obtain- was “one of the primary conditions of world pros¬ of exchange or the export of monetary metal, in¬ perity, adopted resolutions urging cluding such measures as transfer in emphatic terms the elimination moratoria, embargoes on gold and nn of trade barriers. Since that con¬ silver exports, “standstill’ arrange¬ ference, so many additional restric¬ ments, blocked accounts, exchange tions have been imposed upon the clearing agreements, and various freedom of international commerce, banking regulations; and interven¬ that it is difficult to imagine that tion in the international money in 1927, when production and con¬ market to influence rates, particu¬ sumption were increasing, it was larly by employment of “equali¬ generally recognized that world zation” and “stabilization” funds. trade was being strangled by gov¬ Less direct, but of hardly less ernmental interferences. The suc¬ consequence, is the control exert¬ ceeding years have witnessed not ed by monetary policy intended simply large increases in protec¬ to serve domestic purposes through tive tariffs and the extension of voluntarily altering exchange par¬ quota systems, but also the devel¬ ities.