The decision reached by the Council with regard to the increase in the temporary high cost of living allowance, which was issued in a communique published yesterday morning was only to be expected. Not since October last had there been any change in the remuneration of municipal employees, and the fact, that exchange had in the meantime dropped from about 6d. to the neighbourhood of 4d. without any adjustments in the allowance having been made, was conducive of a certain amount of anxiety amongst municipal employees, and that amongst the lower and middle class employees. The Council were faced with the fact that a number of their employees, especially those possessed of professional and technical quali fications were feeling themselves compelled to seek employment outside the Council's service, while they were also aware that other employees, whose services had been dispensed with on the ground of economy, had in several instances obtained posts at salaries considerably in excess of those which they were receiving before they left. That men, heads of departments with three years' seniority drawing salaries in the neighbourhood of £2,000 per annum, were now only receiving remuneration at the rate of £800 a year is something, which in the case of professional men, has to be taken into consideration. The argument is very often advanced that as the Council receives its income in Chinese dollars the factor of exchange rate should not be taken into consideration, but if such men can command higher salaries elsewhere they are fully entitled to do so, and the Council would then be faced with the alternatives of employing cheaper assistance, which may not prove either so effective or so trustworthy, or employing other men of equal calibre who would not come at the rates offering before the proposed change came into effect. It is readily admitted that the Council has to cut its coat according to the cloth, but in exceptional times such as these it is also essential that municipal employees shall be treated just as fairly as the circumstances permit.
In view of the undoubtedly large increase in the cost of living since the Council last made adjustments it was inevitable that the high cost of living allowance would have to be adjusted in proportion. Up to May 1 these allowances were 30 and 40 per cent. of basic pay. These have been increased to 65 and 77 per cent. respectively, and while "A" Class foreign employees will receive the temporary high cost of living and subsistence allowances on two-thirds of their basic pay, the reduction of the limit of 6d. applicable to exchange adjustment in respect of one-third of their pay to 4%d. carries with it a certain dollar adjustment to provide for the commitments which they may have abroad. The cost of these new adjustments this year will amount to $2,970,000, but in a full year the cost will be $4,450,000 or 26.6 per cent. of the annual wage bill of the Council, as it stood on April 30, of $16,680,000. The increase viewed from that aspect does not appear unwarrantably large, and gives the impression that, in arriving at the decision it did, the Council was holding the scales fairly and squarely between the municipal employees on the one hand and the ratepayers on the other. The Council is, however, probably not correct when it stated that "It is confidently believed that no American or European citizens of Shanghai bearing positions of responsibility comparable with those of the Treasurer or the Commissioners of Police, Public Health or Public Works are paid so little as these municipal servants." Rather more likely would it prove to be the fact upon proper investigation that large numbers of men who, before the Sino-Japanese hostilities, were drawing similar salaries are now receiving salaries more in relation to the fall in exchange. That must be particularly the case where men are employed by concerns less favourably placed than certain of the larger companies. In this connection it must be remembered that the majority of the people in Shanghai are not employed by the public utilities or the large firms, but in a host of undertakings quite unable to give such increases as those institutions just mentioned.
It is as well that this should be borne in mind. There is no intention of criticising the present increases in the temporary high cost of living allowance. It is so arranged as to operate fairly in all classes of the Council's service. But the fact has to be borne in mind that a limit will have to be set somewhere, and that the capacity of the ratepayers as a whole to meet increased charges must at all times be taken into consideration.
The increase of the rates which was passed by the ratepayers at the last annual general meeting has not yet come into force, and there is still much opposition to it. It is to be hoped that it will be paid with a good grace when it becomes fully recognized by the masses as inevitable, and that the extra charge which these adjustments create will be met out of the buoyancy which the municipal revenue has shown during the past year or so. But while it is important that the Council should at all times realize that there must be a limit, and that when that is reached, and the ability of the ratepayer to pay more has been taxed to its-utmost, the questions of who shall constitute the personnel of the municipal service, and the possibility of far-reaching changes will have to be considered. The temporary high cost of living allowance is quite substantial. It probably, on the other hand, fails to some extent in making the municipal servant completely whole so far as his previous methods of living and saving are concerned, but the money which is being used to pay these allowances is for the main part being obtained from people of whom the overwhelming majority are in receipt of no such similar compensation. These -are all considerations which will have to be taken into account should another fall in the dollar take place, and the situation be all the more complicated by the fact that the war in Europe has yet to bring its full influence to bear upon this city.
Amazing Revelation If there is any foundation whatever for the amazing story which refugee Belgian political quarters have related to Havas on the subject of King Leopold's defection, the perfidy of the Than has been established beyond the peradventure of a doubt, From the very commencement he was seeking to run with the hare, and hunt with the hounds, That can be the only conclusion to be drawn from the inside story which the French news agency has issued, King Leopold, it is stated, forbade his Ministers to go to France, and establish personal contacts, and thus ease ce-operation; he is alleged to have attempted to establish a strict press censorship, refused to convene Parliament on the invasion of Belgium by the enemy, or to brand the invaders in a radio broadcast as requested by his ministers, while even in his brief messages of "encouragement" to the gallant defenders of Liege and Namur he was brief to the point of taciturnity, Added to this is his point blank refusal to permit formal consultations with French authorities to prepare for Belgian evacuation of threatened areas, and in the eyes of Havas' informants these facts now do spell but one thing, namely, premeditated treachery, His attempt to obtain signed documents from his ministers—a ministerial signature as well as his own being necessary under the constitution,—showed that he was preparing to form a puppet government along the best accepted tradition of the German invaders, That was, however, foiled when the Premier and the rest of the Cabinet unanimously, and flatly refused to give their signatures, If King Leopold was prepared to let down the Allies who had so promptly gone to the assistance of Belgium, the Cabinet was not, The advice of the Belgian War Minister was utterly disregarded, and even the last hour endeavours of the Premier to dissuade his sovereign from a course which would, he said, dishonour Belgium, failed. Belgium and the Belgian people have not been dishonoured. The Belgian army fought with almost incredible bravery against an overwhelming enemy, the forts at Liege and Namur were still holding out when the King betrayed his country and his Army, The dishonour is exclusively his, and no matter the eventual outcome of this war he will go down in history as one of the world's major traitors, He went to war halfheartedly, and has got himself out of it ingloriously, Enemy Propaganda The methods of the German propaganda machine have never been better exposed than by two incidents which were to be noted yesterday in the enemy news service. In one instance the German news agency carried a telegram headed "Kings farewell message to Troops" referring to his Majesty's message of encouragement and praise which will be found in full in another column. In their version the enemy merely quote one passage "The hearts of everyone of us at home is (sie with you in this hour of peril" and then go on to say that "It is not known whether the British troops firmly encircled (sic) by German force, and which have no more prospects of "ver reaching the British Isles have received their King's farewell message." Compare the German version with that carried by Reuter which is in full and a fair idea of how the Germans will twist words to convey impressions which are wholly misleading to people who have not the same sources of information as have most newspapers, In the second case the German news agency quotes Mr. Harold Nicolson as saying "We must face the fact that the Germans are reaching their goal in Flandres (sic)"
."The reports received are bad, and it is possible that even worse ones will follow. It is even possible that the Germans will land troops in England, using means which were not known in previous wars." What Mr. Nicolson did say was We must face the fact that the Germans may be able to reach a decision in Flanders, but it won't be a final decision. The great Armies France is now massing on a defensive line to the south of the main battle area are prepared to deny to the Germans that complete victory for which they have hoped. We know we shall be exposed t$ a heavy bombardment from the air, and we dre not so foolish as to neglect our precautions against a possible invasion. Yet even the perfected organization of the German land and air armies cannot detract from the fact that the British Navy exists, and is more powerful and efficient than ever in its history We have conquered them once and shall conquer them again It is part and parcel of the German propaganda to endeavour to persuade the world at large that the Allies are down in the mouth as a result of the German success in Flanders, but it is as well to remember that in the last war they took lickings for nearly four years, and when the Allies commenced giving the Germans a trouncing they could not stand it for six months.
Text read from the printed page and cleaned; old type leaves the occasional error.