The panic in Shanghai of the last few days seems to have been caused by a nurhber of occurrences which alarmists, and others seeking to wrest enormous profits out of other people's. misfortunes showed up in an incorrect light and gave rise to rumours for which there is not the slightest justification. President Roosevelt's statement that the U.S. Navy could fight a war in the Pacific while American industry could continue to supply Great Britain with war material was twisted into a story that the United States were preparing to commence a war in this part of the world. The statement by the Australian Government that it considered the situation in the Pacific as serious was made to suggest that an outbreak of war is imminent, while the further exhortation by the local American Consulate General to all American women and children and men whose presence in the "Far East ig not essential should return to their home land was eagerly seized upon to "increase an impression which cannot as yet be wholly' justified. The recall of Nether-so lands eastern shipping to neutral ports could not have had much effect upon the Stock Exchange on Thursday as the news became known after business had been closed.
That the situation is grave no one will for one moment deny. That it is such as to justify the wretched panic of the last few days is definitely not admitted. That view is supported by a Reuter telegram appearing elsewhere in which it is stated that "in Allied circles in London, which are usually well-informed, it is felt that at the moment the crisis is not imminent." Hitler is doing his utmost to persuade Japan to join actively in the war, for the purpose of dividing British concentration on the Axis in Europe and Africa. He has not yet succeeded in bringing about a non-aggression pact between Moscow and Tokyo, and unless Japan can be sure that her rear shall be protected by such an agreement the drive to the south is likely to be held up, Should such a Russo-Japanese Pact' be reached, and the Germans are doing their utmost to bring it about, the situation in the Far East will have taken a most serious turn, and it has to be said quite plainly that, if the developments up to the present can produce such a state of jitters as' the last two days have witnessed, one shudders to think what will be the reaction should matters take a definite turn for the worse.
It is a pity that, Shanghai being an International Settlement, it is not possible to deal with rumour-mongers along the same lines as have been adopted in Great Britain. It is 4 unfortunately a fact that large numbers of unscrupulous people are engaged in spreading false reports and alarms simply for the purpose of lining their. own pockets, and in circumstances such as now prevail it is criminal that they should do so. The President of the United States has repeatedly declared that his country will not take the initiative in any war in the Pacific and that the responsibility. for such a development would rest entirely with Japan. It has been shown that Japan is unwilling to make any move until some agreement has been reached with Russia which would free the former to attempt to carry. out long held ambitions in the southern Pacific, and the situation will not become graver than it has been for weeks past until such a pact has been negotiated.
Should that come about it will not even then be ground for the completely unreasoning panic which the last two days have seen. The best interests of the community as a whole can only be served by a general determination to disregard rumours, and wait to learn the facts. The enormous amount of stupid tattle that has been going the rounds, the creation of bogeys which only exist in the minds of those who desire that they should, and the sedulously fostered alarm which has been noticed is completely foreign to that Shanghai which has weathered so many crises in the past with an altogether admirable calmness. That the situation is grave must be admitted by'all. That it may become graver has to be faced. Nevertheless it would be stupid to be scared by the prospect of what may happen. Especially is this true' when there are so many in Shanghai so anxious to cash in on anticipated miseries which have not yet befallen the community. The great need at the moment is to maintain as calm an outlook as possible, and to retrain from passing on unconfirmed rumours.
Text read from the printed page and cleaned; old type leaves the occasional error.