[Those who are using the weekly outline should not attempt to cover the whole of an outline in any one lesson or study. Assign for one lesson selected questions, one or two propositions for discussion, and only such words as are found in the material assigned. Or distribute selected questions among different members of the class or group and have them report their findings to all when assembled. Then have all discuss the questions together.]

I-INTERNATIONAL AFFAIRS

A. Topic: The Submission of Germany;
German Honor.
Reference: Pages: 357, 358.
Questions:

1. What is the attitude of the Germans and the German Government toward the peace conditions to which they have submitted? What is your explanation of their attitude? 2. The Outlook prints in full what the German Government said in telling the Allies the German Republic was ready to accept and sign the peace terms. Paraphrase the German communication in words such as you think the Germans should have used in accepting the peace terms. 3. Comment at length on The Outlook's statement: "Only the credulous expect this present generation of Germans to keep their word to their own hurt except under compulsion." 4. Give the known facts about the Scapa Flow affair. Was this a dishonorable thing for the Germans to do? 5. Discuss what the Germans mean by honor. Do the last five years of German history show that the German idea of honor is generally involved with the breaking of a promise and that honor is a matter of convenience for the Germans? 6. Discuss what, in your opinion, the Allies should do about the sinking of the German ships. 7. Tell, with reasons, what you think of the following comment: "The ships were of no great value. But to Germany, the German nation, and the German people the harm done is irreparable. Germany's pleas for equal respect and fair dealing will fall on deaf ears." 8. Explain how the Allies can prevent the Peace Treaty from becoming a scrap of paper. 9. Is this a fair statement: "But the new Germany is the old Germany. Might is still the German god. The Germans are still incapable of under"standing what other men think"? Explain why or why not. 10. When and on what conditions would you trust the Germans? 11. German character and ideals are well set forth in "What Germany Thinks," by T. F. A. Smith (Doran), and in "Germanism From Within," by A. D. McLaren (Dutton).

B. Topic: Should We Pay Colombia
Twenty-five Millions?
Reference: Editorial, page 363.
Questions:

1. Give the salient facts presented by those who believe that the United States should

pay Colombia $25,000,000, and the facts presented by those who are against paying Colombia this or any other amount. 2. Had you been in Mr. Roosevelt's place at the time, do you think would have you acted differently than he did? Reasons. 3. Discuss the value of a nation's good will that can be secured for $25,000,000. Do you think Colombia's attitude toward America would be fundamentally changed if w

we paid her that amount? Reasons. 4. Read in Mr. Roosevelt's autobiography (published by Macmillan) what he himself says about the Panama Canal question, especially pages 516-546.

II-NATIONAL AFFAIRS

Topic: American Federation of Labor;
Popular Fallacies.
Reference: Pages 359; 364, 365.
Questions:

1. Give reasons for believing or disbelieving that the American Federation of Labor is guided by intelligence, reason, and the spirit of loyalty to America, her institutions and ideals. 2. Discuss each one of the items in the Federation's educational programme. Which one of these do you consider the most significant of all and why? 3. Name and say a few things about the enemies of the true interests of labor.. 4. Give reasons for believing or not believing that all laboring people should expect are their food, clothes, and shelter. 5. Do you think the Federation did right in indorsing a forty-four-hour week for all laborers? Reasons. 6. Explain what is meant by the doctrine that labor is a commodity to be bought in the cheapest market. 7. Do you think the objections to this theory are as many and as serious as does Dr. Abbott? Reasons. 8. Indispensable volumes for the student of labor and labor problems are those by Commons: "History of Labor in the United States" (Macmillan).

1. The Germans are without honor. 2. Elihu Root is unpatriotic in offering his suggestions for the League of Nations. 3. Every democracy is controlled by some kind of oligarchy. 4. National sovereignty can no longer be regarded as absolute.

IV VOCABULARY BUILDING (All of the following words and expressions are found in The Outlook for July 2, 1919. Both before and after looking them up in the dictionary or elsewhere, give their meaning in your own words. The figures in parentheses refer to pages on which the words may be found.)

Apology, salient, collusion (363); orthodox doctrine, political economy, economic, postulate (365).

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An advertisement in the daily papers offers a vast war-production plant for sale"from a typewriter to a train of cars "whole villages and cities for populations of 3,000 to 30,000." "We are selling carloads daily" of this material, the announcement states. An article in "Harper's" on French production during the war makes one wonder whether the captains of industry in France were not more far-sighted in arranging their factories for after-the-war 10 work. It says that when acres of new shops were put up at Le Creusot and Honfleur to make cannon, the owners had already decided to become locomotive-builders of after the war and constructed the new buildings accordingly. The vast, Citroën plants for making 75-cm. shells were transformed in a few weeks to factories for making low-priced automobiles, which were put on the market on January 1, 1919. That seems like real industrial prevision.

be

ม

Sir Sidney Lee, the Shakespearean critic, says in "The Landmark," speaking_of changes in Stratford-on-Avon: "The

he cross-timbered house with the fine carved front in High Street where John Harvard's mother was born and spent her childhood is now, through the intervention of Miss Marie Corelli, the perpetual property of Harvard University, and is a club-house for its traveling alumni. Such a destiny for the property felicitously commemorates the

fact that the oldest seat of learning in America was founded by the son of a contemporary fellow-townswoman of Shakespeare."

Fashions in etiquette are unaccountable and fortuitous. So the assistant editor of "Punch," Mr. A. A. Milne, finds. "It is the fashion," he says, " to be late for dinner, but punctual for lunch. What the perfect gentleman does when he accepts an invitation for breakfast I do not know. Possibly he has to be early. But for lunch the guests should arrive at the very stroke of the appointed hour." Mr. Milne describes his predicament when, by allowing himself time to be pushed off the first half-dozen omnibuses but actually succeeding in boarding the first one, he arrived at his destination forty minutes ahead of time. He killed the forty minutes, then entered his host's house as the clock was striking one-thirty. "Then

BY THE WAY

I remembered," he concludes, in the British humorist's best vein, "it was Tuesday's lunch which was to be at one-thirty. To-day's was at one o'clock."

"And what did you most enjoy in France ?" the friend asked of the nouveau riche who had just returned from her first visit to Paris, as reported in "Tit-Bits." "Well," was the answer, "I think it was the French pheasants singing the Mayonnaise.''

"What can you say of King Solomon?" a little girl was asked by her Sunday-school teacher, as reported in the "Argonaut." "King Solomon was a very wise king and very fond of animals." "Fond of animals?" queried the astonished teacher; "what do you mean?" "Why, in the Bible it says he had seven hundred wives and three hundred porcupines."

Sir Arthur Pearson, the well-known Englishman who not long ago became blind, tells how his misfortune made him really more self-reliant." When I found my sight was doomed," he says, "I concluded that I had better dispense with the services of the personal attendant who had looked after me for many years, as otherwise he would probably become a stumbling-block in the path of blind proficiency. frequently been congratulated upon the skill with which my valet ties my bow tie. But I have to take the compliment to myself. My valet neither ties my tie nor does anything else for me, the very simple reason being that I have no valet."

I have

The railway board, a current story goes, had met to consider the case of old Tom Jones, who, in a train accident, had become deaf. "Well," said a director, "old Tom has been with us a long time now, and we suggest?" "I know," said the chairman. want to find him a new job. What do you "Let's put him in charge of the complaints department."

It is stated that during the war, says "Shipping," 254 spies were discovered and arrested at the Hog Island Shipyard. These men, most of whom have since received severo penalties, obtained jobs at the shipyard for the purpose of gathering information and were arrested by the

Hog Island guard and secret service forces. Some of the spies were among the cleverest agents of Germany and one was a notorious Mexican.

A soldier who is interested in optics writes from abroad: "I have discovered something more about German efficiency. You know we Americans have been taught that bubbles and little flaws in anastigmatic objectives were unavoidable; in fact, we have regarded bubbles in a fine lens as a sort of hall-mark of genuineness. We have been most completely hornswoggled. I have seen over here 14-inch and 18-inch anastigmats, F: 4.5, clear and free from flaws and as transparent as distilled water. The Germans kept these lenses for home consumption, and sent the imperfect ones abroad-and their foreign customers, including ourselves, just ate 'em up. I am glad to say that I have secured one of the lenses they kept for themselves. It is a beauty. You gotta hand it to the Boches for their optical skill."

The London "Daily Mail" quotes this commentary on colloquial English" from a speech delivered at a Medical Conference:""He was ashamed of the term 'shell shock.' It was a bad word and should be wiped out of the vocabulary of every scientific man. It was really molecular abnormality of the nervous system, characterized by abnormal reactions to ordinary stimuli."

The vast coal-beds of China are this

year to be drawn upon, for the first time it is said, in aiding American industry. "Shipping" announces that the cannery' plants at Bristol Bay, Alaska, are to be supplied with coal brought from the Chinese port of Chingwangtao.

Among the various "drives" that have lately taken place, one of the most successful was the membership week drive of the Railroad Young Men's Christian Association. The goal was 40,000 new members, while the total secured exceeded 48,000. Individual men did splendid work in "boosting" the organization. One example may be quoted at Secaucus, New Jersey, an Italian machinist, working in conjunction with two waitresses in the Association

restaurant, secured more than one hundred new members.

FINANCIAL COMMENT

INDIVIDUAL INCOME TAXES

ILL the individual income taxes and the surtaxes be reduced in the near future?" This question has been foremost in the minds of the two million taxpayers for some time. And they I have been looking to Congress for news of the much-desired relief. The law provides that these taxes be automatically reduced next year and each succeeding year. The return for the current year is expected to be about $1,430,000,000, which sum will be brought down about ten per cent for 1920 by the automatic reduction. This is all pretty generally understood, but the public wants to know if there will be any additional diminution.

Senator McCumber, of the Senate Finance Committee, and other experts have declared that there is slight possibility of such a reduction for some time to come and that the closest economy will be necessary to keep within the existing bounds. Their opinions are based on the facts that we are still encumbered by heavy war expenses and have yet to face the payment of our Liberty Bonds.

This latter factor is looming up as a large one. The Victory Notes fall due in 1923 and the bonds mature in periods between 1928 and 1947; in addition to which an old issue of bonds is due in 1925 and the War Savings Stamps in 1923 and 1924. The Government's future obligations thus summarized show clearly the necessity of extending taxation for a good many years. The House Ways and Means Committee has begun to consider proposals for means of liquidation.

DEFAULTS

When the Russian Government 61⁄2 per cent bonds were sold in this country three years ago, little thought was given to Russia's ability to retire them at maturity, and they found a ready market. But these bonds have fallen due, and there exists no responsible Government to assume the obligation of their payment. Formal announcement to this effect was made about two weeks ago-at that time the bonds were selling for about 53, and have since appreciated four or five points. This appreciation is attributed to the pledge given by the anti-Bolsheviki faction that as soon as stable conditions are established Admiral Kolchak's Government will recognize Russia's external debts.

Another default which has recently come into prominence is that of the New York Railways Company. This company, which operates the greatest traction system in the world, is one of the eleven "tractions" in New York State to be forced into bankruptcy. The Court has announced that the interest due July 1 on their "First Real Estate and Refunding Mortgage 4 per cent Bonds" maturing in 1942 would not be paid. Let us hope that the Federal Electric Railways Commission will propose legislation which will enable this and other tractions to meet their obligations.

REFINANCING EUROPE

The Peace Treaty having been signed, the United States must turn its attention to providing means for the reclamation of Europe, which with its devastated areas, maimed industries, and shortage of food and materials must be restored to its former basis of production and prosperity as quickly as possible.

To make this possible the United States

The Scope of Our Service

Railroads

Director General Hines and Senator Cummins have expressed certain definite views concerning prompt and constructive_railroad legislation by Congress. Copies of the speeches referred to will be furnished on request.

With the enactment of such legislation many railroad securities should have a substantial advance. Seasoned securities issued well within physical value of the property and amply protected by earning capacity can now be purchased at prices to yield up to 82%, and such issues should logi cally be benefited.

We do not carry speculative accounts but solicit correspondence regarding railroad securities with present or prospective investors and are prepared to make suggestions for the purchase or exchange of securities.

Write for Circular No. 15

F.J.LISMAN & CO.

61 BROADWAY, NEW YORK MEMBERS NEW YORK STOCK EXCHANGE

Specialists in Railroad Securities since 1890

Many Outlook readers have invested their money in sound stocks and bonds and wish to follow the general course of various classes of securities.

Others are about to invest for the first time and desire a better knowledge of financial subjects.

To all of these we suggest a careful reading of the financial articles which are published in the second and fourth issues of The Outlook each month. Many helpful suggestions to old and new investors will be found in these articles, which are written especially for our readers by a New York financial man.

Financial Comment (Continued)

will have to make liberal extensions of credit. A committee of New York bankers, with J. P. Morgan as chairman, has taken this problem in hand and is now holding a series of conferences. One plan has already been suggested by Mr. Henry P. Davison, of the Morgan firm, who spent considerable time in Europe as head of the American Red Cross. It is proposed that a huge corporation be formed and capital be raised by issuing debenture bonds. These bonds are to be secured by credits established in Europe and sold to the American investing public. It is believed that this private enterprise would have the Government's support and be able to function more rapidly and efficiently than the Government itself.

JULY REDEMPTIONS

For a corporation to call its outstanding bonds for redemption is a sign that it is enjoying real prosperity. That our industrials are now enjoying that state to an almost unprecedented degree is shown by the amount of their funded debt to be called this month. Among the companies which have been able to take this action are many which had slumped badly before the advent of war business. This is certainly gratifying when it is considered that our country is now entering a period of industrial expansion.

The bondholder seldom fails to realize a good profit on his bonds when they are redeemed. The redemption price is always at a premium, usually ranging between 100% and 110, and oftentimes many points higher than the market price the bonds command.

THE STOCK MARKET

July 1 is the turning-point into the second half of the year, and, although we may not confidently expect to see call money at 3 or 32 per cent, there seems already to be a letting up in the high tension which has held sway recently. The laws of supply and demand obtain in the case of money as well as with other commodities, and with an increasing trade we may look for a greater demand for funds. If one considers the demand which every country in the world will make upon capital, it would be illogical to expect anything but a continued fairly high interest rate for loanable funds.

The movement of the stock market is likewise based upon supply and demand probably more than upon any other factor, and in attempting to forecast the probable trend of stock prices we should not forget that even if the buying does not seem to come from the moneyed interest, there is to-day a new power which the American public has never been able to wield before -that is, there exists in their hands collateral for speculation in the amount of some twenty billion dollars' worth of highgrade marketable securities, and a public so equipped is indeed a power to be reckoned with.

MIDYEAR INVESTMENTS

As the second half of the year comes in, bringing with it the important July 1 period of interest and dividend disbursements, the bond market is in a very quiescent state. There has been little very appreciation in price of the old-established bonds, due of course to the continued firm money rates as well as to a great number of new offerings of securities which have taken