El Paso herald. (El Paso, Tex.) 1901-1931, 1920-12-04

MONEY CRASH
SAYS WRITER
printing more paper and not By
Z collecting taxes and this uoci-
ffonaI paper dcprecintes her cur
rency and credit, and 80 compels
further loans and more initiation
French experts palhetically explain
that they are doing their best witt
taxation; that the ordinary expense
Of government are covered from tn
revenue They blame the allies 70
many pay for the war. Charges OF
the war debt. increased eNpenditurl
for the army and the necessity o.
putting up from five TO ten billion dol
lars 70 build up the devastated area
cannot be met, Frenchmen say out o.
the pockets Of the taxpayers.
Frances Only Hope.
Accordingly France has only two
hopes OF aTeruug financial smash
one is that Germany VIII be made e
pay and the other that America anC
England viii advance long tern
credits that viii enable the enormous
mass Of currency and floating securi-
ties TO be funded--that e, to be turned
into government bonds not due for 80
OF so years
Those Frenchmen who have
come to see thar Germany can
pay but n small proportion OF
what France needs to put her on
her feet and who have the eOur-
age TO look the situation in the
face, frankly admit thar some
form OF bankruptcy cannot be
avoided
Accordingly the viewsis coming 70
I be widely held in France, though II
does not appear in the newspapers,
since the government does not wish
the national credit attacked. that in
solVeucy must be admitted.
Everywhere in conversation the
precedent OF the French revolution Is
cited, when paper money was poured
out n such quantities that the assig-
mats became utterly worthless and
we're entirely repudiated, and yet the
French defeated al Europe In battle
and within a decade after bankruptcy
and defeat was quite as well of as
her ueighhor.
A Smash II Due.
The smash must come French
financier told me, ''but five years az
forwards France VIII have recovered
her prosperity.
BolsheFlsm is likely or even pos
sible for the bulk OF the real power
in France lies In the hands Of the
land owning peasants and small pro-
prietors who are opposed to COM
munism IN any form
within the next few years L e eI-
tremely probable that an Agrarisn
group, probably BY peaceful methods.
VIII succeed IN assuming the govern
ment OF the republic. perhaps under
the leadership OF one OF the heroes Of
the war, though all speculation as 70
how what Is apparently inevitable
win be brought about Is merely guess
work AT this stage
Italy Il Desperate
OF all the allied countries the POSI-
ton Of italy Is by far che most des-
perats. The Giolitu government is
SO weak that It does not appear able
TO effectively interfere with the great
Socialist organizations that quarrel
among themselves as to whether they
VIII support MOSCOW or take over the
government and industry by slow de-
grees.
When IN Milan and northern cities
WorEmen recently seized the 1actor-
les and held them with Red Guards"
the government refused to act at all
II has been equally pOWerless TO deal
with peasants who throughout
large part Of the country and IN Sic
ily have in effect seized the land
and appointed committees 70 dictate
TO the owners terms OF SETTLEMENT
which leave the former landlords out
in the cold.
Amid such chaos It Is not surpris-
ing that the economic condition Of the
country grows steadily worse At the
same time things are by no means
so bad as would be inferred from the
bald analysis Of the situation Just
given In a curious way the various
conflicting forces have reached for
the present an understanding which
permits life to go on as much as
usual as IS possible IN such ccndi-
tons
Hope Lies In Peasants.
But the hope for italy as for
France lies in her peasants. Indus
trialism IN italy is a late develop
portance for the country, so that
prominent Italians have assured me an
economic collapse may take place such
as would plunge England or America
into ruin and starvation without ef-
fecring the bulk OF the population 81
the peninsula The worst that can
happen is that Italy's budding indus
trial era may be blighted and the land
revert TO its immemorial condition as
the supporter OF pastoral and agri-
cultural people
Revolution is more likely In Italy
than any Of the other great allied
countries the government Is 50 weak
and the military clique and the So
eialtsts SO strong that It exists merely
as a makeWeight between the two
great opposing forces, and may at
any time be overthrow by either.
Many keen judges Of European con-
dltions are afraid the patience Of the
Jugo-Slars viii soon be exhausted and
that they VIII begin armed operations
against DAnnunziO at Plume.
Whether the italian people win then
fly TO arms in defence Of their Of
ficially disavoWed poet or permit him
70 take his medicine and not support
him depends on the relative strength
OF the Socialists and the military and
IKE war with Jug0-slaVia and
u Annunzio Is acting as their agent.
The former would oppose war.
The Rest Of the Continent.
conditions In Germany, all avail
able Information including private let
tiers from a good quarter Indicate.
are becoming more hopeless and dan
gerous.
The sparfaeists are taking heart
again and the government, with
out n policy, sincerely letting
things drift Another attempt al
-hed" coup q expected. ] am
Informed by British official in
Berlin in close touch with the
government.
East Of Germany the Little En-
-entes composed Of Czecho-Slovaki
ioumaula and JuEo-SlaVia, appears
% pc coming IN conflict with French
lolcy. The French foreign office OF
he general staff, or both, I cannot
earn al this distance the intricacies
z the intrigue, appears 20 be schem-
ng 10 detach Bavaria from Germany
Fnen the explosion comes In Prussia .
.AQ join Bavaria with Hungary and
AUSTRIA IN 2 federation that would be 4
inder French influence.
The position OF Austria Ia SO hone