The Birmingham age-herald., 1921-08-07
REASONS FOR THE
 WORLDS UNREST
 HIGHLY COMPLEX
Edward Hurley, Now in France, Says Too Much Politics Being Played
 by the French
By EDWARD N. HURLEY Former Chairman United States Shipping Board and Prominent Business Man. Special Cable to The AEe-Herald CanxriGht 1921 hE The Are Hsraldl

dIlSs <AuS uSl o-- W ldL mas D6CO bo ! of all of the industrial efficiency and ! added productivity engendered by the war? What is the explanation Of the paradox that now, when milliors Of men have been released from Inil- itary service and millions of dollars stroyed daily in warfare, the pro- duction of useful commodities is ac tuallyI flower the world over than dur- ing tHe war? Why is the world not getti4g back to normal?
 To fdiscover an answer to the rid de, Hot by theorizing, but by actual invesfi ating the practical causes ot prodf fction stoppage, was the obj ect of my trip to Europe. which unfor- tunsftely l shall be compelled to cut shoHt Thus far my investigations have covered only France, but plan to feturn later to complete the study. I3 must be recognized at once that thef questions asked above can not be ans wered with a glib formula. The reg sons for the worlds present eco nq mic paralysis are not simple, but hiI ghly complex.
 LA first conclusion. which applies e& pecially to France, is that too nf uch politics is being played. Du ing U ne war the belligerents and many III eutrals were forced to nationalize N heir industries. Central direction Was next. and only the governments Npossessed the necessary central or 4ganization. Thus sindustry and trad Hing came under political control, and politicians are now reluctant to let n go the many advantages such sys- tenn gives them
 I say this applies particularly to France, because in England decon- troi is proceeding rapidly, while in Germany centralization during the war was far less political than else where. due to Germanys highly de- veloped economic capitalization. In Don't misunderstood me. I am hear tily In favor of anti dumping meas ures. I also favor protection where it Is really protection against Uufair or purely destructive competition, and not protection of inefficiency. But anti-dumping and genuine protection will account for very few of the nigh tariff walls constructed since the war. They are the product of fright. The producer of manufactur- France, industrial recovery is being seriously retarded by the survival of wartime control. This gives an op- portunity to multiply indirect taxa ation, thus relieving the politicians of the disagreeable duty of levying taxes. The result of this method as applied to tsel (coal and oiD, IS to raise manufacturing costs far above those prevalent in Germany, hus choking French industry.
 second observation, which ap- plies to all countries just now, is that everybody Is busy watching the N other fellow, fearful lest he gain an advantage. instead of attending to their own business and doing their own share toward restoring normal conditions. This tendency manifests ss Itself especially in high tariffs. VI CT instead of setting to work to im- prove his effect and beat his foreign competitor on merits, confesses In advance he Is beaten. He goes to his parliament and cries 'I can't com pete. The foreigner can produce better and cheaper goods than l. You must. protect me-"
 The purpose is to drive the foreign CT from the market Of course, If the foreigner also is overcome by fright he retaliates. Mathematically 1t is obvious that if both succeed in their purpose, international trade is arrested. Thus at time when the world is clamoring for trade resump- ton, political energies are bent upon 1 its destruction. But such efforts do not always succeed. You have na- ton like Germany which has prac- tlcal1y no raw materials and there VI fore can only subsist by importing raw stuffs, giving manufactured in exchange. If the tariff wall against German goods is successful Germany VIII die. But Germany refuses to die and with almost uncanny inventive ness, born of stern necessity re- solves to climb that wall by increas- ing efficiency beyond what hereto -A fore was believed possible.
 Thus in Germany's case and Ger } goods by competitors, the net result of a tariff barrier is to increase Ger many's efficiency. At the same time, efficiency is lowered in protected countries and prices are raised. In short the foreigner is the oniy one who gets any advantages
 Add to this tne fact that the Ger mans under tke treaty of Versailles are compelled to disarm. This means that atl of Germany's manpower i. in the work shop producing, not in the barracks consuming. On account Of the abolition ot military service Germany has today a larger indus trial man power than before the war and Is able to utilize the great ma. chinery built for war purposes in the production of export goods. Eff cioncy has been imposed upon Ger many by her competitors.
 This brings me to the question of uisi iudinent ana the prospects Of &C., complaining something In that direc- ton at the Washington conference. People wfo realize that about 80 cents in every dollar disbursed by me Cntted States treasury goes for purely unproductive military pur- poses-and the Fer centage is high CT Tn some European countries-can picture the immense tax savings in disarmament. To this should be added the advantage of releasinc men from military service for useful work and the saving of raw mater. ials now devoted to armaments.
 What are the chances of success? So far as navies are concerned. the discussion will rest largely with our own governpent. England is groan- ing under taxation Japan is ut terly unable financially to maintain the pace the United States can set. As believe President Harding is sincere h his desire to lower mili- tary costs, I feel confident of some progress on the naval side.
 Al for land armaments, however. France must take the lead and from talks I have had with leading Frenchmen I am less confident of substantial accomplishments
 Frances population is under O. ooo,0o0 normally, including about s.O00,o0o males of frst-class indus trial utility But she lost some 100000 killed in the war while to- tal and partial disablement makes an aggregate of not far from 5000, ,000 able bodied men lost to industry. or the 5.ooo,ooo remaining, approxi- ,1oate1y S00 00O arc in the orn,y This