The Washington herald., 1921-10-09

| am no prophet OF woe and do not in
duge in scaremongcring. but is necessary to face
realities though that has not been the habit Of European
statesmen, and is impossible to disguise any longer
that financially and ndustriay all going from
bad to worse.
| can see no sign whatever OF trade recovery but
the Contrary there is every prospect Of increased
distress. F..
What is the reason for this, Apart from all other
factors in the worldwide change of and effect
one dominating reason is the collapse OF the German
mark. Germany, whether like not, and
don't the industrial of the European system.
If she goes rotten her disease affects every country
in Europe instantly, and to be plain and blunt she is
going bad like Austria and like Poland i'll fcvor Of
false finance.
When | was, in Germany recently I amazed
and impressed by the intense energy OF the German
people and their tremendous and successful efforts
recapture world trade, but my inquiries showed also
that all this industrial output based cheap
labor cheap living, underwriting prices in all markets
and drastic restriction of all imports enable them
to pay off their indemntics.
1t clear that If they increased their exports to
the required to the reparations payments
other countries like Great Britain would be shut out
from their old markets. 1t also clear that payment
of the ndemnities in gold values would inevitably de-
prccatc the value of the paper mark thereby ncrcas
ing Germany's financial distress while enabling her to
under cut prices still more in foreigh countries.
Both of these things have happened and Great
Britain, among other countries, is hard hit directly
and indirectly Germany of biggest customers
no longer buys from us at 47o marks to the pound.
At the time she is under selling everywhere.
But Poland cannot buy from Germany, and still
less from us, with her mark at 2I,ooo to the pound
So the vicious circle goes and each swing of
it lowers the purchasing power of all nations and
duccs the vitality OF industrial life.
Europe is desperately in need OF manufactured
articles. In Germany men and women want under
clothing made in England or the United States, but
cannot afford to buy it. Poland shivers in rags A
great part of Russia starvcs to death in next to-
nakcdness. Many countries cannot goods for
lack of rolling stock which the United States Germany
and Great Britain could easily provide but paper money
will not pay for rails.
THAT is, among other things, Premier Georges
trouble in facing the unemployed His fertile
brain is racing itself formulate rosy plans for re-
lief. Experts have provided him during the past week
with many facts, figures schemes and proposals. In
his mind is the thought Of these coming winter months
and in his ears ring those words spoken to him by
the London mayors:
I'VE arc afraid" o..
They afraid Of the masses of men demanding,
not softly, work and wages They are afraid of fore
warnings that many workshops shutting up and
that taxation to provide for unemployment cannot be
increased without dealing deadly blow industry it.
self Wages being cut ruthlessly in all trades
which does not sweeten the temper OF the men.
Meanwhile it is likely that there will be a new
crisis in the coal mines because there must be inn
reduction in the cost of output If British coal
is to find foreign market. would be horrible and
dangerous il there anothe cessation of work by
already beaten into surrender, but still suen =