The Washington herald., 1921-03-09

Eastern Galicia was to go to Poland
for twenty-five years and then de-
eide its future by a plebiscite.
Whether this plebiscite will ever
be held seems now rather doubtful.
As soon as the fields became Polish
there was a rush OF foreign capital
French, Belgian. Dutch. and some
English and Canadian the
whole subject is now a tangie Of
big business, international politics.
complicated with local labor trou-
bles and the nearness of Bolshev-
ism. difficult to unravel In a few
words here.
The oil Is there. at any rate, and
II Is In what for the Immediate
future Is Polish territory. and It
ought to be one of the means by
which Poland viii be able to climb
to solid financial ground.
Galicia suffered From Armies.
Galicia suffered a good deal dur
ing the war from, that damage
which the Russians. with their Gu
rious genius for self-destruction, SO
often during their retreats inflicted
on themselves. OF 100 steam -four
mills in Galicia, one Is told, only
seven or eight are left. The pro-
duction of potato spirits, one of the
main industries in this part of Eu-
rope, has been reduced, II is said,
to one-tenth of what 1t was before
the war. Galicia yielded before the
war half of all the salt produced
in Austria. Poland altogether pro-
duces 100000 hundred weight of
salt-and salt Is now in Moscow as
good as money.
There is timber in the Carpathi-
ans. but here. as in the Baltic prov
inces. there are governmental re-
stfictions which make export difn-
cult. The government feels that in
view of the low value of the Polish
mark II should have more or less
control of exports in order that all
available assets should be. used to
the best advantage, both in bringing
into the country necessary things
and in lifting the rate of exchange.
The feeling is natural. and the the
ory not unreasonable. but the work
ing out of trade under these gov
ernment controls is difficult and dis
.couraging.
Fixed prices work no better here
than elsewhere. The peasants re-
fuse 10 bring their stuff to market
and 1t goes into the hand of specu-
lators, who sell it eventually for
four or five times what 1t is sup
posed to be worth. Warsaw is full
OF proclamations which few read and
nobody obeys, or obey about as the
prohibition law is obeyed by Amer
leans. One finds Poles, and even
foreigners, sent to Poland to show
the Poles how to run democratic in
stitutions, buying white flour wher-
ever they can get it at what they
ieel Is not a prohibitive price.
Difficulties of Trade.
The government has arranged
commodities into classes: ~ those
things which may be Imported
freely; CD those which may be ex-
ported freely; (3) those which may
not be imported at all. For ali
other cases of import or export spe-
cial permission must be obtained.
There are various arrangements
according to which the Polish ex-
porter must turn over all or part
OF the foreign currency he receives
the real" money-for Polish
paper at fixed rate of exchange
which of course satisfies nobody.
There are arrangements by which
the exporter agrees to import an
equivalent of the value exported,
but 1t Is extremely difficult-as has
been found in Esthonia and Latyia
for the credits to be so arranged
that they will gee" in the end.
There have been large importa-
tions-of railroad supplies, for in
stance-for which payment was
made In Polish bonds. And much
more could be imported IL foreign
ers were willing to accept this sort
of security.
The Poles are not unnaturally
FEARFUL Of the political domination
which might result from a too great
invasion of foreign capital, and they
nave made corresponding rules for
the placing Of a certain amount of
the capital of foreign companies do
ing business in Poland in Polish
hands. These and other restriction.
keep foreign capital at a distance
and yet the Poles must have this
foreign capital. Like all these other
new and poverty-stricken states
they are between two fires.
1t seems safe to say that the tjms
mas scarcely come for small trad
ing on any general scale between
America and Poland. whether there
Is chance for American financial CO.
operation and organizing experience
on a larger scale-American because
we are at least suspected of terri
tOr1al or political Dreoccunot;an.