The Washington herald., 1921-10-30
League Failure to Assist
Russia Causes Criticism
Considered As Hard-hearted Attitude of Great
Nations Of Europe Toward I'm
fortunate Peoples.


exposed by Georg Bernhard in the
Vossische Zeitung. In this connec-
ton Herr Bernhard writes:
1T is easy to understand that
anxiety over fulfilling the repara-
lions agreement predominates. The
German National Peoples Party are
fond of presenting this problem as
though the German people would be
rid of ali economic and financial
cares if'it did not exist. They for
get that even IL the Versailles
treaty, with all its annexes and ul-
timata, were torn to shreds tomor-
row the German budget would stir
be In q state Of disorder that could
only be remedIed by q most arduous
and united EFFORT. For nearly
three years II has not been recog-
niZed that the lite-question of the
German people is OF economic anc
not Of political nature. Il has not
been realized that this question can
not be solved by the old methods.
To rule In a purely political sense
Is not difncult. He who has at HIS
disposal the resources of a we'll
established state, as the former
rulers Of Germany had, or he who
dsposes over cooly-troops, as the
Bolsheviks In Moscow and Petro-
grad do. can force even a big major
lily Of the people to tolerate the
domination of q small majority
In such periods II 10 even possible
to collect taxes II they do not go
beyond q certain point. During
the last three years we have had
abundant experience that even
strong parliamentary majorities fail
in their economic legislation when
nomic interests are not consulted in
the decision"
The writer urges that the politi-
cal leaders do not wait until the
situation has become impossible of
solution. 1t must be realized that
Germany's frst and most important
task is to unite the productive
forces Of the country with the help
of both employers and labor. II the
Reichstag, because Of its political
complications, Is unable to accom-
plish this task, the masses of Ger
many will soon realize that the des-
tinies OF the country can no longer
be left to the mercy Of party poll
tics.
Unemployment and Foreign Trade.
That the countries having the
highest rate Of exchange are the
ones which are suffering most from
unemployment Is used as q text for
discussions OF the economic situation
OF England and America In many
British papers. There Is a general
agreement that the falling OF In
foreign trade, due to the inability
Of countries with a deprecated cur
rency to buy British and American
goods, Is the chief cause of unem-
ployment- It is also agreed that the
government must take 1t upon itself
to do something to remedy this sit
uation.
There Is not the same agreement
as to what steps the government
should take. In an analysis of the
present condition OF affairs, the
London Daily Mail says: Day by
day under the urgent stress of in
tense Unemployment many conven-
tional ideas are being passed rap
idly under review. The startling
fall in our imports during the last
nine months means that other ma
tons exports ARE falling. America
is suffering acutely from the ina
bility Of Europe to buy her goods
But the malady Is general. Owing
to the collapsed exchanges we can
not afford to buy dollars with our
pounds. Germans cannot afford to
buy pounds with their marks, and
SO on. Unless they can do so, goods
cannot be moved from one cuntry
to another. So great exporting ma
lions like the United States and
ourselves have no outlet for their
manufactures: factories shut down;
and vast numbers of workmen have
no work.
World trade is q patient on the
operating table. q Collapsed ex-
changes are only the outward symp-
tom. The surgeon has to cut down
to the seat and cause of the disease.
Politicians and fnanciers are no
longer merely cataloguing the
symptoms. They are probing the
causes. And none more boldly than
Mr.. Mellon, the Secretary to the
United States Treasury, and Mr..
Hoover, the United States Secretary
of Commerce. Both agree that Eu-
rope is crushed by war debt They
diagnose this as the root cause of
collapse and inability to trade"
As a solution of the problem the
Daily Mail refers to the recon-
mendation of Winston Churchill
that exchanges be stabilized by the
mutual remission of international
debts. 1t is suggested that Mr..
Churchill may have reasons which
he has not revealed for this atti-
tude, and he is urged by this paper
to make them known.
Austria's Ponzi.
Vienna papers have given
great deal of attention TO the
spectacular operations of a finan-
cial genius OF the Ponzi school who
has taken advantage of the cha
otto condition Of Austrian exchange
to swindle q number of Austrian
banks out Of q sdm estimated In
excess OF two billion kronen. This
latest exponent of frenZied finance
is one Daniel Dunn, usually re-
ferred to in. the Viennese press as
the Flying Dutchman," who came
to Vienna q year or so ago to buy
jewels for his fathers firm in Am
sterdam. To transact his business
he found IL necessary to buy and
sell foreign moneys in consider
able quantities, and after many
honest transactions, some of which
amounted to over 100, 900, 900 kro-
men. he acquired a reputation for
reliability. A short time ago, Mr..
Dunn concluded that the crown
had gone as low as 1t could. and
he. therefore, sold a number of
false checks, expecting to cover
them later on Dutch houses, to a
dozen or more Austrian banks The
crown, however, continued to fall.