The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-12-23
EUROPE NEAR
END OF ROPE
IN FINANCES
Must Take Step to
Restoration
by MARK SULLIVAN


must be compelled to believe that in
Europe one of two things is bound to
happen: Either definite steps must
be made toward restoration, or else we
shall have certainly in Central Europe
and perhaps throughout all of it, the
worst economic crisis since the war.
This cryptic way of stating the al
ternatives may not seem to amount TO
much, it is but little more than saying
that things must either grow better
or grow worse. That happens, how
ever, to be the complete statement OF
all the alternatives. Europe can not
continue to drag along another year
without beginning either definite
ascent or a calamitous descent.
Europe today is much nearer eX-
haustion than it was Immediately after
the war ended. During the past year
1t has been tiding over the final reaches
of improvement by devices which take
three forms 1t has sold bonds abroad,
largely to America, at interest rates
higher than had ever before been paid
by nations in good standing.
Charge on Future
These bonds are a charge on each
nations future. But the proceeds OF
them have been used. not in better
ments and not in additions to the pro
ductive capacity of the nations; but
have been spent Immediately as part
Of current expenses.
In addition to this, Europe has been
doing what a very able American bust
ness man calls selling its wedding
rings" Europe has actually and liter
ally been selling its heirlooms and its
art treasures. 1t has been selling its
great paintings and its almost price
less antiques for the mere purpose of
getting bread and butter for consump-
ton from day to day. The final thing
that Europe has been doing to tide
over the last edge of emergency has
been the taking away of the wealth of
those of its own people who had any
accumuIations, distributing it among
all the people, and using it up for cur
rent expenses.
Currency Diated
This has been accomplished in va
riety of ways. the most drastic of
which is the diIation of the currency.
BY this means every owner of accumu-
lated capital in the shape of bonds,
mortgages, insurance policies, annui-
ties and the like has seen his savings
taken away from him and used up.
, rracticed by most of the countries OF
Europ during the past year. They are
expedients which in their nature can
: not be repealed. From now on Europe
must find some means or other of ac
cepting enough production to support
its people Either that, or its people
must starye or emigrate. As TO some
sections of Europe, literal starvation
seems not far distant. Austria, for ex
ample, has reached condition of dog
eat dog" of individuals and groups
preying upon other individuals and
groups in a process of which the end
must be the practical elimination oi
some portion of the population unless
something is done in the way of resto
ration.
Curative Step Near.
The greater probability is that
Europe is close to the end of the
road to destruction, and that within
the coming year the first great cura
tive step will be taken through the
fixing of the German reparations
The fact that the German Preparations
are now in the shane of an undeter
mined sum makes this a fluid factoi
in precisely the spot which ought tt
he the fixed and solid keystone o.
Europe's economic structure.
Not all the reasons for the hope
that the German reparations will bC
fixed during the coming year can b.
stated. Bv the nature of the case
+, he steps that must lead up to this aC
complishment touch closely the pas
sions and conflicting interests of dif
sferent groups of statesmen. For thu;
reason the progress that has beer
made has been chiefly in the nature
of diplomatic negotiation. But there
are persons in the best position Il
have dependable judgment who be
n leve that the turn OF the tragic ro&l
= is now in sight
Tied Up with Europe.
Here. at home our own fortune.
for the coming year are inevitably tieC
up with those of Europe. The clearly
outstanding aspect of our economic
situation is the contrast between tht
DISTRESS on our farms. and, on tn,
other hand in our cities, a state o
business so active that the principa
embarrassment is lack of labor. Tit
lack of balance between our agricul
.ural industry and our manufacture
is had enough in itself If it shoul,
continue it would result next sprini
in a flIfther and very large ada
1ion to that movement of population
from the farms to the cities whic'
has been recognized for generation
as one of the least cheering aspects y
American life.
But in addition to this it is mos
doubtful whether our cities can cor
tinue to be prosperous while our farm
steadily go backwards in their capa'
ity to buy what the cities produce, ant
at the same time the capacity of Ell
rope to buy our goods also goes back
ward.
Cause of Stagnation
1t is this lack of capacity to buy or
the part of Europe that is chiefly rt
sponsible for the stagnation and loN
prices which are already present o
our farms and are apprehended n ou
manufacturing communities.
The farmer has exceptional nee
for seasonal borrowings. He need
3 to borrow money on the crop he ha
already raised in order to save hin
self from the calamitous necessity c
selling that crop just as soon as it
marketable-in order to enable him t
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