The Washington times., 1922-07-08

Ing to a climax
! WILLIAM HARD. of collapse H.
nancially. Russia Is plunging to
climax industrially. The news from
Germany and from Russia will pres
emily, in certain ways, be the worst
news since 1914. But 1t will not
mean that new errors are being COM
mtted. 1t will mean that the un-
avoidable consequences Of old
errors are at last getting through
to the finish. The finish OF the period
produced by the war Is upon us.
One last spasm, and then health.
That is the view taken here by those
| who receive the best information
| regarding the most inward causes Of
Europe's condition.
In Russia the full restoration Of
private enterprise ip industry is get
ting forced into sight. In Russia
since the Bolshevik revolution there
hay. been two experiments In In
$dstry. First, there was COM
munism. 1t was abandoned. Lenin
| made his famous economic retreat"
He retreated to his second expert.
ment. Communism having failed. he
biitu Ilt BdIliEcu
Russia's Industries into national
| trusts" Each trust was to pay
wages to its workmen. Each trust
! was to collect charges from its Gus
toners. Each trust was to make
profits. Instead of one great com
munist Industrial state, serving
everybody at cost and supporting
| everybody out Of a common store,
| there was TO be a system of capi.
| talistic governmental departments,
each one Of which would go into
business for itself and hire its EN-
ployes on a wages basis and sell its
products on a profits basis. and he
trust" just like an American
trust" except that II would be pub
lie instead OF private. Reports on
this experiment have now been re-
ceived in America.
The new Russian public trusts"
have lost money in enormous guam
titles. Their incomes in various
cases are shown by their own state
ments to be less than half Of their
expenditures. 1t is believed here
that these losses will be fatal to
them. tits believed that the failure
been followed by the failure Of State
capitalism and. therefore. by the
failure OF all Governmental owner
ship and operation in industry. II
Is believed therefore that the re-
ste lion of private ownership and
ope, in industry has become
ineN Russia, and will pres
entlyr nd announced.
Meanwhile the Bolshevik govern
ment, as a government, remains ap-
parently perfectly stable. AS busi-
ness concern. II is bankrupt. AS a
government, II is solvent--to date.
1t cannot produce commodities but II
can govern people. And the crops Of
this year are excellent. Enough
grain-enough II properly distrib-
uted-is getting grown. With grain
that is enough, and with a govern.
ment that is obeyed. Russia has two
of the three things necessary to its
revival. With the restoration Of pri.
vate ownership and operation in in
dustry II will have the third. IT will
get It now-in the opinion of Wash
ington observers-precisely out Of
which the failure of the national gov
ci HiiiShld NiuStS 10 pouuSihB.
In Germany the present collapse of
the governmental treasury is of the
treasury and not of industry and not
of the nation. 1t is a fiscal financial
matter. 1t has been long foreseen.
I heard II outlined more than a year
ago by Sir John Bradbury, the repre-.
sentative of Great Britain on the
los to0inf, In ria tn,
Berlin I heard IL outlined by Walker
Rathenau. who then was not yet in
office. Bradbury and Rathenau
made essentially the same prophecy.
They prophesied that. while Ger
many would continue to make prog.
ress in industry, II would not be able
to buy enough foreign exchange to |
meet its reparation payments and at
the same time maintain It's domestic
currency at a safe level Of value. 4
currency collapse would be inevitable.
II would be accompanied by disorders.
It would be followed by a read
justment Of Germany's governmen.
tai expenses. Those expenses have
to be .re.adjusted. But in order to
get them re-adjusted the currency
collapse would have to come. The
sooner II came. the sooner II would
be over.
These troubles in Germany and in
Russia are not the end of the world.
They are the end Of the war.made
world. I They are the birth of a
peace hade world. That is the con.
clusiot here most competently held.
cHN NDREN FOUND PLAYING
/WITH DYNAMITE STICKS
ALLENTOWN. Pa, July S.-Nine
sticks of dynamite enough, the police
taid. to blow big hole in Allentown,