Evening star., 1923-09-29
Can Europe Hold Together?
XvI-Rumania and Jugoslavia
BY JOHN r. SINCLAIR !.

made UP by fresh borrowings or by
holding up payments.
We may conclude. therefore. that
Rumania is not holding her own.
She is not paying her way. Finan-
cially speaking, she Is building on
qufcksand. She, too, must cut down
her, army and navy and her tariff
and join the rest Of the European
nations in demanding the restora-
tion of the wrecked machine of in
transitional trade.
60 kgx + X
new from Bucharest Rumania,
ito, Belgrade, Jugoslavia. in three
hours. It's a. French air line, linking
France TO the Balkan states. just
another link in the French chain.
just as Rumania has her Brati-
ano.H SO Jugos1avia has her Pashisch,
For forty years this seventy-nine-
year-old prime minister has domi-
mated all the country ruled at Bel
grade. His word was law in Bel
grade before Mussolini was born. And
he still rules.
It's an interesting country. Ruled
by Turkey for 500 years. old Serbia
became free by the treaty of Berlin.
In 1878. Since then she has been so
busy fighting she has had little time me
war, wa Croatia and slovania Joined
Serbia and formed the Kingdom of
the Serbs, Croats and Slovenes-
popularity called Jugoslavia (south-
ern slaxs,; This was effected in De, De-
Kingdom of Montenegro has also
been joined to .Jugoslavia, under a
decision Of the council of ambassa-
doris given In July. 1929.
ulation Of 100000 people, mostly
peasants, living in territory about
the size of Minnesota. About 90 per
cent of the people are Serbians, Is per
cent Croatians. 8 per cent Sloyanians
and the rest mixed. Her social prob
der the leadership of Mr.. Raditoh
have refused to acknowledge the
kingdom, insisting on a republic. NOW
Croatia is to .Jugoslayia what Ireland
Is to England. This makes the gov
ernment much weaker than 1t would
be otherwise.
/ ~ X X j: .a
Their neighbor-Hungary- looked
upon with suspicion. Also Italy, who
does not want Jugoslavia to have ans
port on the Adriatic. tAlf the fuss
between Italy and Jugoslavia Is on
this question: .- =
A large army, with compulsory
military service. is maintained. 1t Is
larger than the entire Army of the
United States. About 20 per cent OF
her total expenditures are. for the
military. Officers in their gay, brill
liant uniforms are to be seen every
where Many French officers are also
there. The Balkans, when / was there
In nj in m
activity. Jugoslavia Is no exception.
Before the great war little Serbia
was not spending more than her re-
ceipts-nor was she importing quite
getting along, although her public
debt charges kept piling up. She did
though. keep her money at the gold
point. -.
During the war she did exactly as
the rest-infiated her currency. in
creased her debts, increased her i'm
ports and decreased her. exports. For
her, all bad things to do. Since the
war she has been trying hard to come
back. .
In 1919 her exports only paid for q
per cent of her imports: in 1890 her
OF her imports. In 1921 exports. paid
SO per cent of imports. The 1929 fig.
ures are not yet available. -:
Jugoslavia exports grain. cattle
timber and prunes, and imports ma
chinery. manufactured articles and
chemicals. She also has valuable
coal, iron, lead and copper mines. AS
a country of small peasant holdings
she should be able to support her
self.
Her financial situation is bad, bu,
better than some.
Since the end of 1920 she has abou,
doubled her volume of paper money
1t costs now 1857 to buy what s10l
would in 1920. Prices have risen more
than three and a half times. Govern
ment receipts from taxation and ex-
penditures have not been balanced sc
far. In 1922 receipts were equal to
about 75. per cent of the governmen,
terest on the external debt, the prin-
cipal of which now amounts to $685.
000,000
In a word, while Jugoslavia' can't
balance. and is pledging state -reve-
nues and state monopolies to private
international. bankers for one and
two generations ahead, she stiIl puts
20 per cent of her revenue into the
military and another 20 per cent into
interest charges. =
with whom discussed this matter
knows il cannot go on indefinitely.
Jugoslavia, too, must soon take her
stand when civilization calls the roll
for peace and reconstruction, or war
and destruction. She cannot have
both. --.r-,s
Copyright, 1928, in United States and Great
Britain by North American Newspaper
Alliance. All rights reserved.1