Evening star., 1923-10-04

velop "fercer natfonalism" in order
to hammer out thirty-ave complete
economic units. So far the effort has
failed. Europe has been paralyzed
oyerheads should be cut. they were
Increased: when incomes should have
been increased, their very acts caused
the national income to decrease:
when the strictest economy was
needed to work out of the huge war
expenses. the policy of this 'fiercer
nationalism" made for wild and al
most unlicensed extravaganza.
Only Two Balance Books.
A nation to survive now must be
able to take the revenue from taxes
AZ Ieast as much as it spends. Only
Two nations I'm Europe meet this test
today, England and Finland. And
nave my doubts about one OF them.
nation to survive must also make
tne scale pans balance. The exports
must be made to equal the imports.
Ihe rate OF exchange of a nation in
rection and the extent by which the
total imports and exports of a coun-
try are out of balance. If we put
INTO one pan of the scale the exports
or the country, and the other the
imports of the country. and they are
make them balance? Cut down the
imports or add to the exports. II
THIS cannot be done. add to the ex-
ports sufficient shipment of gold.
country before the war. interest rates
tended to rise and prices to fall. Thus
the balance was brought back to nor
mai; But the gold point has been
broken. The European countries
nave no gold to export. Then what
tain imports then are Imperative. and
exports cannot be made sufficient.
the country can put into the scale
pan. to help balance her imports. the
weight of her credit. If the nation
can make an external loan, the pro-
ceeds act to bring back the balance,
Just as an equal amount of exports
would. But II a nation has lost
IT'S credit. and still must have GER
tain imports to live, that nations
now fwenty-one nations in Europe
that must have certain imports to
live. How many have an excess of
exports over imports? Not one of
the twenty-one referred to. Neither
have they gold for export. Then
they must throw in the scale pan
their credit
But only one Of these nations re-
ferred to has certain credit on which
she can borrow outside of her country
n she becomes enthusiastically
England. Then production must slow
down. It means less and less to live
on; 1t means disease and death. IT
means the slowing down of produc-
tion of the machine of trade. 1t
means the ultimate disintegration OF
our so-called modern industrial life
and with it modern civilization.
Europe Is Slipping Down.
And that js actually what has hap
pened in all OF eastern Europe and
what is developing in all the coun-
tries of western Europe today II
the machinery OF production and of
international trade is not restored.
one nation after another will slip
down into a more and more primitive
society and life. This can only re-
suit in the death OF perhaps one
fourth to one-third of the population
OF Europe. Then no European ma
ton. with the exception of possibly
Russia and Finland, can prevent it,
self from falling lower. By that 7
mean the people will have less food
to eat and fewer clothes TO wear
Europe, war-weary and discouraged
with her progress" since the close
of the war. stumbling along under
the leadership Of the "fercer ma
tfonalist" politicians. is closer to the
brink of catastrophe today than at
any time since the middle ages
Tomorrow: Americas Stake in Eu-
rope.
e. BY North American Newspaper Alliance.
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