Evening star., 1923-01-01
WORLD STABILITY
FAST APPROACHING
hoover Statement Indicates
Pre-War Normally Every
where But Europe.
PROGRESS Is INDICATED
Outlook for 1923 Favorable, But
Maintenance of Huge Armies
Holds Menace.
PROGRESS is INDICATED

That the entire world is fast ap-
preaching stabilization in commerce
and trade, following the atter-war
slump. is shown in a special New
Year statement on the world econo-
mic situation prepared. in response
t. numerous requests, by Secretary OF
Commerce Herbert Hoover. outside
of Europe the whole world has re-
gained a pre-war normally. Through
out the year international commerce
has steadily increased and unemploy-
ment has decreased" the Secretary
says and. with the single exception
of the sore spot in central Europe.
production is on a larger and more
substantial basis everywher
The outlook for the year 1928 ap-
pears to be very favorable, the re-
port shows, but continued mainte-
nance of armies on a greater than
nre-war basis in the old allied states
maintains POLITICAL uncertainty and
lower productivity
Based ON Investigation.
This summary Of the worlds pres
ont status prepared by Secretary
Hoover is ba upon the special in
Vestigation of the departments repre-
sentatives in each foreign country.
In the large view. the statement
continues. the world has made dis
tinct economic progress during the
past year and the conditions are ia
Norable to continued progress during
1922. There are in exception three or
four states in Europe which give
anxiety, but these should not OBJ
scure the forces of progress else
where. Even in these areas of uncer
tainty the difficulties are TO large
degree fiscal and political rather than
commercial and industrial.
BOIshevism Diminished.
During the year the world gener-
ALLY has gained in social stability.
BolshevSm has greatly diminished
and even in Russia has been replaced
by mixture of socialism and indi-
Vidualism at least active war has
ceased for the first time since 1914;
famine and distress have diminished;
production has increa Sed greatly dur
ing the year: employment is less
than at any time since the armlstice;
international commerce is increasing;
the world is now pretty generally
following the normal exchange of
services and goods. which marks an
enormous recovery from the strained
? movements of credit and gold which
followed the war.
a''In our country unemployment has
ceased to be problem and We are
upon an economic level of compara-
lively great comfort in every direc-
tion except in some branches OF agri-
culture Even in this field there has
been a distinct improvement in prices
and it's troubles are mostly due to
overproduction. Our manufacturing
industries are engaged we'll UP to the
available labor; production has enor-
mously increased: real wages and
savings are at high level. Our
great gains in construction. Both
our exports and imports are increas-
ing and are far above pre-war levels.
England Makes Progress.
"Outside of Europe the whole world
has shaken itself free from the great
after-war slump. The economic
wounds of Asia Africa, Latin Amer
ica. and Australia We're more the
sympathetic reaction from slump IN
the combatant states than direct in
jury. Their production and commerce
has recovered to levels above pre-
war. The enforced isolation of many
areas in Latin America and Asia dur
ing the war las strengthened their
economic fibe~ by increased variety
of production.
''In Europe. England. together with
the old neutral nations, is making steady
progress in production and diminish
ing unemployment. Their trade ana
commerce are improving: their gov
ernmental finances are growing strong
er: their currenCies are steadily ap-
preaching par: and their exchanges
are more stable The combatant states
on the continent are slower in re-
covery. Even these nations. includ-
ing Russia have shown progress in
commercial. industrial, and agricul-
tural fields. although the harvests
suffered in some spots. Some OF these
nations such as Italy. Belgium. the
Baltic states, Poland, CzechosloNak!a.
and Hungary show increasing political
and social stability and improvement
in their governmental tfnancies. In
Germany and some minor states in
southeastern Europe governmental fl
nance and political difficulties threat
en- to overwhelm the commercial and
Industrial recuperatfon already made.
Odds Favor 1929.
"The maintenance of armies on a
greater than pre-war basis in the old
allied states maintains political un-
certainty. lowers productivity and re-
tards the balancing of budgets. Dis
armament and the constructive set
tlement of German reparatIons and
the economic relations of states In
southeastern Europe are the out
their adjustment will affect the prog
ress of the world. Their solution
would mark the end of the most
acutely destructive forces IN the eco
nomic life of the world.
Economic forecast cannot amount
TO more than a review of tendencies
and a hazard in the future. The odds
are favorable for 1928; the world be
gins the year with greater economic
strength; production and trade are
upon a more substantial basis. with
the single exception of the sore spot
in central Europe. The healing force
of business and commerce has gained
ascendency over destructive political
and social forces. There is ample
reason why there should be continued
progress during the next twelve