The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-09-13
BY KARL RADEK
The Policy Of the English Labor
Government

governments
The policy of the English Labor
Government regarding the Repara-
tions Question is pursuing the same
ends as those which the Lloyd
George and the Baldwin cabinet pur-
sued. These aims are: Sterilization
Of European capitalism in order to
restore the European markets, reduc-
ton of expenditure on ornaments,
Limitation of the possibility of the res
toration of Germany as a strong COM
petitor, removal of the danger Of an
economic and military hegemony on
the part of France. The policy of the
labor government differs very little
in its methods from the policy of the
preceding cabinets. And even that
difference in methods which is to be
observed is not due to the fact that
Macdonald is now occupying the po-
sition Of Foreign Secretary instead of
Lord Curzon, but that Macdonald
came into power at moment when
France had become somewhat weaken
ed and there was a certain change in
the attitude of the United States.
In order to judge English foreign
policy it is necessary to bear in mind
the fundamental facts of the economic
situation of England. This has con-
siderably improved in the last year
or So The output of coal for last year
amounted to 27S million ton and was
only IL million tons behind the output
for 1913, the output of iron amounted
to 7.04 million tons, while in 1913 it
amounted to 10 million tons. The tex
tile industry is still laboring under a
crisis. This can best be seen by the
fact that whilst in 1913 England i'm
ported 10 million cwts. of cotton, in
1928 she imported only about 13 mil
lion cwts. The import of wool, which
in 1918 amounted to 81 million cwts,
in 1923 only amounted to 7.O4 million
cwts. Imports of jute fax etc. fell
from 100000 tons to 265, 900 tons. Eng
lish foreign trade, reckoned according
to the index of prices for the year
1918 affords the following picture:
Price index in Percentage
million pounds compared
1928 ssern 1872 1918 i wlsH l 1922
Imports 1857 1894 1857 SO s5.s
Export 4o44 1918 s2s.a 745 ss.s
Exports $40 se.s 1926 s1.s BIS
AS is known, England has always
covered the deficit in her trade
balance by the interest on capital in
vested abroad, with income from ship
ping, banking etc. Unlike France she
has not lost the greater portion of
her capital invested abroad. This
balance of so-called invisible exports,
according to the figures of the Board
of Trade Journal of 31st January 1924,
is made up as follows:
In million pounds:
1918 1922 1928
Income from capital in
vested abroad ..............." 2lO lI5 1oe
Income from shipping ... 90 ITO tic
Income from banking..- 50 40 &c
Surplus of imports.......... 1853 TO 2os
Favorable trade balance. 1871 1856 81
When it is remembered that the
pound has lost AZ percent Of its value,
it is seen that the favorable balance
has decreased by 124 million pounds,
All these figures however do not give
a clear Indication of the economic po-
sition of England. Prof. Bowley, the
English economist, is of the opinion
that in 1923 England only reached 81
percent of her pre-war production
The Economist" disputes these fig
ures and claims that England has
reached 95 percent of her pre-war pro
duction. Keynes lin the Nation" OF
18th of April) agrees with the later
but points out that the population has
increased by 2 million. The Difficult
ties in all these calculations are best
to be seen by the fact that prices OF