Evening star., 1924-12-07
SEES REAL ISSUES
IGNORED IN EUROPE
Tardieu Says Violent Discus
sions of Political Affairs Cut
{ Out Economic Problems.
ny ANDRE TkRDIEU.

Dy Radio TO The Star
PARIS, December 6-European
newspapers are full of violent politi-
cal discussions, many of which con-
Germ only surface matters. Mean
while underlying economic problems
which govern national policies pass
unnoticed. This is particularly true
of Great Britain, whose grave indus
trial difficulties are felt around the
world.
Unemployment is increasing in the
British Isles and production declining.
Even British mines, which are so fa
vored by geographical location, are
suffering from falling prices and cur
tailed exports. Fifty-three million
tons of coal were exported in the
first eight months of 1928 and only
4l,O00,0 900 tons in the corresponding
period of 1929, and the price this year
is % Shillings a ton, against 20 shlll-
ings pence in 1928. Germany is
exporting coal by way of Holland.
America. Eastern Mediterranean
markets are threatened by Russian
coal.
British Steel Menaced.
The British steel industry is not
less menaced. The Dominion of
Canada's latest order of rails has
and not TO Manchester. Even Hull
and Manchester street car lines are
huying American rails, which has
produced great agitation. England
infant artificial silk industry seems
to he swamped under flOOO,OoO
Cf imports n 1924. OF course, the
Trfne trouble is that Ehgland's man
Isacturtng costs are TOO hiSh. Her
workmen produce less than German
workmen and they are paid higher.
Everybody admits this, but all say II
Is impossible to increase hours or
reduce pay.
The problem thus appears to be
without solution and the Westminster
Gazette declares Great Britain, per-
iapS. is on the verge of the greatest
crisis in her history
Hence the acute nervousness in IN
dustrial circles over The immense
credits opened by London banks to
foreign industry. John Maynard
Keynes months ago demonstrated
the peril of such credits. Since then
there has been Shroeder's investment
in the Deutsche Bank, the Anglo
American loan of S15,0000OO to Ger
man railways and the British loan OF
81 600 600 TO the North German
LLOYD Steamship Company. The lat
ter was granted al the very moment
when the North German Llo.'5 was
busy dead ,ncking the Berlin confer
cnce regarding South AlnS'lcan
freight TO the detriment OF British
shipping.
The London Daily Telegraph and the
London Daily Mail protested violently
also against the damage done by the
Dawes plan to the British mines and
against the sharp rise in the price or
wool due to German purchases made
with British credits. They conclude that
the more British banks lend money to
German firms the worse becomes the
situation of the British workmen and
the more markets are closed to British
industries
Situation in Review.
1t is not difficult to see the connection
between these apprehensions and the
alarm expressed in London concerning
negotiations with the Washington Gov
ernment about consolidation of the
French debt. The writer passes without
comment Keynes about-face. He was
saving five years ago that rehabilita-
ton of German prosperity was essential
to British prosperity. He had many fol-
lowers then. but today one might think
Europe was back in the period of 1855
1895, when British consuls the world
over were shouting Look out for Ger
many :" and were reporting British mar
kets flooded with cheap German goods
So goes the world. At Genoa in 1922
the British expressed extreme disdain
for the French. who reminded them how
German Russian competition had ruined
them in the past. Now London raises
the same cry.
There is nothing new under the sun.