Evening star., 1925-10-10
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK. October 9.-The world
wide business crisis of 1920-2l was fol-
lowed by a particularly trying eco
nomic situation in Great Britain.
which has so seriously affected the
minds of many English business men
and economic experts that they do not
seem to realize the fact that each year
since 1921. when conditions were at
their worst, has registered an inn
provement in the volume of business
transacted and in the condition of the
national finances, according to a study
of the situation completed by the
Bankers Trust Co. of New York.
Debts and Taxes Reduced.
The expenses of the national govern
ment during this period have been
markedly decreased and some 500 mil
lion has been paid down upon the pub
lie debt. These expenditures have
been met wholly from revenue collec-
tlons, and yet at the same time taxes
have been substantially reduced
There has been marked recovery
in the volume of business done, as evil
denced by the amount of coal con-
sumed, by the amount of pig iron con-
sumed. by the tonnage carried by the
railroads. and by the output of the
textile industries. This increased bust.
ness has been done under the discour-
aging conditions of falling prices and
of a considerable friction between en-
ployers and employees. At last, how
ever. prices seem 10 have reached bot
tom and have come in line with the
price situation throughout the world
wherever the currencieS have been put
upon d convertible basis.
Situation Is Hopeful.
The situation then may be said to
be Il hopeful one. especially if labor
and capital can arrive at some COM
mon understanding. The great diff
Guilty seems to be not so much that
wages are too high. as that the eff
cheney of labor is steadily becoming
less This is shown by the fact that
in the coal industry in 1883 the out.
put per person employed was 332 tons
per annum. In 1908, with better ap-
pliances the output was 275 tons per
annum; in 1918, with still better ap.
pliances. it was $50 tons. and in 1924,
with still more improved appliances,
the output was only go tons per
annum.
If the leaders of the laboring men
will change their attitude toward pro-
duction. it may well be that wages
can be maintained at a high rate, and
yet that the output of the mines and
factories can be produced at rates
sufficiently low to permit Of an ade.
quate return to capital.
New Peace Time Basis.
The maximum expenditures of the
British government for all time in her
centuries of existence came in the
last two years of the war, those end.
ing March 81, 1918, and March 81.
1919. in which years they averaged
about 900 million pounds sterling.
AS a result of very careful manage
ment and the application of econom-
ical methods in the conduct of the
government. the expenses have now
been brought down to about 700 mil
lion pounds. This may be called the
new peace time basis, and may be
compared with the pre-war peace eX-
penditure of about 16l million pounds.
Notwithsta ndins a total expenditure
during the past five years of 1890
million pounds. an important part of
which was in liquidation of war con-
tracts. yet it has been found possible
to reduce the debt in the sum of 533
million pounds.