Evening star., 1925-08-16
ECONOMIC RETURN
OF EUROPE IS SEEN
Restoration Shows Progress,
International Chamber of
Commerce Says.
By the Associated Press.

BY the Associated Press.
The economic restora ton of Euro
pean countries that participated in the
World War exhibits encouraging
progress" said a report made public
yesterday by the American section of
the International Chamber of Com
merce, whose committee on economic
restoration has just completed a sur
yey. Given a continued will for peace
and the sound leadership which ex-
perience is developing" the report
held, 'the upward trend should con-
tinue."
Regarding pessimism existing in
some quarters, the committee recalled
that despite gloomy predictions by
eminent authorities five years ago,
progress has been very encouraging
and tangible" Political pressure,
while continuing, the report asserted,
would now appear to be more inter-
mittent and less definitely obstructive
The budget position of practically
all European countries has improved,
number being regarded as satisfaC-
tory. the report said, with taxes re-
duced in some of them.
Imitation Ended.
Surveying the field the committee
found:
Currency imitation ended and reor-
ga pization of independent banks of
issue, non political, effected through
finance control, in Austria. Poland,
Germany, Hungary, Latvia and the
Free City of-Dantzig.
Currency returned to par in Great
Britain, Sweden, Switzerland and the
Netherlands.
Currency appears to have been
stabilized definitely" in Austria. Hun
gary Poland and Germany, resting in
the last-named upon what is practi
cally a gold basis"
Financial recuperation in Austria
"has not sufficed to cure all it's eco
nomic ills" and it's problems are COM
plicated by one-third of it's population
being in its capital, Vienna, and be-
cause IL is 'topheavy" country.
Belgium's foreign trade situation is
a bright spot, with its devastated re-
gions practically reconstructed and it's
treasury situation alone presenting
difficulties remaining to be over
come"
Satisfactory trade in Czechoslovakia
for 1924 has followed a 1923 GONZALES
cence. Taxes there are still higher
than appears warrantable and the
government is at present concerned
incidence from excise to direct taxa
ton"
Despite production increases in
France, "the industrial situation is
controlled largely by factors of public
finance, which are still potential
sources of economic disorder" Cur
rency remains to be stabilized: the
service of the national debt is too
heavy for healthy economic life: the
budget Is not yet finally and conclu-
sively balanced" The permanent So
luton of Frances financial problems
may bring about a period of tempo
rary embarrassment to industry and
trade" there, as happened in other
countries.
In Germany, the public finances of
the reich may now be said to be in
order"
Great Britain's fiscal policy, criti-
cized on the ground that 1t burdened
industry with a load of direct taxa
ton, which was one of the principal
sources of the country's four-year
trade depression, accomplished good
enabling 1t to operate several success
full conversion loans at advantageous
rates of interest. All securities bear
ing a fixed rate of interest have i'm
proved in value. The return to par Of
exchange has thus far made it more
difficult for British manufacturers to
compete with others in the export
markets, principally because prices
and wages have not yet been adjusted
to the new monetary conditions.
Hungary, where general improve
ment under the League of Nations
plan is noted, holds promise of rapid
return to normalcy through it's natural
wealth and successful management
of it's program of REFORM"
Trade and industry in Italy have
profited greatly by the sound economic
policies of the government. Further
extension of the country's great water
power resources will do much to aid
national economy, chiefly through de-
creasing the need for foreign coal. The
most significant fiscal effort of the
government is the introduction this
year of a real income tax and abolition
of additional forms of direct taxation
in 1921.
Poland's fiscal affairs, still at an
evolutionary stage. will make possible
eventually a taxation system properly
adapted to it's need, if currency sta
bility is maintained.
Rumania is endeavoring to stabilize
the leu but with debt service and ma
tional defence taking 25 per cent of
the 1925 budget receipts, this will be
difficult.