Evening star., 1926-09-07
PROSPERITY linked
WITH WORLD PEACE
U. S. Benefits From Better
Political Relations Noted
Among Nations.

Since II seems to be generally con.
coded that America is in the midst of
n n era of almost unprecedented pros
Gritty. the prophets and the expertG
are husily engaged in examining the
future tn determine whether the con.
dition is temporary or part "f an
epoch Of indefinite duration.
The nearest parallel is that Of the
boom wears OF 1919 and 1920 when as
result of the war manufacturing
facilities were geared up to high
curve of production and markets were
being we'll supplied with American
foods all over the world only to have
the process suddenly reversed hN the
general Instability Of political and
consequently economic conditions in
Europe.
This is only another way Of saying
that manv experts are of the opinion
that today's prosperity X due TO the
rema rkable changes which have come
about in Europe since 1890, partlcu-
larry the Dawes formula, for the
handling Of reparations and the quiet
hut steady acceptance of Germany in
tn the fold of commercial nations.
No War Clouds Visible.
on the horizon today there are no
va clouds such AS have kept import
orS ard exporters on the anxious seat
IN the past. Whether this is due to
:. rcroSntion by Europe itself of the
large responsibilities involved in
i"eping peace under economic bur
dens. or whether it is due to the
recognition abroad of the necessity Of
paving off war debts, the truth is Eu-
rope is in a better economic mood
than it was five years ago. and the
purchasing power OF European cur
rency, with some few exceptions, has
made itself felt in the quantity of
American goods sold in foreign mar
kets throughout the world.
II took a long time for some oh
servers to concede that political end
economic problems We're !nSepara bly,
interviewer. but now that the princt
rle has heen recognized 1t will ho
noted that Germany is being accept
Cd on terms of equality at last in the
League of Nations, and that war
hatreds are ebbing gradually. so that
the economic interchange is being less
end less affected by politics.
The Balkans are quiet. and the only
doubtful situation has been that of
France. which also gives signs of a
recovery. It is admitted that Ameri-
can bankers stand ready to do big
things for the refinancing OF French
Indebtedness if the present deter
r1ination to handle the problem evi-
denced by the Poincare reforms CON
tinues with undiminished vieor.
Two Schools Of Thought.
There are two schools of thought. of
course in America that which insists
the European situation has nothing
10 do with the general trend Of Amer!-
can economic conditions and that
which argues always along the line
Of an economic unity of the world.
The prepondera nee of evidence At the
moment is on the latter side because
of the remarkahl growth OF Ameri-
can exports. The bulk of American
production is consumed by the United
States itself, but SO long as the sur.
plus is taken by the rest of the world
many manufacturers feel that they
can continue to expand and to pay
good wages. They are learning rap
idly to compete in the export market.
The furry in Spain Is not expected
here to he Of long enough duration to