Evening star., 1926-10-07
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

tion European steel industries may
put up.
The European steel trust or COM
bine agrees upon "a limited and con
trolled output Of steel, to be divided
among the nations on the following
basis: Germany 1922 per cent
France, with Luxembourg, 39.45; Bel
gium, 11.60; Saare, 0.73. For Poland
Austria and Zechoslovakia together
there is reserved a quota of 5 pei
cent. These quotas may be changed
from time to time. Already some dis
satisfaction is expressed in Germany
on the ground that she receives a
quota of IS per cent of her total ca
pacity, while France, Belgium and
Luxembourg, it is claimed by the
Germans, are allowed 80 per cent OF
their capacity.
For each quota ton produced a tax
OF 81 must be paid into the trusts
treasury, and for each ton above the
authorized quota, 81 must be paid in
From this fund will be paid out to the
respective countries money needed
IN slack seasons to keep up wages OF
unemployed workmen and to main
tain the overhead costs. Each coun
try will be advised as to the amount
OF steel produced for war purposes.
X X X X
Inc total normal output of the Eu
ropean trust will be between $4,000.
600 and 30,0o0,00O tons per annum.
while the United States produces in
excess of 45.000,000 tons. Judge Gary
hopes the European trust will sue.
ceed, for it will stabilize conditions in
the world markets. 1t is easier to
meet the competition of one concern
than the disordered competition of
SIX or seven desperate nations. com.
pelled to fight for a modicum of trade.
England, Italy and Soviet Russia de.
cline to join the trust.
With 3O,000.000 tons of steel in FIJI.
rope under one control and As ,OOO. .OOO
tons in America, the markets of the
world will be in the hands of lust two
powers, aside from the comparativelv
small output of England and Italy.
What effect that concentration of
control may have upon construction
VIII remain to be seen, but it is ar.
gued that the wise conduct of the
world monopoly, or at least duality.
Will recognize that prosperity of steel
will depend upon further building
throughout civilization, which will
act as a governor upon trust extor.
tions. 1t will be difficult to build up
equivalent control over other forms
OF production-agricultu particu.
larly-hence it will be impossible for
the ultimate consumers" of the prod
ucts of the double steel trust to get
back of the operators for any extor.
tions of costs.
X * X X
1t will be noted that the Vienna
conference is an anomaly when it
calls its free trade project a pan.Eu.
ropean republic. 1t would destroy ma.
tional barriers of economic divisions,
but retain political barriers. 1t re.
sembles the development of the United
States out of the thirteen colonies, or,
rather. out of the first abortiye at.
tempt Of the Confederation, except
that our thirteen States undertook to
maintain State independence by
maintaining State tariffs. When our
Federal Constitution united all into
one Nation, it abolished State tariffs,
but strengthened the central Gov.
ernment. The pan-European re-
public would abolish state or national
tariffs without setting up a federal
central political power. 1t exalts in.
ternationalism Of industry, while re-
tanning ties of nationaliSm in political
affairs. A political federation with a
federal supergovernment would face
vacial prejudices and traditions much
more formidable.
copyright. 1926. by Paul v. Collins)