Evening star., 1927-04-17


set sail for Geneva, where. on
Nav 4, the International Eco
uomic Conference Will convene
under a shestering wing OF the LeaSue
of Nations, The Americans go as uel-
egates and experts to represent me
United States in discussions Whleh
may lead 10 a resha ping Of human
events-for all things are posslhle.
They go laden down with vast
amounts Of statistics, compilations, on
seryayions. deductions, charts, graphs,
crrves and mans. the shaded portions
Of which indicate this, that and the
other thing. And il is possible that
they 30 wondering, at the same tlhe,
what they will do and how.
The economic conference is only
conference. It's activities will be con
fined chiefly to discussion No agree
ments reached viii be binding. The
delegates, while representing the views
of their countries, have no power 10
commit their governments TO any
course of action Many and varied
subjects have been placed on the
agenda, but none of them contains
enough potential dynamite to endan-
ger the safety Of the conIerees. ne
mystery. which will be solved only by
future events, lies in what America
can contribute to the conference. III
is a conference based fundamentally
on the fact that something must be
done about the sad economic plight OF
Europe since the World War And II
was engineered from the beginning by
Louis Loucheur, former French
finance minister. whose economic the
cries do not coincide with those held
in high esteem in America.
Urged Unified Europe.
Cable dispatches few days ago re-
ported a speech by NJ. Loucheur be-
fore the Berlin Chamber Of Commerce.
Advancing theories with which he has
been identified for many years, VI.
Ioucheur warned his listeners that. in
the face OF American industrial and
financial superiority, Europe must
unite economically under the aegis Of
the League of Nations for her own
salvation The trend of his speech
was that unless radical readjustments
are undertaken in the economic life
of Europe, American commerclal en-
tePprise eventually Will crush Euro
pean competition There must be pan
European collaboration. with Great
Britain included, he said, to prevent
this. and the two methods of coop
GRAFTON he emphasized were, first. the
idea of European customs union,
permitting the free circulation of com
modities throughout the entire con-
finent. and second the international
orga nization Of trade, or the amalga-
nation of industrial groups. 1t be-
comes rather difficult to reconcile the
American point of view with either
method.
The aItruistic idea Of a customs
union in Europe, to permit the free
interchange Of commodities between
the members, hasa been advanced
before 1t has been tried, and with
success, but only on a scale COM
mensurate, perhaps. with the free in
terchange of goods between the states
after the abolition of The Colonial
tariffs. But for all Europe to join
in such a Utopian scheme has never
progressed beyond the stage of pipe
dream. and there are many who
&balfeve it never will The Nations of
Europe with the exception OF Bel
gium, are essentially protectionlst.
The theory of shelterlng their indus
tries has been bred in the bone. To
discard this theory, even IN the hope
of attaining the salvation held out by
M. Ioucheur, is considered econom-
jcallv and politically impossible.
Europe may be aroused over the trade
Supremacy Of the United States and
her own dire situation. 1t is conceiV-
able that the Nations of Europe might
build themselves q higher wall over
which The Yankee with his goods must
scramble to enter But the Yankee
comes from across tho Atlantic. And
the Nations Of Europe lie close to-
gether. and are jealous Of their own
interests. 1t is difficult TO picture
them tearing down the walls they
have erected against each other. For
human nature does not cnange,
though the times may.
Would AmaIgamate Industries,
NJ. Ioucheur's other idea--although
Il is not his idea originally-that of
the amalgamatiOn Of industrial groups,
is . subject which has been receiving
considerable attention in Europe for
some time 1T is certain that it VIII
he discussed seriously at the Geneva
Conference. Tt is the outgroWth Of
movement which originated in the
German cartels many years ago, and
If has within the last year received
an interesting test In the formation or
the Continental steel Entente. II Will
he enlightening 10 find what the Amer
jcsn DELEGATES at Geneva viii have To
offer. If their opinion is sought, re-
garding a wide application or the
principle of commercial combinations.
For these combinations are nothing
bs1f trusts which control production,
sIlot markets and fix prices In
America the principle of industrial
connection has become fixed. Trusts
are looked upon with suspicion ana
fufIawed. Price fixing is regarded IN
the same light with highway robbery
and assault while combinations in re
stralnt Of trade are looked upon as
Instruments Of the devil
The chief object however. Of an IN
4ernational industrial combination Is
10 regulate competition. Allotment Of
markets and price fixing follow nat
vralIv. The formation Of the CONT
mental steel Entente has been one eA
annie. It was brought about as
result Of cutthroat competition among
tha steel producers Of Europe, Whlch
was helping none Of them ana graz
uallv running them all. Inc agree
y7anf signed at Brussels last Septem
her between the producers oI 6er
many. France and Luxembourg anc
4he saar and later by CzechosioFaka
Austria and Hungary. was halied al
the time as great step toward ar
industrial United states Of Europe
The steel producers were IN heated
competition and al the same time
supporting excess equipment acquired
during the war. Many OF them We're
working at only 50 and 40 per cenl
ranscitv. The producers signed ar
agreement, with the sympathetic inter
est of the governments behind them
INT without governmental parhelpA
sion in she agreement total pro
Snrtf0u for three months was decldol
11no3 and this was divided III quotas
among the sl2natofy countries. Ih'
r,rodt1gers Of each country We're re
auirpd 10 deposit III q common ldha
So every ton Of steel produced. PRO
surors were AT liberty 70 exceed theN
quotas or DO produce below the quotas
.sg3ert,pa to them But those who G&