Evening star., 1928-05-06
UNCLE SAM BESTIRS SELF
AS MACHINE GUSTS MAN
Whole Industrial and Economic Situa-
tions Involved by Increased Use of
Mechanical Effort.

, tributions with no production to show
7 for il as would bs the case III the event
public works we're reSorted 10
Some of the foreign countries, no.
/ tably England and Germany, have
worked out schemes of adjustment. and
At first they found ii necessary 10 pro-
vide unemployment berefitS~~a public
/ charge. public support Of the unem-
ployed But a review of the reports
brings out the fact that the situation
in Hungary more nearly approNimateS
/ the present-day conditions in the
United States in that there is no un-
EMPLOYMENT insurance. and that prac-
tically the only unemployment benefits
paid are those by the labor unions
Benefits as a system for caring fol
unemployed workers have not been
very widely practiced. Relief works oi
a makeShift character. under the term
repair works" were undertaken to d
certain extent at the beginning Of the
depression there.
What Government Is Doing.
But the government has concen-
trated its main attention and efforts on
the increase of the regular activities
Of industries, and especially building
and encineering first, because these
industries were tagging most, as in the
United States now; second, they were
connected with numerous other indus
tries producing building equipment and
materials: and. third. buildings. such
as dwellings. plants. bridges. harbors
etc. had become worn out and 6ilapi-
dated during the long -drawn-out war
and the revolutions following in the
wake of the war.
A reconstruction loan Of 50,000.000
Swiss francs tla.3 centsl sanctioned
and assisted by the League of Nations
made possible cheaper loans TO building
and engineering enterprises. There
have been other loans made in New
York and London money markets: for
instance. the Hungarian municipal
loan of slo,000.o00 from bank in
New York City: a second municipal
loan of Sc. .000, 900 from the same bank;
the Hungarian county loan of 2,500.0oo
pounds sterling from London bank,
as we'll as other foreign loans. For
reconstruction purposes about 100 ,000,-
600 gold crowns t20 cents) we're made
available in 1924.
Loans to Industries.
In 1925 the sum of 52.oo0.O00 gold
granting cheaper loans to industries
This measure considerably facilitated
the renewing Of machinery III factories
extension Of railways. the buying OF
better tools and equipment and the un-
dertaking Of drainage and irrigation
works for agricultural purposes. The
private building and manufacturing
concerns themselves. feeling the pres
sure and even the danger of unemploy-
ment 10 their very existence, applied
measures 10 revive industries and in
crease their output The country
finances have been put in order. the
budget is kept balanced and the value
Of currency and exchange has been
steadied The gold reserve in the bank
OF issue has been gradually increased
until it covers from so TO so per cent
OF the note issue. To. keep the foreign
protective tariff and export prohibition
has been applied.
What Hungary Is Doing.
During the monarchy about 437 miles
OF state roads were built between 1868
and 1890. and l32 miles per annum. on
an average. were added between 1920
and ieI4-the war began In the latter
year During the war no new highway
construction was undertaken, 50 that
the present day Hungary received a
poor and wornout network of highways
as a war legacy from the monarchy.
Repair work on the highways was be-
gun In 1921 and continued TO the
budget year l924-5. No new con-
struction to any appreciabie extent was
undertaken until the budget year
1856. when a utility investment
credit" was made available from the
proceeds of the League OF Nations loan
for roads. A total Of 25.000 900 pengos
I7S9 .centsl was spent for highway
construction in 1857 Local authori-
ties secured a foreign loan Of $4,000, 900
pengos for the same purpose. Old roads
have been repaired and some OF them
widened 10 facilitate rapidly developing
motor traffic. About 4so miles Of the
new roads have been built and there
now are 1853 miles OF new roads under
construction
All Of this has taken some Of the
shrinkage out Of the employment. and
in addition quite number Of the un-
employed workers have found regular
employment on a project for developing
power from the Danube River and the
improvement Of the flarbor Of Buda-
pest. In addition, large navigable
pest across the Great Hungarian Plain
One TO Solve Problem.
The other countries have provided
public works as means of taking tiu
the employment shrinkage. but Hun
gary appears 10 be the only foreign
country which 30 far has gone 80 deer
into the problem as 10 find a means for
permanent correction, by the encour-
agement Of those trades which would
in turn start the wheels moving full
power In other industries required II
support them with materials.
So here. as people we're taught nea
trades during the war tn take the places
of the multitudcs who gave up their
regular employment To fight. The in.
Tentiye genius which carried America
forward and has been producing eff.
cient machinery must provide means
Of developing new industries for the sb-
Sorpfion Of workers placed on the wait
F.... A..M