Evening star., 1928-05-06
BY FRANK II. SIMoNDs.
- ARIS.--What is the situation Of
Europe at the moment?

- EuIDpG db the ulOIlEIlLS
Economically all Europe is
4 recovering. when one considers
the condition of the whole con-
tinent less than 10 years ago. when the
World War was not yet ended When
one recalls that systematic reconstruc-
ton did not begin until 1925 the trans
formation is little short Of marvellous
Yet one must note that this recovery
has been uneven. Only France stands
today approximately in the same posi-
ton which 1t occupied on the eve of the
great struggle. France at the present
hour has practically reconstructed her
devastated area and replaced an obso-
lete mechanical equipment in the indus
trial north with modern plant
She has replaced her war losses in
human material by immigration. She
has balanced her budget and restored
her currency without foreign loans. and
she enjoys the novel blessing-novel for
postwar Europe-of a real balance due
10 her surplus of exports over imports,
while from the invisible source OF for
elgn visitors she draws a further largess
Of at least S250,000000.
Frances Heavy Burden.
Undoubtedly France labors under the
burden Of a huge war debt, but under
the Dawes plan she is now drawing
substantial annual payments, and will
not pay her own debts 10 her allies,
Britain and the United States. save as
German payments continue.
While France is the shining example
OF swift recovery. her closest partner in
the war Britain, must be recognized to
be well nigh at the foot of the list
Today Britain is suffering more
5 apJafclI- and yVA0rc tffcihit than orxy C+F +F7or
considerable state as result of the
war Her great basic industries. coal.
iron and steel. textiles and machinery.
are still in bad way. She has still
more than a million unemployed The
I restoration Of the pound sterling TO par
has inflated her debt 10 almost astro-
nomical proportions.
Germany Stands Midway.
Germany stands midway between
France and Britain She has reorgan-
lied her great industries on an Ameri-
+ can scale and in accordance with Amer
( lcan methods, She has restored her
/ currency. repudiated her domestic debt
/ She has organized herself for a new
+ competition in the world markets more
/ intense than that of the pre-war era
But she has not so far been able to
regain lost markets or arrived at any
+ balance between imports and exports
and she IS still carrying the burden OF
Dawes Plan payments.
She has, moreover. financed her re-
j covery chiefly by foreign loans For
more than a year she has enjoyed a
domestic boom, Clue in part to the star
Yation Of the market during and follow.
ing the war.
4 Thus Germany is worse of thar
France, because she has mortgaged hel
future abroad: while she is better of
than Britain. IN that she has provid &C
herself with q great modern industrial
machine equipped with the latest in
Struments and conducted on the most
progressive lines
Situation in Italy
The Italian situation differs radically
from that Of the other three great
powers MusSolini and his regime have
/ unTistakably reordered and organized
/ the national machine
| italy is Tor the first time economically
modern state. On the other hand, BY
an unwise reyaloTization of the Ira.
( The Fascist government has imposed
( upon Italy an inflated debt, high cost
/ OF production which has limited export
/ ana produced the familiar StablliZaticn
/ the fact that ii is a poor country, with
uJ natural resources save an abundance
OF cheap labor. The American inlni-
grafton laws have dealt heavy blow
10 an overp0pulated country, Increased
immigration to Europe and South
America has by no means compensated
AS for the smaller countries
Poland is flougishing beyond all ex-
/ pectation.
CxechoSloyaEia is proceeding with 4
sound and sane economic policy. and
has made the most successful showing
OF any Of the so-cailed succession states.
Hungary and JugoSlayia, as purely
agricultural states, are in fair condition,
although in both cases domestic politics
and foreign complications have an in
evitahle reaction upon economic condl-
tions
The Belgian recovery fairly parallels
the French
Conditions in austria.
The Austrian situation Is bad. II is
not WORSE than 1t has been. but So far
the possibility OF the existence OF an
Austrian state under present CIrcum-
. stances has not been demonstrated All
the rural regions are in good shape.
but the great city Of Vienna, deprived
Of all its old elements Of prosperity, re-
mains an inSolubie problem and con-
ttnuing danger spot la Central Europe
Rvmania. III the midst of both politi-
cal and financial difficulties, IS also q
dark spot
Russia remains what Il has always
been-the great enigma But all E}iro-
peau evidence agrees on the point Ih2E
conditions are bad in the Soviet Union.