Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-06-24
BY PHILIP sNowDEN, M. p.

By PHILIP SNOWDEN, NJ. p.
Former British Chancellor of the Exchequer.
T r UNEMPLOYMENT is problem
common to every country. New
countries with vast unpopu-
~ lated areas and great unde-3
veloped resources are troubled
with this difficulty no less than the
older countries with dense populations
and limited natural resources.
Under every form Of political govern
ment and under different economic sys-
TENS the problem of unemployment
battles statesmen, economists and in
dustrialists.
In countries like Denmark and Russia,
as we'll as the British Dominions,
where agriculture is the principal ir-
dustry, unemployment is persistent. 1t
is not new experience OF the human
race It has existed in every age.
The Old Testament makes many refer
ences to this problem and the spectacle
Of the unemployed workmen standing
in the market place provided Christ
With the material for the most remark
able of His parallels.
More Complex Form.
But in these modern times the I'M
employment problem has assumed far
wider and more complex form. 1t may
be described as a feature of mechanical
development and Of closer international
association.
1t is a curious paradox that with the
increase of productive power and OF
transport facilities there should be IN
every country vast number OF persons
whose labor power cannot be employed
and who in consequence are unable TO
command the means to satisfy their
needs
The existence of unemployment in
any one country is very largely due to
external causes and international con-
ditions Most Of the principal indus
trial nations are dependent for the en-
pioyment Of large proportion of their
population upon the demand of other
countries A bad harvest or political
CONFUSION In some country may cause
widespread unemployment among peo-
pie at the other end of the world.
Finance is now the arbiter of the
worlds Destiny" said an eminent
banker. A change in the discount rate
of a central bank in one country may
have repercuSsions which will empty
the cupboards of workmen thousands
Of miles away.
international Policy.
1t is only in recent years that atter-
ton has been directed to the impor-
lance of international financial policy
in relation to trade conditions, price
levels and unemployment.
There is always tendency to exag-
,gerate the Importance of a new theory
or discovery. Some of the advocates of
q regulated currency and OF the cor
troll of credit seem to assume that by
those means the trade cycle can he
eliminated, the price level maintained
constant and unemployment eliminated.
But there Is no such easy and simple
solution of the unemployment problem.
It's causes are as many and as COM
pick as the remedies must be various
and comprehensive.
The unemployment which has pre-
vailed since the war, and which has
persisted for so long. Is not the depres-
sion of an ordinary trade cycle. II te
had only been that, the movement Of
the wheel would have brought the boom
long ere this time.
The war diSlocated world trade and
permanently altered its equilibrium It
brought new competitors into the world
strength of former competitors.
During the war industrial plants were
expanded to meet war needs, and these
were afterward excessive for peace-time
demands Only great increase Of for
eign demand could keep the larger
works and the greater number Of work.
men employed And from many causes
that increased demand has not been
forthcoming.
Worlds Total Production.