Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-17

of prices for all cereals and oil in the
same year reduced railroad traffic draS-
tically. Their situation is made worse
by the fact that the railroads need cap
ital to invest in rolling stock and new
lines which are essential to Rumania's
Long Term Credit Needed.
In response to my query as to Ru-
mania's most pressing needs, one banker
and economist, who Is outside the
realm Of politics, replied:
1.-The most serious economic problem
Of today is to find long-term credits for
agriculture and industry, so as to in
crease the currency circulation to the
normal rate of $40 for each inhabitant
of the country. The money in circu-
lation should be $4,000, 100000 lei In
stead of the present 81 900, 100000.
After bringing the circulation to its
King and the government to do Is to
reduce the number of officials who are
doing nothing but living at the expense
of the Rumanian taxpayer. Most of
these officials, who today are little more
than parasites could be useful to the
country as workmen, agriculturists or
tradesmen. These are the two big
economical problems which demand
solution as soon as possible"
Virgil Madgearu, eminent Rumanian
economist, former finance minister and
a member of the present Manu- cabinet.
He says: IF the United States have
been able to stabilize their economic
prosperity they have done 1t by raising
the purchasing power of the workers
through the direct means Of high wages
and the indirect means Of the INSTALL
ment system. In the same way, Eu-
Ind Vsrfn
Of the unemployment crisis only by
creating new groups of consumers In the
agrarian countries Of eastern and SOUTH
ern Europe. That end cannot, however,
be achieved by artificially stimulating
consumption through the system of ex-
port credits, but only by cooperating
financially and technically in the
economic reconstruction of the eastern
and southeastern European states"
American Expert Is Confident.
Again there are the words Of an
American expert who has resided In
Rumania for number Of years. IT
see no fundamental cause for lack of
confidence in Rumania," he told me.
"Rumania's trade balance Is improving,
her budget Is balanced, her currency
is stable and she Is meeting all her
foreign obligations. believe the
economic situation should now be on
the upgrade. 1t is largely question
of confidence, as is always the case.
Carols return should be considerable
help, because 1t has increased confidence
within Ruma1ia and because 1t prom
Uses governmental stability"
It seems evident that the above re-
view of Rumania's economic situation
that the nation, despite discouraging
years, Is confronted with new oppor-
tunity for prosperity and expansion.
This depends clearly upon at least
three factors. Upon the quality Of
leadership and the earnestness of the
kings endeavor; upon the honest re-
organization and control Of Rumania's
agrarian and commercial enterprises.
and upon the availability OF foreign
capital. But foreign capital in large
amounts will scarcely be forthcoming
unless these first two provisions are
complied with from within, and that
is q condition almost exclusively posed
to King Carol, his advisers and CO.
administrators in political and economic
Rumania.
Rumania so long has been fluctuat-
ing quantity that 1t still needs to prove
itself in foreign eyes. II influential
and intelligent Rumanian leaders will
supply this element Of sound business
effort, 1t is scarcely debatable that
Rumania offers q rich field for foreign
capital. This one factor offers another
man-sized challenge to Carol.