Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-28
LOSS OF WORLDS MARKETS
SEVERE BLOW TO ENGLAND
Situation Is More Critical Than Average
Englishman Thinks-Various Peace
Treaties Seen as Factors.
BY CONSTANTINE BROWN,

w NncEc Is GtreaI BRITAIN neaO1ng?
Is this mighty country doomed,
or Is there any salvation? This
u is the problem which the repre-
SentativeS of the dominions will
nave to examine carefully and find an
answer to this question, which every
understanding Britisher has been ask
ing himself for the last two years. Can
britaln survive by the introduction OF
nigh tariffs, as the majority of its
leaders and the man in the street seem
10 think, or is her salvation conditioned
by the merger of all the dominions and
the mother country into huge fedora
ton which will be completely different
from the old British Empire we have
known heretofore?
To the casual observer who spends
only few months in that island, Eng
land appears to be prosperous. Certain
outward signs, however, set even the
most unobserving traveller thinking.
The tourist is shocked to see in the
main streets Of London, such as Bond,
Regent, Piccadilly. Pail Mall and other
orid-renowned thoroughfares, groups
OF able-bodied men-one playing a
somewhat strange unicord violin. an
other accompanying him with two
spoons, initiating castinets; the third
grinding an Anticipated barrel organ on
which Is written Help the poor ex-
service mem; two others occupying
strategic positions on both sides OF the
road. begging, sometimes with too much
insistence, for few coppers.
Spend Night on Benches.
Then, again, should the American
visitor walk after midnight along Vic
toria embenkment, the street bordering
the Thames, or the famous and aristo-
cratic Mall, the street leading to the
Kings palace, he would be shocked to
see men, women and children huddled
together on benches where they spend
the night. These are members of the
vast army OF unemployed who cannot
pay q dime for bed in the poorhouse
The little money they get on their dole
Is Just sufficient to provide them with
bread, a little sausage and some tea.
This state Of things applies not only
TO the capital of the mighty British
Empire, but to most of its provincial
cities.
These are ominous signs of the pres
ent situation in the United Kingdom.
Generally they are considered by the
casual observer as incidents of little
consequence. He is more impressed by
the large number of Rolls Royces and
other high-priced cars tearing along
the wonderful roads, the uneQualed
Splendor of the British court functions,
the vast number of smartly dressed
WOAACAA G4A4AA1B III 1CSJduEd1lJS WflEIS
1000, II not so good, Is at least higher
priced than in Americas most expen-
S1ve hotels, and other such outward
signs Of prosperity.
Situation Is Critical.
The situation in England is critical
more critical than the average Eng
hshman thinks. Although the English
bankers are rich-their investments
abroad alone bring some $3.50, 00o, 900 q
year to that country although Eng
lands natural resources, which made
try In the world, are uI1diminished, the
country is undergoing the worst crisis
in her modern life. The main reason
Is the loss of the worlds markets; the
causes Of this loss are many.
The various peace treaties signed at
the conclusion Of the World War
changed the map of Europe not only
politically, but economically as well.
Before 1914, Europe was divided into
Industrial and agricultural countries.
The industrial states produced manu-
featured products for the agricultural
ones and purchased from them food
and raw materials. The countries of
the flrst category were Britain, Ger
many, Belgium and, in smaller degree,
France and Austria. The rest of the
European states prospered on agricul-
ture. The treaties of Versailles, IRA
non and Neuilly changed this situation.
The Austrian empire was split. Parts
OF it went to Seryia and Rumania
Another part formed an independent
republic, Czechoslovakia. Yet another
was added to Poland. Germany was
deprived of her Silesian coal mines
and Italy acquired new territories, CIV
ing her larger trading facilities. Two
new republics sprung up-Poland and
CzechosloVakia - with comparatively
large populations. Purely AGRICULTURAL
states such as Rumania and Jugoslavia
saw their territories largely increased
with provinces rich in coal and iron.
Industries Encouraged.
The first move was to encourage in
nustr1al enterprise which heretofore had
been denied to them by the lack of
coal and iron. Special laws, giving
preferential treatment to the home in
dustr1es were passed by their respec-
tive parltamentS and everything Inn
agtnable was done to encourage this
new source of national wealth. High
tarins were adopted against all manu-
1aetured products which formerly had
been admitted duty free.
Hungary, no longer a part of the
Austrian empire and deprived of a
large portion Of her arabic land was
faced with bankruptcy. Before the
war she had small industry of her
own, although her main source of in
come was the export Of corn and
wheat. In order to save the situation
the Hungarian rulers developed the ex-
1sting factors and now are able to sell
TO their nelghbors manufactured goods
which they used to import from Eng
land at much lower price.
CzecnosloYakia, even in the DAYS
When II was part of the Austrian en-
pire, had furnishing industry. AS
an independent state she was forced to
develop her industries far beyond her
own needs and today is in a position
70 Supply 20 per cent Of the needs Of
Central and Southeastern Europe.
France and Belgium, which once
produced articles of luxury such as
silks, perfumes. fine steel and lace. were
compelled by necessity to adopt some
OF the English lines" and tocay ara
selling goods which before the war
were purchased exclusively from Biz
mlngham and Manchester.
Germany Taking Old Place.
Germany is steadily resuning her old
place as the industrial provider OF
Italy under Mussolinrs rule has
adopted an energetic industrial policy
Although she lacks coal an6 iron. the
number of her factories has increased
considerably. The Italian diplomats
are using political persuation to intro
duce Italian-made goods into the
Balkans. Political treaties are nego-
tiated containing clauses which give
Italian industry a preferential treat
ment. Thus Italy has been able to pro-
s.ire a good position for her manufac-
tured products throughout Central and
Southeastern Europe.
With semi-industrial states becom-
ing inGustrialized, the English industries