Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
TURNING POINT HELD NEAR
In EUROPE'S TRADE CRISIS
Return to Old Capitalistic Conditions or
Move Toward Socialism Con
sidered Alternatives.

| extreme cases SIdrNeu' olIllIdJly ldI ~
numbers transferred themselves to
other countries notably America. THUS
while for the time being capital also
suffered from restricted dividends, no
| considerable new burdens were placed
| upon government or the taxpayer and
presently by the operation OF the laws
| of supply and demand the situation
readjusted itself
Today emigration is restricted, while
the social laws prevent suffering, much
less starvation. by providing unemploy-
ment doles. But the obvious effect Is
that the crisis is prolonged. the laws
OF supply and demand abolished. 1t
has become the duty Of the state to
protect the workingmen from the con-
sequences of economic depression with
out regard to whether or not that pro-
lection is within the resources and
capacity of the state.
AS result there has developed q
clash between capital and labor. But
no government dares. to reduce its serv-
ices to the millions, lest the conse-
uuences be revolution. Lloyd George
the other day declared the dole was the
single means by which England had
escaped Bolshevism. Capital is clearly
aware that it cannot continue to
operate under the burden Of taxation
labor. assured Of political control. Is
totally unwilling to assent to any Sacrt-
flee.
France Avoids Burden.
Only France has measurably avoided
the problem, as a result of a series OF
circumstances. First, France repudi-
ated three quarters of its debt by re-
valorization of the franc. This was a
capital levy which demanded a great
sacrifice of capital, but it was the single
sacrifice. Then, since France was
underpopulated, 1t turned abroad to
import labor. bringing in a million and
a half Italians, Poles, Belgians and
Spaniards. In case of hard time, instead
of having to pay a dole, 1t simply sent
these foreigners home.
But Germany and Britain have still
to settle the question of how the costs
of production are to be brought down
to possible figures. At the bottom OF
the amazing rise Of Hitlerism was the
hope of capital, of business in particu-
lar, which provided the funds to get a
dictatorship that would abolish the
present huge unemployment and social
charges and put on the shoulders of
the workingman the costs Of a defia-
ton to normal.
The agitation for the moratorium
and ultimate abolition of reparations
in Germany has the same origin. II
Is means Of avoiding the evil conse-
quences of q reduction Of unemploy-
ment payments with the concomitant
rise in taxation and increase in the
burdens on industry. Today a quarter
of the British population and third
of the German are being supported IN
idleness by the state at costs that can
be imagined. And the situation Is
paralleled In nearly all European
countries.
Hesitate Over Demands.
Today no European state has gov
eminent sufficiently firmly established
to dare to demand sacrifices. The
masses Of people have the idea firmly
fixed in their heads that it Is the duty
of the state to support them. either by
insuring employment or by paying the
idle. Europe has been very largely
transformed into a "'ome At for
eroes," but the whole capitalistic sys-
tenn Is breaking down under the strain
Nevertheless, it Is clear that, in the
larger sense, European recovery de-
ponds upon some readjustment, and
all readjustment awaits the termina-
ton Of the battle between capital and
labor, which is in full progress. Such
readjustment is likely to take years,
rather than months.
1t is perfectly patent that in the end
there must be a reversion to something
Of the old order or complete adop-
ton Of the new. European govern
ments cannot function half capitalistiC
and half socialistic as they are now
trying to do But whichever decision
Is finally taken. the process is likely to
be long and attended with much hard
ship for business. Moreover, it is far
from impossible that the process will
be attended by actual civil strife as in
Britain it has already been marked by
innumerable strikes
American loans to Europe now
American cancellation Of debts, would
chiefly help prolong the existing situa-
ton by enabling governments for a lit
tie longer to avoid the consequences OF
readjustment, but they would not-as
seems to be the general view on oul
side Of the Atlantic-set the wheels to
running all around, because the funda-
mental situation would be unaffected
Both foreign war and international
strife will doubtless be avoided, but
promise of early recovery remains very
dim, because all the great problems re-
main TO be solved and Europe is still
heSitating between the two possibili-
ties, Back to Capitalism" and "on tc
Socialism
(copyriRht, 1917