Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
BY FRANK H. sIMoNDs.

~ ENEVA-Does the prospect OF
an early recovery in Europe
U promise a similar benefit to
~ American trade and industry
struggling with the great eco
romic depression? This was one OF the
things was eagerly asked to find out
when l left the United States thres
months ago. And there was in the
minds of those who asked the question
the belief that on the one hand rscov-
cry in the United States was meaSurably
contingent upon that in Europe, and
that. on the other, European improve
ment DEPENDED upon the termination
of war talk and other evidences of an
apparent lapse to pre-war mentality.
AS have tried to make clear in re-
cent articles, the chance Of war and
the immediate significance of war talk
are slight Issues like that of the
Polish Corridor certainly postpone any
definite consolidation. but they are not
dangers of conflict in any immediate
time. Nevertheless. even If the talk
and fear of international strife should
gradually or rapidly diminish. the pros
poets Of any quick economic recovery
seem slight.
The reason for this rather unattrac-
tive prospect, equally testified to by
business men and public men. bankers
and ministers in many countries with
whom have talked in recent weeks.
grows out of the fact that on this side
of the water the true obstacle to eco
non1ic recovery is believed to exist In
domestic rather than foreign politics.
What is troubling confidence is appre-
hension not of international but Of ma
tional disturbance.
Distinction Is Drawn.
The real distinction between the
American and the European situation
Is this: Like Europe, the United
States IS suffering from an economic
depression Of unparalleled proportions.
Nevertheless save in the degree of inn
mensity this crisis does not differ ma
terially from similar experiences in the
past. BY contrast there is in Europe
q crisis of regime, social and political
crisis, on which the economic depres-
sion has been superimposed
The relative swiftness with which
the physical destruction of the World
War was repaired in the years be-
tween 1925 and 1880, the temporary
calming down of international pas
sions, which followed Locarno and cul-
minated in the evacuation Of the
Rhineland served for the time. to de-
ceive public men, and bankers and
business men, as well, as to the actual
situation. Statesmen came to believe
the Locarno and Kellogg pacts were a
type. had removed the danger of i'm
mediate conflict. Bankers and BUSH
ness men at last concluded that the
failure of the Soviet regime was so
complete that the dangers it carried
to the rest Of the world we're over
With the arrival Of the economical
crisis, however, there was immediate
and general perception Of the degree to
t1oA atV1vx Vsro al
There was disclosed the degree to
which all the old system. Political and
economic, had been shaken by the war
and postwar years.
Laws Had Been Limited.
While before the war. notably In
Britain and Germany. a system Of legis-
lation designed to insure the working
classes against the evils of unemploy-
ment, illness and old age had been
adopted. this system had been rigidly
restricted. The state, the employer
and the employee shared In the expense,
which was not permitted to be a charge
upon either business or the taxpayer,
beyond a reasonable limit.
But during the war the necessity on
the one hand to persuade the workers
To produce greatly. particularly in mu-
nitions, and on the other the equal
need TO feed and clothe the soldier be-
yond all previous standard, utterly de-
stroyed the old balance. In war. the
single question was to get results. and
cost Of production was ignored. When
the war was over. labor had acquired
new standard Of living: moreover. the
heroes returning from the front were
bound to demand similar advantages
as small reward for their sufferings
and sacrifices
In the two great industrial nations,
Germany and Britain, this process was
most striking. In the case Of Britain,
the government. seeking to defend cap
ital, restored the pound to pre-war
value-thuS fixing national debt at
a total approaching 10000, 900, 600
and continued and even extended the
provisions to meet unemployment, and
otherwise TO benefit the worker. Thus
industry had TO shoulder through tax
alton the double burden Of the expanded
debt and the increased social charges.
In Germany the situation differed in
that PREPARATIONS replaced the debt,
which had been repudiated, but the
burden remained the same.
Old Ways Had Hardships.
In the pre-war days economic de-
preston was dealt with. or more exactly
met, by the rough and ready means at
hand. The workers suffered. even in