Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-25
ECONOMIC CRISIS HAS FORCED
WORLD TO SEEK REMEDIAL PLANS
Reparations, Tariffs and Disarmament
Declared Major Problems Which Must
Be Solved to Revive Business.

from the angle of world economics;
may seem to be purely a European
affair and of especial concern to Ger
many and France, but 1t extends much
further and affects the economic sys-
tenn of the entire world. We venture
and reparations has created artificial
conditions within the world credit sys-
tenn, thus intensifying the general de-
preston.
Tariff Barriers.
Imbued with national prejudices, the
various countries of the world are try
ing to protect themselves against eco
nomic depression by raising their
tariffs. The present crisis. however.
has overridden all customs barriers. 1t
was soon perceived that no artificial
measures could safeguard the pros
perity CT a nation If its neighbors
were affected. These customs barriers
proved powerless to avoid unemploy-
ment, business stagnation, declines in
wages and prices, or, indeed, any eco
nomic disturbance. Instead of proflting
by this experience, however, and trying
to overcome the crisis by cooperation,
the nations are determined to abide
by their customs duties. although in
so doing they are hindering their own
recovery.
In Europe the situation is especially
ridiculous, for in this relatively small
and highly developed area confusing
network of customs barriers has been
erected The treaty of Versailles. in
addition, created thousands of miles OF
new frontiers and these entailed a
new set of tariffs which disturb the
traditional markets and prevent the
normal exchange of merchandise.
Many attempts have been made to
deal with this problem, but without
result. When he wound up the Tariff
Truce Conference at Geneva in the
middle Of last March, the president,
Mr.. Collin of Holland, was obliged to
admit that all efforts had been fruit
less and that four, years work on the
part of the League Of Nations had
been lost. The European governments
had been unable to put into execution
the resolutions of the World Economic
Conference, which were designed 10
lower high tariffs and facilitate the
exchange of goods. Although the eco
nomic situation was urgently In need
of reorg nization, they seemed to have
given up hope and returned to the
statu quo At the end of March, how
ever, the problem was reopened when
the details of the plan OF customs
union between Germany and austria
were published. We shall not attempt
here to discuss whether this step on the
part of the German and Austrian gov
ernments was intended as surprise"
or whether it's method of introduction
was wise politically. The fact remains
that 1t was the first attempt to INK
together the disconnected members OF
the European community by abolishlng
tariffs instead of erecting them, by
uniting the nations instead OF forcing
them apart.
| Disarmament.
So long as the impression OF the war
with its memories of terror and misery
remained fresh in the minds OF the
people, they clamored that everything
should be done to avoid recurrence
The longing for lasting peace was SC
strong that 1t even found expression IN
the treaty of Versailles, although II
must be admitted that this document
contains little of the unfettered spirit OF
peace and good will. We recall the
clauses dealing with German diSarm-
ament which were said to be the t1rSi
step toward general disarmament. This
first step has now been taken, and Ger
many has disarmed. She Is left with
a very small military force and nc
modern ornaments. Consequently, the
amount she is spending for military
purposes is much less than before the
war, while in all other countries the
amount has increased. Figures cannot
! tell the whole story, but they give
good idea of the general trend, as may
be gathered from the following table: