Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-15
BY EDGAR ANsEL MowRER.

~ ERLIN, Germany-All over suf-
- fering Europe new voices . are
arising to inquire -, whether !. ,,roI the
like the many preceding 1t or
whether it reveals an inherent mortal
weakness in the capitalistic system.
Whatever the answer, there is no
doubt that this crisis is producing kind
Of general skepticjSm in all economic
matters. None seems to know much
about the very system under which the
world has lived for long time. 1t
seems impossible to bring all the prob
lens involved under one head; Ma
chinery has, In European eyes, become
too complicated for understanding; per-
haps too complicated for repair.
European economists tend TO admit
that the crisis has been aggravated be-
cause the purely capitalistic system has
been "interfered with by tariffs, SUBJ
ventions, monopolies, reparations and
unstable political relations.
The results of this frame Of mind are
| different in different countries, but
practically each country shows a diff
pushing toward economic changes
Protection, for instance, Is growing
| throughout Europe and most people are
| convinced that the day Is not far dis
tant when the British will transform
their small and yelled duties into
admitted large-scale protection.
France Has Become Model.
A tariff war exists between the
| agrarian and industrialist countries
! The agrarian states raise tariffs ir
order to promote new industries and
the industrial states answer by raising
| duties on agricultural products. Ger
many, for instance. has today q duty
| on wheat amounting to almost 400 pei
cent ad valorem.
The ideal of g. self-sufacient, "wel
balanced" nation Is gaining ground q,
a reaction against international cap.
italism," which is somehow held re.
sponsible for the crisis. The model hat
Grafton seems to be saving 1t from thu
worst effects Of the depression, just a!
it deprived it Of a larger share Of profit!
in prosperous times.
Furthermore, under the influence o.
distress, the attractiveness of Fascis
and other newer" ideals seems to b
growing. Because of ignorance, differ.
ence of opinion and economic nation.
alism, no agreement has been reached
on measures proper to aid in obtaining
relief. There Is some discussion, but nc
practical suggestion. for further devel.
oping industrially backward countries
like China and India.
| Most OF the panaceas are either prac
teal or funny, as, for instance, the
British attempt to make the gold stand
ard responsible for the decline O
British prosperity. Talk of European
customs union has been revived unde
economic pressure, but 1t has been eff
fectively paralyzed by economic ma
Gonalism and disparity Of aims.
Agricultural oppose industrial states
Germany, for example, spends at leas
5 per cent Of its national income on di.
rect and indirect gifts to agriculture
A real customs union seems remotel
than ever.
Capital Held Idle.
A symptom of the complication of tn,
present situation lies In the discrepanc.
In the discount rates In different coun
tries, varying from per cent in Franc
and Switzerland to per cent in Ru
mania, with England per cent, Ger
cent between them. German cal
money costs only per cent and rea
capital from to 10 per cent.
At the end Of last year, when Ger
many was nearly starved for lack o
capital, Swiss banks held some $40,
100000 Of German money on which
they we're paying no interest whatso
ever. thus proving the seriousness Of thu
flight Of capital. Germans claim tina
both English capital and retired capital
lists ere migrating to Switzerland anc
Holland
Unemployment is considered the bes
index of distress, but this Is true only
in industrial countries like Germany
Great Britain, Austria, Belgium and tt
some extent, France, Italy and Czecho.
slovakia. Germany heads the list, with