The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-08-24
BY ARTHUR F. DEGREVE
United Press STAFF Correspondent

LONDON, Aug. 24.-Great Britain
has ner back to the wall, struggling
frmly, but proudly, to regain lost
industrial prestige and maintain her
position as leading world power.
The mother of the great empire
that covers one-sixth of the worlds
surface is asking Tor no sympathy
IN the most serious economic crisis
OF modern history. Although a re-
adjustment Of Britain's war debt to
the United States would be well
coined, her statesmen have not
made and are not considered likely
TO make the first move in this
direction.
On the other hand, leaders of all
political parties here supported the
governments quick decision to ac-
cept President Hoover's proposal for
a one-year moratorium of war debts
and reparations, even though it
meant a loss to the budget of ap-
proMmately $55,00000O in payments
from the dominious for the fiscal
year.
World War Troubles
Britain's economic troubles date
back to the end of the World
war. During the four years of
strife, an unestimable amount of
capital and wealth was DESTROYED.
The national debt increased from
$3.50 100000 in 1914 to $37,175, 00O,-
900 in 1919.
For two years after the Armistice.
prices of commodities and wages re-
NAMED high. The nation went on
spending spree. Everything was
done to make England a land eft
for heroes to live in"
The national debt was further in
creased. Municipal debts scared.
The standard of living of the Brit
ish workmen was raised higher
than that enjoyed by any others
except in the United States.
Prices Took Tumble
The bubble burst in 1921, how
ever, and during the next twenty
months prices fell from 225 per
cent to 1855 per cent.
The slogan British and Best" no
longer was sufficient to sell goods.
The price was an essential item.
On the eve of the general strike of
1926, Britain realized for the first
time since the opening of the nine
tenth century her supremacy of
world markets was broken.
The great strike, according to
economists, nipped the nations best
efforts to stage a comeback. Thus,
for the last five years Britain has
been suffering from a depression
which is not transitory as that of
other nations.
Per Capita Tax Scars
Taxes per capita have been raised
from approximately $3.50 a year in
1914 to SIS in 1890; approximately
81, 160,0 100000 is spent each year on
social services and another $685.
100000 yearly as interest on the ma
tional debt, which in 1880 totaled
$47,545, 100000.
Hundreds of millions of dollars
have been spent in providing I'M
employment insurance, or-"the
dole"-to the more than 100000
unemployed, and the labor govern
ment in power steadfastly has re-
sisted any efforts to lower the pay
mentS and in some instances has
increased them.
In 1921 married man with a
wife and two children received $5.25
week unemployment insurance,
when the cost of living index was
238 and now receives $725 which,
with the relativee reduction in the
cost of living has the same pur-
chasing power as $1,000 had in 1921.
Urges Lower Rate
A commission appointed by the
government to investigate unem-
ployment insurance conditions, re-
Gently made its report in which was
included a recommendation that the
amount of payments be revised dras-
tically downward. The government,
however, is expected to limit its &C
tivities to correcting well-known
abuses of the scheme.
The powerful labor unions have
fought every effort to reduce wages
which manufacturers and some
economists insist is vitality neces-
sary if costs of production are to
be lowered to such an extent that
Britain can compete again in for
eign markets.
Salaries have been cut in many
crafts, yet because of the drop in
the cost of living the British work
man still has a standard of living
far in excess of that enjoyed by his
continental colleague.
SanIr YoI,s Rnr. R.xkIn,. SArndn..Hs.