The Washington times., 1931-05-04
WORST PASSED,
SAYS THEUN|S
At PARLEY
Belgian Ex-Premier Sounds a
Warning Against Govern
ment MeddIing in Trade

The world wide depression was
blamed today by George TheuniS,
former Premier of Belgium. on in
ternational tariff barriers, Rus
sian dumping, industrial overpro-
duction, decline in silver prices,
and overproduction in farm prod
uctS.
Speaking on world Economic
Conditions" before the Interna-
tional Chamber of Commerce. M.
Theunis reviewed the years eco
nomic developments in which he
served as president of the organi-
zation.
de declared worldwide unem-
plOyment was retarding business
recovery, but said the worst part
Of the depression had passed and
that q wave of CONTAGIOUS Op-
timiSm" could restore prosperity.
Criticizes High Wages
He startled his audience by
gently criticizing high wage lev
els. declaring they brought high
cost Of living and thrust workers
into vicious circle.
He deplored the psychological
cC ndition among business men,
opposed government intervention
in behalf of business, condemned
price fixing schemes, warned about
the future Of agriculture, and de-
clared economic problems would
have to be solved by the law Of
necessity in the end. He con-
tinued:
Nobody can say how much
longer this universal crisis will
last, but q comparison Of price
movements and stocks indicates
that If we have not yet emerged
from the depression phase, we
have passed through the greater
part of it and are about to
enter on a more or less pro-
lOnged period Of quieScence,
preparatory to recovery.
Risks Remain Normal
From q practical point of
view, it is very important to be
able to ascertain this fact be-
cause it enables us to say that
production and trade will no
longer have to face any unusual
risks such as the individual
business enterprise is, not as q
rule, equipped to cope with.
The risks of a period Of stag
nation are normal risks con-
nected with any business
activity.
'The normal character of
these risks and difficulties
enables US TO draw one gen.
eral conclusion, namely, that it
will be wise to face them with
the normal means of economic
activity and not to ask that
political maneuvers be brought
to the support of private inter
estS, however deserving these
may be-"
In a broader sense, M. Theunis
blames the depression on "over
capitalization, arbitrary, halting
intervention on the part of gov
ernments, and economic ma
tionaliSm."
Cites Budget Difficulties
He urged the nations of the
world to ''go easy" on their
budgets, citing Germany, the
United States, France, England,
Italy and Belgium as experiencing
budget difficulties" at the
present.
He said the decline in fiscal
receipts in these countries was
due to "a decline in prices. the
fall in exchange rates, together
with over-hasty tax reduction"
Declaring the gold situation
was far more satisfactory" M.
Theunis said nations on the gold
standard were on sound financial
ground. He praised the financial
condition of banks all over the
world. Even the mixed banks"
in Germany which finance in
dustrial operations. He con-
cluded:
Unemployment has been the
open sore of the postwar
period. For the great indus
trial countries alone, for the
United States, Germany,
France, Italy, England, Bel.
gium and Holland, there are
nearly 100000 men unem-
plOyed.
"WhiIe it Is q consequence of
the depression, unemployment
at the same time helps to az.
gravate and prOIOng it. Fifteen
million unemployed represent
at least three times that num-
ber Of people whose cOnsump-
tiOn is reduced. And these peO-
pie belong to countries where
the standard Of living is higher
than the world averageA
"The support of these men
who find themselves without
work against their own will is
a necessity concerning which
discrimination is quite useless.
But it seems that, in certain
countries, relief measures for
unemployed wOrkmen have Gre
ated q situation the principal
effect of which has been to in
lure the wOrkman's energy and
canacity for work."