Evening star., 1932-08-09
NEW BOOKS
AT RANDOM
I. G.. M.
BUBBLE THAT BROKE THE
WORLD. BY Garet Garrett. Bos-
ton: Little, Brown & Co.

L
Credit is the shattering bubble" pre-
sented here with so much conviction
and vigor.
AS with other credos, this financial
credit also Is founded upon faith. Like
political theory, philosophic conjecture,
religious dogma and their similars, this,
too, rests upon the essence Of things
hoped for, upon evidence of things not
seen. 1t is by virtue of such origin
that it, along with these others. is open
to ready misunderstanding, divergent
opinions. to illusion itself.
In a study of hardly 400 pages Mr..
Garrett makes critical analysis OF the
subject Of credit in Its chief charac-
teristics and operations. In its origin
tional aspects, ominous and perturbing
tional aspects, cminous and proturbing.
1t Is not with the birth and early
growth of this financial convention that
the author concerns himself chiefly,
though that Is a deeply interesting and
important story For another day, how
ever. Most active is he with the giant
of power that credit today is. prodigy
Of speed overrunning the earth itself IN
a spirit of malevolence and ultimate
dtraster.
An artful exposition who prefers dra-
matte climax to remote beginnings and
early advances. So. Immediately, read
ers are pointed upon the amazing cur
rent scene of the credit system at work.
upon this vast promise to pay" mere
gesture of good faith as 'the tie that
binds" all the countries of the earth
in an uncertain and unstable inter-
nationalism.
Looking into this particular conven-
ton OF intercourse, the author points
to three vital illusions existent within
1t, celebrating each in fortnight fash
ion First of the three: The idea that
panacea for cebt Is credit. Second: A
social and political doctrine that people
are entitled by the mere fact Of exist
ence to certain betterments in life.
Third: The new argument that pros
perity is a product of credit, whereas
it was formerly thought that prosperity
was from the increase and exchange Of
wealth, with credit as It's product"
This revolution in thought was
brought about by the World War. Much
that would have taken thousand years
to accomplish came to pass in a few
weeks. Magnitudes Of incredible pro-
portions were created in a day, night.
Abnormal processes took the place Of
orderly ones Inconceivable measures
and effects became fact in that hideous-
ly broken period. And today the world
is struggling to rehinge this shattered
litter into something like a fair or
ganism of exchange. In the disarTay
of the material world its thinking ap-
paratus, too, went wrong setting up
false and often fantastic standards,
failing in a proper reco- o-oroineti ticn OF
its powers. performing errs tica-ly in re-
spect, particularly, to its financial pur-
poses and plans.
In definite terms and plain particu-
lars this writer demonstrates the single
thought Of the world today. Money. a
smothering cloud of debt. under which
creditors and debtors make futile move
ments toward adjustments that will
permit some semblsnce of rehabilitation
among certain nations, something like
progressive and truly productive inter-
naticnalism.
But, meanwhile, what Of the i'm
mediate home question? The enormous
productivity Of the United States, its
natural resources, its applied science
and issue of the World War. But, the
war over, what to do with the residue
Of resource left in America. Of mate
rial and human resource? And the
writer-a picturesque and vigorous
man with a pen-tells an interesting
story of one Pharaoh building his
pyramid. When the 100000 men en-
ployed had finished the stupendous job
and were let so there was-there must
have been-a crisis in affairs: But the
records do not tell how adjustments
were made, how the machinery Of that
old existence shaped itself to q changed
order. SO We have no help from kings
of Egypt. or other ancientry, as to our
own reahapings, as to our own read
iustments to a nightly changed cut
look upon the future Of this present
civilization. But. doing the best that
can be done. Mr.. Garrett cites the
various measures that have been pIo-
posed, the institutions that have been
founded, all looking toward some sort
Of working economy for an unjointed
and seemingly ramshackle assemblag &c
of broken parts, formerly called nations
Treaties and leagues, courts OF justice
and conventions, each and all strive
nightly and at great length. However
various. in the beginning, may nave
been their motivating powers, these
have gradually merged into the single
driving idea Of war debts.
Mr.. Garrett does much more than to
name the various home measures by
way of which America has sought both
domestic financial security and a ra-
tioral recognition Of the financial dis
tress of Europe. In chapter "On
Saving Europe" no. there are two
! chapters, the other one is The Rescue
: of Germany"-in both cases American
credit was the savior. Certainly in in
tent, but as matters turned out neither
of these bensficent plans proved eff
cacious. Naturally. the only thing for
these bankrupt and ruined countries to
do was to cry aloud again for more sue
cor, from the same savior This they
promptly did. This they are today
dong.
And this caustic man recalls that of
which we really need no reminder. That
the cries for help are no longer Of sor-
rowful and pitiful tone. Like the neg
lected youngster in the craSle, there
Is now a touch of impatience in the
call, something that is likely to become
yell of rage, feet kicking, fists flying.
Lecture tours through the United
States, radio broadcasts from Europe,
every possible whatnot of communica-
suave cosmopolitan outlook upon the
true foundations Of continued peace
and world progress-"Just tear up those
o U scraps"
Operating the Golden Goose" is ali
Illuminating chapter, an absorbing one.
And so is Book of Debts" Not so
much interesting this last chapter, as
1t Is appalling. Significantly, 1t closes
in this fashion: "A debt policy was
evolved and 1t has never changed 1t
is not the policy of Great Britain alone,
ncr the policy of France alone. 1t is a
European policy. The aim of it Is to
get rid Of these war debts to the Ameri-
can Treasury by a political stroke
Propaganda for cancellation was not
the stroke. 1t was only the preparation.
The stroke would be to commit the
American Government to the PROPOSE
ton that its debtors should pay. and
could pay, only provided they were paid
reparations by Germany, so that If Ger
many should cease to pay them, as, Of
course, she would, they might cease 10
pay u.s." 1.-THE American Government
has steadily insisted that, so far as 1t Is
| cnnnerrad war dahts and German n rama -