Evening star., 1933-09-03
L. S. and German
Wars on Depression
BY A. G. GARDINER.

LONDON, September 2.-While faint
but distant signs of revival are visible
at home, Great Britain is following
with the deepest interest the war on de-
preston in the two main theaters
abroad. Germany and the United
States.
With regard to America. the feeling
of confidence in the successful issue Of
President Roosevelts policy tends to
strengthen. and the apparent triumph
| of that policy in regard to the coal In
dustry overshadows. in the British view.
the merely personal episode OF Henry
Ford's resistance to the automobile
code.
No doubt is felt that, with the impe-
tus of the Nation behind him. President
Roosevelt will be able to steam-roller
the most formidable opponent in his
path and that in establishing the prin-
| ciple of collective bargaining he will
lay sounder foundation for the future
of the American industrial structure.
The experience of England supports this
, conviction, for throughout this pro-
| longed crisis nothing has contributed
more to stabilize the nation and pre-
vent revolutionary convulsion than
the equilibrium maintained between the
interests Of capital and labor owing to
recOenltlon OF the tTaoe UNION piu-
! ciple x
The outlook In the other main theater
Of the world struggle for economic re-
covery Is much less hopeful. While the
United States is engaged in a positive
attack on the causes of the depression,
the German sky is darkened by an in
ternal political and racial war reminis-
cent of the Middle Ages and unrelieved
by any apparent policy of economic
,, recovery.
The British embassy in Berlin pub
lished on Thursday its annual report
of economic conditions in Germany.
covering the first months Of the Hitler
regime. In marshaling facts and fig
ures the report makes gloomy picture
of unbalanced budgets. enormous unem-
bankrupt agriculture. Germanys total
,, exports stand nearly $4,000, 900 marks
lower than year ago. The principal
/ loss is in exports to Great Britain,
which have fallen during the year by
f34 900 900 at par. This catastrophe
slump in Germanys trade with her
principal customer leaves Russia and
Holland as her chief sources of trade
and Hitler has taken pains to offend
both by raiding the Soviet trading or
ganization in Berlin and by putting
nodVy duties Oh imported ldCS ana mar
garine from Holland.
The deficit on the joint Reich and
states budgets stands at the enormous
figure of f85 100000 at par and. though
the official figures claim a reduction of
the unemployed by 500 900 under the
Hitler regime. the statement plainly is
deceptive IN view of the declining fig
ures Of export trade and the lower
yield of the Reich tax on wages. The
decline in registered unemployed Is
largely due to the fear Of workmen to
come to the labor exchange. for political
reasons, and to the absorption of hosts
of the brown shirts into the ranks of
the nominal employed.
4
Already Germany's favorable visible
trade balance has fallen to $4,000, 900
marks This is quite insufficient to
maintain service on the German foreign
debt. If the trade balance shows no
improvement, further defaults on for
eign interest payments are inevitable.
The prospects of such Improvement
are negligible. The prospects of q fur
ther decline are only too evident. Ger
many is committed to a policy of high
protectionism which must provoke re-
taliation from her agricultural neigh
bors. Her economic war on Austria,
while strangling that country. Is dis
astrous also to herself. Evidences Of this
were plain to me during the past fort
night when motoring through Austria
and Southern Germany. The air Is thick
with fears and apprehensions Of .
coming storm. and the paralysis Of eco
nomic intercourse between the two
countries will be fatal to both.
Adolf Hitler is barking up the wrong
tree His problem. like President Roose-
velt's. is economic. His policy Is po-
litical revolution, which aggravates the
problem and keeps Europe In ferment.
(Copyright 1881