Evening star., 1934-10-07
BY OWEN L. SCOTT.


than is the United States? Has she
"mudoled through" her depression
without New Deal or a plan? Do
differences exist between the British
and the American situations that re-
quire different methods? And, finally,
are these signs that in this country
industry now is prepared to accept re-
forms and the Government is pre-
pared to deal with industry in a new
attempt to push out Of the present
impasse?
President Roosevelt raised those
questions by his September 80 radio
address. The British felt flattered at
his references to them. Somewhat
patronizing comments appeared in the
conservative newspapers Of that coun-
try.
Out Of 1t all is developing contro-
versy, with the New Deal as the
theme. Britain's recovery or lack OF
recovery promises to become an issue
in America. 1t is an issue that Mr.,
Roosevelt has sensed on more than
one occasion, as his remarks, both in
public and in press conferences, have
shown. The question is asked: II
the English have recovered by ortho-
dox methods, without a New Deal,
then why cannot the United States
do the same, avoiding experiments?
But what of Britain? Has she re-
covered in this manner? What is her
outlook? How satisfied are her peo-
pile? Answers may be found in re-
ports prepared by departments of this
Government on the basis of impartial
and careful official studies. They show
this:
In a general way. British home
trade has been quite active. Employ
ment has picked up, so that there
now are about 100000 unemployed
On a comparable basis, the United
States would have approximately
6,000 900 jobless, instead OF an esti-
mated 10000 900. The most optimistic
claim is that the New Deal has put
1000 900 men back to work, but still
Britain is 100000 ahead.
On that basis it looks as If the Eng
lish have made more rapid progress
toward recovery than have the people
Of this country. But, the reports point
out, England has been in an almost
continuous depression since 1921.
But, If the British are recovering
what is back of their recovery that Is
not behind that of the United States?
Here. again, the answer is given by
Government reports. They tell that
much of the stimulus is due to the
turn of Great Britain from a free
trade to a high-tarif country. The
United States long has been high
tariff country. Behind the new Brit
ish tariff wall newly protected indus
tries are rising to supply the home
market, formerly supplied by other
countries. Factories are being built,
workmen are employed in the new
factories, and there has been a gen.
eral stimulus from the added domestic
purchasing power.
X X X 4
Then, does it look like the British
are heading out of the woods?. Not
If the comments of her own officials
are accepted at face value. They say
that the English home market now
has been developed just about to its
maximum. The government has pro-
vided tariff and quota restrictions. 1t
has guided a building boom. It has
encouraged finance and industry. Yet
2,160,000 men remain unemployed
But, contend the Presidents critics.
the English government has removed
fear in the nations currency and has
reassured British business men by bal
ancing the country's budget. Why
does not the United States do the
same?
Britain has balanced her budget
and the United States has not. But
this balance has not taken account OF
payments owed this country on war
debts. Also, it has been achieved by
tax levy so extremely burdensome
that it would draw violent protest II
applied here. Senator Couzens con-
tends that British tax rates, II I'M
posed in this country, would raise
enough money to pay for the New
Deal and leave large amount of sur
plus cash for the Treasury. Besides,
Britain's national debt is larger even
than Americas debt and her credit
would not stand the strain Of added
large-scale borrowing, even If the LJii-
don government wanted to follow that
policy.
II X II X
There is the further fact that the
British pound recently, in spite of
balanced budget, has been falling rap
idly in terms of gold. In other words
the dollar, which has been maligneo
by some critics and worried over BY
others, has been rising in 7alue wher
priced in highly rated British pounds
That seems to indicate that foreigners
are not greatly worried over the pros.
pect Of imitation in the United States
Further statements are made Il