Evening star., 1934-08-05
ECONOMIC CRISIS
SHAKING WORLD
Downward Curve of Busl-
ness in Britain and U. S.
Conditions Significant.
BY DAVID LAWRENCE.

II there ever has been proof Of the
fact that the world Is an economic
unit, 1t has been furnished this week
in the behavior Of business indicators
throughout Europe and the United
States.
Although Great Britain has been
climbing steadily since the low point
OF 1882. now. for the first time. there
Is downward curve. In the United
States relief rolls are higher than o
year ago in such cities as New York
and the unemployment curve for the
whole country is up again. The
British are concerned about tariffs
and the effect Of taking In each
others washing" The Paris markets
reflect uneasineSS over the way the
American dollar is acting. especially
since Secretary Morgenthau started
the printing presses going on new
silver certificates.
The European world Is expecting
American imitation and possibly an
increase in the price Of gold again.
All this Is unsteadying. President
Roosevelt has come back 10 q much
NOAAAE0 NOAlAtAy AAl0s OAE AQQe
mueh-worried world.
But how can there be serenity in
the face Of the European situation?
Today the whira Of one man controls
Germany and threatens Austria. To-
day one man controls Italy. A. dicta-
tor controls Russia.
People stu Rule U. s.
As for the United States, power has
been concentrated In the hands OF
one man, too. but the difference Ia
that the people through Congress can
revoke the delegated powers. This
does not remove the fact that the
whole world has somehow got into
the hands Of rulers who are, for the
moment, at least, strongly intent on
developing isolationist policies.
The idea Of cooperation between
countries for the benefit of all is at
tackled as impractical by the Nation-
alists everywhere, who insist that ma
tions must become self-sufficient. Jt
Is evident that this philosophy is be-
ing carried to extremes and that, even
II 1t were desirable, the world must
face several years Of painful transi-
ton while these major readjustmentS
are made.
Though the world today Is not at
war In the sense of blood conflict,
there Is an economic war going on
unparalleled in the history Of civili-
zation.
Two years ago, the United states
broke up the World Economic Confer
ence by refusing TO cooperate with
other powers. Today, there isn't even
suggestion OF another consultation
OF conference.
The events In Germany have, OF
course, been disturbing ever since
Hitler assumed dictatorial powers, but
the knowledge that all restraints are
now off-owing to the death Of Ger
manyis strong mans calculated 70
increase apprehension generally.
Economic Desintegration.
1t Is not that war is In prospect,
for the national governments are too
well aware Of the futility of such an
instrument, but there Is something
worse than war-economic distntegra-
tion.
The total number OF unemployed In
the world Is about 27,00o,000. Eow
long this enormous number OF persons
can be fed and clothed at public ex-
pense and how long their individual
morale can be maintained Is prohle-
matical. Already. since 1914, 45
countries have had revolutions. The
area covers more than three-fourths
OF the earth's surface. Economic ma
tionalism has produced chaos.
Perhaps the time has come TO try
the other formula--the one by which
the world has always prosperegt--
economic cooperation. But the
statesmen of the world are tiInid
about trying 1t. Secretary Wallace,
one of the most candid Of the nd
ministration's spokesmen, thinks the
solution to our agricultural problsm
must come from revived foreign
trade. Britain says the same thing
about her own plight. Tariffs and
quota restrictions and all sorts OF
devices designed TO make 1t possible
for each nation TO live In economic
isolation have been tried and have
failed.
While the old days Of large Ia
ternational trade may never come
back, the fact remains that the Unitnd
States ought 10 have and can get
much more foreign trade than she
has today. Other nations, too. need
increased volume.
A return to peaceful political con-
ditions, a spirit OF give and take In
commerce, and a realization that
economic warfare only leads to human
suffering must come II the tide Of
world affairs is to turn. It Is ap-
parent that we are drifting toward a
climax Of some kind In world COM
merce and one in which President
Roosevelt can play a conspicuously
helpful part. For TO large degree
he is the master Of most Of the cards
that must be played II the world Is
to have a new deal in trade, In
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