Evening star., 1934-12-09

For many q long year economists
will be writing books about the great
depression of the SOS and students
will be poring over them. Previous
depressions in the United States and
elsewhere have evoked volumes dis
cussing causes and canvassing cures,
but it is a safe prediction that scarcely
the World War itself will have re-
suited in the production OF so many
works as the depression.
One of the more interesting chap
ters will relate to the contrast In ex-
periences and methods in the great
English speaking countries. Although
so closely akin in blood, language,
manners and customs. there have been
notable differences in methods pur-
sued in the effort to shake on the hard
times. Briefly stated, the most nota-
BILE difference between Great Britain
and the United States has been that
the British have followed conserva-
| tive and old-fashioned ideas, while
the Americans have reSorted to many
novel and aggressive steps. This is
regarded as the more remarkable, in
that Great Britain was so far in ad-
| vance of the United States in polit-
ical radicalism. At time when Amer
ican labor had no political influence,
in party sense, when labor leaned
conspicuously neither to the Repub-
lican nor the Democratic side, labor
in Great Britain. had advanced so far
that Labor party actually put
prime minister in Office
| The depression struck Great Brit
ain earlier than it struck the United
States. Indeed, it might be said that
England had been in depression 10
years before the United States felt
the dulling effects. While the great
est boom in its history was being ex-
perienced here, England was support
ing huge population on the dole.
One Of the sharpest contrasts re-
vealed is in the matter Of gold. Due
| to pressure from the United States
| for tncrementS on the debt, which
were paid, and due to failure of Euro
pean debtors to pay England what
| they owed her, the Bank of England
was forced of the gold standard
This was regarded as something akin
to disgrace and, at the least, was
looked upon as a calamity. But the
sequel surprised many Englishmen
in that not only did the business of
the nation fail to collapse-it actually
improved. Foreign trade, which had
been in the doldrums briskened con-
Slderably, and internal business gained.
Fundamental Difference.
On the other hand, the United
States, while holding the largest stock
OF gold which any nation ever had
held in the history of the world, de-
liberately went off the gold standard.
The effects were varied. Little diff
terence was made in domestic trade,
and whatever advantage might have
been obtained from a cheaper dollar
in the attraction Of foreign orders
seems to have been Offset by the er-
ratio fiuctuation of the unit in for
| eign markets. While suspension of
the gold standard in England seems
10 nave turned out something of a
blessing. 1t has been difficult to find
any advantage accruing from the de-
Hoerate American suspension.
AT base, the fundamental difference
between the English and American
systems of recovery has been adoption
oy the British Of an old-tashioned
oelt-tlghtening economy. The dole
was cut almost in the face of famine
economies were pressed down on the
people until the budget was balanced
Taxes on the rich were kept high and
| every possible saving was made. In
the United States there was some
thing more in the nature Of frontal
attack on depression. The English
shrank into a sort Of defensive ball;