Evening star., 1934-03-04

appears to agree with Premier Musso-
lini Of Italy on errors committed by
old-fashioned capitalists, saying, "Mr.
Roosevelt uses the same argument in
order, little by little, to transform
traditional capitalism into . kind Of
state capitalism" It adds that Eng
resisting this "perilous revolution"
BY n. q. MITZAKIs.
Former inspector of the Bank Of France
and . LEADING French financial and eco
nomic authority.
PARIS.-President Roosevelt's great
miracle, to European eyes, Is to have
known how to maintain his popularity
during q crisis which still imposes
grievous trials on the world and par
ticularly on the United States. His
accession to power was greeted In
America and In Europe with great
wave Of sympathy and optimism.
France particularly welcomed
Roosevelt's coming, hoping that he
would maintain the gold standard
and, by the same token. the stability
Of all other moneys attached to 1t.
There Is no question but that
French opinion was bewildcred when
the President launched his country
into voluntary depreciation, espe-
cially without q defined limit-or at
least not until his message to Con-
gress on January is, which resulted
in the voting of the gold reserve act.
From . technical point of view
France has never clearly understood
y~H,v kvr~s iLa ka toA
States-holding an enormous gold
stock and stable money-should
adopt depreciation to solve q question
Of private debt.
1t would seem logical that II a great
part Of the American people were in
debt beyond their means and beyond
their possibilities Of guaranty. the i'm
prudent creditors should submit to the
necessary losses with whatever aid the
Government might be able to extend.
Grave Responsibilities.
In choosing the brutal road Of de-
valuation President Roosevelt has as
suned very grave responsibility, be-
cause his decision has created, inter-
nationally, new and serious element
Of trouble in Europe where it was
thought that the New York market
would survive the British weakness
and that at least one of the pillars Of
capitalism would remain unshaken.
Contrary to what our American
friends may think, it is not because
the devaluation Of the dollar has cost
us large expectations Of gold and will
cost us even more, that We disapprove
Of their monetary policy-but rather
because it has not produced the eco
nomic recovery that We had hoped for.
It was only by an imitation of credits
unprecedented in the economic his
tory of the world, particularly in the
United States-that the general level
of prices reached the level of 1925
and there is not an economist in
France who believes that an artificial
devaluation of money is capable of re-
establishing 1t.
The monetary authorities of France
will be the first to admit that the
gold holdings Of the Bank of France
are much larger than necessary for
the mass Of credits now circulating
In that country. but 1t is not to New
York that the surplus should go.
1t should 60 to London, which Is
the only place in the world today
capable of redistributing it in the
form Of credits TO the entire world.
One might ask. then, why France
did not assume this task at the time
that gold flowed into the country for
reasons Of security.
The answer is very simple: II Is
not in few short years that one can
become the worlds banker The
crisis Of confidence has become so
acute in all countries that even Lon
don's famous "city" will not be as
liberal in the future.
While following with sympathy and
interest the great economic expert
ment directed by the American Gov
ernment and endeavoring to place
1t in a social frame much different
from our own, We must admit that
We in France are suffering to such an
extent from interference and excess
sive socialism on the part of the
state that We cannot have much
faith In the benefits it will produce.
That the old threads Of an economic
progress may be again picked up on
q measured and healthy basis for the
benefit Of all should be the goal, be-
cause the sufferings Of all classes have
been unnecessarily prolonged by the
uncertainties Of the present.
By AYNI MADE HAssAN IAHsIN BEY,
Former assistant secretary Of finance Of
Turkey.
INSTABUL - Looking back on
President Roosevelt's first year in
office. we find that the creation of
the N. r. A. rendered the United
States a great service. but more time
is needed to see its results.
The reduction in working hours was
socially step of progress capable of
raising the standard Of life of work.
ers. but unless rival industrial countries
follow suit American exports may be
decreased thereby.
In q country like the United States,
where centraIzation Of capital created
vast enterprises, 1t Is highly i'm
portant to take measures to prevent
abuses rising from such centraliza-
ton. especially enormous profits ac-
cruing to q limited number Of rich
men to the detriment Of the general
public. The powers accorded Mr..
Roosevelt on this problem are so great
as to throw on him an equally great
moral responsibility.
To use an oriental proverb, " pity
the man who lifts on his shoulders
such q heavy burden"