Evening star., 1934-01-21
INTERNAL DEBT REVISION
HELD KEY TO RECOVERY
New Policy Here and in Europe Shows
Benefits of Industry and Government
Cooperating, Writer Says.
BY earle C. CONWAY,

~ USINESS men often will talk
X more frankly with other business
men than with representatives
- of the press. For that reason
brief review of my conversa-
tions with industrialists and financiers
in Italy, France, Belgium, Holland and
England during recent two-month
trip may prove of interest. The journey
was made for business purposes, but it
had a secondary purpose also. The
most important as well as one OF the
most difficult things in times like these
is to gain true perspective. One may
attempt this in two ways: first, by
reading; second, by going far enough
away from our own shores to obtain
a longer and broader view
AS to reading-the depression has
done business men a service 1t has
made us reflect and study Hard times
jan lazy brain cells into active life.
We have been compe lied to study and
read, and to try to find in the works
of economists and historians something
that would throw light on the fast
moving drama of today
To cross the ocean-at least, according
to my experiences the second way
to correct ones perspective. Finance
and industry in Europe are older than
cul own. Some of the industries and
banks go back long way, and the men
at their head have the advantage of
seasoned tradition. They sit where they
can visualize all our picture and not
merely part. While their judgment
is Just as fallible as the Judgment of
our own leaders, there still is an ad-
vantage to an American business man
in being able to peer through their
eyes.
New Pattern Seen.
As a result of all the discussions had
in the five different countries, I am
persuaded that thought is forming itself
all over the WorlC into a new and def
mite pattern. 1 shall try to describe
this pattern as it relates. first, to
political thought; second, to industrial
thought, and, third, to monetary
thought. And I may say at the outset
that while l went away from New York
with feeling of apprehension, I now
feel confidence both in the measures
being employed by our administration
and in the results which will be pro-
ouced
In the political field the World War
sec ms to have marked the end of an
epoch. Political upheavals followed In
Russia the Upheaval had the greatest
explosive force. wiping out all that had
gone before; it was 8 complete revolu-
ton as to capital, religion and the
rights Of man. In my Judgment it
served as lesson to the whole world
and has tended TO strengthen opposition
against any similar explosion in other
countries. Our average man may be
thoroughly dissatisfied with what has
taken place, and rightly so; but the
Russian PVnpripnPo ~,
his mind that he is better off here than
ne would have been there. The same
is true OF the Englishman, the French
man. the Belgian, the Hollander and
the Italian. They may not want to re-
turn TO the old deal, but they know that
Communism is not the answer for them
However, even Russia is now showing a
tendency to reward initiative in labor
and management.
What is happening in these other
countries is that governments are turn
ing to men rather than to parties or
groups, to national unity as contrasted
with partiSanship. The first step Of
Fasclsm in Italy was to give the govern
lient unifled national purpose. When
EnglancS S electorate almost unanimously
turned out the old order and inaugu-
rated the national government with its
abrupt-though. of course, less dra-
matlc-than that which took place in
Italy. Poland has its Pilsudski Ger
many its Hitler. Italy its Mussolini;
While here in America we too have
turned to man. Franklin Roosevelt
France is one major power which has
not sought its solution in a man rather
than in parties; but even France may
have to come to it.
Universal Suffrage
These political changes all over the
world, for the most part, have been the
result of crisis in each country's af-
fairs. Prof. Ramsey Muir. leading Lib
eral English philosopher. says the pres
ent method of election by universal
suffrage in geographical constituencies
is proving a failure everywhere. Al
though the immediate reaction to this
failure on the part of the machinery of
democracy has been centralized re-
sponsibility and control, I do not be-
lieve that such highly centralized con-
troll necessarily represents the final
step. 1t is reasonable to expect that
after the acute period OF crisis is over,
changes viii be worked out whereby
Gemocracies will become truly represent
graphic interests.
Let us illustrate by referring for
moment to history. The classic Greek
form of democracy was, in reality. very
limited The privilege of the ballot was
reserved for those of superior mental
advantages and ability. Within their
ranks democracy ruled, but the ranks
were not all inclusive. In England in
the middle centuries representative gov
ernment consisted of landowners,
bishops and abbots, small landowners
and some tenants. Commercial inter-
ests were represented by burgesses. Rep
resentation was vocational. not geo.
graphic. The French Revolution gave a
new conception to democracy. expressed
in the motto Liberte, Fraternite, Egalite
Vocational representation passed away.
and in its place geographical, numerical
and universal representation came in.
The question the modern world has
to face is this: Did not the French
Revolution go too far? Did not We in
America go too far? The New England
town meeting is an excellent medium for
the administration of compact, homo
geneous town. but the founders of New
England never envisioned nation OF
125, ,000, 900 people, or cities Of 5000 900,
or idustries with billions of dollars Of
annual volume. Isn't it fact that our
units and our problems have outgrown
the original conception of our institu.
tons? I believe that some happy me-
dium exists between the very limited
vocational representation of the past
and the universal, geographic represen-
tation of today, and that when that
happy medium is found one OF the
major problems of every modern state
will be solved.
Leadership and Control.
Politically, therefore. 1t appears that
we shall have individual leadership.
with highly centralized control, until
the crisis is passed, and that out OF
this will evolve new and more work
able pattern for democracy.
In the industrial world history fur
conditions. The feudal lords Of old be-
came so powerful that 1t was necessary