Evening star., 1935-12-31
WORLD RECOVERY
REMAINS SPOTTY
U. S. Makes Good Showing.
Latin America Is Best
Market.
~ Cambridge Associates.

already been voiced 1t has been eX-
pressed in a language than which
there is no more convincing-gold.
It is true that to a great extent fear
and mistrust caused the movement OF
gold, but its direction was set by the
relatively better position OF the Amer
lea of 1885 in comparison with otner
countries of the world.
Abroad, we find an England that
has made great gains since it went
off the gold standard in 1881. Steel
production last year in England was
near its '29 highs. Building activity
has been pronounced. Manufacture,
on the whole has proceeded at high
levels. On the other side of the
fence is the deep depression that still
reigns in the coal mining and ship
building districts.
British Need Revival.
It seems now that England has
virtually exhausted the possibilities
of trade within the empire. She
awaits now the improvement in for
eign trade which has been so re-
stricted, first, by reason of the world
depression and, more recently, by the
war fears which have gripped Europe.
Some markets England has lost to
the deprecated japanese yen. Other
sales have gone to the Germans with
their aggressive campaign to increase
much needed foreign credits. Eng
land, probably more than any other
country, would benefit from interna-
tional StabilZation of currencies and
international peace which must be its
forerunner In the meantime, the
British believe that it is their best
policy, until the situation has cleared.
to muddle through with their man.
aged currency and their efforts to
build empire trade. Another direc-
tion in which British trade is ex-
panding. and could expand much
further, is in Russia and the Far
East This is the more immediate
hope and, so far as the East is con-
cerned. particularly the line which
English trade policy is likely to pur-
sue most aggressively in 1886.
France in Losing Fight.
countries are still engaged in severe
and apparently losing struggle with
the forces of def1ation 1t was some
time after the 1929 debacle that
France first felt the grip of depres-
sion. but she is still feeling it now.
after most countries have turned the
corner" and feeling it heavily. The
u-I ic hot
ically and politically dominant in
France, suffered tremendously from
the war imitation. Now. the bulk of
the French people are willing to suffer
to almost any extent rather than to
abandon their hard-won gold stand
ard Recent cabinets have proposed
various remedies, but so far their ef-
forts have met with little success.
The world will await with some anx-
iety the results of the French election
in May. If, as expected, the results
should reveal a shift to the left. de-
valuation of the franc might follow
perforce. Such a result, while dis
tressing to many French citizens in
dividually and disturbing interna-
tionally, might be considered in the
long run an aid to world recovery.
Reich Turns to Subsidy Plan.
Germany. by heroic methods, has
succeeded in lifting herself from her
most parlous state by her bootstraps.
Just what will be the ultimate result
of these efforts the world is rather
apprehensively waiting to find out,
but certainly DR. Hjalmar Schacht,
minister Of economics, deserves his
appellation of Germany'S miracle man
Of finance. Most recent and. accord
ing to ReichSbank statistics, most sue
ceSsful, OF his attempts to improve
Germanys foreign exchange position
Is his export subsidy plan. Through
this plan, implemented by various
monetary devices, Germany has been
able to increase her exports and re-
uuce her imports so that the previous
unfavorable balance of trade will be
practically wiped out this year. Un-
fortunately for living standards and
disturbing to neighboring countries
Germany is using her increased for
eign credits to purchase the materials
needed to further her rearmament
program. Since the plan means cur
tallment of food and other consump-
ton goods imports, it is receiving its
real test during these Winter months.
Italy in Vacuum"
Italy, as former President Hoover
once said of Russia, is at present "an
economic vacuum since the applica-
ton Of sanctions and the Tightening
OF Fascist restrictions have frozen the
Italian economy within prescribed
limits. So far as can be determined,
Italy at present is feeling the pinch
OF sanctions most in the form of dis
ruption of its export trade and the re-
sulting increase in unemployment.
For the coming year. at least, no mat
ter how quickly peace terms can be
reached, Italy is likely to experience a
recession rather than expansion of its
domestic and foreign trade.
Japanese trade has gone ahead
fetner handsomely this past year with
Industrial production substantially
ABOVE 1929 levels. The deprecated
yen, low labor costs and aggressive
selling in world markets have all
been factors contributing to Japanese
expansion. but the managed cur-
rency'' idea has probably had the
greatest influence.
Aided by good harvests and the in
PRODUCTION of the Stakhanoff plan for
increasing production in the manu-
9acturing industries, Russia has made
noteworthy progress during the past
year. Purchases from the United
States, largely Of capital goods, have
increased tremendously since the con-
summation of the trade agreement
q last July. If, as there is a good
possibility, the troublesome ques-
tion of the Kerensky debts can be
settled, even greater purchases of
machine tools and agricultural i'm
plements from the United States
should follow in 1896.
Trade Pacts May Aid.