Henderson daily dispatch., 1936-03-20
Europe Will Not Fight
This Year, Babson Says
Continued from Page One-)


CONTINUED from Page OneC
as the Mother Country. Conditions
are universally better in all parts OF
the British Empire today than a year
ago and the group is probably IN the
best position of any in the world.
South Africa is the most prosperous
but Australia, New Zealand, Canada,
Northern Ireland, East Africa, Egypt,
India, and the Far Eastern posses
sions are all forging ahead. The west
Indies have been held back by hurrl-
canes and low banana prices. but on
ly the Irish Free State is still actually
| depressed. It is significant that re-
covery in all parts of the Empire. eX-
cept Canada, has been preceded by a
! balanced budget.
| FRANCE was one of the few ma
tions which failed to take part in last
years worldwide Improvement Prices
| have fallen drastically, unemployment
| is heavier than ever, and the rural
class is discouraged. Those who favor
devaluation as against further della
ton are gaining strength daily. and 1t
| is my guess that the final gold crisis
| will come some time this year. Many
believe devaluation would be a long
step toward currency sterilization and
real world prosperity.
SWITZERLAND like France, is
continuing her policy of devaluation
with very unsatisfactory results. Bust
ness in 1885 again declined, but prices
and the cost of living went up. Of the
three remaining gold-bloc countries
Switzerland now appears likeliest to
hang on.
HOLLAND Jared a little better than
the other gold-standard nations in the
last twelve months, but she is far be-
hind the rest of the world. Her I'M
employment and her national debt are
still increasing Resumption of her
foreign trade-the prerequisite to
prosperity-seems as far away as
ever she is watching the result OF
Belgium's devaluation with the great
est interest.
PORTUGAL, in spite of her ply
steal limitations, has been able to keep
abreast of recovery by means of her
free trade policy and her insistence
on a balanced budget throughout the
depression A surplus of wheat, which
is raised at high cost, is the main
problem right now.
BELGIUM'S devaluation of the
belga last March has brought about
a marked change for the better in
this "ex-gold-bloc" country. Employ
ment is increasing, prices are advanc-
ing, foreign trade is on the mend, and
refugee capital is trickling back into
the country.
GERMANY is still wallowing in the
doldrums. Basically, however, she is
in a far weaker position than France,
for the Fatherland has been severely
depressed ever since the wild infla-
tionary days of 1923. Gains in the
armament industries are being offset
by declining activity in textile, shoe,
furniture and radio factories. There
are more unemployed in Germany to-
day than a year ago and the business
outlook is gloomy. She cannot even
secure sufficient foreign exchange to
buy certain necessary raw materials.
Hence, it would be suicide for Hitler
to start fight now.
-ITALY's basic problem is now much
the same as that of Germany-ae Grip
pied treasury Her African campaign
is a reckless drain on the public funds
The cost of living is rising, but the
war has provided employment. in the
ornaments field. Crops were good. last
year and sanctions have not as yet
paralyzed Mussolini, but they are a
definite handicap. The Ethiopian war
will not spread to Europe.
DENMARK had a fairly good year
in 1885. Prices Of her big farm crops
bacon, butter, eggs, and cheese-ad-
vanced moderately. Industrial activity
and employment rose slightly. Her
shipyards have enough work to keep
going for more than a year.
NORWAY's recovery is reflected in
increased turnover of stocks on the
Oslo Bourse. Prices ofsmany whaling,
shipping, banking, and insurance
shares are above the 1929 level. I'M
provement there, as in most nations,
was due to better home market
rather than to an increase in foreign
commerce. She is worried about the
effect on her shipping of the subsidies
being given to British lines.
SWEDEN is probably the most
prosperous country in Europe today
through consumer cOOperatlVeS dno
managed currency, she has made
rapid progress. Foreign trade, employ
ment, industrial activity, and internal
financial conditions compare favor
ably with 1929.
RUSSIA's status is always difficult
to appraise accurately because of the
constant flood of propaganda. How
ever, both farm and industrial pro-
duction apparently showed big gains
in 1885. Her imports and exports, par
ticularly with Great Britain, Ger
many and the United States, rose
spectacularly. If reports are reliable
Russia is making strong come-back
economically.
CzECHOSLOVAKIA's conservative
budget policy is putting her at the
top = Of the list of Central European
countries. Activity in her heavy goods