Evening star., 1936-12-06

BY JAMES T. SHOTWELL,
Professor Of History at Columbia
University.
"HE log jam that has been
blocking the movement of in
ternational trade through
i out the depression years Is at
last breaking up. There have been
signs Of 1t loosening for some time
past, but the pry that first worked
it free was the joint action Of the
three great democratic nations, the
United States, Great Britain and
France. to hold their moneys steady
when France readjusted the franc to
the level of world prices. That CO.
operative act Of constructive states
manship was long overdue-so long,
indeed. that when at last it came.
the world was taken by surprise at
the apparent ease with which it was
carried through.
Not only France, but the other
countries that had maintained the
gold standard as the very symbol
of stability passed over to the regime
of regulated currencies without any
Of the social upheavals that had been
prophesied. And then the barriers to
| trade began to fall. Tariffs were
slashed. The way seemingly was open
ing up for q vast new movement Of
trade, bringing world recovery at last.
But these high hopes Of the open
ing weeks Of October were not des-
tined to be realized. There were still
obstacles ahead; some Of them were
mere snags beneath the surface which
the current Of trade could sweep
aside, but others barred jagged fronts
OF the politics of power or prestige.
With all of these the new era which
dates from 1896 will have to reckon.
Just what are they, and how can
they be dealt with? 49,.
Outbreak Of Politics. 80 -
First Of all, there was an espe-
cially virulent outbreak Of politics"
in the two democracies Of the United
States and France. weakening and
even partially paralyzing economic
action for the time being. Presi-
Dental elections cost this country
much more than even the 10000, 900
50 lavishly and wastefully spent by
the political parties. Big business
holds back until an election is over,
especially If its sympathies are not
with the administration. This is but
natural for it has to calculate against
an uncertain future.
But once the nation has spoken.
business must act or else close shop.
Being American. it has in this instance
turned at once to action; it has raised
wages, thus increasing purchasing
power at home, and moved out into
the world market. Thus the election
itself was the second great leverage in
freeing business from the depression.
In France things went differently.
The government Of M. Leon Blum,
which devalued the franc, unlike that
OF Mr.. Roosevelt, who had his N. r. A.
behind him, plunged at the same time
into q series Of major economic re-
forms. The Bank Of France and the
great munitions industries were taken
out Of the hands Of that small but
powerful group which had long mo-
nopolized these centers of political and
economic power. On the other hand,
labor engaged in a minor-happily
bloodless-war Of strikes. Exasperated
sympathizers of both sides OF the civil
in fy, tANAd fn SvSunl,yA
France in a European class and ma
tional struggle.
Over these confused issues presided
a government made up Of q coalition
that reached all the way from the
Communist Left to good bourgeois Re-
publicans. 1t would have been hard
enough to hold these discordant ele-
ments together At any time; it could
only be done now by perssting in q
policy of reform which, in the eyes Of
conservatives, was upsetting the very
basis Of society.
The fact that Prime Minister Blum
is Jew adds to the nationalist hatred
Of him and all his works; although
fair minded critics admit that he Is
not only . man of unshaken integrity
but also Of cool and sober judgment.
His enemies have done their best to
undermine confidence in the franc. It
Is not the first time that factions have
been willing to sell their own country
short.
Situation Must BE Remedied.
This situation In France Is clearly
one that needs to be remedied before
there can be . complete recovery Of
world trade. But there could be no
greater mistake than to regard the
present troubles Is signs Of fundamen-
tai disorders. Given peace In Eu-
rope, there Is no need to worry over
the economic future Of France.
The crux Of the problem lies across
the Rhine, and, to . less degree, over
the Alps. There cannot Be complete
economic victory until italy has hqui-
dated her imperialist enterprise and
Germany has come out from her
seclusion.
There are. of course, difnculties in
other parts Of the world, especially
in China; but however important
these are, they are not to be COM
pared with those in Europe.
Let us first glance at the Italian
scene. A short time ago, Mussolini
addressed 800, 1000 persons at Milan,
and millions Of others on the air,
boasting not only Of his triumph over
the League of Nations. but Of his new
friendship with Germany - which
makes. he said. the line drawn between
Berlin and Rome the pivot around
which al Europe turns. But Ethiopia
costs money, and Germany has no
money for export. Even II 1t had It
would think twice before investing It
In growing cotton IN an area that en-
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