Evening star., 1937-07-04
CZECHOSLOVAKIA CALLED
NEXT STOP OF DICTATORS|
Hitler and Mussolini Expected to Back
Demands of German Minorities
for Autonomy From Prague.

nitely postponed Neuraths visit to
London and lent his support to his
extremist advisers.
The French situation has been the
object of close scrutiny by Reich Of
flclals. Eighteen months ago France
looked hopefully toward bright
financial and economic horizon But
despite its enlightened policies the
Blum administration caused havoc in
French finances. Public works, PEN
Sions, etc, have made a deep hole in
the governments money bags The
| unexpected demand for 81 900 900 900
for the rejuvenation Of the army,
navy and air force has created
further drain on the French budget.
The trade balance is unfavorable
The new 45-hour work week not only
has slowed down French production,
but has made it much more expensive
| compared with that of the totalitarian
states. Foreign markets are slipping
through the fingers of the French ex-
porters. In Central and Southeastern
Europe and in South America German
and Italian goods are rapidly replac-
ing French products. The French
taxpayer has almost reached the limit
OF his taXpaying capacity The
French treasury has been depleted to
an alarming point and the stabiliza-
ton fund of almost S500.0O0. 900 has
been eaten up. This was disclosed
by Charles Rist when he rendered his
resignation from the administration
Of that expired reserve.
Soviet Situation Precarious.
The situa ton OF the Soviet govern
ment is still more precarious Despite
the insurmountabe difficulties of OBJ
tanning reliable information from that
vast country. the little that has per-
colated through reveals an intense
restlessness throughout the country.
Although certain reports from Moscow
indicate that the army has not been
affected by the recent executions,
others equally reliable say that in
various sections of the union regi-
mentS had to be diSarmed and OFF,
GERS arrested because of the defiant
attitude toward Moscow
Thus the two mainstays of Europe's
policy against the Rome Berlin axis
are, at the present moment. alarming
ly Weakened-one, by serious economic,
financial and socoial problems: the
other. by deep disaffection toward
the Kremlin rulers.
Britain, despite the many blunders
she has made in the course of the
last three years, has been playing a
policy Of peace. Her present stupen-
dous expenditure on armaments is
predicated on the belief that her new
military force might work as a deter
rent to the belicose ma atoms But dur
ing her period of preparation she has
been counting on France and Russia
to keep the German-Italian axis from
stirring up trouble.
Now Great Britain realizes that she
alone must enforce whatever argu-
ments she has at her disposal to pre-
vent the Germans and the Italians
from taking advantage of the difficult
circumstances which have come to the
surface in France and Russia in the
course of the last few weeks
Cherished Gold Theory.
The much-cherished theory of the
nations who still believe in the gold
fetish of the last decade-that the
Central Powers can be rendered harm
less by the lack OF the yellow metal
has proved false, at least for the
present
Germany and Italy have been de-
prived of gold for several years. But
they have shown the world that the
metal can be replaced by human
labor; that the totalitarian states
cali acquire raw materials and other
products despite their lack OF foreign
currency or gold. The Italian and
the German peoples have been placed
under a regime OF forced labor. There
is no 40-hour week in these countries
The people work as long as it is neces-
sary Their needs and their work
have been regimented And as long
as they accept this situation the two
governments can easily smile at the
gold boarded in the vaults of Britain
and the United States.
Products manufactured in Germany
are offering stiff competition through
out South America to manufa cturers
Continued on Pare D-3)