Evening star., 1938-10-23

complicated national and international
economy and revert to the balance of trade
and gold system. The Germans are deeply
suspicious OF the motives which lie be-
hind an eventual invitation to attend 4
parley with any such objectives.
Forced to Adopt System.
Germany, they say, was compelled TO
adopt the antiquated barter system bv the
principal financial powers of the world.
Great Britain. the United States and
France. Paris, New York and London
markets have refused credits to the Ger
man government, using their gold reserves
as political pressure against the totalitarian
states Hence they were compelled to
adopt and modernize the "clearing-house
system'-the technical name for barter
Why then. this anxiety to get the totali-
tar1ans back into the gold system? ask
Berlin and Rome. Hitler and Mussolini
suspect trick to make them lose, by
economic and financial pressure, the ad-
vantages they have gained by a show of
force. Furthermore, with half the world
prepared to adopt the barter system as
the principal means of exchange of goods,
how long will the Western democracies
be able to continue their payments in gold
for the trade balance system?
AN economic conference?" ask the Ger.
mans and the Italians What for? What
can you offer?" The markets east of the
Rhine and to a certain degree in South
America are drifting toward the Rome
Berlin axis. Only if the democratic states
can offer tangible inducements which would
not imperil the expansionist plans, and if
the totalitarians are convinced they will not
get the short end of the stick, is a con-
ference possible
Mussolini Has Not Been Paid.
Furthermore, Mussolini has not yet been
paid for his services to Germany and to
the cause Of peace" The price is not yet
known, but observers believe that some
tangible arguments will be extracted soon
from the Pandora box to show why the
French must liquidate the Tunisian situa-
ton
Italian unofficial spokesmen already are
preparing the ground in London and Paris.
They say that France has a declining birth
rate and stationary population. Italy.
countrarywise has an increasing rate Of
natality and growing population Colonies
are needed these days. not for commercial
purposes, but to give food and shelter to
a population which cannot find it in the
homeland. Hence countries which possess
colonies only to exploit their natural re-
sources ought to yield them to countries
which require them for surplus population.
And Tunis happens to be sharp case in
point. The Italian population of Tunis,
they point out, is larger and commercially
more active than the French. 1t would
only be logical to have the French pro-
tectorate transferred to the Roman empire.
The minor Machiavellis in Rome argue
that little pressure" might make the
French see the justice of the Italian argu-
ment They believe the bulk of the French
population would rather see Tunis change
masters than fight murderous war They
expect the French and the British will dis.
play no more enthusiasm for the defense
of Tunis than they did in the Czech crisis.
Until all these matters are settled, there
can be no serious discussion of limitation
of armament or an actual reconciliation
between the totalitarian and the democratic
governments. These are the undercurrents
fear that another storm may break after
this winter.
Copyright, 1881