Evening star., 1938-09-09

der the law you can buy one-half a
pound a week. The butter fats and
substitutes for cooking and other pur-
poses are made from almost every
thing conceivable. Whale oil is used
along with oleomargarine made of veg
etable oils and animal fats.
Potatoes Are Scarce.
Potatoes are very small and scarce.
Bread is made in part of potato -four
and other substitutes.
Coffee can be obtained but in most
cases is a synthetic preparation. In
fact, you can fairly say that in Ger
many now food products are more or
less synthetic. Therefore, I am of the
opinion that there will not be war,
because I do not believe that Ger
many could support an army for any
length of time. However, am of the
impression. and I gained this in talk
ing with those who are very we'll in
formed on the European situation,
that Germany is facing financial
collapse which will bring around a
conflscatory tax of very severe pro-
portion.
The declines on the Berlin bourse
have been very severe and rapid and
indicate something of a most serious
nature. The Jewish question has ap-
parently been settled in the mind of
the German government. and it is
pitiful to see to what extent that race
is being driven out of Germany, seek
ing refuge in any country where it is
possible to locate. They cannot exist
in Germany under the present restric-
tlonS, regulations and taxation
In France the Communistic and
Socialistic situation, due to the labor
leaders, has made it so that the
large stores, such as the Gallerie
Lafayette and shops OF that char
acter, as we'll as smaller places, are
closed all day Monday. Prices are
high and food products are high. The
40-hour week has proved failure.
English Prices High.
I'm England all industry is given
over entirely to armament. The tenn
per of the people is serious and food
prices are very high In fact, England
is the highest country, believe, today
in the world except for labor.
AS an illustration of the concern
with which the English look upon
the situation, a first-foor apartment
rents today for a much higher price
than a top-floor apartment because
Of the fear of airplane raids, and
If it were not for the building program
and the munition program England
would be facing serious business
depression and, notwithstanding these
activities, there is a gradual recession
taking place which forecasts an eco
nomic disturbance.
To sum up the entire situation, I
see nothing in Germany. England or
France which would indicate to me
anything of a normal prosperity or
a normal condition. The feeling is
that the English pound must be de-
valued. There is no confidence in
the French franc or the German
mark, so the result is that trade
between the various countries abroad
is naturally restricted. I cannot see
how there ca nbe any normal eco
nomic condition until war has been
fought and completed, or an economic
collapse takes place and a peace con-
ference is called, which, of course,
would be disturbing in itself.
In talking with very eminent Eng
lish and Holland financiers I find
that they do not look upon the
United States as facing prosperity.
They feel that we are gradually enter
ing into the same phases in this
country that exist abroad; that only
by enormous Government expenditures
can the economic structure be sus-
tanned, and when this is curtailed,
or from necessity discontinued, the
country will have severe depression"