Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-09-11

goes broke as long as her man.
power has not been destroyed and
her natural resources exhausted.
Every country possesses strong
recuperative powers, even II it is
assisted only moderately from
abroad.
After the Civil War we were
considered to be dead broke. Yet
we came back and in less than
century became the worlds prin-
cipal supplier. 1t may be said
that the case of the United States
after the Civil War is not a par
ticularly good example, because Of
the great undeveloped wealth
which existed in this country at
that time and also because after
that war European capital was in
vested lavishly-and profltably-
in America.
The case of Germany after
World War I also is cited by those
who tell the British that bad eco
nomic situations can be solved by
hard work and determination.
Germany underwent devastat-
ing economic crisis between 1920
and 1923. The mark. it will be
remembered. fell to nothing. Bill
lions of them sold for a dollar.
The country's gold reserves were
utterly exhausted.
The assistance that came from
America-more from spectators
than from actual investors-was
only a drop in the bucket OF what
was needed in the hectic years
which followed the German de-
feat in 1918. Yet, within less
than a generation Germany came
back economically. Things started
improving rapidly before the ad-
vent of Hitler and his Nazis. who
regimented German business and
industry into a full Socialist
economy.
Germany's Plight
A short time after the Hoover
moratorium in 1882 the Germans
got back on their feet. If it had
not been for their misfortune In
embracing Hitler and Naziism. 1t
is probable that the Reich today
would hold a prominent position
in world economy.
Germany has more raw ma
terials than Britain, but the Ger.
man people were no more enter
prising than the British were IN
the days before the war, and there
is no question that a nation which
displayed the stamina OF the
British in World War II will be
able to remedy a situation which
requires hard work. self1essness
and the will to live. Britain. IN
fact. is in a much better position
than Germany was because she
can count on the loyal support OF
the United States and the coun-
tries of Western Europe.
Under these conditions the talk
about Britain being broke" and
heading for inevitable bank
ruptcy if she does not get sub
stantial financial and economic
assistance from this country
should be taken with several
grains of salt.
Even Japan. which is almost
completely lacking in raw ma
terials and was even more devas-
tated by the war than Britain
was, now is staging a comeback
which is little short of spectacle
lar. Japan was utterly democrat
lied by defeat. Her main indus
trial centers were ravaged by
bombing to an extent even greater
than British industrial areas.
The war waged against China
after 1881 had drained Japan's
finances and the war against the
West more than completed that
drain. When we took over We
found an abjectly poor and starv-
ing people who had lost confidence
in everything and everybody.
japanese territory has been &C.
cupied by a foreign army since
August, 1945.
Can Be Remedied
In spite of all these factors ia
pan, while still in a difficult eco-
nomic situation, has started pro-
ducing with what raw materials
she can get. According to re-
ports from Gen. MacArthur's
headquarters in Tokyo, that hard
hit country requires now only a
little help before she can take her
place once more in the worlds
economy.
Whether the often-heard criti-
cism-that the Labor governments
paternalism is the cause OF the
British peoples lack of initiative
is correct or not is difficult to say.
The fact remains. however. that
four years after the end of the war,
during which time Britain has,
drawn from the United States not
less than $4,000 100000 in direct
loans and Marshall Plan funds,
she is in such a deplorable condi-
ton, according to her supporters.
that unless America comes To her