Evening star. [volume] (Washington, D.C.) 1854-1972, 1952-09-16
Europe's Economic Ills

There are many familiar symptoms recorded
in the gloomy report of the United Nations
Economic Commission on industrial production
and employment in Europe.
The commissions findings, in brief, are that
both production and employment fell or stagnated
in all major non-Communist countries except
France during the first quarter Of this year,
and that the troublesome imbalance on dollar
reserves worsened in most cases. Even in France
the commission diagnosed the brighter picture
only as reflection of the basic evil OF imitation.
a stimulant to internal consumption but a serious
blow to important export prospects.
It would be an unfair oversimplifcation for
American analysts to conclude that the relatively
plodding pace of European industry Is due
entirely to lack Of either will or skill on the
part of these nations. The vitality of European
industry has suffered far more damaging blows
in two world wars than has our own, the politi-
cal dislocations have been deeper and the
continuing problems of industrial power and raw
materials have become increasingly more vexing
Coal for example, has traditionally been
keystone of European industrial productivity
It exists in adequate quantities. particularly in
Britain and in such continental areas as the
Saar, but its production and its movement from
the points of supply to all points of consumption
have not maintained the consistent upward, or
stable pace needed to match demand. The U. N.
commission, warning that per cent drop in
coal inventories can create bottleneckS which
throw all of European industry out OF line,
suggests that the producing and importing
countries seek cooperative plan for financing
coal stocks
The dollar problem, namely the ability of the
European countries to buy what they need from
the United States, has many ramificationS. One
is that more effective American techniques in
mass production shut off foreign competition in
a wide range of goods. further range of
potential competition in the American market
is narrowed by import restrictions. Another
factor, emphasized by the U. N. commission,
is that European demand for consumer goods not
only places great burden upon European indus
try-to the detriment of its production of capital
goods or of goods for export-but also commits
large percentage of its dollar reserves for pur-
chases of such goods over here.
There is no simple cure, of course, for the
economic troubles in Europe and no safe course
by which we can ignore or dismiss them. The
United States is joined with the free nations of
Europe in common effort to achieve security
and peace Both of our major political parties
are committed to that course so there will be no
turning back in the months to come. It is
recognized in Europe, as here, that the resolution
of these economic ills cannot be found through
continuing American financial grants and loans
even If we could afford such an inexpedient
formula.
Europe does not wish to become permanent
"poor relation" of the United States and there
are signs In such endeavorS as the Schuman
Plan that Europes own economic statesmen are
prepared to come to grips with the dilemma A
comparable freshness and determination to find
q new pattern for our international economic
relationships is being called for here.