Evening Star Newspaper, November 16, 1930, Page 39

ITALY AND FRANCE FORM STORM CENTER OF EUROPE Mussolini Chooses Hungary and Bulgaria as Allies—German-Russian Alliance Held Possible *n Event of War. Note~This 15 a rown’ article by Mr. ungettled conditions in o Mpw ol strife and turmoil. BY CONSTANTINE BROWN. F the two antagonistic wmum of power which exist today the Italian p is o at present in lhl.eas vorable ition. to for her allies tmm"w‘ifl Prance had left unattached in Central and Eastern Europe. Hungary, downtrodden and mmhflu'mfied Italy’s support with joy. led by powerful - tile nations, Jugoslavia, Rumania an Czechoslovakia, she welcomed Italy’s friendly advances and, for the time be- , moral support. From the political m it of view Hungary is a uscful tool Italy’s hands. Hungary is a king- dom without a king. By the treaty of throne. For 12 years the have been in quest of a , but no European prince seemed to the job. Now the son of the late King Karl is coming of age and the Hungarians wish to set him on the throne in spite of the Trianon treaty. 'l'g: may happen some time The young prince himself is quite a young man; just 18 years old with no experience whatsoever. Yet the Little ‘nkn'flmvh. Czecho- slovakia and Ri ) have issued the return of wfl‘n‘;:u‘ King !wcr'.:l.dt re a be eomwutd lg az? as AHbrmh of reaty an ungarians have to suffer all the conse- ‘whomever they want. Promises Support. flll"‘u’:!ntbe Little ht:’hnh . The Itallan Efigii ity §§§?;§g§ Al .| of . |game of the two ! £ i I £ 3 £ 23 e et 55‘ qrrageses gg is’ifggg i B ¥ e | the ‘German armies. German officers ‘What will Germany do in case of ;mm:&bel'efllhemmdfll: ol will undoubtedly use her carefully pre- unemployment ‘WWY ) is due exclu- admitted, even by the most minded d | tlons between the French and the Ger- t- . | main a passive y may not enter the European political EDITORIAL SECTI Ihe Sunday WASHINGTON, D. C, SUNDAY ON MORNING, far, NOVEMBER 16, 1930. crease substantially the official army and navy, yet the military expenditure is large for a country that is on the verge of bankruptcy. Nationalism is ground daily on account of the suspicious attitude of France, and the various private military associations, of which Cermany is full, do not escape unnoticed by the French. Neither do they want to be unnoticed. The vic- tor of the Hitler party has been very instructive. The Germans gave France 8 fair warning whén they sent 107 Hitlerite Deputies to the German Reich- stag. Italy is looking hopefully toyard Germany. If the present strained rela- mans don’t improve within a reason- ably short period, there can be no doubt that Nationalistic Germany will be drawn toward Fascist Italy, with serious consequences for the peace of Europe. It is generally said that Ger-| many is poor and disarmed. This is| only partially true. The generation which fought in the World War is still ycung enough to take up arms; the young German generation is enthusi- astically learning the art of handling & rifie or & hand granade; the German Industry is wakening up again, and the German laboratory science is as high as ever. Man Power and Science Available. Man power and science, the two rent assets of the future war, are at least as much available in Germany as they are in France. Germany wants e, say the leaders of that nation, it the same ple will tell you in the same breath t German patience can go only so far and no farther. With a vigorous Poland on her eastern frontier and a powerful and heavily armed can rid of her huge war indebtedness? is likely that she will if these two im- portant questions are settled before trouble starts between Prance and Italy. ‘There is no doubt that there are many clear-thinking German statesmen who maintain that Germany should remain at peace regardless of what may happen in Europe. These clear-thinking citi- zens are very useful to every nation in time but they are swept a 25 the 5 Behind all these intrigues and politi- combinal looms the great, un- certain shadow of Soviet Russia—an immense country, with a population of mm.m people, ruled with an iron d the whole world to follow her example and introduce the Communistic form of government. Hostile to Entire World. of having diplomatic “Buropean tic relations with tries by which it has been recognized, th the official diplomatic of every be useful to the revolut v together with he oficial agents, er wi repre- sentatives of the Soviet government, are watching very closely the political antagonistic European groups of power, and will be ready when the moment comes to take full advan- je of the chace an eventual new war will cause in ope. Russia may be going through an economic crisis; she may be disorgan- ized ecanomically; her finances may be in a bad shape, bt her army is good. This is admitted by every general stafl in Europe today. Nobody knows exactly her military forces are. They are generally estimated at something like 450,000 men, and she has enough war material to increase this number in the first month of mobilization to 750,000. ‘This is a force to be reckoned with. The technical material is good, the aviation is reputed to be excellent; the men are well trained and imbued with the idea of a world revolution. Russia Would Join Conflict. What will Russia do in case of a conflict in Europe? Nobody can an- swer this question except that every- body is certain that she will not re- spectator. According to certain French and British reports there is at present a plan for a close co-operation between the Russian and of the former imperial army are known to be still in Russia, where they are acting either as instructors or as tech- nical advisers, but the idea of a co- operation between the Russian and the German seems preposterous to those who study the situation from' the political angle. The Germans know ex- actly what the Russian government and army stand for and it is most un- likely that they would be willing to work together with the Russians, even against the French, But while Russia arena as an ally of either group, she pared armed forces to help increase the chaos & new war is bound to cause in Europe. One of the avowed objects of the Red army is to help the pro- letariat of the world to destroy capi- talism. In the name of this principle the Soviet government can easily find an excuse for intervening in any part of Europe they like, should that con- tinent be ablaze again. The American Government fis fully aware of the dangers which threaten , and naturally cannot remain indifferent to what is. going on across the ocean. aiplomati I‘Nfl Reports from various diplomatic a; other channels indicate how serious the situation is and how the eyes of those who desire a pacific solution convenient they :ueflna g DEMOCRATS ARE LOOKING Regaining Our Balance Savings Deposits, Greater Dividends and Cheap Money Are Few of Indices Forecasting Return to Normalcy. Drawn for The Sunday Star by Devitt Welsh. MANY PROMISING INDICATIONS AND OPTIMISTIC FACTS ARE APPARENT TO THOSE WHO LOOK FOR THEM. BY E. M. ZIMMERMANN. "E balance wheel in the thinking machinery of the average Amer- ican, apparently, is either badly jammed or has been kicked out of the apparatus as a needless piece of junk. What's the use of a fiy- wheel anyway in a machine geared to the speed of present-day business?— this seems to be the attitude. The result, of course, is the same in the business machine.-which necessar- ly is & replica of the thinking machine War —as it is in an apparatus of steel, cop- per and brass—of wheels, cogs, cams and levers. Either the speed is so rapid } at more than one hundred times their earning power and more than 20 times their asset value, with securities market that it threatens to burst into flying |credits badly overextended and the bits, spreading disaster in their wake, or the revolutions of the wheels are so disgustingly slow that every one is dis- gruntied. In the Summer of last year when in- flation was rampant and production schedules of industry were establish- ing new high records, with stocks sell- ing on the New York Stock Exchange whole country riding at breakneck speed for a certain fall from which no power in heaven or earth could save it, practically every one was rampantly bullish, wearing rose-tinted spectacles, dancing merrily down the primrose path, scattering thousand-dollar bills to the winds with both hands. Even some of our usually sound thinking bankers and economists fell for the “new era” bunk—the same old theory which had fooled business in times past. This theory was accepted by many. It was the subject of learned discussions, of magazine articles and even books. But the old laws of eco- nomies are immutable, unchangeable and always operative. Now what a contrast! Fundamental conditions are far more sound than ! they were in 1929, but our thinking may (Continued on Fourth Page.) Debts to Take Stage Coupled as ;l‘hey Are With Reparations Payments, BY PAUL SCOTT MOWRER. ARIS.—The old problem of Ger- man reparations and allied war debts to the United States promises soon again to take the front of the stage in interna- tional affairs. Closely linked with this problem is that, sald to be even more important, of international credits and a possible better distribution of the world’s gold, three-fifths of which is now concen- trated in the United States and France to_the detriment of other countries. It is*the heads of the great American, British, French and German banks of issue who will be the princi) nego- tiators in these delicate and important questions. The original plan was that the heads of those banks should meet in the United States this Fall, but for political and other reasons this plan was abandoned, and it is now presumably they | around the Bank for International Set- for the bank provides o for the sponsibility of overseeing the of the world’s credit structure. bank, on his recent unofficial visit to the United States have had many conver- sations on these subjects in both Wash- ington and New York. ‘The essential aim of bankers will be to decide whether they are in a po- sition, through the international bank and their own national banks, to do anything to ald the cause of world peace and Wfls, which are con- sidered closely linked together. Brings Threats to Peace. In Europe, and perhaps also other parts of the world, economic suffering usually soon brings about complications of international politics and eats to peace, which in turn interfere with the normal flow of gold and thus increase economic difficulties. If means can be found to improve the finanices of Germany, Italy and Great Britain, it llé’e'lv& .d long ltkhp“wlguhlve been taken ard _pacif) rrope, which is, with the Unflflg States, the world's greatest market and center of productivity. Europe or thfhgnfled States first is regarded hel - | Consultative Committee They Have Effect on World Economic Situation. to finding how such a move would be received. At a meeting of the Interna- tional Bank some three weeks ago, the international bankers and the Germans examined the situation thoroughly. The latter were reminded that a moratorium would apply only on the conditional part of the Voung annui- ties. Germany could cease transfers to this amount, but would be obliged to pay it to the special account of the Reichsbank just the same. Then after one year, Germany could even cease payments on one half of the conditional pl‘:rl:tfl‘ the annuity. Such is Germany’s right. It was pointed out, however, that as far as France is concerned, all repara- tions are now being accepted in and hence the transfer question does not arise. It was also suggested that Germany in suddenly declaring a moratorium without first reaching an agreement with other countries would be likely to woke credit disturbances and trans- fer difficulties far ter than those the moratorium would be designed to cure. ns then intimated that of the German annuities are virtually | gy, equivalent to what the allles must pay to the United States annually, and it the United was that in case States ever makes concessions two- hirds these concessions will the that if ever ceases paying the allies, even y, the latter will similarly cease cg-ylna the United States. The Fren Legislature, for example, in ratifying the Young-plan, made a specific reservation in this sense. This being so, France, Great tflflulnulnd Gerg‘nhye all feel that if here going any mpenln{ of the question the initiative mus come from the United States. American bankers seem to be- Some lieve it would be better to make a careful The Germa they would likte at least to summon & to review Ger- many’s capacity to pay. It was pointed out that such be o TO PRESIDENTIAL RACE Do Not Want Responsibility for Congress and Would Prefer to Have Repub- licans in Fontrol. BY MARK SULLIVAN. shifted back and forth by the deaths of Republicans who may be succeeded by Democrats, and vice versa. We shall be having wild alarms. We shall hudnnmm about a Senator taken lican Senator of Ol Tesigns to accept position bl are eyes o? the public for what is it Hoover as titular and the responsibility Repul in the eyes of the public power —but they will not have the . Associa to _Prohil Dmnuemaohh Democrat succeed him. changes control of Senate from Repub- lican to Democratic.” Many Democratic Governors. In these shifts of control because of = %, s t i 7 i i : is N S o ! ) : i i ; i g L] 2 i g i g Elo il 25 o} 1 i i Look to Presidential Race. ‘The writer of this nothing about the inner L ¥¥Esy b it e eé k z 7 & 3": : : 5s R B £ | é % | i 3 I il Eifg [ ] 5 g I f ] Ees 0 | f y ik E i % ! i : | ] | % | 3 | g i i K i : i i i T i | ] £