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Show CAN EUROPE HOLD TOGETHER? (Thta aorioo of Artioloo ia atmplA hut Aaouroto explanation of world AonditiorM, from tho point of viovy of a tjiatingulahod apoAiAllAt. Tho author It An Aoonomlat who haa boon an Invaatmont ItAnkor aa wall aa a univwraity faoulty mombor. Thoao ArtiAloa aro tha raoult af his moot raoont tour of turopA, moda aapooiolly for AAturina tha data a trip an whioh ho vioitod aixtoan oowntrioA, talkoa1 with tha aramiara af half af thorn an) tha ftnanoa mlniatara af twolvo, ana) in flala) oaaar-votiona oaaar-votiona ooaurod a iwaaa of footA. Mr. SinolAir Aoys finAnoo Afto) ooa-namiaa ooa-namiaa tan bo told so aimply a ahild aan arasp thorn. Hit artieloa provo hia alaim. (.Copyright, 12J. In Vnltad Rlatoo and Oreat Britain, by North Ansrl. CAa Nswauopor AIIIaaca. AU rights roaarvad.) By JOHN F. SINCLAIR months ago. It haa bocoma a roal monaco. It la uaoloos to halanr tht budget without At tho lama tlmo promoting promot-ing a hrAlthy Industrlsl llfo. This Is AustriA's rral tflfflcutty. Can sho support horaoif? Can aha pay her way? ' No flnanclAl arhrmr. howovor. romplstoly csn solvo tho prohlrm for Austria. Bhs must. In tho final analyala, oarn aa much with hor exports aa aha purchAsee plus tho Interest chArgrA on hsr foreign debt. The problem Is one for the people of AustrlA to solve. The loenlng of money to Austria will rot keep Atietria from collapse un leea she can nay her esreaa of exports, ex-ports, the cost of her Imports and Interest charges on hr borrowings. Can shs do It? ThA league of nattonA hAa hslped hr over tha flrnt hurdle, but tha other hurdles are much harder to got over. I cAnnot aay Atiotrla'a problem la IneoluablA. though In my opinion eeverol hundred millions of dollers will be needed to enAbla her to Increase In-crease her Industrial aotlvltloA sufficiently suf-ficiently to enAblo her to pay her Import and Interaat Cher gee and lire. i What I do sty Is that In addition to being Able to ohtAln huge aums for Industrial Axpanaion, tha recovery recov-ery of AustrlA cannot tnkA pIaca without An ImanerilAte restoration of the Industrlsl life of Kurope, and especially of thoea countrlea of central Europe who Are her nelgh-bora nelgh-bora and cuatomerri Hungary, Germany. Ger-many. Ruasia and the HalkAna. Mora even than Ureet Britain. ItAJy And Belgium, AuAtria muat hAva European marketa to pay her way. TAriff walla muat give way to free trade. Kor t'eera to come her load will be a heavy ane. Another An-other European way- or even a localised Balkan affair would leave Austria an eoonomlo deerrt. AuatrlA, too. muAt Join hAnda with tha other natlona of Europe who know that modern Induatrlallam And modern warfare are deadly ene-mlee. ene-mlee. Which will tha world throw Into the d tec era? The league nf natlona In attempting attempt-ing to rebuild the ahattered economic eco-nomic eyetem of ihe little republic of Auetrla. haa undertasrsn the moat fAr reaching plec of construction work shs has so fsr Attempted to do. Ths peece of Bt. OermAin cut AustrlA Aus-trlA lo piece. Trsde lines, built up through ths lebor of hundreds of yeera were hopeleeely broken. Her territory waa reduced from It 1 .000 square miles to 11,00 square mile. Her populAtlon shrank from 11,000,-, 000 In ltU to M00, 000 today. - The politicians. In carving Austria to pieoes, took no account of economic laws In their folly and madnvea. Tha situation Waa mad even more difficult by the very sis of Vienna, This great city of two million mil-lion of people had been built up by being the very center of tha cultural, educational, bualneaa And soclsl life of Central Europe for a thouaand yeara. Today Austria, covering an , area as large aa Maine, la hemmed In by countrlea who have erected high tariff walla and who will enly sell goods to her C. O. I. Ir. Michael Halnlech. tha fine old preeldent of Auetrla, and an agricultural ag-ricultural professor, told me thAt the lend of hla country waa producing produc-ing lees than one-fifth of the amount of food needed by her people to live. Kour-ftftha muat be bought outelde. After yeara of Intense cultivation cul-tivation of all tha available land, the preeldent thought about one-third of the food needed In Austria Can be releed within. Bixty-flvs per cent of her food must alwaye be purchased pur-chased outelde Austria. What an lmpractlcal.and Impossible eoonomlo unit for politlclana to carve out. It la Ilka cutting tha heart out of a person, putting It on a platter and expecting It lo continue to function. Here's the way tha Auatrian heart on the platter of civilisation functioned: func-tioned: . In metric tons fM omitted) : n:o mi Importa . . lot oS S17I Exports, bsL .. 4 1111 1477 Importa, bat. ..U(l 4744 MM If wa translate tha figures Into dollars, we find thst Austria bought 10 millions of dollars mora goods In 1120 than eh sold, and 17 millions mil-lions mors In 1921. and 110 millions moro In HII. . Bha couldn't balance. But ah had to live. To pay theaa huge bills, she had sums outside Inveetmenta and eorae tourist t revel profit but probably not enough to covet 20 per Cent of the deficit. Bh borrowed 71 million of dollars, dol-lars, pledging her stat monopolies and her revenues. Bhs spent every cent of It. Her condition got steadily worss. .Hsr monsy was going go-ing down la value every day. Prloea were rising. Bh waa unable to balance bal-ance her budget. Mer expeneee far exceeded her receipt from taxation. taxa-tion. In llt-!v she eatlmated her expenditures at M.sOO millions of krone and her receipts at t.lv million mil-lion kronee. lesA thun one-third. Bh was compelled to psy all her public debt by new Issues of paper money by corrupting her currency. This msit prices rise still higher. In 130-11 her expenditure were 70,00 million of kronee And her Income 10.400 millions. The budget for 1111-11 provided for 147,100 millions of kronee end Income of 10. 700 million. mil-lion. The InflAtlon of her money went on At a terriflo rale. Here's ths record of debouch. Paper k runes outstanding. It14 , lioo.ooo.ooo 1(10 , Il.004.000.00 1021 July I4I.000.000.000 1121 Msy 4.117.000.000.000 Her papr money Increased mors then Aight fold In sloven months and her gold reserve Th dollar would purchase kronee l14 s 'lilt lill August 1.117 lilt May 71.400 Prices Increased aa tha purchasing power of th money fell. Pric In May. ltll, war 11,40 tlmee as high aa ta August, lilt. Wages were from Itfti to 1000 times higher. That meens that tha prewar atandard of living for tha workera ha been reduced re-duced from one-half to three-fifths. At thla time AuatrlA was dying by Inches. VlennA looked like haunted haunt-ed city. Bhe kept up her greet opera, but It eeemed like-. mockery. I called on a former Vblnet minister In his squalid home. Never have I heard a mors pitiful story. Ths story of how Austria was gone, her culture govt. Her greet university founded In 111 and tha Orat In Importance Im-portance In Kurop In centuries, waa destitute.. Th state subsidy waa reduced from 100.000 tn 1114 to 14,000 In lill. Her profeeeors ar being paid (1 to 11200). Borne of th g resteer sxponente in the world of biology, medicine, ths natural na-tural sciences, mathsmatlcs, political politi-cal smonomy And law, .were being forced to quit only to black boots or sell paper on the streets of Vienna for a living. That's what wracking tha International axchangs machinery machin-ery haa meant to Auetrla. The leagu of nations decided to take a' hand. Bomebody muet make the attempt. Auetrla, desperate, demoralised, demor-alised, discouraged, her national vitality vi-tality gone, would agree to anything. any-thing. Could Auetrla be made to function aa aa sconomlc unit, could she pay her way or muat aha die? Dr. Zlmmernsann, formsr mayor of Rottordam. waa appointed commissioner com-missioner general of Auetrla In October, Oc-tober, 1122. He Is directly responsible respon-sible to the leegus of natlona. Ha arrived In Vienna In November, 1131. He rulea Austria aa a financial finan-cial dictator. - What la ha trying to do? His Job Is te msks a living economic unit out of a shsttsred economic wreck. Her Ia his plan of Action: (1) To establish a new. bank of lsaue baaed on gold. a til To balance government receipts re-ceipts and expenditures by July, lt24. (!) Te occur a foreign loan of 1121.000.000 to pay tha deficits In1 running ths government up to July. 124. (4) To stop further printing of unsecured paper' krone and thereby there-by restore .etablltly to the money and confidence In th futur of Auetrla. Ur. Zimmerman haa been In Aua trla nine months. What haa ha dons? Th nsw gold Bank of Issue opened Its doors In January of this year with a paid in capital of $7,-100.400. $7,-100.400. Today its gold reserve Is equal ta iO per cent of It bank notea and deposits. ' Government expenditures ar being be-ing reduced; 11,000 govsrnment employes have been dropped. Departments De-partments are being merged. Dr. Zimmerman told ma that by July 1, 1024, h be! levee the government govern-ment receipt and expendlturea will balance. The foreign loan of tlli,-000.000. tlli,-000.000. nf which tha United States took 116 400 004. haa been raised. Thla will take care of the govsrn-ment govsrn-ment deficit until July 1. 1124. Ths printing of mors unsecured psper krones stopped on November li. ltll.- Tb kron sines thsn hss become sstsbllshed at 71.000 for one dollar. That la tha Important thing now. To know that next month or the next alx montha ta money will not fluctuate either up er down. Sarlnga bank depoelta have Increased In-creased lot per osnt during ths past three months. Confidence Is returning to her people. Th most serious problem 1 that of th Increase of unemployment. There are twloa as many men out of work today as there were alx |