The Grey River Argus MONDAY, July 29, 1940. THE ECONOMIC FRONT.

Grey River Argus, 29 July 1940, Page 6

The Grey River Argus MONDAY, July 29, 1940. THE ECONOMIC FRONT.

With winter coming, the European Continent faces harder times than any for a generation. Crops tend to be below the average, and in countries Germany occupies production generally must have been utterly disorganised. Flanders, and Yugoslavia, to name only.two countries now mentioned, . are facing demands by Germany which mean a deprivation for their own people. Tt is indicated that butter, which suddenly became scarce in Flanders, was simultaneously increased in the German ration, the Lowlands being told a. gang of speculators were responsible. The Germans have the worst possible situation in which to commend their proposed new economic order to Europe. There may be something to be said for a change from the 'fixed currencies and exchanges of Western Europe, operated often by financiers primarily for their own gain. But the use of economic pressure to obtain exactly what she requires, and as far as may be on her own terms, is Germany’s present expedient. She has sought to depress the exchange value of the currencies of countries with which she is trading, and to make payment with whatever commodities of which she may have a surplus at the time. Practice is apt therefore to be contrasted with pree'ept and- promise to the detriment of the moral, as distinct from the material credit of the Nazi regime. Consequently it will be no surprise if no country within the German orbit cares to produce more than its own people require. It is stated that in Northern France prisoners have had to be released by the enemy -on account of an inability to provide them with adequate rations. The British blockade is being operated with the utmost regour, applying to the Avhole continent, so that no country may obtain war materials, and none, indeed, any more materials for food or industry beyond its own bare needs. The United States is unceasingly cooperating in their policy, having just put a virtual oil embargo on Spain and at the same time on Japan. America is, of course, the greatest of all oil suppliers, and perhaps some of her output has been till now finding its way to Gci'many. Roumania has come entirely under enemy domina-i tion, and has now taken action against Britain regarding both oil and shipping, with the result that Roumanian ships have been seized at Port Said as a reprisal. There are conferences proceeding between the Axis and the various Balkan countries, pro-, fessedly political with the object of safeguarding peace, whereas! Germany is doubtless bargaining in the main for economic accom-| modation, as she is in a position

of military ascendancy on the Continent, and could therefore, chock military action anywhere she chose. It is stated she wishes the Roumanian army demobilised to ensure maximum production. Cut off from the outside as the Continental countries now are, they will be tempted to work against Germany to the extent, that she dictates their economic programme, and if force is relied on it will never prove so effective a weapon in the economic sphere as it may have done, in the military sphere. It is obvious that the British plans, namely for a long struggle should that be necessary, and only an indirect offensive through the blockade, are based on economic foundations. It appears the soundest F/trategjV, because the enemy is constrained geographically, . and faces disintegration if he shies at the invasion project and tries instead to consolidate his military, gain upon a, crumbling ecoomv.