EUROPE'S SLOW RECOVERY.

Hawke's Bay Tribune, Volume XII, Issue 92, 28 March 1922, Page 4

EUROPE'S SLOW RECOVERY.

Probably Mr. Herbert Hoover, now American .Secretary of Commerce, Ims had as lull opportunity as any man of forming sounu conclusions with regard to economic conditions in Europe and their prospect lor recovery. \i iiat lie lias to say in the latest monthly bulletin issued from his Department is thus of distinct interest outside his own country, and in view of next month’s eoiiterenee at Genoa. There is some comfort to be found in his conclusion that, even if slowly, still the general outlook is distinctly improving. Iji tho first place, ami with special means of forming an opinion, he Hunks that the danger of "a stampede to Bolshevism,” which was a by no means impossible outcome, has passed, and will not recur. This lie considers lo be a result oi prime importance, not lor Russia; so much as lor the other European nations, Year by year since the armistice, he writes the combatant States (except Rusias) show steady gains in social and political stability. They show great progress in recovery of agriculture, industry, foreign trade, and communications. The one field of continuous degeneration is-, that oi governmental finance; that is, the unbalanced budgets, and the consequent currency inflation of certain countries, with its train of credit destruction. The commerce of the world obviously suffers grievously from this failure in fiscal finance anil the apprehension that Hows from it, and unless remedies are found the great recuperation in the five great fields of social, political, industrial, agricultural and commercial life of the past three years is endangered. Its effects spread constantly outside the borders ot those States predominantly concerned, and substantially cheek others’ recovery also. The most eminent and most dangerous of these unbalanced inflation situations is Germany. Her case, Mr. Hoover says, depends upon the method and volume of reparations payments, a peculiarly European matter, which must be adjusted by the parties at interest, and lie adds that it is earnestly to be hoped that the present negotiations upon reparations may succeed in finding a sound basis that will secure permanent economic and political stability to Germany, and certainty of regular payment to the Allies. 'With tins effected, the way is open for constructive consideration of the situation in other States. Speaking for the American people, he says they have never been and will not be remiss in participation ot these further measures, but cannot successfully enter until those who have control of the reparations have settled this major issue upon so sound an economic basis tnat America can look upon the future ot Europe with confidence. Outside of tho Government finance of a limited number of States, fie declares the outlook is very encouraging. Any general survey of the social situation m Europe will show that the danger of Bolshevism is passed, partly through improved standards of fife and very appreciably through the salutary lesson of Russia. Democratic institutions are gaming strength among the 150,000,006 people formerly supporting the autocracies. In Russia itself extreme communism, -Mr. Hoover declares, is slowly boning to death in a cauldron of starvation, and its leaders, freely acknowledge its failure.