TREND IN EUROPE

New Zealand Herald, Volume LXXIII, Issue 22578, 17 November 1936, Page 11

TREND IN EUROPE

DANGERS OF WAR COST OF PROSPERITY ECONOMIC INFLUENCES THE EXAMPLE OF ITALY The fact that under the present economic system peace could only be obtained at the cost of depression, and prosperity at the cost of -war, was emphasised by Mr. D. M. Sherwood, a London accountant, in an address on "The Trend of Europe," given to members of the Auckland Rotary Club at their luncheon meeting yesterday. Mr. T. 17. Wells presided. Mr. Sherwood said his address might equally well have been called "the trend of civilisation," for conditions in Europe to-day were merely an intensification of conditions in the rest of the world. In Europe the countries were drifting and 110 attempt was being made to control that drift. Every other problem was contingent, however, upon peace. Unless there was a permanent peace, all other efforts at social reform were foredoomed to failure. All the people wanted peace, yet the nations were all preparing for war. Making Purchasing Power Lack of purchasing power was the crux of the whole matter, added Mr. Sherwood. He described the breakdown of the economic system in the fully developed countries of Europe where the stream of additional purchasing power provided by public works and other permanent assets had run almost dry. He stated that under the present system the only means of passing on this additional purchasing power to the community was through the manufacture of armaments.

Mr. Sherwood pointed out that Mussolini had done tremendous good in Italy for some years, constructing roads, bridges and buildings, and providing an additional stream of income. After nine years this came to an end, and with the depression there was discontent with the Fascist regime. Mussolini either had to admit that Fascism had failed or divert the attention of the people. So he turned to the war in Abyssinia, which had solved his problem, as that country would provide work for 50 years for Italian men and factories, and an additional income would be provided for the Italian people. "Trend to Destruction" "Just as Italy was forced into war, so the other nations of Europe will have to come to a similar decision," said Mr. Sherwood. "One read here that prosperity had returned to England. It was true that half a million more men were working than a year ago. but the primary reason for the increase in industrial activity was the manufacture of armaments. That was the price being pn : d for increased prosperity in England to-day. "To-day civilisation in Europe is at the cross-roads," said Mr. Sherwood. "It is not- a question of change or no change, but of what change? Under ' the present system we have peace at the cost of depression, and prosperity at the cost of war. It is forc : ng nations to fight, and if we want peace, we must change the system." 1 Mr. Sherwood said the trend of Europe as he saw it was to destruction. The only chance was that it might be able to remodel itself, provided an example was given by one of the countries outside before it was too late.