THE HARD FATE OF RUMANIA

Dominion, Volume 11, Issue 283, 19 August 1918, Page 6

THE HARD FATE OF RUMANIA

IN THE GRIP OF THE VINDICTIVE

INVADERS

PEACE AND ITS COST

[The following article from tho London "Times" special correspondent in Rumania shows what tho war has cost Rumania, and what tho peace will t 'ost her.]

When 1 left Jossy with the Allied military and Red Cross missions Rumania had partially reached, owing- to tho developments of events, one of tho dearest ideals of the extreme Socialist. For n considerable time money had totally lost its value, and tho richest capitalist was in some respects as poor as the poorest workman. Goods, after having reached the extreme limit of high prices, could no longer bo bought for money, and in the markets the primitive system of exchange of commodities had come into use. Ten eggs were exchanged for a box of matches or for 2oz. of sugar; a chicken cost 21b. of eugar, and for a duck ono could gei a gallon of petrol. In order to meet tho requirements of the new situation everybody who had a small yard began rearing poultry. The Belgian Legation had "beaten the record," having been able to raise about 150 chickens and turkeys. The British Legation occupied the second place, while the rest were far behind.

The importance of the Rumanian peace cannot be denied, as she is the first organised country to come to terms with the Central Powers. The Germans realised Ihis, and, after having started peace pourparlers with a Government chosen by King Ferdinand, forced him to bring into power the present Cabinet of M. ilarghiloraan. Since 1915 he has pursued a' strict pro-Gorman policy, although I believo that he himself does not much like the Germans and their allies. Ho and the majority of the present Caßinet have remained during the invasion in the occupied territory, and have been all the time on excellent terms with the enemy. It is obvioas that his Government will act according to instructions from Berlin, and will do their best to tie Rumania to Germany economically for a long period. Tho pro-Ally party, which represents the greater part of Rumania, is at present absolutely' powerless, Germany liaving imposed the present Government and being decided to support it by all means. I believe that a few Austro-German divisions will be left in Rumania even after the actual signature of peace. The Peace Treaty. The fate of -Rumania is really more tragic'than that of other invaded, countries. They have suffered immensely, but are still fighting hand in hand with tho rest of the Allies, and at the end of the war will have a. eeai at the peace conference. The position of Rumania is quite different. She entered the war last, without being attacked, and left tho field first, though it is quite understood that both actions were fully justified.

What is the balance-sheetof Rumania after 18 months' hard struggle? Before August, 1916, she had absolute economic freedom and could sell her harvests to any one she pleased at any price she' wanted. In 1915 and 1916 the Rumanian exporters sold -wheat to Gormany and Austria at from 10s. to 12s. a bushel. Tho Austro-German importers had to pay, besides, a heavy export tax in gold to the Rumanian Government. Now Germany secured for herself and he; , allies' practically the whole Rumanian harvest for years to come, at a price which she is going to, fix, and in such conditions that "no diplomatic intervention should be necessary in , tho future for securing the grain necessary for the Allied Central Powers."

Rumania had in Europe, after Russia, the richest oilfields and. the greatest product io.n of oil.' The fields" were in American, German, and English hands, but the Rumanian Government had full control of the production and dj-ew very large benefits. When the war broke out in 1914 tho Rumanian Government at onto prohibited the export of petrol and henvy oils to Germany. The German companies tried hard to send the muchneeded petrol to their countries, but succeeded in smuggling only a small quantity through at enormous cost. _ After a year the production of petrol increased so much that the Government was compelled to allow the export of a small quantity, asking Germany in exchange to agree that Bumnnia should receive a certain quantity of poods, the export of which was prohibited in Germany. The Germans will not foreet that, they had to nay for the petrol at the rate of about .£4O a ton. German Oil' Monopoly. Since -November, 1916, the Rumanian oil industry has been destroyed. In the Inst 10 days before the Germans penetrated into the rich Prahova valley the British mission under Lieutenant-Colon-el Norton Griffiths destroyed everything —wells, tanks, refineries were burned, smashed to pieces, or blown up, so that even after H years the Germans have not been able to reconstruct them. According to statements made by German prisoners in November last, none of the obstructed wells had been put in order again. The German engineers have worked hard, boring new wells, but have not succeeded in getting more than 10 to 15 per cent; of the normal production. However, although the refineries and wells have been destroyed, the oilfields exist, and I think that not even 50 per cent, of them have yet been worked in' Rumania. The Germans know this, and tlie clause in the Po-ee Treaty that they should have the control and monopoly of the .oilfields for (I!) years will ninko them the real owners and: entirely independent of the American market. Theso two assets—the corn and the oilon which the whole wealth of the Rumanian Kingdom was based, are thus under direct Gorman control.

Furthermore, Rumania has suffered much during the war. Towns and villages have been destroyed, and nearly tho entire stock of railw.iy carriages, vans, and locomotives has been lost. The productive capacity of the country has been enormously diminished. About 60 pencent, of tho horned cattle and more than 70' per cent, of the horses havo gone. Famine and disease have made ravages among the rural population, nobody having paid any attention to ihem. I have seen villages of 300 to 500 inhabitants reduced to 40. All tho rest diod from spotted typhus or other scourges. This shows how reduced ar.e the means of national recovery after peace is signed. The financial situation is probably worse than the economic. At the outbreak of the war the Budget amounted to 500,000,000 lei (.£20,000,000), while the national debt wws about 1,500,000,000 lei (.£60,000,000). A few weeks before I. left .Tassy the Minister of Finance told mo that the debt had increased to about .£250,000,000. In the period from August, 1916, to February, 1918, the revenue had been very greatly reduced. As tho military situation wns always critical a.nd the Government had decided twice, iboforo the Russian disnster, to move to Russia, everybody who had a littlo money kept it nt homo and did not invest it in Government securities. Therefore only a small amount liad been raised in Rumania by loans; tho greatest part of the money had to be obtained from abroad, mainly from Unglnnd, but also from France and the United States, at a rate of 4 to 5 per cent. Thus the interest which Rumania had to pay on hor national debt represented about JEl2,r>oo,ooo, or mere than three-quarters of her Budget in the prewar days. .