The Guardian And Evening Star, with which is in corporated the West Coast Times. MONDAY, NOVEMBER 9, 1925. THE PROGRESS OF ECROPE.

Hokitika Guardian, 9 November 1925, Page 2

The Guardian And Evening Star, with which is in corporated the West Coast Times. MONDAY, NOVEMBER 9, 1925. THE PROGRESS OF ECROPE.

Jr would appear that {j;ra<luully, but no less surely the war imjxjverislied coun-li'ii-e ul Europe me recovering from lire effe ts of the European Armagcddoii. In some instances the finances have been taken in hand by the League of Nations and with success, for the loans issued on behalf of Austria. Hungary and Greece command a substantial premium on the prices at which they are issued, owing to the growth of the revenue hypothecated to , 1, their service. The Herman loan for the purpose of putting that country on her feet, wbi .h was an integral part of the Dawes plan, also stands at a big premium on the price at which the ! trends were adored. Belgium litis settled her war debt to America, and France has come to grips with England regarding the amount she owes Great Britain. Both France and Italy are to send Debt Funding Commissions to • the United vStntes. and the decision of the latter country to take this step marks a further stage in the movement now on foot to regularize the whole question of inter-allied war indebtedness. Italy owes about £">83.000,000 to Britain, and approximately £400,000.000 to America. S'otnc writers in the Italian press have lately endeavoured to show that the. country should not be expected to repay America and Great Britain on terms similar to those offered Franco. A settlement on that basis would mean that Italy would have to provide approximately £20,1 000,000 per annum or about £12.000 K OOO more than she is entitled to receive under the Dawes scheme. It is argued, therefore, that the terms of repayment should he modified so as to leave Italy a margin after paying her war debts. It is to be feared that the parties concerned will not agree to a I basis which differs essentially from that upon which war indebtedness has been settled hitherto. It would mean that Italy would he let off for a payment of less than one per cent, per annum on -the amount owing, and if America and Great Britain agreed to such terms France would have a grievance against England, and Belgium against America, for the last two countries settled on a 31 per cent, interest basis. As yet, Italy appears to have made no overtures to Great Britain, and presumably England should offer her terms similar to those which France is at present considering, though, proportionately to the amount owing, France is much better able to pay than Italy. The latter country is 1 not so rich in natural resources as France; she has a much smaller volume of trade, and her currency stands at a greater measure of appreciation, though in this respect there has been a considerable improvement just lately. At the moment France stands in extreme difficulty. Apart from the negative result of the Morocco campaign, and the impossible position created iii Syria, the financial straits of the country at the moment, point almost to national bankruptcy. The “little wars” in Morocco and Syria must have had a tremendous draining effect on the financial resources of Franco, which seems to have lived at two high a rate, flushed as she was with the victory over Germany. No doubt it i“ a very different experience fighting a foreign foe overseas, to defending with your hack to the wall, your very hearth and home, from a predatory i neighbour who has !>een the tradi- i tional enemy for decades. No doubt : France entered on the “little wars” i with a great deal of confidence, and < is now paving dearly for the exper- - ience. But the money market at home overshadows even the situations, diffi- 1 cult ns they are, in both AJhroero and <

Syria. France seems to lack leadership financially. Ever since the war the political parties hare been at crosspurposes, and there has been a state of muddle growing more and more complex. It seems to be reaching a climax just now, the late cable news on Saturday laying bear a condition of affairs which .suggest a very serious financial tangle indeed. But- for the state of Frame, the financial situation in Europe would be far more hopeful than it lias been for the past decade.