Hol. XXXVIII

Number One

E

MERGING from the sombre background of racial, political and economic convulsions in the Old World the dawn of the New Year discloses a new setting and luminous actions upon the international stage which must impress even average American intelligence with the folly and danger of clinging to an attitude of detachment or autonomy toward developments in Europe. Recent events confirm that escape from political as well as economic embroilments is impossible. They testify more clearly than ever that the United States is entrusted with those powers of persuasion, which, if effectively wielded, will hasten decisions enabling the world to thrive in peaceful pursuits under the sign of Mercury instead of resuming the grim march under the banners of Mars.

The flight of capital, cash balances and investment funds from Europe to these shores, seeking shelter from devastating waves of currency depreciation and threats of punitive expeditions of government against wealth, strikingly illustrate the operation of outraged economic laws which are not bound by geographical limits. While this movement is expressive of faith in the stability of this country it is also the sign

of weakened confidence abroad due to Allied discord, persistence of the Reparations deadlock, revival of militarism and the vulnerability of governments and parliaments to socialistic experiments. Only through homeopathic doses of common sense such as prescribed by General Dawes in his address as chairman of the Expert Committee of the Reparations Commission, can this Old World darkness be dispelled.

To search beneath the surface of events in Europe and the movements of exchange, gold, trade, prices and credit, is to realize that there is a situation charged with possibilities and unusual opportunities, which offers a challenge to the best financial as well as political minds of this country. General Dawes penetrated the fog bank when he said in Paris that the first step toward restoring European prosperity was to start Germany on the road to productivity and to beat down the barriers erected by nationalistic selfishness and pride. If France, England, Belgium and the other Allies heed this injunction and "common sense is crowned king," it will not only lift the pall, but release instrumentalities for reconstruction both in Europe and in this country which will stabilize currencies, cure the blight of