PRESENT CONDITIONS.
It must not be thought that President Hoover's Plan leaves the situation in Germany other than serious, but the release for one year of foreign claims amounting to over £70,000,000 gives Germany a great chance to turn round and retrieve her position, her creditors having voluntarily, under the lead of America, granted her a time extension—a very different matter from default. More than that, however, the suggestion came from the chief creditor of Europe as a whole, and although President Hoover emphatically disclaimed any intention of consider- ing a revision of War Debts as a whole, it is felt that by this great voluntary co-operative effort on the part of the United States and the Allies to deal with the situation in Germany, the way has been opened for the handling of the international War Debt problem an German Reparations in a manner different from that which has hitherto been attempted. The financial situation in Austria, although it has been relieved by certain credits, remains unsatisfactory, and in considering the prospects for the current half-year, it will be well that allowance should be made for the fact that notwithstanding a German moratorium financial conditions in various parts of Europe are likely to cause anxiety for some time to come. As regards the Australian crisis, it may fairly be hoped that if the Australian Government acts with courage the worst of the situation may be over, especially if the present rise in commodities should continue. It can scarcely be said that the Indian situa- tion is more promising than at the beginning of the year, and it is to be feared that it has to be included among the disturbing factors likely to be carried over from the first into the second six months of this year. Nor is it easy to see daylight with regard to the Soviet menace, whether regarded from the social, political or economic standpoint. But even in that matter it is a good point that the United States should have shown not only concern with regard to European affairs, but an apprecia-; tion of the fact that her own prosperity is more closely linked with them than she had at one time perceived.
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