Page:The Czechoslovak Review, vol4, 1920.pdf/265

The baby among the nations of the Old World is wrestling energetically to make both ends meet. And since the veteran states are in several instances failing to balance their budgets, it does not seem amazing the new-born Czechoslovakia is incurring a deficit in the current year. Kuneš Sontag, the Minister of Finance, recently predicted that by 1923 the revenues of the new state would exceed its expenditures.

Since the republic of Czechoslovakia came into being on October 28, 1918 it has already made progress in reducing inflation and approaching a more sound economic basis. Its main need, according to its spokesmen in this country, is credit with which to purchase American cotton, hides, phosphates, oils and copper. And the Czechs hope to be able to pay for their imports with exports exports of cotton goods, glassware, laces and embroideries to all parts of the world, and of sugar, machinery, shoes, clothing and cereals to other European countries.

When the influx and outflow of goods becomes freer, the Czechs think the matter of public finance will quickly correct itself. Meantime, during 1920 it is estimated that the revenues of the country will reach 7,750,000,000 Czechoslovak crowns (worth 20 cents each at par and 1,36 cents at the current rate of exchange). The published budget indicates an expenditure of 10,416,000,000 crowns, leaving a deficit of 2,666,000,000 crowns. This disparity is being met by the flotation of an internal loan now being offered at par bearing 4 per cent interest. The Czechs, feeling they are making progress, point with pride to the fact that their deficit in 1920, according to estimates, will be 50 per cent lower than in 1919.

More than half the deficit is used to meet military expenses, as the Czechs have armies in Poland, on the Hungarian border and in Siberia. When real peace follows nominal peace in Europe, spokesmen for the new state anticipate that military expenditures will be reduced tremendously. Under the heading of defense 1,621,000,000 Czechoslovak crowns have been appropriated. And this total is made of three items: regular expenditures, 722,576,000 crowns; extraordinary, 439,577,000, and abroad, 430,000,000 crowns.

Aside from the statistics of public finance—and of more significance—is the ability of the country to produce wealth. Semi-official reports from the new republic indicate that labor conditions are good, and that other continental nations are taking advantage of conditions there by shipping in raw materials and receiving payment in manufactured goods. The daily wages of skilled workers there range from thirty-five to fifty crowns a day, and the men are all organized into two groups, which have collective agreements with their employers, which are made universal for their country, although the details vary in each particular locality. Despite the reported willingness of the people to work, some are without jobs because of the scarcity of raw materials and fuels.

It is clear to observers that the future of the country economically depends on the influx of raw materials and fuels. The former hinges on the matter of establishing credits in foreign countries, particularly in the United States, whereas the fuel need must be met through better transportation facilities, particularly by the building of more cars.

Czech merchants, however, are indisposed to pay what they consider unduly high rates for financial accommodations. The Czechs last year borrowed $6,300,000 from a New York banking group through the sale of acceptances, which were paid off at maturity by means of establishing a credit in Paris through the sale of sugar to France. With this franc credit, dollars were purchased in the exchange market, and the loan in New York liquidated. It was recently announced that a syndicate of textile manufacturers of the country had arranged to purchase 300,000 bales of cotton in this country on credit. It purposes to pay for the raw material by exporting cotton goods. It is expected that the shipment of cotton will soon begin, although the American group has not yet concluded its own financial arrangements.

The fate of Czechoslovakia will depend on the success of its fight for economic independence. But it was not for this alone that it severed its connections with the former Austro-Hungarian Empire. It has a vision of freedom and religious toleration. Before the new constitution all are equal. Titles of nobility have been abolished. Although as an independent political identity, Czechoslovakia is still young enough to be placed in the prospect class, as a racial group it dates back through the ages.

Reprinted from New York, N. Y., Tribune.

The foreign language press, speaking of it as a whole, is of as high a grade intellectually, patriotically and educationally, as the average newspaper printed in the English language. It serves an imperative need; otherwise it would not exist. It is one of the great agencies for Americanization.