OLD EUROPEAN CUSTOMS

With the announcement yesterday that the Franco-German dispute over the legality of the proposed Austro-German Customs Union would be relegated to the World Court for an advisory opinion, the present economic situation in Europe has arrived at an interesting and significant phase in its development. Fundamentally it is a repetition of one of the factors which complicated diplomatic relations in 1914, economic jealousy between France and the Central Powers. At that time the friction contributed to the numerous causes for war then existing on the continent. Now the matter is to be settled by arbitration, and will rest upon the decision of a third party. Whether the dictum of the World Court will regulate in any way the future activities of France or Germany is yet to be seen.

Underlying the whole question, however, is the growing trend of economic internationalism, which is standing out in bolder relief since the recent worldwide depression. In the field of business national boundaries are losing emphasis, the interests of the world as a whole being considered. This is particularly true, in Europe where the "cartel" system is demolishing political barriers as rapidly as ephemeral ministries build them up. Whether the new regime can be supported by an international code of justice, artificial in origin and lacking background, is shortly to be put to test. if it can be proved that the new method of cooperation, as opposed to internationally competitive industry, has the will of the peoples of Europe behind it, countries based on the latter principle must head the warning.

America, foremost among those nations which still adhere to the old method of competitive and independent business, may soon find herself alone opposed to a new Europe, unified under one economic system and respecting an international court of appeal.