The Daily News Letter the Troubles of Rumania

Bucharest.

Since the Autumn of 1928, when the National Peasant Party, led by Dr. Maniu, ousted the Liberals, after the first free elections the country had experienced since the war, Rumania has lived through three further elections, twelve Governments, the return of the King, and a severe economic and financial crisis.

Today, although the income of her 17,500,000 odd inhabitants is less than half that of 1928, and although public finances, owing to chronic budgetary deficits, are in a parlous state, Rumania has hardly any unemployed. The number of persons without work is only about 20,000. Four-fifths of her inhabitants are practically self-supporting peasants, and many of the remainder could probably go back to the land.

The late Government’s policy of maintaining the price of grain at a level which yields a moderate return to the producers has given reasonably good results, and since the peasants have also had their debts reduced by half and made payable over a period of seventeen years by law they are now much better off than they were a year ago. Recovery in the towns has, however, been much slower, and more disaffection exists there than in the village.

Most of the malcontents—hard hit creditors, unpaid government contractors, employes whose salaries had been reduced, and disgruntled politicians belonging to Opposition parties—are too ready to attribute their troubles to the political system, the government of the day, the predominance of Jews in business, the camarilla, and even the King. This attitude is not altogether reasonable, as the reduction in the national income and all its attendant ills are misfortunes largely outside government control. Nevertheless the frequent changes of Ministry and official mismanagement have not improved matters.

It is true that the country has better towns, roads, railways, and other public services than it had in 1928, but it is equally true that if successive governments had invariably put the country’s interests first even better results could have been secured. None of the administrations from the Autumn of 1928 on can escape the charges of extravagance, corruption and even dishonesty. Recent budgets have been modest in relation to the size and population of the country. Nevertheless some of the money which has gone to the exchequer could either have been used to better purpose or taxation could have been reduced in proportion. The practice of giving party supporters government jobs, which are often specially created, has brought into being an unnecessarily unwieldy state apparatus. At least 50,000 of the 225,000 government officials could be discharged without loss. About half the present budget is spent on salaries.

The more energetic of the malcontents of all classes continue to swell the ranks of the Extreme Right and the Extreme Left. The numbers of adherents of these movements are difficult to estimate, since the Iron Guard, representing the Extreme Right (the remaining political groups of the Extreme Right being of small account), and the Communist Party, representing the Extreme Left, have been driven underground and are not legally recognized as official political bodies. In any case, the Communists could count at most on the support of some of the industrial workers and perhaps a few peasants. The Iron Guard, if it came to action, would probably have to rely almost entirely on its following of students and unemployed intellectuals.

Although the censorship has on some occasions served the purpose of cloaking official shortcomings, the late government appeared to be doing its best in the face of great difficulties. A substantial reduction in the service of the Rumanian external debt (amounting to an effective saving of 1,313,000,000 lei, during the current financial year) had been obtained, but only time will show whether it will result in a balanced budget, since besides a deficit of some 3,000,000,000 lei, the revenue now being collected is still short of requirements. Constant borrowing from the National Bank and postponement of payments to contractors cannot continue indefinitely, and although the projected internal loan may afford relief drastic measures may have to be taken to avert disaster.

It is to be hoped that the simplification of the state apparatus and the so-called revision of state officials, which the late government had initiated, may be carried on. The object of this reform is to dismiss all civil servants who have been appointed contrary to existing regulations. The revision of officials would be a step in the right direction, if it were impartially applied and party interests were disregarded.