Review of the Month

MAY began with a general strike of the bituminous and anthracite coal miners in the United States in progress, while in Great Britain about three quarters of a million workers became idle by a lockout, caused by a dispute respecting the question of the rights of management in their shops. The employers opened their shops on May 3 to men wishing to resume work, but few availed themselves of the opportunity. Up to this time the statistics had been showing a little increase in the rate of employment in Great Britain and business conditions were considered to be improving. From Russia came reports that the results of the famine had not been so bad as had been prophesied, which is not to say that they were not grievous. In prognostications such things are habitually overesti-mated. Seeding for the new crop has now begun in Russia, with hopes for better results than last year. However, the general economic situation in Russia steadily becomes worse. We had advices during May to the effect that the Soviet Government had decided to abolish the gold ruble even as a theoretical calculating unit and substitute a "goods index." This idea would be somewhat on the lines of Professor Fisher for stablizing the dollar, and there may be a chance to see how it will work in practice. There was a contradictory report from Russia, however, that it had been decided to revert to the gold basis. This is the more plausible report, for if there be anything to be deduced from economic theory and history the present paper rubles will completely collapse and return to gold basis will ensue simply because the people will refuse to sell their goods on anything else. The civil war in China came to a head during the first week in May when General Wu-Pei-fu crushed the forces of General Chang Tso-lin around Pekin. The victor declared his intention to be to reunite the North and the South and in course of time to arrange for a constitutional convention. We probably do not under-stand the conditions in China, but recent events do not appear to have solved the grave difficulties there, though they may be a step toward it. However, the immediate outlook does not appear good, General Chang having retired to the north and declared the secession of Manchuria and Mongolia.