trade movements and international loans and investments, and upon the disposition and ability to withdraw gold on the part of those countries which are undertaking to reorganize their currency systems on the gold basis."

When the whirligig of time has already brought about the amazing spectacle of Germany, Austria, and Russia proceeding to such currency reorganization on such a basis, the economic prophet would be rash who should attempt to say what may not be the history of other European currencies in the course of the next year or two. How it will fit in with the American situation and the machinery of American exchange, is an economic problem of the highest interest. The fact, set forth by the expert investigators of the Department of Commerce, that, in face of our continuing merchandise export surplus, the "invisible items" in our international trade left a total net balance against the United States of $488,000,000 in 1922 and of $152,000,000 even in 1923, despite an estimated $587,000,000 decrease in that year's investment of capital in foreign countries, at least indicates the lines on which the problem is likely to be solved.

THAT

HAT our own financial markets made no visible response to the Dawes report and its sequel in European politics, was partly a result of the suddenness of the change in the situation, but partly also of certain other considerations which, by throwing perplexity over the immediate outlook of fi

Why Our Markets Did Not Respond

nance and trade at home, had created a spirit of caution and hesitancy. Both considerations were familiar: one was the slow but persistent decline of prices for commodities; the other, the presidential campaign. The fall of prices had at the opening of May amounted on the average to 238 per cent since the end of March and to 61⁄2 per cent from the year's high point in February.

But this plainly did not result from less than normal buying of merchandise. On the contrary, all statistics of distribution and consumption showed that, except for the wholly abnormal taking of goods a year ago, to replenish supplies exhausted by the drastic economies of 1921 and 1922, the American people were buying more largely than in any previous spring season of our history. In the case of the always typical steel trade, the report of the United States Steel Corporation for the first three months of 1924 showed the largest earnings of any quarter in the company's history except in war-time. It also showed continued

(Financial Situation, continued on page 108)

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dential election been thrown into the House because none of the candidates had received the required majority in the electoral college. It happened in 1800, but only because of the awkward constitutional provision (since repealed) which made every presidential elector vote for two candidates, of whom the one with the largest vote should be President and the one with the second largest Vice-President. In that year nine States voted for both Jefferson and Burr, thus leaving them a tie and putting the decision on the House. In 1824 the deadlock happened because, coming in days before presidential nominating conventions, the electoral conflict brought four strong candidates into the field, some of them of the same political faith. The upshot was that barely one-third of the electors voted for any one candidate, and the House again had to decide.

No such results have occurred, or are in the

least likely to occur, in the subsequent days of party nominations and of united State delegations to the electoral college. If the thing were possible this season-if even a three

Elections "Thrown into the House "

fold or fourfold distribution of the popular vote alone were sufficient to cause it-then a "House election" would have been highly probable in 1860 and 1892 and all but certain in 1912. In 1860 four candidates were in the field, Lincoln's popular vote was a million less than that of his combined opponents, and 'every candidate carried one or more States; yet his vote in the electoral college was 180 out of a total of 303. He had carried 17 out of the 33 States, including all the largest. In 1892 Mr. Harrison and the Populist General Weaver polled some 660,000 more popular votes than Mr. Cleveland; yet Cleveland obtained 62 per cent of the electoral vote. In 1912 there were six candidates for the presidency, and no one of them received more than 42 per cent of the total popular vote; yet Mr. Wilson carried 40 States out of 47, with one divided in its vote, and polled 435 out of the 531 votes in the Electoral College.

Wall Street itself was probably aware, even when it indulged in political fancies over "an election thrown into the House," that if on those past occasions of violent party schisms and powerful independent movements, no such result ensued, it is hardly likely to occur in a year when "radical candidates" have been doing much talking but carrying no primaries; when third parties have been unable to find a

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Paul van Dyke from 1921 to 1922 served as director of the American University Union in Paris. He has been professor of modern European history at Princeton since 1898, and is the author of three books: "The Age of the Renascence," "Renascence Portraits," a " and "Cath

erine de Médicis." George Wharton Edwards, whose monotone drawings of London and of the bridges of Manhattan were features of this magazine some months past, came originally from Fair Haven, Conn. He began his art work by doing illustrating for two publishing houses, after which he travelled for a time in Europe and studied in Brittany under Eugene Feyen. Many honors have come to him, and among those that he cherishes most are the Great Medal of King Albert of Belgium in 1920 and the Gold Palms of the Academy of France, "for great works of art," which also made him an officer of Public Instruction of France. This was conferred in 1921, and is a crowning recognition of the solid worth as well as the artistic genius of his work.

he is also acting president of the Carnegie Corporation. Many people know him as an astronomer of note; he has acted as director of the astronomical observatory of Washington University, St. Louis; superintendent of the United States Geodetic Sur

vey, and president of the Massachusetts Institute of Technology. Not long ago the government of Greece conferred upon him the cross of Commander of the Royal Order of George I, as a mark of appreciation for his gift of a library building to house the famous Gennadius Library of Hellenic literature. Roland Young, the much-acclaimed General Burgoyne in the Theatre Guild's production of Shaw's "The Devil's Disciple," came from England in 1912, and has had notable parts in "Rollo's Wild Oat," "Madame Pierre," and other plays. His talent as poet and artist will be of particular interest to those who have followed his enviable career as actor.

Lothrop Stoddard sends the picture of Sofia peasant folk which is reproduced on the next page, and describes the city in his present article, the fourth in his new series giving characteristically discerning observations of post-war Europe.

Doctor Henry S. Pritchett, a native of Missouri and a graduate of Pritchett College of that State, holds the degree of LL.D. from fourteen universities. Since 1906 he has been president of the Carnegie Foundation for the Advancement of Teaching, and

Lawrence Reamer is a graduate of Columbia College, who studied law and political science here and abroad, and was admitted to the bar. Almost immediately after his admission, however, he went to work on The Sun at the suggestion of William M. Laffan. He soon began writing theatrical news and was also critic on Harper's Weekly for a period, during which he wrote special articles on music and the stage for the Sunday Sun. Later his work was restricted to the department of dramatic criticism. After ten years in this post he resigned it to take a place on the (Continued on page 5)