1938: Sweden

The Swedish Government led the other Scandinavian Governments during 1938 in an active effort to avoid involvement in Europe's developing political crisis. It opposed all tendencies toward joining a 'front' of democratic countries against Germany and Italy and instead worked to develop a 'neutral bloc' of Scandinavian states. Meetings between the Foreign Ministers of Sweden. Norway. Denmark and Finland on April 5.6 and May 27 led to a definite declaration of policy on the part of these countries to avoid commitments to either European coalition. Moreover, an agreement to pursue common neutrality rules and policies in case of foreign war was signed on May 27 (see DENMARK). In July and September the seven 'Oslo Powers,' including the four Scandinavian countries and The Netherlands, Belgium and Luxemburg, took steps to avoid involvement in sanctions by the League of Nations.

At the opening of Parliament on Jan. 11, King Gustaf announced the Government's intention to combat future economic depressions through the construction of planned public works. Beginning in 1936, a commission had prepared an inventory of all public works to be executed in the country during the next ten years. These definite plans enable the Government, in case of depression, to carry out without delay such works as are demanded by economic conditions. By enacting laws prescribing an 8-hour day in the merchant fleet and granting all Swedish workers 12 days paid vacation per year, Parliament also introduced important social reforms. The election of county councilors on Sept. 18 constituted a strong vindication of the policies of the Social Democratic Prime Minister, Per Albin Hansson, and his party. The Social Democrats gained an absolute majority of seats, while the liberal Popular Party increased its strength and the Communists won a few seats. The Right, the Peasant's Party, and the Left-wing Socialists suffered considerable losses. Among the noteworthy public affairs of the year was the nation-wide celebration of King Gustaf's eightieth birthday on June 16. A large birthday gift of funds raised by popular subscription was devoted by the King to the fight against infantile paralysis.

Although the pace of business retarded somewhat during 1938, due largely to difficulties in several industries, economic conditions remained distinctly favorable. The remarkable building activity of 1937 was continued, and employment remained at a favorable level throughout the year. Although foreign trade figures declined from 1937, they remained well above those of 1936.

During 1938, the American public manifested interest in Sweden's policies, especially those dealing with labor relations and economic planning. A commission appointed by President Roosevelt to study Swedish labor relations issued a highly favorable report on Sept. 24. American interest was further stimulated by Crown Prince Gustaf Adolf's visit to the United States to take part in the celebration, at Wilmington, Del., of the 300th anniversary of the founding of the Swedish colony in America.