WORLD PROBLEMS

Ashburton Guardian, Volume 53, Issue 208, 15 June 1933, Page 5

WORLD PROBLEMS

GENERAL DISCUSSIONS

BRITAIN'S DEBT TO AMERICA.

THE RECOVERY OF PRICES.

REDUCTION OF HIGH TARIFFS.

STIMULATION OP EMPLOYMENT.

(United Press Association—Copyright). (Received This Day, 11.10 a.m.) LONDON, Jpne 14. The general discussion was continued at the plenary sessions of the World Economic Conference. > The-British Government's considered policy was stated by the Chancellor of the Exchequer (Mr Neville Chamberlain), who said that the fundamental monetary" condition of the recovery of prices was that credit should be actively employed. This, with revival in business confidence, must form the indisputable background of trade recovery. Central banks should undertake to co-operate with a view to securing the monetary conditions required for a rise in prices. The question whether the Government could actively assist by schemes of Governmental capital expenditure would also require consideration. The United Kingdom delegation, would be ready to examine, with, other delegations, how far employment could be stimulated by such action. Rises in price levels and increase in world trade would contribute powerfully to reduce the exchange difficulties and would assist in bringing to an end both the standstill arrangements in respect to short-term debts and the transfer difficulties as regards external indebtedness as a whole. These difficulties, would also be greatly diminished by resumption of normal international lending. Referring to the growing obstacles to international trade, the Chancellor expressed willingness to examine proposals for attaining reduction of excessive tariffs by mutual action. Any such proposal must be effective in securing really tangible reductions in excessive tariffs and must i command a sufficiently general measure of support and cover a wide enough area. It must not impose upon low tariff countries disproportionate sacrifices and must not have injurious repercussions or lead to economic hostilities.

The view of Britain was that reduction in Customs tariff could but be achieved by a series of bilateral negotiations which the Conference should endeavour to promote. .Commercial treaties .should mot be terminated before negotiations in regard to tariffs were undertaken, and then only after every effort had been made to reach agreements by negotiation. The United Kingdom delegation strongly favoured progressive abolition of all arbitrarilyimposed quotas. In view of the disastrous slump in prices the British Government was engaged in promoting regulation of the supplies of several food products. It would be prepared to co-operate in regulating supplies of wheat and other foodstuffs with a view to restoring and maintaining reasonable levels of prices. Mr Chamberlain said there was a close connection between the monetary and economic aspects of our problem. Action in these spheres must be taken simultaneously. Any attempt to obtain equilibrium by further large reduction in costs would be attended by intolerable suffering without hope of success. Solution of the difficulties must be found by recovery in the price level. The immediate aim of the monetary policy should be. stabilisation of currency and its ultimate aim—restoration of a satisfactory international standard for which gold seemed the most generally acceptable. Britain attached the greatest importance to the abolition of exchange restrictions and hoped the Conference would take positive action to secure this em-.-' Continuing, Mr Chamberlain said that if a creditor country wished to obtain payment of claims on foreign countries it must accept goods and services in settlement of those claims over and above the imports it took in exchange for its own exports. Revival of trade largely depended on the extent to which creditor countries were prepared to give practical effect to this principle. Moreover, international trade could not prosper on the basis of exchange of commodities between two countries being precisely balanced. Referring to State subsidies on export trade and shipping, Mr Chamberlain said they involved unfair competition and the adoption of this policy by one Government tended inevitably to force an unsound expedient on the Governments of other countries engaged in the same trade. A determined effort should be made to secure a reduction and eventual abolition of export and shipping subsidies by international agreement. Mr Cordell Hull (United States) said that the whole price-ridden world was looking to the Conference for leader- - ship with a programme of basic relief, ' and the distressed peoples of all lands expected concord, co-operation and constructive results. Trade barriers inevitably caused disastrous reaction upon production, employment, prices and distribution. Strangulation of international trade revealed the most tragic phase of that short-sighted and ruthless policy. The inevitable effect had been to reduce to the lowest level the prices of all primary commodities. Had not the time come for Governments to cease the erecting of trade barriers, with their excessive rank discriminations and hate-breeding reprisals and retaliations. International co-operation was a fundamental necessity to-day. The Conference should proclaim that an economic nationalistic policy was a discredited policy. All excesses in the structure of trade barriers should be removed; all unfair

trade methods and practices should be abandoned. In the monetary field,, Mr Hull urged the taking of suitable measures for an immediate policy giving the greatest possible degree of stability for a period during which the groundwork for enduring reform would be laid. Ho demanded measures for the removal of exchange restrictions and declared that America was prepared to offer concrete suggestions.— British Official Wireless.

NEW ZEALANDERS ARRIVE.

GREAT HOPES IN CONFERENCE.

CO-OPERATION IN EVERY WAY

(Received This Day, 10.40 a.m.)

LONDON, June 14

The Rt. Hon. G. W. Forbes, the Hon R. Masters, and party, arrived all well.

Mr Forbes said he regretted that he had heard nothing of the opening proceedings of the Conference. The people of New Zealand were placing great hopes in the Conference. They had felt the full effcets of the worldwide depression. A heavy drop in prices had necessarily reduced her capacity to buy British manufactures. He thoroughly approved of the limitation of the general debate of the Conference in the desire to obtain quick decisions. He had no cut-and-dried view's on any questions for the Conference. He was only eager to co-operate in every way toward world recovery. There was no immediate prospect of an alteration in the New Zealand exchange rate, except in accordance with the decisions of the Conference.

NEGOTIATING BODY NEEDED AUSTRIA AND CO-OPERATION (Received This Day, 8.50 a.m.) LONDON, June 14. Addressing the Economic Conference Dr. Dolfus (Austria) said that the conference would certainly contribute a great deal toward the settlement of the debt problem it it could call into being the necessary negotiating body. A method oT'cc-operation between the central banks should be adopted as a regular institution By the conference with a view to the stabilisation and maintenance of stability of currencies. He was pleased to announce Austria's agreement for a tariff truce. DOLFUSS AND CHAMBERLAIN. LONDON, 'June 14. The morning session of the Conference began with a buzz of expectancy when it was announced that the speakers would be Dr.' Dollfull (Austria), Mr Neville Chamberlain (Britain) and M. Litvinoff (Russia).

The most glamour was centred round the diminutive, boyish Austrian Chancellor, who is beset with a tense antiNazi situation in Austria, on account of which an aeroplane is waiting at Croydon to whisk him to Vienna today. His speech was a model of gravity. He plumped heavily for -reduction of wheat production as a check to price depreciation.

Mr Chamberlain's 35-minute survey made an excellent impression, with the detailed suggestions based on the uplifting of price levels after a final settlement of war debts.

SPEEDING END OP DEBATE.

AMERICA WANTS CHAIRMANSHIP

LONDON, June 14. A conference at which the delegates do not want to speak is somewhat of a novelty, but yesterday's renunciation mean a speedy winding up of the general debate, and the early appointment of the two main commissions—monetary and economic. The members of the French delegation are advocating the appointment of a third commission to deal with questions of production and labour. The American delegation strongly desire to secure the chairmanship of the Monetary Commission, but the claim is opposed by a majority both of the great and the smaller Powers, among whom the unchecked depreciation of the dollar has aroused criticism. Probably a neutral chairman will be chosen.

Conversations continue between British and French bankers and Treasury experts. Dr. Schacht (President of the Reiehsbank) has resumed his talks with representatives of Germany's creditors.

PRAYER FOR THE CONFERENCE.

APPROVAL BY PRESBYTERY

WELLINGTON, This Day

A form of prayer appropriate to the World Economic" Conference, now in session, was approved at a meeting of the Wellington Presbytery. Members of the Presbytery expressed the hope that all the Churches might co-operate in an endeavour to provide similar guidance regularly for the prayers oi the people. The Rev. J. 11. Blanchard said that the Public Questions Committee had considered the possibility of bringing about the co-operation of the Press in giving a place in its columns to some, brief, simple form of prayer which the people might use as a guide in the offering of prayer for Divine guidance in these critical days. The importance of this could not be overemphasised, for what the world needed most at present was not so much greater intellectual ability to solve its problems as a spiritual awakening in

which the divisive forces of fear, selfishness, suspicion, and prejudice would be swept aside for such an awakening. "We are all in the hands of God and prayer is the method which He has laid down as essential," Mr Blanchard said.

The suggestion met; "with the unanimous approval of the Presbytery.

PROPOSED TARIFF TRUCE.

APPEAL BY MR MACDONALD

LONDON/ June 11.

At the Conference, Mr MacDonald announced that 19 States, a majority of whom had played an important part in world economy, had agreed to a tariffs truce for the duration of the Conference. He earnestly appealed to all States to give adherence to the truce by Friday, which would a good augury for the work of the Conference. .