WORLD ECONOMICS

Ashburton Guardian, Volume 53, Issue 209, 16 June 1933, Page 5

WORLD ECONOMICS

LONDON CONFERENCE

NEW ZEALAND’S VIEWPOINT.

PRICES AND WAR DEBTS.

SHIPPING AND TRADE REGULATIONS. MR FORRES THE LAST SPEAKER. (United Press Association —Copyright). (Received This Day, 11.20 a.m.) LONDON, June 15. Mr G. W. Forbes (New Zealand) was the last to .address the plenary session of the Economic Conference. He said he had been particularly impressed by the speech of Mr Chamberlain, whose suggested measures for the improvement of trade and monetary relations New Zealand would do her utmost to support as a practical basis of co-operative action heading to general recovery. Unless commodity prices tvere so risen as substantially to reduce the real burden, existing debts must generally be scaled down, which may indeed be necessary in addition to nailing the price level. Though adjustment of debts must be a , question for consideration mainly by the parties and countries immediately concerned, the problem was of such pressing general concern as to warrant consideration by the Conference. Mr Forbes urged the Conference to deal with equitable shipping conditions, particularly the right of ships, without discrimination as to nationality, to compete in trade which was not merely local and coastwise. Referring to quantitative regulation of trade, Mr Forbes said that the producers of New Zealand disapproved of the limitation of exports or production. Instead they hoped for the removal of barriers and for restoration of the purchasing power to enable the absorption of increased supplies.

WELCOME TO MR FORBES.

INTEREST NOW IN COMMITTEES

(Received This Day, 11.30 a.m.) LONDON, Juno 15

There was a sparse attendance at the Conference until the President (Mr Ramsay .MacDonald) announced the Chairmen of Committees, after which Mr Forbes immediately spoke. The delegates remained and cordially welcomed Mr Forbes, who had the distinction of being the last speaker in the general debate. All interest now centres on thei Monetary and Economic Committees. India and every Dominion except Australia will take part in the general debate.

VARIOUS POINTS OF VIEW.

THE GENERAL DISCUSSION.

FREE STATE AND BANKING

(Received This Day, 11.20 a.m.) LUiNJJUN’, June id

Xiie general discussion at the World Economic conrerence was continued tinougnout the tiay. Mr Conoily (Upland) suggested expioiation ox the possibility of making the Bank of international Settlements an agreed clearing-house for international exchange and transfers, and co-ordination of its activities with those of central banks in all countries. He thought that gold should be the yard-stick of values, and the ultimate I act Or of the settlement of balances. He would like to see the development of an international clear-house of commodities.

Tewlilc Rushdi Bey (Turkey) emphasised the importance of international co-operation. ©enor Alberto Pani (Mexico) said he desired to see the rehabilitation of silver and stabilisation of its price. M. oalnais (Latvia) advocated gradual reduction of tariffs in the first place of agricultural products and raw materials. Dr. Dallas (Estonia) maintained that countries should be placed in a position to pay their obligations in goods and services. Mr Forbes (New Zealand) maintained that excessive debt charges must be included in any adequate list of trade obstructions. New Zealand producers were most reluctant to agree to limitation of either exports or production. They should concentrate on securing expansion oi consumption. ■ ' Mr Soong (China) urged that while stabilisation is being sought lor gold currency it might also be found or silver, for which a reasonably stable value was more important than an increase. in value. China intended to raise its standard of living. Its consuming power would then provide the greatest of all markets in the world, which might he a decisive factor in bringing xeal and lasting recovery to the whole world. . Mr R. B. Bennett (Canada) said lie was whole-heartedly in agreement with Mr Chamberlain’s monetary programme. He urged the United Kingdom and the United States to stabilise the exchanges. Then Canada would be willing to stabilise the dollar on London and New York. He also agreed in the main with Mr Chamberlain, legarding trade restrictions. The accumulated carry-over of 300,000,000 bushels of wheat could be effectively dealt with only by international agree-

ment involving possible reduction of acreage till the carry-over was disposed of. Many importing countries, by raising their tariffs, had diminished the demand and aggravated and perpetuated the. disastrous fall in. prices. These countries should seriously consider the feasibility of enlarging the demand.

BUSINESSLIKE PROCEEDINGS.

TRIBUTE BY MR. -MACDONALD

(Received This Day, 11.20 a.m.) LONDON, June 15

"I congratulate the delegates heartily on the 1 proceedings since Monday. This is the most businesslike and expeditious conference over which I have ever presided,” said Mr MacDonald, in closing the general debate at the World Economic Conference.

Mr Forbes, who to-day changed his mind and decided to speak, was absent when first called, but later addressed the Conference.

CHAIRMEN OF COMMISSIONS.

(Received This Day, 11.20 a.m.) LONDON, Juno 15

The World Economic Conference accepted the recommendation of the Bureau that Mr Cox (United States) preside over the Monetary Commission) and that the vice-presidents should he Signor Jung (Italy), Dr. Kienbock (Austria), with M. Bonnet (France) as rapporteur. The Conference also agreed that Dr. Colign (Holland) should preside over the Economic and Trade Commission, with Herr Kragmann (Germany) and Don Lebreton (Argentine) as vicepresidents.

CANADA’S WHEAT POLICY.

SPEECH BY Mll BENNETT

LONDON, June 15

A speech by the Portuguese, , Dr. Damatta, failed to arouse interest hut the attendance, was large including Mr Forbes and Mr Masters, when Mr .Soong spoke. Mr Bruce is not taking part in the main debate, reserving the Australian case for the committees.

The Conference heard a vigorous speech by Mr R. B. Bennett who made the first definite disclosure, of the wheat policy. He came out strongly for a curtailment of acreage pari passu and favoured a concerted effort by importing countries to enlarge their demand, instead of as hitherto aggravating the fall in the price by defensive tariff increases. ,

There is a suggestion in the lobbies that Argentina will be among the restrict]' onists.

TO ABOLISH EMBARGOES.

OBJECTIVE OF THE RUSSIANS

(Received This Day, 9 a.m.) LONDON, June 15

Evidently aimed at the British embargo, M. Litvinoff submitted to the Conference a. draft resolution under which governments would agree to withdraw all measures of economic aggression, discrimination and boycott, irrespective of the motives underlying them.

The keenly-waited speech by Mr Cordell Hull (chief of the United States delegates) scarcely bore comparison with Mr Chamberlain’s analytical effort. Mr Hull skated over the whole surface of economics without even indirect reference to war debts, though ho admitted that international co-op-eration was a fundamental necessity and even pleaded for liberalisation of commercial policies, but it left inthe dividual imagination to decide whether he included America among the nations eager to sell but unwilling to buy. In redemption for the vagueness of his speech, lie promised that America woxdd submit concrete proposals in the committee stage. M. Litvinoff (Russia), in jerky English, did his best to convince the Conference that Russia, is in nowise responsible for, or immersed in, the world crisis with acute difficulties inherent in the Capitalist system. Russia was ready, if credit facilities ■ were forthcoming, to place orders abroad to the extent of a billion dollars for the development of her resources. With the representatives of most of the more important nations having spoken, the debate is expected to finish to-morrow night. Mr S. M. Bruce (Australia) has not yet submitted his name to speak. Mr Forbes is not likely to do so at the present stage. Mr Bennett (Canada) may expound the Canadian view to-morrow.

The creation of commissions will mean that the actual work will be begun on Monday.

With the Australian and New Zealand Parliaments out of session, it is not expected that either will notify acquiescence to Mr MacDonald’s proposal for a tariff truce appeal. In any case it is only for the duration of the Conference and subject to a month’s notice of termination.

PACE BEGINNING TO TELL.

LONDON, June To

The pace at the Conference is beginning to tell. Long sessions, unofficial meetings and nightly social engagements resulted in barely 100 being present at the opening of the session to-day.