WORLD ECONOMICS.

Ashburton Guardian, Volume 54, Issue 193, 29 May 1934, Page 8

WORLD ECONOMICS.

PRESSURE OF THE CRISIS.

CONFLICT THREATENED

LONDON, May 10.

The annual report of the director of the International Labour Office, Mr 'Harold Butler, to be presented to the International Conference in June says the Geneva correspondent of . "The Times" emphasises the profound modification of the outlook brought about by national transformations. "The relentless world pressure of the crisis," says the (report, "has oyer- ' throw u the Constitutions of some countries, and destroyed in others faith in the' economic principles of generations. Germany, America, Italy and Russia, comprising 400,000,000 people and representing 64 per cent of the world's industrial production, largely have abjured those principles implying that the road to recovery does hot lie along familiar tracks. "No remedies within 1 the reach of industry afford a complete cure for the world's devastating economic anaemia, nor will financial action or Government intervention alone suffice. All three must co-operate. "The world would have been nearer recovery had the Economic Conference acted vigorously, even on some of the proposals submitted to it, particularly regarding public works, but economic nationalist policies prevented this. "Economic nationalism has generated international tension and threatened political relations. We are ill a vicious circle, in which political behaviour and aggressive nationalism threaten international conflict, unless the economic fever'causing them can be allayed. But the fever can be cured only by international prescriptions, against which overheated national sentiment has revolted. We need a strong lead toward a more rational, organisation of the world's economic life."