GRAVE ISSUES.

Auckland Star, Volume LXIV, Issue 136, 12 June 1933, Page 7

GRAVE ISSUES.

GIGANTIC PROBLEMS.

Failure of Conference Would Spell Disaster.

PROBABLE AGENDA,

(United r.A.—Electric Telegraph-Copyright)

(Iteccived 11.30 a.m.) LONDOX, June 11. On the eve of the World Economic Conference newspaper comment stresses the difficulties, but indicates that the world situation is so grave and the consequence of failure so disastrous ihat (he nations will be driven to finding at least a partial solution of currency and trade problems. Thus, Sir Arthur Salter, in an article in "The Times," declares that success means the turning of the tide towards revival and a world-wide diminution of economic nationalism, whereas failure v ould involve indefinite postponement. The conference must first face the question of currency, and a monetary policy because tariff negotiations are impossible except in relation to provisionally stabilised exchanges, while the task of adjusting indebtedness of all kinds is only measurable when it is known how far the monetary policy is to be directed by a raising of price level. Xo exchange stabilisation can last, however, unless based on a reformed tariff system and a normally, working credit system. America's depreciation of the dollar has made stabilisation more imperative. According to a dispatch several foreigners under the leadership of America, and supported by .Germany and Japan, will vigorously attempt to kill Ottawa agreements in order to again undersell Britain in the Empire markets. The Russians aro desirous of raising industrial loans. Tho "Sunday Times" says Germany will urge that industrial States should exchange their manufactures with raw materials from undeveloped countries, which is interpreted as an attempt to regain lier colonics. Italy is optimistic and will press for reduced tariffs, trade quotas, a return to gold of the dollar and sterling area currencies at the highest possible rate.

A Geneva message says the International Labour Confercnco urges on the conference international action in the interests of the 30,000,000 unemployed. Complicated Range of Interests. Official circles hesitate to prcdict that anything will eventuate from the conference in the shape of a treaty for economic peace. They consider that the subjects are too complicated to submit to documentary definition. The subjects can be broadly grouped as follow: —(1) Monetary and credit policy. (2) An increase in commodity prices. (3) A resumption of the movement of capital. (4) The removal of restrictions in international trade. (5) The organisation of production and trade. The British policy will be stated by the Chancellor of the Exchequer, Mr. Neville Chamberlain, but there will be nothing to prevent Sir. Mac Donald leaving the chair and speaking on behalf of Britain if necessary. In the interests of truth it must be confessed that the general attitude toward the conference is mainly one of scepticism. The ordinary mind cannot visualise useful results from the talk between representatives of 66 nations with conflicting interests to press. The Government, also, has been reproached for not producing a cut and dried policy for submission to the conference. The impression is held that the decisions, if any, will not be reached by the CO nations, but by an odd six, and that possibly these will reach more important conclusions outside the conference.

Currency Stabilisation,

An instance of this is a small item published in only one or two newspapers. It records that Mr. Montagu Norman at the Bank of England had a conference with Mr. Cordcll Hull and other American delegates, and with French and British representatives on the subject of currency stabilisation. A small meeting like this well may bo fraught with greater results than weeks of sitting in conference, though it might not have been held had the conference not been summoned. "The choice before the world at the Economic Conference is nationalism versus co-operation," writes Sir Walter Layton, editor of the "Economist," in the "News-C'hronicle." The writer emphasises the facts that more than 30,000,000 people are unemployed in the world, that 13,000,000 tons of shipping (more than was destroyed by submarines in the Great War) are idle, that farmers are impoverished, that Budgets are unbalanced in spite of heavy taxation, and that there are all the symptons of post-war economic policy attempting to attain prosperity independently, often at' the expense of the remainder of the world. "Unless the issue is solved rightly progress will bo impossible in other directions," .says Sir Walter. "Even the stabilisation of currency with a new international gold standard ultimately will break down unless freer trade is permitted. The omens for that at present are not favourable. "If the delegates shrink from taking the coureageous road and continue with national self-sufficiency they may as well go home immediately. No makeshifts or pious resolutions will rescue the world from its present economic barbarism."