WORLD ECONOMIC CONFERENCE.

Press, Volume LXIX, Issue 20920, 29 July 1933, Page 11

WORLD ECONOMIC CONFERENCE.

WORK TO GO ON. CHALLENGE TO WISDOM OF MAN. MR MACDONALD'S SPEECH AT ADJOURNMENT. (BRITISH Oft'ICIAL WIRELESS.) (Received July 28, 5.5 p.m.) RUGBY, July 27. Concluding the plenary meeting which brought to an end the present session of the World Economic Conference, the president, Mr Ramsay Mac Donald, said: "At this point we adjourn, not because we are defeated or discouraged, but because the committees require a little longer to continue their deliberations and to consider their conclusions. You will therefore to-day pass a resolution keeping the machinery in being and instructing the bureau to remain in active life; and, so that its activity ■ may be more vital, the bureau will appoint, as an executive committee, the various chairmen and rapporteurs who have been guiding its work since the conference opened. As president, both of the bureau and of the executive committee, I promise that this work will be done as quickly as possible. •'I can give no dates for the essential part of the work will be intricate, and a number of opposing views and proposals will have to be examined. "Wc share that view that the conditions of things which we are facing—unemployment, bankruptcies, unbalanced budgets, and undeveloped resources—is a challenge to the wisdom of man, and very largely to the capacity of Governments. It is impossible that we cannot perform our task; but we are convinced that there is a very large field of possibility which has not yet been explored and cultivated. "I bid you adieu in the firm conviction that before many months I shall welcome 3 r ou once again.*' Mr Mac Donald, closing his speech, said that the need for agreement was greater than ever, but the mere meeting of the conference had contributed to the revival of trade. Co-operation Needed. The sudden interruption of the conference's work, which began well, by the currency problem, had taught the valuable lesson that unless the nations recognised the importance of the international aspect of certain facts, the only exit from the present position might be disastrous, perhaps revolutionary, and a series of state and private defaults. Deliberations regarding the monetary problem could not be postponed indefinitely. Prosperity depended on responsible co-operation, not irresponsible independence. International monetary adjustment eould be reached if each country agreed to ratios in international exchange value, and maintained them gainst speculative market fluctuations. The greater Dart of the conference's deliberations had centred on settling price; round a tx>int corresponding with costs. An increase in effective consuming demand was necessary for permanent improvement. The Nations' Spokesmen. M. Georges Bonnett (France), presenting the monetary report insisted that the discussions had been of the greatest value, and then later work probably would lead to wider agreement. Senator James G. Cox (United States) again examined in detail the world's economic ills. He said that domestic preoccupation had necessarily postponed international decisions. Alluding to the United States, he said: "When our great nation concentrated her vast resources to restore the vitality of one of the most important organs of the world's economic system, its enterprise should be regarded with sympathetic interest." ~ „,^ M. Hendrikus Colijn (Holland) said the recess need not De the final parting of the. ways but work could be usefully resumed only when the wide fluctuations of currencies ceased It would be criminal to sit with folded arms and simply await the return of stability. They must steadily prepare for agreements on the basis of the commission's recommendations. Signor Guido Jung reasserted Italy's strong belief in the gold standard and her determination to maintain the parity laid down when Italian currency was stabilised in 1927. Shipping Subsidies. Mr Neville Chamberlain (British ' Chancellor of the Exchequer) said there was no need to disguise their great disappointment that so little progress had been made, but they must not attempt to blame anyone, but rather recognise that circumstances had been too strong. The repercussions of Americas refusal to contemplate stabilisation undoubtedly disturbed public opinion elsewhere; consequently, it would have been fruitless to continue to attempt to discuss the full i agenda. He regretted that a conclusion had not been reached respecting shipping subsidies, which were Uneconomic and would aggravate the depression. .. Dr. H. Schacht (Germany) said: "The conference teaches us that it is impracticable to regulate simultaneously the decisions of 64 different countries. Any debt adjustment must be based on the preservation of the earning power of debtor countries." M. Ivan M. Maisky (Russia), regretting the shelving of the Soviet proposals, said that the failure of the conference would result in Jntensi " fled nationalism, probably leading to war. Whatever the course of events, the Soviet would unlailer- • ingly continue in the path of peace.