WORLD STABILITY

Dominion, Volume 25, Issue 81, 30 December 1931, Page 9

WORLD STABILITY

Nations Must Discover Necessary Means SPEEDY MOVE URGED Official Wireia*. Rugby, December 28. The full report of the Special Advisory Committee of the Bank of International Settlements, convened on Germany’s Invitation In accordance with the provisions of the Young Plan, Is being dispatched to the Governments concerned. < The report discloses the problem of the menace to the economic stability of the world, but it leaves to the conference of Governments the problem of working out the necessary remedies. Arrangements for this conference have been under active consideration for some time, and the urgency of pressing forward with them Is fully recognised. The Prime Minister, who is at Lossiemouth, commenting on the subject in an interview, said: "The Experts’ Report shows quite plainly that the Governments ought to meet. without one day’s unnecessary delay. “The British Government is perfectly ready to meet at once. For God’s sake let us meet at once.” FINDING A WAY OUT Plain Task for Statesmen LONDON PRESS COMMENT Official Wireless. Rugby, December 28.' Commenting on the Basle Report, “The Times” says: “Its very limitations only make plainer than ever the opportunity offered to statesmen of finding by comparative effort some way out from the economic impasse.

“The experts’ careful statement leaves no room for doubting, first, that the economic gravity of the present crisis exceeds in magnitude the relatively short depression envisaged in the Young Plan, to meet which the provision of a two years’ moratorium was one condition on’ which the reparation annuities were designed; and, secondly, by implication that in the present circumstances the German balance of payments will be unable to bear the strain of the relmposltion, even of the unconditional payments next summer.”

Will Not Be Able to Pay. “The Times” says that unless Germany’s reparation liabilities are fixed at a figure which will enable foreigners to lend with full confidence, then In future not only will she be unable to pay reparations, but she will be forced to reduce her economic activity to a very low level to the manifest detriment of the rest of the world. A mere moratorium leaving the ultimate liabilities untouched would simply lead to a still more dangerous crisis. That is why the British Government stressed strongly in a recent Note for a permanent solution of the problem. The “Daily Telegraph” says: “Without stability the yvorld cannot recapture prosperity, and as a first condition of stability permanent financial settlement among the nations Is essential.

“We may be justified in saying that the directors of the German economic policy have set themselves to create conditions in which the payment of the obligations imposed upon her by defeat in the war would be impossible, but that does not give us the means of exacting the moneys. ’

Harmonious Scheme Wanted. “The duty of Governments in conference is to devise a scheme which will harmonise the international debts with present conditions.” The ‘‘News-Chronicle” says: “Until the whole question of Germany’s financial situation is satisfactorily dealt with, ordinary movements of capital between one country and another will not be resumed, trade will come to a standstill, and the financial paralysis from which the world is suffering will continue and intensify.”

ESCAPING PAYMENT “Topsy-Turvy Reparations” “If Germany succeeds in her barelydisguised attempts at finally repudiating reparations under the Young Plan —simultaneously convincing the world that she is unable to meet .her commercial obligations—she will, instead of paying a war indemnity, have received a handsome sum from the victorious Allies,” declared the "Daily Mail” in a recent article entitled “Those Topsy-turvy Reparations.” - “Germany, between 1925 and 1930, received long short-term loans equivalent to £1,125,000,000, the United States providing 60 per cent, and Britain 35 per cent, of the amount.” states the article.

Free Gift of £500,000,000. “Germany in reparations disbursed only £625,000,000. Thus, disregarding the further commercial credit which Germany has received during the last six months, she will, if the slate be wiped clear, have obtained a free gift of £500,000,000. “Moreover, although it is frequently stated that the reparations caused Germany’s precarious situation, the fact is that Germany has not paid a single reparation from her own pocket, but has merely paid the Allies from loans. “It is pointed out that the £0,600,000,000 which the Allies in the flush of victory fixed the reparations at has been whittled down to £2,375,000,000 spread over 60 years. Big Sums in Organisation. “It is Important to note," states the “Dally Mail,” “that Germany has spent exactly £2,475,000,000 in the last five years in organising her factories, and in internal developments, £812,000.000 coining from foreign loans, and £1,653.000.000 from Internal loans and taxes. <

“Some items are enormous, the expenditure enabling Germany to flood the world with cheap goods. Here are a few of them: £225,000,000 for reorganisation of mines and textile and chemical factories, £162,500,000 for new energy-producing plants, £400.000,000 for railway and other communications. £43,000,000 for small workshops and home industries. £375,000,000 for living and accommodation, including luxury homes on n great scale.”