ECONOMIC PROBLEMS

Evening Post, Volume CXII, Issue 26, 30 July 1931, Page 13

ECONOMIC PROBLEMS

EUROPEAN CO-OPERATION

DANGER OF TARIFFS

(British oMcial Wiroless.) (Received 30th July/ 11 a.m.)'

RUGBY, 29th July.

During au interview AYitli the Presjf yesterday, questions addressed to tho Prime Minister ranged over -a widui field. "When asked abou^ the possibility of tho economic co-operation, o^ Europe ho said that if each nationj. small or large, developed its produc* tive capacity io maintain a high tawf? wall, universal bankruptcy.. would ie» suit. Industrial agreements must bof made. The Governments of Europe realised that this was one of the biggesjj ! problems of the future, and the begins nings of co-oporation' in ' solving ijj were beiug laid at Geneva.'' Questioned regarding tho draia o^ gold, Mr. MaeDonald said . that tho contention "as safe as tho Bank ol! England" was as true to-day as twenty or thirty years ago. The Bank of England had always been generous in. tiding over difficulties in Germany, Austria, and Hungary, and -when thero was a run on German'short-term credits a certain reaction followed ia respect of foreign deposits lying in her vaults. For this reason there was some littla excitement and a demand for gold from London, "but," said' lie, "we cai^ easily deal with thai."