WHICH FIRST—HORSE OR CART?

Evening Post, Volume CXV, Issue 64, 17 March 1933, Page 6

WHICH FIRST—HORSE OR CART?

That "no definite action" should he taken in tariff matters until aftcf the World Monetary-Economic Conference has been the attitude of the Canadian Government, according to yesterday's Ottawa'cablegram. Such an attitude may not. exclude tariff negotiations, but it certainly seems to be.at variance with the anticipation of U.S. State Department officials that "reciprocal tariff agreements with various nations would be worked out in advance of the conference." This important question of procedure may be considered from various angles, but the principal consideration is: "What plan will restore trade quickest?" Tariffs being complex structures, it might be that spade-work done in advance of the conference would help it; on

the other hand, a pre-conference reciprocal tariff worked out between two of the conferring Powers might prejudice the attitude of others. It is true that tariffs arc only part of the conference's work. But a new tariff arrangement can lead to action and reaction in -other compartments, as when New Zealand adopts a post-Ottawa policy of depreciating her external currency, with almost immediate parallel action on Denmark's part. The piecemeal plan should show a quicker piecemeal result. But every new move in one field is apt to affect other fields. Hence the extreme difficulty of international combined action in the region called MonetaryEconomic.