WORLD PROBLEMS

Evening Post, Volume CXVI, Issue 71, 21 September 1933, Page 10

WORLD PROBLEMS

CONFLICTING VIEWS

BUT A LITTLE SUNSHINE

ME-. FORBES GRATIFIED

The Obstacles in the way of the success of the "World Economic and Monetary Conference were outlined by the Prime Minister (the Rt. Hon. G. W Forbes) in an address at a dinner given last night V the Wellington Manufacturers' Association. There was little unanimity among the nations as to the best methods of attacking the problems of the world,' he said, and no. asrrecments could be reached. Mr. Forbes said that they were all gratified to see the definite rise in price levels. Th« improvement was taking place in the Old Country while they were there. It had been a steady increase, and he felt that it would'continue steadily. The price of wool was better than it had been for years past, arid the values of dairy produce were on the up-grade. Taking the position as a whole one could .say that there was now. a little sunshine through the clouds, and for this he was- very grateful, as. there had been dark clouds m the sky ever since he had been Prime Minister. -In order to cope with the depression the: "Government had -had to take many steps which had been criticised, but fie did not deny anyone the right of criticism. -■" !■ ; c ; , CUBRENCY DIFFERENCES. .One of the: purposes of the iWorld Economic and Monetary Conference had been to raise prices, and as New Zealand was vitally affected by the price she received for her products on the Overseas markets, the ■ Government had; decided that it was in the interests ef the Dominion that she should be represented. The Conference had been uniquo, in the history of the world. Of the sixty-sir nations invited, sixtyfour had sent representatives, and it could be imagined that at a conference of that .magnitude it was difficult to obtain anything like a unanimous decision. That was apparent.;after the Conference had been going a few days. The Conference had divided itself into two divisions, the monetary and the economic. In the monetary section there were three groups—those who adhered to the gold standard as the only stable basis for currency, the sterling group, which- comprised >' the- United Kingdom, the Dominions, and some of 'the Scandinavian countries, and third, thbsejcountries which were in- a desperate situation in regard to indebtedness, such as some of the South American countries. There was also'the extra difficulty of the United- States at America. The American.' delegates' had said tentatively that' something should be done, but when the proposals were submitted to President Boosevclt ho had turned them down on the ground that' he could not agree to a,ny proposals until he had settled the internal policy. The question of indebtedness was held over on the objection that the Conference had been called to consider question of price levels,' and that if prices were increased the question of debts would not be (Oppressing. During .the deliberations -on, currency and-exchanges there had been.'discussions on: the central banking, «ystem. It was considered that the .central banks of the world could do: a great deal to strengthen the position of the world, and it was the'general-opinion that those countries which did not Have central banks could' not reap the full benefits of international co-operation, PROBLEM OF TARIFFS. On tho economic side of the Conference the problem of tariffs was raised, but it was felt that no good purpose could be served by discussing this question until currencies had been stabilised. It was admitted that tariffs did a great deal of damage to world trade, but that nothing could be gained by tariff alterations alone. The regulation of markets was supported by some of the European countries. It was felt that some system of orderly marketing should be put into operation in order .that the production of the world could be regulated. Mr. Forbea said that the representatives of Great Britain had been held in the greatest respect by the other delegates to the Conference, and when-ever-they placed a proposition before the Confereneerthey were listened to attentivelyI.' *' When' everything in. other, countries seemed to-be standing /on shifting sands, British : institutions stood as solid as a rock. Then was no doubt t*a.t Great Britain was the most solid nation in the world; ' For centuries she had been the financial "centre of the world, and the reesok ftw this was to be: found la the character 1 «f the.British people,, Who ha* been responsible for her financial policy. For this reason she would renialn the financial centre of the world.' ,*'■- \, • '■ The" Prime. Minister saidthat-he had been asked since ,hy,return to 'make a statement oh/the prospects of a conversion loan, in view of Australia's .successful.efforts.' Australia? had had several loans falling due, and she had been .able to eonvert'these. '.New Zealand, had a loan of £5,000,000 falling due shortly, and after the Australian conversion had been completed New Zealand would, be able to ,xnake her arrangements. ■. ,