WORLD RECOVERY

Evening Star, Issue 21316, 21 January 1933, Page 13

WORLD RECOVERY

BARRIERS TG RECONSTRUCTION PREPARATORY COMMISSION'S REPORT Press Association —By Telegraph—Copyright GENEVA, January 19. The preamble to the report of the Preparatory Economic Commission emphasises the gravity of the situation, and estimates the world’s unemployed at 30,000,000. Wholesale proces have declined one-third since 1929. Stocks are accumulating, production has been curtailed, and the international flow of goods is incredibly low. Few. countries retain the gold standard, nevertheless the security of markets is improving, although reconstruction is essential to expedite recovery, thus ending the conflict of national economies. Failure herein would shake the whole system of international finance, lower the standards of living, and shatter the social system. The problem of intergovernmental indebtedness, though outside the scope of the conference, must be settled in order to overcome a barrier to reconstruction. The conference could not settle issues piecemeal. Governments must act concertedly and promptly. The international monetary standard must be restored and a fresh breakdown prevented A general policy of easy money in order to promote business should be advocated. Exports and production might be regulated, especially wheat. Abolition of exchange control was essential as a preliminary to recovery, but Governments must adapt their budgetary systems thereto and restore confidence in foreign lending markets. Restriction of imports created paralysis in international trade, therefore normal interchance of commodities should be re-established by moderating tariffs.