The Hokitika Guardian MONDAY, MARCH 27th, 1922. THE STORM CENTRE

Hokitika Guardian, 27 March 1922, Page 2

The Hokitika Guardian MONDAY, MARCH 27th, 1922. THE STORM CENTRE

Europe remains the most disturbed and uncertain centre uf the world, despite the fact that peace has operated now for more than three years. A good deal of hope is fixed on the Genoa Conference, whereat Mr iLloyd George is to be the indispensible figure. His effort will be towards European reconstruction in a practical way. To attain so wonderful a result will require heroic proposals—and the courage to carry them through. Europe is so generally bankrupt that the burden of debt precludes the possibility of a speedy recovery. The burden of the debt is felt by the heavy taxation which restricts capital an<l enterprise in every direction. A writing down or a writing off of these enormous debts will be inevitable. In a small way something of that kind is happening in the North Island just now where owing to the land slump mortgagees have to make considerable cuts in interest and principal to assist the mortgagor out of an impossible position. In America gradually business men, and even politicians at Washington, are coming round to the •conclusion that more than ever the resumption of commercial prosperity on a large scale, and with a prospect of permanency, is more or less dependent on helping Europe to solve her economic troubles, Some of those who were disposed during the Wilson regime to qviesDqn the advisability of America tflkinsc p«H’t in the financial \

j rearrangement of European affairs j have since learned of the folly of America isolating herself with the idea ■of keeping her nose out of European

business. It cannot be done, unless 1 America is to suffer indirectly from ; the impasse iu Europe. For that reason the American Government is scri--1 onslv considering sending delegates to the Economic Conference that is to |be called at Genoa in March. The great thing undoubtedly ijs u> get things going in Europe, so that all nations will be able to meet their obligations without too great a strain on their current resources, and to get the, full benefit of trading between nation and nation, as it was before the war, Here it is realised among financial experts that to bring about that result something must be ac--1 eotnplished to normalise exchange, as nations cannot expect to buy from 1 other nations if they must pay a doli lar and half or two dollars for one I dollar’s worth of goods. It is hoped : that America can and will do much to accomplish the straightening out of the exchange situation. The lead taken by Premier Lloyd George on the reparation problem is, therefore here viewed with satisfaction and approval. Business men here think that giving adequate time and making it easy to meet the reparation payments will be one of the surest ways of restoring general business and normalizing exchange. And the success of the Armament Conference is regarded as a valuable aid in that direction. The attitude of America counts tjor a good deal and though the United States will not be specially represented, tile closest attention to the Genoa Conference will be paid—of that we may be sure. To the British Prime Minister it is not unlikely that his appearance at this Conference, will be the culminating act of his most useful life. If he can point the way whereby Europe may be saved from herself—so to speak—he will have triumphed exceedingly. Mr Lloyd George is bent on making the Genoa Conference a reality. There are signs that lie is tired of the pin-pricks of party government in Britain } and it is not at all unlikely after his wearing service during the strenuous years of office, that h e may be wishful to retire to the respite of the life of a quiet English gentleman. But before tliis fortunate circumstance can come to pass there is the feeling to attempt once more u> retrieve Europe from the financial morass which is threatening to work irrevocable ruin. If the great sendee in mind e*n be accomplished, what a noble feat will be performed, and what far-reaching effect the result will have all mind the globe.