THE ECONOMIC POSITION.

New Zealand Herald, Volume LIX, Issue 17984, 9 January 1922, Page 4

THE ECONOMIC POSITION.

The speech delivered by Mr. Lloyd George at Cannes will arrest attention, even if it does not excite admiration. It amounts to a declaration that an attempt to place Governments in moral isolation destroys the peace and prosperity of peoples, and to continue the boycott is to foster economio chaos and anarchy. So grave is the condition of Europe to-day—its commerce, its industries, and its finances—that every effort to assist its recovery must be welcomed, and if it can be shown that to trade with Russia and Germany will hasten the return of economic well-being probably North Europe and America will swallow the pill. But at the moment it seems doubtful whether the conference which the Supreme Council has decided to convene will be able to find a solution for the problem confronting it or even to stimulate the influences working toward Europe's recovery. Nevertheless, the fact remains that Germany's capacity to pay hex reparation obligations depends on the extent of her foreign trade, so that if she is to be made to pay to the utmost of her capacity, obstacles to her commercial enterprise cannot be maintained. As to Russia, it will be for the conference to discover whether there are any evidences of sincerity in Lenia's recent acceptance of capitalism and to determine how far Russia is prepared to co-operate with other countries for the salvation of her own people as well as for the restoration of peace and prosperity generally. The gravest difficulty would appear to be the financing of industries and transport. Britain canaoi supply the new capital that Europe uesds, ar.ia what Britain cannot do none of the Continental countries e*,n attempt. It therefore seemß surprising that the United States has not been invited to send representatives to the conference. Mr. Harding has already made known his view that the European countries must themselves survey their difficulties, without calling in America. Nevertheless, it will be remarkable if the Geneva Congress is able to make much progress without taking American capital and American trade into its calculations.