MR. STEWART BACK
WORLD-WIDE CRISIS
LEGACY OF WAR DEBTS
) RELIEF FIRST ESSENTIAL
HOPES IN UNITED EFFORT
[BY TELEGRAPH —PRESS ASSOCIATION*]
WELLIXGTON, Thurs<liiy
'A very warm welcome home was extended to the Minister of Finance, the Hon. W. Downie Stewart, by colleagues and friends -who boarded the Rangitane as soon as the vessel berthed at Pipitea .Wharf this afternoon.
Seated in his chair in the lounge, Mr. Stewart spent a busy hour in greeting numerous callers from the shore and in farewelling shipboard acquaintances. Sir Cecil Day represented the GovernorGeneral, Lord Bledisloe, and among other callers were the Prime Minister, the Rt. Hon. G. W. Forbes and Mrs. Forbes, the Rt. Hon. J. G. Coates, the Chief Justice, Sir Michael Myers, Mr. J. T. Grose, chairman of Associated Banks, and many others. Restarting Work Mr. Stewart is looking remarkably fit and he proposes to restart work almost immediately. He said he had been invited to fulfil-an engagement at Dunedin next Monday, but on present indications he did not anticipate being ablo to leave ■Wellington for some time. Mr. A. D. Park, Secretary of the Treasury, who attended the Ottawa Conference, and later accompanied Mr. Stewart on his financial mission to London, also returned by the Rangitane. While Mr. Stewart was anxious to learn at first hand of conditions in New Zealand, he made it clear that it was not his present intention to comment on the situation, and he smiled away any suggestion that he should express his views on the exchange rate controversy, regarding which it is he has been exchanging wireless messages with New Zealand during the last few days of the voyage.
British Determination Mr. Stewart made some interesting observations on the world financial situation. "There certainly seemed to be more optimism and confidence in Britain than in Canada or America," he said, "lhe outstanding success of the huge conversion loan was a magnificent demonstration of public spirit and the determination of the British people. On the other hand, in Canada and America, everyone seemed ■nervous and apprehensive. "I did not meet many industrialists in Britain',, but those I did were cheerful and confident, particularly motor traders and manufacturers. Many prophecies were being made of an optimistic nature but as against that, only the day I sailed a leading figure in the financial world told me that in his opinion things would get worse before they would get better. "Both at Ottawa 'and London," said Mr. Stewart, "I took every opportunity of emphasising the fact that all debtor nations are engaged in a race against time, and that unless effective means are adopted without delay for raising the world level of prices, not only will debtor countries crash, but the whole system of modern capitalism will do the same. Countries Face Bankruptcy
"The present depression has not previously been equalled in severity, not only in industrial disturbances, both primary end secondary, but also in the upset it has caused in Budgetary positions ana the international relationships of different countries of the world. In fact, a number of Governments have had to face bankruptcy, together with a complete economic and political collapse. This aspect of the depression is closely related to the legacy of national and international indebtedness arising from the World War. "As to the heavy fall in commodity prices which so greatly increased the real weight of all debt burdens, so far the economic remedies have been applied more from a national than an international standpoint and world trade and commerce as .a whole have suffered. Fortunately, however, it is becoming more manifest that international co-operation must be successfully achieved if we are to maintain the world as a highly organised inter-dependent society and find a wav out of the crisis.
"It is generally agreed that the first real step toward the world's revival must clearly be the relieving of Governments from obligations which they are unable to fulfil. This means cancellation on a considerable scale or reduction of interGovernmental debts in order to re-estab-lish the solvency of national economic systems and so provide a fresh foundation on which general prosperity can be built. The time appears to be at hand when, if this does not come by way of international agreement, it will come in the foi-m of default."
!' Economic Conference Mr. Stewart stressed the importance of the forthcoming World Economic Conference. "Quite frankly," he said, "I do not know when the depression will end nor did anyone I met really know, but I am f.ure that one good result will emerge when daylight breaks and that is that we will have learned enough to prevent a recurrence of the present paradoxical absurdity of a crisis not of poverty, but of plenty. Many of the best and most expert brains in the world are concentrated on ascertaining how to acquire such control over credit and currency and methods of production and distribution as will reestablish a proper standard of living, .which should steadily improve and keep pace with our growing control over natural resources."
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Bibliographic details
New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 12
Word Count
838MR. STEWART BACK New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 12
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