THE WORLD,S ECONOMICS.

Oamaru Mail, Volume XLIV, Issue 14007, 11 March 1920, Page 6

THE WORLD,S ECONOMICS.

(Imperial News Service.) Received March 11. at »fc-J5 p.m. LONDON, March 0Tht- declaration on the economic conditions of the world, as approved by the Supreme Council yesterday, states that the Council, after_ carefully surveving all aspects of a vitally urgent "problem, agreed upon the following recommendations with a view to the ameliorating of the present economic difficulties in Europe: Firstly, it is of paramount importance that peace conditions should be completelv restored at the earliest possible date throughout the world. In order to achieve this object it is desirable ta) that peace and normal economic relations should be re-established as soon as possible throughout Eastern Europe, (b> that armies should everywhere be reduced to a peace footing, that armaments should be limited to the lowest possible figure compatible with national security, and that the League of Nations should lie invited to consider, as soon as possible, proposals to this end, (c) that States created or enlarged as the result of the war should immediately re-estab-lish full friendly co-operation, and arrange for unrestricted interchange of commodities in order that the essential unity of European economic life may not be impaired by the, erection of artificial economic barriers. Secondly, not only the Government of each country, hut all producers should immediately attend to the execution of all measures contributing to a full resumption of peaceful industry, the encouragement of a letter output by workers, improvement of machinery and means of transportation, and the removal of disturbing features such as profiteering. Thirdly, each Government should immediately consider the means of urging upon all, as a national and vital necessity, the suppression of extravagance and the reduction of expenditure, fti order to bridge the gap which must exist for some years between the demand. and the supply of essential commodities. Fourthly.—lt is essential to take early steps to secure a deflation of credit and currency, (a) by the reduction of recurrent Gjoyernment expenditure within the limits of revenue, (b) by the imposition of additional taxation necessary thereto, (c) by immediate limitation and a gradual curtailment of note circulation. Fifthly-—Provision of raw materials being- crsential to the restoration of industry, means should be found by which countries at present unable to purchase in th.e world's markets can obtain commercial credits._ It should be possible to achieve this when tho countries make the reforms previously indicated.

Sixthly.—The Conference recogni.-ies the necessity for the continued cooperation of the Allies, and the removal of obstacles to easy interchange of essentia! comraoditirs. The Allies r- ; ll continue to consult together in_ regard to ' the provision and distribution necessary of raw materials and foodstuffs, in view of the early restoration of normal conditions. Seventhly. The Conference gavo careful attention to the* case of devastated regions, especially in the north of France. The restoration of these

reirions is of primary importance to tlie re-estabfishment of the economic equilir hrinm of Europe, and the resumption of normal trade conditions. Evidently <tbe large stuns required in this connection cannot be provided out of current revenue, nor can the work of restoration be postponed until ronaration from Germany is received. Therefore, the Conference recognised that the capital

sums required for this restoration, rnay properly be raised by market loans ui anticipation of the reparation payments, provided for in the Peace-Treaty. The restrictions which they desire to see placed on new borrowing do not apply i© these loans, or credit to meet this i.ormal capital expenditure. Eighthly.—The . Conference agreed that it is desirable in the. interest of both Germany and her creditors that the total reparation payable by her should be fixed soon, and agreed to an extension of the period of foor mounts from the signature of the Treaty, in which Germany is entitled' tc make proposals in this connection. The question of allowing Germany id raise a foreign loan is to be referred to the Reparations Commission.