BEHIND CLOSED DOORS

Otago Daily Times, Issue 21988, 24 June 1933, Page 11

BEHIND CLOSED DOORS

CONFERENCE PROCEEDINGS EFFECT OF AMERICAN POLICY MR MACDONALD REMAINS CONFIDENT (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 22. A Sun service message says that there is a widespread feeling that Mr MacDonald must have sadly misunderstood the President when in Washington, for he reported that Mr Roosevelt was most anxious to assist to overcome the depression by united action, whereas it now seems that he is bent upon a policy of isolation and is determined to try the panaceas of a huge public works programme, plus the cheapening of money. If the remaining countries of the world are ready to adjust their plans to his internal policy, well and good; if not, they may have to go forward without America. Mr MacDonald, on the other hand, maintains profound confidence, do daring that the delegates are just commencing to take off their coats; but, fearing the American aloofness, several delegates have already slipped away. Baron von Neurath has frankly said that he will not return unless a more definite policy emerges from the discussions. M. Litvinoff, conspicuously absent from the debates, has haunted the lobbies and approached the American delegation requesting recognisition of the Soviet by the republic. Mr MacDonald has summoned the dominions’ principal delegates and the leading British delegates to a conference at his private house. Practically the entire conference proceedings are now behind closed doors, which Mr Mac Donald believes is the only method of progressing. - , „ , It is understood that the Empire delegates have considered the American stabilisation and economic statements. The latter brings Ottawa from the realm of gossip into the formal conference, by the Economic Sub-committee having to discuss Ottawa and similar agreements. Britain and the dominions are unlikely to budge an inch regarding the Ottawa agreements. THE CURRENCY QUESTION STATEMENT BY UNITED STATES (British Official Wireless.) RUGBY, June 22. The attitude of the United States regarding the suggested temporary currency stabilisation was elucidated today by the following statement issued by the American delegation to the conference i —“ Undue emphasis has been placed upon consideration of the plan proposed for a temporary de facto stabilisation of currencies. The fact is that this was never the affair of the delegation. It was considered by the representatives of the Treasuries and central banks of the United States, Great Britain and France. Dr Sprague Haiton had been specially sent to represent the United States Treasury for this purpose. As to the ultimate objective, the American delegation has already introduced a resolution designed for ultimate world-wide stabilisation of unstable currencies, and is devoting itselt to supporting measures for the establishment of a co-ordinated monetary ana fiscal policy to'be pursued by the various nations in co-operation with each other for the purpose of stimulating economic activity and improving prices. POLICY OF THE PRESIDENT COMMENT by the times. LONDON, June 23. (Received June 23, at 5.5 p.m.) The Washington correspondent of The Times, who is attending the World Conference, says: “ According to the American delegation Professor Moley, the President’s economic adviser, will bring no new instructions and possesses no authority' for favourably modifying any phase of the negotiations. If he brings anything it may be a reasonably reliable calculation of the time which will elapse before President Roosevelt is ready to /• stabilise ’ conditions in the domestic markets.” ' The Times, in a leader regretting President Roosevelt’s refusal to agree to a currency truce, emphasises that it was hoped that he objected merely to the terms of the arrangement and did not oppose the principle of keeping the dollar stable while permanent stabilisation was discussed. “The abandonment of that hope,” The Times states, ‘may be very disconcerting. Any great depreciation of the dollar in sterling or francs, unless balanced at least by a corresponding rise ■in dollar prices, is likely to depress prices below their present disastrous levels and might force other countries to adopt protective steps similar to those when Britain abandoned the gold standard, creating an atmosphere unfavourable to the conference. Nevertheless it may be taken that President Roosevelt understands the danger of uncontrolled inflation and will be prepared to call a halt when American prices are restored to a tolerable level, perhaps comparatively quickly. The city editor of The Times says that if President Roosevelt succeeds in raising prices generally the whole world will benefit, but in as much as no ease is recorded in which depreciated currency has succeeded in raising world prices as distinct from domestic prices he believes that the experiment will be attended by grave risks. There would be less anxiety if the world were confident that President Roosevelt would he able to stabilise the dollar when it reached i certain point, but it is feared that political opinion' will later be as stronglv opposed to stabilisation as today because it will involve a cessation of inflation and will check a local rise in prices. It is also argued that once, inflation stops deflation automatically begins owing to the withdrawal of the impetus of fresh purchasing power.

PRODUCTION AND MARKETING memorandum prepared. ■ (British Official Wireless.) RUGBY, June 22 The snb-comniittce of the Economic Commission dealing with the co-ordina-tion of production and marketing, nas before it a memorandum prepared by the secretary and embodying the previous work and ideas expressed in Die course of discussion. It emphasises the importance of the wheat question being pressed forward during the present conference as an arrangement whereby prices might be raised and importin'l' countries, brought to a moderate tariff policy, would he likely to exert considerable influence on the evolution of trade policy in view of the fact that the wheat question con corns a large majority of agriculturists in all countries. The conference is urged to consider attempts to organise certain specific branches of production as part of the general scheme intended to restore buoyancy to economic life. I he Governments must assume special responsibility, while taking into serious account the opinions of the parties directly concerned and without whose co-operation a-satisfactory scheme would

be difficult. A single solution, applicable in the same manner to all products i* regarded as impossible, but a solution of the situation is offered in regard to the production and marketing of wine, coal, sugar, wool, cotton, and tobacco. The Brazilian delegation submitted a proposal that coffee be included among the foodstuffs internationally organised to maintain equilibrium between production and consumption. The United States delegation tabled a resolution designed to lay the foundations for the gradual reduction and removal of artificial trade barriers. It asks the conference to agree that the policy of economic nationalism is against the common interest, that all arbitrary restrictions be removed completely and quickly, and that tariff barriers be reduced as soon as possible by reciprocal, bilateral, or multilateral agreements, which should contain no discriminatory features likely to react unfavourably on world trade as a whole. PRESIDENT ROOSEVELT KUMOUR OF VISIT TO CONFERENCE. ! ' ' LONDON, June 22, One of the most surprising of all remarkable rumours in the lobbies tonight was that President Roosevelt himself intended to come to the conference. This had hardly finished reverberating when the inevitable official American disclaimer was issued. A good many delegates frankly declared to-day that nobody could be expected to take the latest American resolution seriously in view of that country’s excessively nationalistic economic policies. Nevertheless, the leader of tUo American delegation (Mr Cordell Hull) issued a statement to-night stating that the resolution reflected the views of the Government. “Its purpose is to seek the judgment of the various delegations on fundamntal issues in order that the world may be -set facing and thinking in the right direction in search of a solution of the ills attributable to economic nationalism.” CREDIT PROPOSALS \ FURTHER AMERICAN MOTION. LONDON, June 23. (Received June 23, at 7 p.m.) Senator Couzens, a Republican member of the American delegation, tabled a further motion in favour of close cooperation between Governments and central banks, aiming at making abundant credits available to sound enterprises, reinforcing this with the stimulation of employment by Government undertakings in every country. British official circles refuse to be downcast by the rebuff caused by the Americans’ failure to support _ the earlier temporary stabilisation project. They state that time must be given to see the effects of President Roosevelt s measures for the recovery of prices. TUe present rises affected only the existing holders of stocks and had not yet reached the producers. Britain and America are agreed as to the necessity for stabilisation, the only difference being on when this should take place. The Russians are gloating over the American resolution, declaring that it must strengthen their demand for the withdrawal of the British embargo.

ENCOURAGEMENT OF PRIVATE ~ ENTERPRISE AMERICANS SUGGEST PROGRAMME. LONDON, June 23. (Received June 24, at 0.55 a.m.) The representatives of the American delegation on the monetary commission have tabl&l a resolution largely in harmony with that of Mr Chamberlain regarding readily available credits but urging serious encouragement of private enterprise through Government expenditure. America suggests that such expenditure might readily be financed by borrowing, provided the debt service is covered by balanced budgets. Aftei urging a synchronised programme of governmental expenditure in different countries along parallel lines the resolution suggests that the issuing banks of the various nations send representatives to London immediately for the purpose ot consultation and _ the appointment c;,a conference committee, which should ieport for the guidance of individual nations regarding the working of the programme.