ECONOMIC CONDITIONS

Otago Witness, Issue 3594, 30 January 1923, Page 19

ECONOMIC CONDITIONS

WORLD CONFERENCE PROPOSED. W ASHINGTON, January 26. In the House of Representatives Mr Chalmers (Republican) introduced a resolution requesting the President to convene a World Peace Conference at Washington for the purpose of effecting international stabilisation. The White House has issued a statement to the effect that President Harding does not consider the present time opportune for the United States to call a world economic conference. It was indicated that President Harding would oppose a resolution to that effect should Senator Borah reintroduce it. Nevertheless, tia learned that the United States would bo willing to participate in such a conference as soon as the European nations indicate their readiness for it. The White House has also issued a statement that while President Harding has every confidence in the settlement of the British debts, he will not call a special session cf Congress if an agreement is not reachd before March 1. POLICY OF DEFLATION. LONDON. January 25. At a meeting of slrareholders of the London Joint Stock Bank, Mr R. M'Kenna (chairman) said: “One of the causes of trade depression is the restrictive influence of financial deflation, which as a financial policy has no more to recommend it than inflation. The result of deflation this year has been a reduction in the purchasing power by £200,080,000. of which the immediate effect has been diminished trade and increased unemployment. If at this stage we made no further effort to deflate, trade would soon recover.” January 26. In addressing the Huddersfield Chamber of Commerce Sir W. Joynson-Hicks, of the Department of Overseas Trade, disagreed with Mr Reginald M'Kenna s views regarding deflation. He said that coincidently with the deflation during last year we had seen a distinct improvement in trade as compared with the previous year. The result of the appreciation of the pound sterling had been that that very deflation was paying off debts by taxation which had been burdensome, but which bad proved of inestimable value in getting the country’s finances into a stable position. IMPERIAL ECONOMIC CONFERENCE. LONDON, January 27. The Empire Development Union, of which Lord Long is president, is issuing a statement reviewing the Imperial trade relations in view of the proposed meeting of the Imperial economic conference. The statement calls attention to the resolutions of nrevious Imperial conferences regarding Imperial preference and the practical stpns already taken. “No doubt.” it savs, “if the times were normal, and it were possible to go on ouietlv end steaciilv experimenting on the lines laid clown, then ultimately a verv ex< ensive scheme for promoting trade within the Empire would be the result, hut, the measures actually adopted are inadequate to carry out tho great purpose in view at these Imperial er Terences in time to cope successfully the great economic crisis through which the Empire and the world in general are passing. ’ The statement iirees that the Economic Conference should leave generalities behind, and that the delegates should do their utmost to evolve concrete schemes for organisation, and decide actually on. the next steps to be taken.