WORLD PROBLEMS

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 5

WORLD PROBLEMS

MR. STEWART’S REVIEW

international plan needed ‘ MUST RAISE PRICE LEVELS DEBT RELIEF ESSENTIAL (Parliamentary Reporter.) WELLINGTON, this day. A joint caucus o£ the Coalition Party was held last night to welcome hack the Hon. W. Downie Stewart on his return from his financial mission to L Tn°the course of a brief informal chat with his colleagues, Mr. Stewait indicated that during his stay ni L ndo _ I early every authority lie consulted lud expressed regret three New « sufferin' 1, so severely from the dep - sion, and voiced a genuine desire to he of assistance in what direction they C °“There certainly seemed to be more optimism and confidence m Britain than in Canada or America, said Mi. Stewart in the course of a Press Association interview. “The outstanding success of the huge conversion loan was a magnificent demonstration of the public spirit and determination of the British' people. On the other hand, in Canada and America, everyqne seemed nervous and apprehensive. I did no. meet many industrialists in Britain, but J those I diil were ■cheerful and conlident, motor traders and manufac- * turers. “Many prophecies have been made of an optimistic nature,’’ he continued, “but, as acrainst that, only on the day I sailed, a leading figure in the financial world told me that, in his opinion, things would get worse before they get better.

RACE AGATNST TIME

“Both at Ottawa and London, I took every opportunity of emphasising the fact that all debtor nations were engaged in a race against time, and that unless effective means were 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. »“The present depression,’’ lie continued, “had not previously been equalled in severity, not only in industrial disturbances both primary and seconcldary, but also in the upset it has caused in budgetary positions and the_ international relationship of the 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 well as to the heavy fall in commodity prices, which has so greatly increased the real weight of all debt burdens. So far, economic remedies have been applied more from a national, than an international standpoint, and world trade and commerce as a whole has suffered. It is manifest that international co-operation must bo successfully achieved if we are to maintain the world as a highly organised independent society, and find a way out of the crisis. ■ . A CRISTS OF PLENTY .4/ “It is generally agreed that the first step towards the world’s revival.” said the Miuister, “must clearly bo the relieving crT Governments from obliga.tions which they arc unable to fulfil. This means cancellation on a considerable scale or a reduction of iuter-govern-menta! debts in order to re-establish 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 form of default.” Mr. Downie Stewart stressed the im-

porta nee of the forthcoming World Economic Conference, and stated, in conclusion: “Quito frankly, T do not know •when the depression will end, nor did anyone I met reallv know, but I am sure 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 n 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 re-establish a proper standard of living, which should steadily improve and keep pace with our growing control over natural resources.’’