The Southland Times PUBLISHED EVERY MORNING. "Luceo Non Uro. TUESDAY, AUGUST 29, 1933. PROFESSOR MOLEY GOES

Southland Times, Issue 22106, 29 August 1933, Page 4

The Southland Times PUBLISHED EVERY MORNING. "Luceo Non Uro. TUESDAY, AUGUST 29, 1933. PROFESSOR MOLEY GOES

The resignation of Professor Moley is interpreted in the United States as the evidence of a split in the Department of State over the general economic policy. Mr Cordell Hull, the Secretary of State in President Roosevelt’s Cabinet, believes that recovery in the United States can come only from international action while Professor Moley, the assistant Secretary of State, stood for domestic action. It will be remembered that Professor Moley’s arrival in London during the Economic Conference coincided with a change in the policy of the American delegation and led to the breakdown of the conference. There can be no doubt that Professor' Moley was sent across the Atlantic to ensure that the United States was not committed to international action. At that time he was at the President’s right hand and was his most intimate adviser in connection with economic matters, and his preference for domestic action exerted a weighty influence on the American policy. When the Economic Conference failed it was reported that Professor Moley had been replaced in the President’s favour by another professorial adviser; but the decision to proceed with the inflationary measures on the domestic field continued. Recently President Roosevelt spoke publicly claiming success for the Government’s action in introducing shorter hours and higher wages; but it is doubtful if anyone was ready to agree that enough time has elapsed to warrant any claim of success or failure. If the United States Government has discovered the way to cure the economic ills the world will be grateful, and various countries will adapt the American programme to their own conditions, but they will prefer to wait much longer to see if the cure is real. The claim that the domestic policy has been successful does not fit neatly with the

announcement of Professor Moley’s departure and the retention of Mr Cordell Hull. Of course, Professor Moley may have disagreed with the domestic plan, but that is not likely since it was shaped in general terms before the London Conference broke up and Professor Moley then gave no hint of dissatisfaction with it. His resignation may have a significance for the other nations. A few days ago the Minister of Agriculture in Mr Roosevelt’s Cabinet told the primary producers of the United States that if they wished to secure higher prices they would have to accept the cancellation of war debts as a condition precedent to the recovery of the export market. This declaration, which did not evoke any contradiction from the President, was of first-class importance, and the fact that Mr Cordell Hull, who believes in international action, remains while the advocate of domestic recovery has departed, suggests that in the United States Cabinet opinion is' definitely leaning towards international action as the means to effect recovery. Part of this is undoubtedly the war debt question, and, it will be recalled, President Roosevelt some time ago urged the British Government to renew discussions on this subject. It may be too soon to speak with any decision; but the evidence is pointing in the direction of a new approach to the war debts issue, with the people of the United States warned more specifically than ever before by the Roosevelt Administration that cancellation is necessary in the interests of the United States. This, of course, is the British case, and if it is accepted there can be no question of bargaining. When the United States is asked to agree to cancellation, the strongest argument advanced in support of the request is that the United States cannot hope to recover economically until the debts are removed. The Minister of Agriculture adopted this argument in terms that left no room for doubt, and his emphasis on the export market shows that no domestic action of an inflationary character can restore prosperity to the United States unless the export market is revived. Having built an industrial organism to supply an export as well as the domestic market, the United States cannot keep that organism fully engaged for any length of time unless the export market is available, and so the instruction of the American masses in the peculiarities of war debts is moving ahead steadily.