BACK TO PEACE.

Taranaki Daily News, 12 March 1920, Page 5

BACK TO PEACE.

ECONOMIC DIFFICULTIES. peace most be restored, SEDUCTION of armies. gy Tele£f*Jli.—Pltsa Assn.—Copyright. Received March 11,12.45 p.m. London, March 9. The declaration on the economic conditions of the world, approved by the Supreme Council yesterday, states that the Court cil, after carefully surveying all aspects of this vitally urgent problem, agreed upon the following recommendations ;with a view to an amelioration, of the present economic difficulties in Europe:—

(I) It is of paramount importance that peace cctoditloas should, be ~ wwpletely xestoitd at the earliest possible dat» throughout the -world. In order to achieve this object it is l desirable: (a) that peace and, normal economic relations should be reestablished as. soon at possible throughout Eastern Europe; (t>) that armies ehould everywhere be reduced to a peace footing, and that armaments should he limited to the lowest possible figure compatible with national security, and tiiat the League of Nations should be invited to consider as soon as possible proposals to this end. (c) That States created or enlarged as a<result of the war should immediately re-establish full and friendly and arrange for an unTfestricted interchange of commodities in order that the essential unity of European economic life may not be impaired by tile erection of artieconomic barriers. peaceful industry. _(2) Not only the Government 6f each country, tot all producers, should immediately attend to the execution of all measures contributing to a full resumption of peaceful industry and the encouragement of a better output by workers, im- j provement of machinery and means of transportation, and the removal of disturbing such as profiteering. jS) Each Government should immediately consider means of urging upon all, as a national and vital necessity, the suppression of extravagance and a reduction of expenditure in order to bridge the gap which must exist for some years between the demand and supply of essential commodities. jt) it is essential to take early step* to secure a deflation of credit and currency, (a) by a reduction of recurrent Government expenditure within the limits of revenue; (b) by the imposition of the additional taxation neceugajy thereto; (c) by the immediate limkation and gradual curtailment of note circulation. (5) The provision of raw material* being essential to the restoration of industry, means should be found by which countries at present umtble to purchase in the world markets can Obtain commercial credits. It should be possible to achieve this when the countries have made the reform* previously indicated. fi) The Conference recognises the necessity for the continued co-opera-tion of the Allies and the removal of obstacles to easy interchange of essential commodities. The Allies will continue to consult together in gard to the provision and distribution of necessary raw materials and foodstuffs in view of an early restoration of normal conditions.

WAR'S DESTRUCTION. fl) The Conference gave careful Attention to the case of devastated regions, especially North France. The restoration, of these regions is Of primary importance to the reestabttshment of the economic equilibrium of Europe, and the resumption of normal trade conditions. Evidently large sums are required in this connection, and they cannot be provided out of current revenue, nor can the work of restoration, be postponed until reparation from Germany k received. Therefore the Conference recognised that capital scum required for this restoration ttay properly be raised by market loans in anticipation of reparation payments provided by the Peace Treaty, and the restrictions which they desire to see placed on new borrowing do not apply to loons on credit to meet tide flocmal capital expenditure. jfi) The Conference agreed that it was desirable, in the interest both of Germany and her creditors, that the total reparation payable by her should be fixed soon, and agreed to an extension of the period of four months from tiie signature of the Treaty in which Germany is entitled to make proposals in this connection. The question of allowing Germany to raise a foreign loan will be referred to the Reparations Commis-sion.—Ana.-NJZ. Cable Assn.