The Daily News WEDNESDAY, NOVEMBER 23, 1932. ANXIOUS DAYS.

Taranaki Daily News, 23 November 1932, Page 6

The Daily News

WEDNESDAY, NOVEMBER 23, 1932. ANXIOUS DAYS.

NEW PLYMOUTH, Currio Street. STRATFORD, Broadway. HAWERA, High Street.

Amidst the bewildering national •and international problems of the moment, it looks as though the British nation may be called upon to act aS the st&adying influence in circumstances that could, easily lead to panic, or even chaos. The greatest need at Geneva, in London, and in New Zealand is for

calm judgment, vision broad enough, to see th© “other fellow’s” point of view, and courage that will accept the bad with the good and will follow proven though difficult paths to recovery rather than try by-paths whi'ch look attractive but usually lead downkill. To say this is not to blind judgment with optimism. In sober fact world conditions could scarcely be more anxious than

they are to-day. At Geneva those who would substitute reason for force are having their ideals challenged by a nation which has [shown loyalty as an ally, chivalry as a foe, and progress in the arts of peace and war which have ,a

mazed both, friend and foe. Japan has replied with defiance to the criticism by the League of Nations of her actions in Manchuria, and particularly of Japan’s recognition of that district as a sovereign State which has thrown off the yoke of Chinese suzerainty. Unfortunately for calm judgment the question whether Japan 'Was justified in her action for the sake of Japanese honour and in-

terests has become involved in the larger question of whether international action for the preservation of peace is possible even though it entails individual sacrifice on the part of the nations banded together as a League to prevent. war. But because the League is confronted with a challenge to its authority is no reason to assume that it will run away from the challenge or be vanquished if it picks up the glove. The very fact that Japan has thought it desirable to reply to the League’s report shows that the League has made some headway and that its authority cannot flouted with impunity „ Had

there been no such international influence as the League it is highly probable that Manchuria would now be a portion of Japan’s colonial empire won by force of arms and to be governed for the benefit of a conqueror. Japan undoubtedly has a case for presentation to the League. It is even conceivable that she may be able to convince the League that her action in Manchuria is better for that country and for civilisation than to have left Manchuria at the mercy of an inept overlordship and continuous banditry. The next step in the controversy is a patient examination of Japan’s reply, and when this has been accomplished it will be time enough to indicate what the League will do next. The League stands for reason as against force, and it would stultify itself if it proposed compulsion until all that reasoning can suggest has been tried. Next in importance to the Manchurian crisis is the problem of war debts. It seemed probable a week or so ago that the United States might be willing to extend the moratorium which ends in three weeks and be prepared also to review the whole question of war debts. It now seems clear she is not prepared to do so. This may be some indication of the economic straits in which that great Republic now finds herself. Here again it is essential that the viewpoint of the other party in a controversy should be examined and judgment withheld until that has been done. With the question of war debts is interwoven that of armaments, and it is one that may turn the scale in favour of civilisation as against chaos. The United States has said bluntly that nations which are spending more to-day on armaments than they were in pre-war days have little right to ask for their war debts to be forgiven or reduced. It is an argument which may assist those which arose from higher ideals in the cause of disarmament. It is certainly one that cannot be ignored. Spend less on armaments and pay your debts, is the advice of the United States to a stricken Europe, though it is satisfactory to note that the Republic recognises that the English plea for a reduction of war debts is more justifiable than any other. Nearer home the logic of the United States may be applied with much benefit. During the past few days there have been attempts made to stampede the Dominion into taking a “short cut” to better days by raising the exchange rate instead of continuing to practise the old-fashioned, slow, but very sure virtues of getting down costs, increasing output and so, in time, squaring the !national accounts. Raising the rate of exchange would make easy money for a time, just as any other form of inflation or borrowing can bring about temporary prosperity. But the day of reckoning must come, and

it is the very people in whose aid the higher exchange is suggested who will have to foot the bill. And they will pay all the time. What is the use of getting threepence a pound more for but-ter-fat or meat or wool if the costs of production are increased by more than that? Nor is this all. To Obtain this fictitious increase in price New Zealand’s good name in the London money market is to be seriously jeopardised. Everyone in his senses would be glad to see any real assistance afforded the primary producer. But it will not be given by high exchange rates or by any expedient which involves tinkering with national credit.