GRAVE POSITION

Taranaki Daily News, 21 January 1933, Page 7

GRAVE POSITION

WORLD ECONOMIC STATE PRELIMINARIES TO RECOVERY PROMOTING FLOW OF GOODS TARIFF MODERATION URGED EXCHANGE RATE QUESTION By Telegraph—Press Assn.—Copyright. Rec. 5.5 p.m. Geneva, Jan. 20. The preamble of the preparatory economic commission emphasises the gravity of the situation. It estimates that the world’s unemployed total 30,000,000 and that wholesale prices have declined one-third since 1929. Stocks are accumulating, production has been curtailed and the international flow of goods is incredibly low. Few countries have retained the gold standard. Nevertheless the security markets are improving.

Although reconstruction is essential to expedite recovery and end the conflict of national economies, the statement continues, failure in the attempt at reconstruction would shake the whole system of international finance, lower the standards of living and shatter the social system. The problem of inter-Govern-mental indebtedness, though outside the scope of the conference, must be settled in order to overcome the barrier to reconstruction.

The conference cannot settle the issues piecemeal, but Governments must act concertedly and promptly. The international monetary standard must be restored and a fresh breakdown prevented. A general policy of easy money in order to promote business should be advocated. Exports and production might be regulated, especially that of wheat.

The abolition of exchange control is an essential preliminary to recovery, the commission says, but Governments must adapt budgetary systems to restore the confidence of foreign lending markets. The restriction of imports has created a paralysis of international trade. Therefore the normal interchange of commodities should be re-established by moderating tariffs.

WORLD ECONOMIC CONFERENCE.

ATTITUDE OF MR. ROOSEVELT.

Rec. 9.20 p.m. Washington, Jan. 19. There are strong indications that the British requests for an immediate discussion of war debts and a proposed world economic conference will be taken up at Friday’s meeting here between the President (Mr. H. C. Hoover) and Mr. F. D. Roosevelt (President-elect). Later there has been a fairly distinct intimation from those close to Mr. Roosevelt that he will not look favourably upon any linking of war debts with the economic parley. '