WORLD RECOVERY

Wanganui Chronicle, Volume 76, Issue 116, 19 May 1933, Page 10

WORLD RECOVERY

AMERICA COULD ACT SIR A. SALTER’S BELIEF POSITION TO GIVE LEAD. NEW YORK, April 26. A few days before the United States, at the direction of President. Roosevelt, instituted ‘ 1 controlled inflation” by jettisoning the gold standard, thereby throwing Wall Street into a whirl of speculation, such as it had not known since its crash in 1929, Sir Arthur Salter. one'of the foremost British economists, declared, in the New York Times, that this country, by virtue of its resources and psychology, was fitted, above all other nations, to blaze the trail of a new world movement to dissipate the depression. 4 ‘The rich natural resources of a continent, and the internal free trade secured by the Constitution, which arc the birthright of the modern American, the energy and industrial skill which constitute his personal achievement, and, lastly, the thrust of external events have together,” he writes, “been bringing the United States from a position of isolation and detachment to one of dominant world influence. In the perspective of history no feature of our period will be more prominent than this; nor will any theme be more interesting for the historian than America’s first attitude of coy reluctance, when confronted by this inevitable destiny.” America’s Opportunity. While acknowledging the opportunity for world leadership furnished by the exceptional concentration of authority in the hands of President Roosevelt, Sir Arthur frankly enunciates that, in its quest for a leader, the world looks first to Great Britain, “whoso position is, in some respects, better than that of other great industrial countries, both absolutely and relatively. Her average standard of living is higher than that of either France or Germany, Her share of a diminished world trade has increased; her unemployment has grown less, proportionately, than that of any other great industrial country; she has more nearly attained Budget equilibrium; and her public finances and credit compare favourably with those of all other countries.” Admitting this, and depicting the American situation in its true perspective by a review of French and German present-day difficulties, Sir Arthur says:—“l suggest that it is to America that the world must look for the first major movement of recovery, and that America is in a better position than any other country to give an effective lead in world policy.” For this, he says, there are numerous reasons. America is less dependent on external trade than any other great industrial country. She has sufficient internal resources and a large enough internal market to make possible a moderate recovery before there is a recovery in world trade. Such an internal recovery would move guld prices up, and there would be a general upward impetus to prices throughout the world. It would increase the demand for imported raw materials, and later, to a less extent, a demand for imported manufactured goods, thus increasing the purchasing capacity of all countries supplying them, and easing fheir financial position. World Policy Required. The psychology of America makes the chances of rebirth of confidence greater than elsewhere, says Sir Arthur. There is more chance of a dramatic change from such a black mood as he sensed last summer *in America. The New York stock market he regards as incomparably the greatest transmitter of world sentiment. If it reflects a decisive return of confidence, a new hope will be transmitted to every part of the world, “The impact of American events on the world situation in the recent past gives some measure of the part which America may play as a leader in po.licy in the months ahead,” Sir Arthur observes, in concluding his thought-pro-voking review. 4 ‘ln monetary policy, in the problem of debts (private, as well as public); in commercial policy; in the task of reestablishing the authority of the collective peace system, she is in present circumstances in a position to give a more effective and decisive lead than any other country, and may transform the world situation if she accepts the role—on one vital condition; that giving a lead docs not mean attemping to impose a purely national policy, but formulating and proposing the policy tthat the world as a whole most needs and desires.”