AUSTRALIA’S PROGRESS

Wanganui Chronicle, Volume 77, Issue 297, 15 December 1934, Page 9

AUSTRALIA’S PROGRESS

AMERICAN ECONOMIST’S VIEW SAN FRANCISCO, Dec. 13. Dr- Victor Clark, economic adviser to the library of the United States Congress, on Tiis return from a five mouths’ Pacific tour, said that Australia appeared to be getting th® better of the depression and to be recovering quicker than the United States. AMERICAN RECOVERY ACT j A SENSATIONAL ATTACK LONDON, Dec. 13. Mr. Lewis Douglas, ex-Director of the Budget, delivered a sensational address to the Economic Club, New Vorlq in which he issued a warning that war in Europe might result from the American Government’s recovery programme, which he sharply attacked. He pointed out that the mounting budgetary deficits must result in inflation with further depreciation of Ihe dollar, which would intensify the depression in gold standard countries and possibly force them to suspend gold payments. ” Serial and political disturbances are very apt to ensue, and the parliamentary system, already partly extinct on the Continent, may make its complete demise. But this is not all,” he said. “Depreciation of exchange is a devastating weapon in economic warfare. It always has and always will intensify nationalistic feelings. Superimpose this intensification of national prejudice, upon the international political prejudices already existing on the Continent of Europe and possibilities of another destructive war make one shudder.” A message dated September 1 stated that President Roosevelt had announced that he had accepted Mr. Lewis Douglas’ resignation as Director of the Budget and appointed Mr. Daniel Bell, veteran Treasury employee, as actingdirector. It was learned that for months Mr. Douglas had been dissatisfied with the vast expenditures under the New Deal and had believed that balancing the Budget would be a better