EVE OF CONFERENCE

Wairarapa Daily Times, 13 June 1933, Page 6

EVE OF CONFERENCE

CONSEQUENCES OF FAILURE. LONDON, Monday. On the eve of the World Economic Conference, newspaper comment stresses the difficulties, but indicates that the world situation is so grave and the consequences of failure so disastrous that the nations will be driven to finding at least a partial solution of currency and trade problems. Thus Sir Arthur Salter, in an article in “The Times,” declares that success meaus the turning of the tide, a revival all over the world, and a diminution of economic nationalism, whereas failure would involve indefinite postponement. The conference, he says, must first face the question of currency and monetary policy, because tariff negotiations are impossible except in relation to provisionally stabilised exchanges, while the task of adjusting indebtedness of all kinds is only measurable when it is known how far monetary policy is to be directed to raising the price level. No exchange stabilisation can last, however, unless based on a reformed tariff system and a normally working credit system. America’s depreciation of the dollar has made stabilisation more imperative.

According to the “Dispatch,” several foreigners, under the leadership of America, supported by Germany and Japan, will vigorously attempt to kill the Ottawa Agreements, in order again to undersell Britain in Empire markets. The Russians are desirous of raising industrial loans. The “Sunday Times” says that Germany will urge that industrial States exchange manufactures for raw materials with undeveloped countries, which is interpreted as an attempt to regain her colonies. Italy is optimistic, and will press for reduced tariffs, trade quotas, the return to gold of the dollar and sterling area of currencies at the highest possible rate.

The Geneva Labour Conference urges the World Conference to undertake international action in the interests of thirty million unemployed. “The Times,” in a leader, says:— “The Conference must not be allowed to fail. It must see the world on the way to recovery, if nations are not to lose all faith in the edfjacity of their statesmen. The difficulties are not insuperable. The responsibility of the delegates is clear and inescapable. With goodwill and determination they should certainly discharge it.” The invasion of London by the delegates continued yesterday, many arriving by air. Herr Dollfuss, of Austria, travelled by his own aeroplane, with a Fascist bodyguard, and was greeted by Count Ciano and other Italians at Croydon airport.