The Waikato Times. With which to Incorporated The Waikato Argus. SATURDAY, JANUARY 2, 1932. WORLD CONFERENCE.

Waikato Times, Volume 111, Issue 18524, 2 January 1932, Page 8

The Waikato Times. With which to Incor porated The Waikato Argus. SATURDAY, JANUARY 2, 1932. WORLD CONFERENCE.

The international conference which is to be held tills month occupies the mind of ail those who take an interest in world affairs. It is reported that Britain and France are coming to an agreement on the line they will pursue. This is to some extent good news, but if we may accept the statement of the Sun, special correspondent there ,1s one point on which Britain has given way to France which is of such importance that it may destroy any good that might otherwise come from the conference. France insists that the principle of the Young Plan shall he retained and allhough Britain desired to negotiate a different arrangement she has yielded to France’s desire to maintain the Young Plan. On the other hand France surrenders her demand that reparations shall take precedence of commercial debts. The London Times fixes on this point and says that unless reparations are fixed at such a figure as Germany can pay without endangering her economic stability, no money will he available from foreigners, in which case reparations will cease entirely, and all German activities will be reduced to a very low level. The logic of the position Is that reparations should he abolished, as they are bringing the whole world into trouble. It would probably be asking too much of any statesman to advocate such a course, which would certainly be strenuously opposed by France, but failing abolition entirely the right course to take would he to cut down Ihe reparations to the amount specially claimed by France, which is understood to he about £17,000,000 per annum. This again depends on the altitude taken by America, who has refused to take any part in the conference on the ground that it is a purely European question. The conference will have no difficulty in agreeing to the proposals on which Britain and France are reported to have agreed, but on the condition that America extends the moratorium. Congress has already passed a resolution refusing any extension of (he moratorium, and il is not likely that any consent could ho obtained until after the next Presidential election, if we may judge from the report of American conditions a good many tilings may happen before tho election takes place. Unemployment is reaching a most dangerous stage, and as there is no Stale method of coping with it, large numbers are threatened with actual starvation. Many banks of considerable size have recently closed their doors, following on the 2200 which had previously failed. The private charity which was looked to as dealing with unemplnv-

merit is shrinking in faro of I lie prevalent. depression. There was a dotlrit of £ 1 80,000,000 on last year's hud.sot, while this year threatens to lie twice as milch. It is askinir a treat ileal of any President to expect him to re-

commend his people to forgo £50,000,000 per annum from foreign countries. The moral argument that America has no more night to demand tiie return of the money lent for war purposes, than any father of a son slain in the war Ins for the return to life of his boy is not one that will have any weight in America. The argument that the Slate had to borrow from its people wliat it lent to its Allies docs not put it in any different category from oilier countries. All Slates had to do the same. The hard fact is that America cannot have the money if she persists in her demand for it. Germany cannot pay reparations and the other European countries will not- be able to do so. We may reach the position that the only money transactions left by the war would be the payments made by Britain to America, and enjoyed by people w.io had previously repudiated their own debts to Britain. A large element in the existing depression is the total lack of confidence throughout the world. Jn Britain and the Dominions this takes the form of leaving funds which might be invested on deposit with the banks. In countries where tiie banking system is not so sound the money is drawn out of the banks and hidden at home; Confidence must lie restored before enterprise can start again. There is no one thing which would do so much to restore confidence as the abolition of reparations and war debts. France is able to see that she cannot get reparations from Germany at present, but does not see that by retaining the Young Plan she prevents any hope of improvement. For the sake of a definite limited sum of money she condemns Europe, including her own people, lo distress. America’s position is the same. The deficit in her Budget is largely due to the shrinkage in revenue. By retaining her claim to the £50,000,000 from Europe she is preventing the improvement in trade that would provide far more than £50,000,000 for the revenue. No doubt President Hoover sees all this, hut it is certain that he would find it very hard to make the farmers of the Middle West see it. It is another phase of the conflict between economics and Nationalism. We are learning by a very painful experience that prosperity cannot he enjoyed by one country while others are distressed, yet politicians in all sorts of ways are trying to benefit their own country at the expense of others. America and France are the outstanding offenders, but no country can say much, for all behave in much tho same manner, and try so doing have brought the world to its present sad condition. It is praiseworthy lo love one’s country, hut not, to the extent, of helping it at the expense of others.