The Waikato Times With which is Incorporated The Waikato Argus. WEDNESDAY, JUNE 1, 1932.

Waikato Times, Volume 111, Issue 18651, 1 June 1932, Page 6

The Waikato Times With which is Incorporated The Waikato Argus. WEDNESDAY, JUNE 1, 1932.

WINTER OF DISCONTENT. In recent cables we have had various pessimistic reports, sometimes of actual happenings and sometimes of anticipated disasters. The United States has lost twenty millions In gold which has been shipped to Europe. There was a time when that would have been good news, for it would have pointed to a reversal of the trend of gold to the United States. That time has passed. It is certain that none of the gold will go to the countries which are in distress, and probable that it will all go to> Prance. It will increase the lack of confidence in the United States, where they are trying to meet the troubles by the creation of huge credit corporations. The anticipation of trouble comes from Mr Leo. Am cry who was Secretary for the Dominions in Mr Baldwin’s last Government. \ He points to all the reasons why prosperity cannot be restored at any early date. He thinks little can be expected from the LuUsanne Conference, and that remission of the war debts would do little good; that Franco will give or remit nothing to Germany where Herr Hitler will shortly be in power. He says America could help the world If she would lend money, which is equivalent to calling for the moon, and that the policy of shutting up the Empire might do more to restore the world's monetary system than it would cause damage by excluding competition.

Mr Amery will be remembered as the advocate of an extreme 'system of protection. It has come into force in every country but Britain which is suffering from it in a mild form at present, but is threatened with more pronounced symptoms. In addition to protection we have preferences, quotas and exchange restrictions all working to limit trade, and the nett result is that we are approaching the condition that debts of no kind, public or private, can bo paid. We have pursued mistaken policies, Arst on monetary questions and later on trade questions. The return by Britain to the gold standard In 1925 was the first step in the wrong direction. It pointed deliberately to deflation and that is a force which when it is once started grows from its own momentum. Long since it destroyed confidence, and those who have money to lend will not part with it. The difficulty in finding funds to pay for Imports led to increased tariffs, relnforcod by every known means of restricting trade. Mr Amery •ought to be satisfied, but he is most doleful. Yet all these troubles are of man’s making, and can be cured by man, and moreover, they are widely understood and there is general agreement on means of at least alleviation if not

cure. An instanco of the causes which lead to the present position lias just been supplied by the outcomo of the Danubian Conference. Austria, Rumania, Hungary, Czecho-Slovnkia and Jugoslavia are In dire straits and cannot pay reparations where they owe them, or interest on their debts. Britain, France, Germany, and Italy met in conference to see what help could he given. Germany was willing to lower duties on agricultural products to enable Hungary and Rumania

to find a market. France refused to agree. Her trade Interest is small, but all these countries owe her money. She fears that they might become friendly with Germany. We do not know where she derives her right- to Interfere in such a manner but presumably It comes from the Versailles Treaty and if so it should be denounced by Britain, Germany and Italy. The Treaty, like all other treaties was meant to last for ever, but like all other works of man is subject to change. The feud between France and Germany has apparently become worse and the world must suffer on account of France's resentment-. It is not only the actual economic damage done by the refusal to permit any freedom of trade, but in addition the danger of war created by the overbearing attitude. It the' threat of war that does so much to destroy confidence. Mr Amery wishes America would lend to foreign countries, but how can America be expected to lend to countries which may be at war in a short time, and thereby destroy any hope of repayment? The Versailles Treaty' must be revised, and where it is found to stand In the way of reconstruction it must be amended. It Is standing in the way of changes that would Improve eoonomio conditions and other changes that would remove the fear of war. Treaties that are formed at the end of a bitter struggle are likely to reflect the inflamed feelings of the par-ties. In this Instance it Is not oven a treaty; it is a statement of the terms Inflicted by the victors on the vanquished- It Is quite possible that if Germany had been victorious her terms would have been as bad or worse, but that is no -reason why the world -should he -sacrificed to the eternal quarrel between France and Germany, which neither country seems able to get dver.