ECONOMIC POSITION.

Waikato Times, Volume 113, Issue 18849, 20 January 1933, Page 8

ECONOMIC POSITION.

GRAVITY EMPHASISED.

COMMISSION’S REPORT. REVIEW OF SITUATION. SUGGESTIONS, RECOMMENDATIONS United Press Assn. —Elec. Tel. Copyright. (Received Jan. 20, 1.30 p.m.) GENEVA, Jan. 19. A preamble to the Preparatory Economic Commission’s report emphasises the gravity of the situation. It estimates that the world’s unemployed is 30,000,000. Wholesale prices have declined onethird since 1929. Stocks are accumulating, though production lias been curtailed. The international flow of goods is incredibly low. Few countries retain the gold standard. Nevertheless the security markets are improving, although reconstruction is essential to expedite recovery arid the ending of the conflict and the imposition of further national economies. Failure in this connection would shake the whole system of international finance, lower the standards of living, and shatter the social system. Tho problem of inter-Governmental indebtedness, though outside the scope of the conference must be settled in order to overcome the barrier of reconstruction. The conference could not settle the issues piecemeal; the Governments must act in concert and with promptness. The international monetary standard must be restored and a fresh breakdown prevented. A policy of easy money in order to promote business should be advocated. Exports and production might be regulated, especially wheat. The abolition of exchange control was an essential preliminary to recovery, but the Governments must adapt budgetary systems thereto, in order to restore confidence in the foreign lending markets. The restriction of imports had created paralysis in international trade, therefore the normal interchange of commodities should be reestablished by moderating tariffs.