New Britain herald., 1930-08-14
Maintaining of World Wide Peace
 Is Necessity Due to Downward F. Movement of Prices, Says Gay
Speaker at Institute of Pol itics Predicts War Would Be Economic Blunder Without Equal.

Williamstown, Mass, Aug. fl tP) Maintenance of international se- curity with peace is a paramount necessity in view of the present gradual downward movement of commodity prices" asserted Profes- sor Edwin F. Gay of Harvard uni yersity today
 Professor Gay, in conducting general conference on European economic progress at the institute of politics said:
 If the gradual downward move ment of prices continues on the course indicated by former secular changes, namely over a consider able span of years, which seems highly probable, and if no new dou- ble-rand gold discoveries are made "a piece of luck not to be counted upon-then some solution of the monetary problem must be found which will tend toward greater sta bility of the price level"
 The world wide shift to gold in the last 25 years. "betokens not merely compliance with the neccs- sities of world wide trade but also q widespread change in the psycholo- glcal attitude upon which values rest" Professor Gay stated. Tn view of the decreasing rate of pro- duction of gold, there will be a continuation and further develop- ment of the present movement to- ward economy in the uses of goli monetary and perhaps industrial" he declared.
 Must Maintain Peace
 Since any remedy must "neccs- sarily be international in character the maintenance of security with peace is a paramount necessity" ac- carding to Professor Gay.
 Under the conditions we are fac ing another great war would be not merely an atavistic crime, but an economic blunder of the first mag nitude," he stated. The economic pressures already existing will doubt lessly be increased during a long price decline. Since war would be a fatal blunder, only intensifying to the point of impossibility. the pro- cess of experimentation in finding any possible solution to the funda - mental ill then the economic pres sures must not lead to war, but 10 international economic cooperation, and, that this is the answer. is al ready clearly shown in Europe
 Among the activities of private business looking toward internation- al cooperation two must be mention ed he said, the increasing inter- penetration of individual business concerns across national boundaries, and the so-called 'karier or trust movement"
 Discusses Bank
 David l.. Shillinglaw, vice presi- dent of Forgan Gray and Company of Chicago, discussed the bank of international settlements at Basel The bank, he said places coopera- ton on a systemic basis" it will bring internationally he declared, "a greater degree of cooperation in finance and industry which means more stable and secure world or der"
 He suggested that in the course of time it could develop additional functions such as administration of all war debt payments, assumption of duties of trustee for all debt ser vices under international control and make financial advisers avail able for government and centra banks. in the round table confer ence on the far eastern situation Professor George H. Blakeslee. oi Clark University said that China claim to right of terminating extra territorial treaties has been ar acute issue He pointed out that al of the powers now have slgnet treaties with China. abandoning cer tain extraterritorial rights. The mex step, he said, will be an attempt D! the Chineses government to "nego tiate new treaties with Great Britain France, Japan and the United State! by which they will relinquish theil remaining exceptional rights
 Dr. Yuan -Liliang, judge Of tho Shanghai provisional court. said tha 1t is p, IF ,-cipally on the basis Of rec ognized doctrine in international law that China demands the revision o the treaties which have seriousl, impeded the development of the na tion.' He quoted from Article 19 O the League of Nations covenan which provides for reconsideration of treaties which have become in applicable"