The Waterbury Democrat., 1931-07-24
Two Economists Are
 Not Satisfied With
 London Conference
Many Problems Must Be Considered at Future Ses- sions of Such Natme-They Disagree on Lon- don Result

industry and government. Such a crash would have had serious re- percussions in all other industrial nations, including the United States. It would have meant a further loss of business confidence, which, added to the present morbid dfstrust and fear, would surely have deepened the depression.
 Now, however, as soon as the long term loans are assured we may expect a great restoration of confidence, so much needed for continuing the recovery which has just shown signs of beginning in the United States. 1 believe, how ever, that in order to get the best results, much more will need to be done.
 The debt burden of Germany has been greatly increased since the Young plan was adopted. AL though the debt has been reduced in terms of money, 1t has been in- creased in terms of goods. This because of the fall of prices, in other words the rise in the value of money. Moreover, the raised tariffs have also increased the dif- faculties of Germanys paying her debts.
 "In the final analysis interna- tional debts must be paid in goods. Yet the very nations which insist on Germany's paying reparations, and on the allies paying inter- allied debts, raised tariff obstacles against such payment. This fact among others has driven Germany to borrow. She has really been paying creditor countries by bor- rowing of them. The United States Is virtually the chief creditor of Germany, since what Germany owes other countries is owed in turn, by them, to the United States.
 What is most needed Is re- duction in the American tariff and a reduction to be made on condi- tion that the allies will cormre- spondingly reduce Germanys rep aration bill. The one-year morato- rum of all inter-governmenta debt has in effect accomplished this on a small scale. It can be accom- plished on larger scale by in- creasing the moratorium to two, five or fifty years--the more the better, not only for Germany, but also for the United States and all concerned.
 But the most straig way would be to cancel inter-gov- ernmental debts outright. This would be good business tor all na- tions. For one thing 1t would cre- ate good will as business asset in foreign trade and for another it would save us from unnecessary political entanglements which, un- fortunately, these debts are now inevitably causing and will con- tinue to cause as long as they ex- ist, even if greatly reduced or post poned.
 "Of course, the United States can and will ultimately recover from this depression in spite of all tariffs. debts and foreign bank ruptcies and revolutions. But we will recover the faster and the far ther the more fully we get rid of the tariffs and debts, restore con- fidence, restore the price level and restore it's stability. This means restoring and making permanent the stability of the purchasing power of the dollar. The mark and money generally. This means In turn restoring ana malntdlHlnS the stability of business.
 "The London conference is merely a first step in this direc- ton. Other steps must surely fol- low and among them should be, in my opinion, world disarmament and other assurances of world peace, including membership of the United States in the world court and the league of nations"
 By COL LEONARD P. AIRES
 '"The outcome of the London conference is disappointing, but not disheartening. Since the close of the war representatives of the na- tions involved have met in a long series of conferences dealing with the economic consequence of that struggle, and doubtless they will meet in many more. Each time some progress is made. This time only superficial and immediate matters were considered. The more fundamental ones relating to rep arations, to governmental debts and to tariffs and trade barrier will have to be considered in future conferences"