The Waterbury Democrat., 1931-05-04
The International Commerce Chamber
 Opened Convention
War Debts the Tari Disarmament and Other Problems Discussed - President Made an Address on Disarming

threats and fears which arise from it are a serious contribution to all forms of instability, whether social, political or economic.
 International confidence cannot be builded upon fear-it must be builded upon good will. The whole history of the world is filled with chapter after chapter of the failure to secure peace through either com petitive arms or intimidation"
 Turning directly to the coming arms conference he added:
 "The very calling of this confer ence is in itself not only proof of need. but is an emphatic evidence of the progress in the world demand for relief and for peace.
 'Of all the proposals for the eco- homie rehabilitation of the world. l know of none which compares in necessity or importance with the successful result of that conference" High tariffs and commercial poli- cies were cited as lone of the fun damental causes of the worldwide depression by Georges Theunis, for mer premier of Belgium and prcsi- dent of the International Chamber of Commerce, whose address followed MT. Hoovers.
 Speaking to 1000 delegates from the United States and 32 foreign countries, Theunis appealed for con certed action to reduce tariff bar riers, saying that "a liberal customs policy might be expected to lead to better business conditions" He not only injected the controversial tariff issue into the convention at its out set, but also devoted attention to the wage controversy, questioning, but without taking sides definitely, the high wage-prosperity theory. He held out hope of gradual business recovery.
 "Nobdy," he declared. "can say how much longer this universal crisis will last; but a comparison of price movements and stocks indt- cates that if we have not yet emerged passed through the greater part of it and are about to enter on a more or less prolonged period of quiescence, preparatory to recovery"
 Theunis sees overproduction at the root of the worlds economic ills, oyerproduction in both industry and agriculture, growing largely from a nationalism which seeks to make it. self economically independent as far as possible, and raises a tariff wall in the endeavor.
 The protectionist policy, he said, "has resulted in investments which were not economically justified, and consequently has brought on over- production
 "Protectionism, whether direct or indirect, in which the respective gov ernments are now eagerly engaged. prevents producers from considering their wishes in the light of reality and from assuming their share of responsibilities. he declared.
 Theunis touched also on Russia, saying that the result of her dump ing" program "has been to increase suffering and difficulties in the worlds commercial structure at a time when the situation was al ready serious enough"
 Theunis in his discussion of wages said present developments show that a country such as the United States, which has high wages, is affected by the depression just as are others. He developed the theory that the cost of production is influenced by the rate of wages; that high costs of production always lead to pro- tectionist measures" and that the latter inevitably result in increased cost of living.
 "In many cases" he said, "after a period during which a nigh level of wages exerts a stimulating in- fiuence upon industry. the latter again finds itself in situation very similar to that which preceded the payment of high wages.
 Theunis struck at grain stabiliza- tion operations such as those of the farm board by saying that govern ment intervention to fix the price of certain agricultural commodities is, in my judgement. an error which is hardly excusable."
 Soviet Russia and the effect of her five-year plan were admitted for dis cussion on the eve of the conven- ton only last night Efforts to keep if n,,t nf fhe nnaatinD failed