Evening star., 1932-11-20
Britain Pessimistic
Over World Problems
BY A. G. GARDINER.

LONDON, November 10.-LASt Wook4
mood Of hopefulness that events were
taking a turn for the better has sub
sided this week into peSsimism- WHAT
ever aspect Of the rnany-sided prchlefn
with which Europe Is faced Is cCneid-
cred, the outlook Is unpromising.
News from Washington Of the etd-
tude Of Congress on the subject Of wsx
debts has fallen like wet blanket On
the expectation that the situation
would be tided over by extension 81
the moratorium as q preliminary 70
the revision and scaling down Of inter
national indebtedness.
Revision Is considered inevitable, not
merely in view OF the complete cessa-
ton of indeinnitieS from Germany,
which is the source OF the war debt
payments, and Of the grave increase in
the burden Of charges consequent On
currency changes and the fall of COM
modify prices. but as condition prece-
dent to the revival of international
trade, which Is as urgent In America
as in Europe.
There Is much discussion here
! whether. II the December Is payment
Is insisted upon, this country should
default, as her continental neighbors
are expected to do. The popular feeling
favors that course, but in responsible
quarters a default at this stage is dis
countenanced. Provision was not made,
In the budget for the payment, but 1t IS,
understood that the government has
taken measures to enable 1t to meet
the liability II 1t is called upon 10 do
so. The present status of the sterling
markets adds to the gravity Of the op-
Grafton, the repercussions Of which on
the trade situation are viewed with
much concern.
In any case, no one regards further
payme ents as possible on the preSep'
scale and the question Is asked whether,
in the presence of a complete break
Gown OF the European credit system
the policy OF chaNsScing default will
benefit America. The fact that Frank
Nm y. Roosevelt Is meeting with Presi-
dent Hoover to discuss the matter "a
regarded as hopeful, and stress Is laid
on Roosevelt's understanding that the
only possible medium for payment of
the debts Is in goods, which the present
American tariff practically bars.
Meanwhile. prospects for the World,
Economic Conference are unpropitiouS,
Preparatory negotiations have achieved
nothing and there Is apparently no
chance Of. the conference meeting be-
fore April at the earliest. But what viii
happen in the interval In q world which
~NeNS ~ SOAAARANsCAy 4Oob 4I0 1uOO1lBAog
The root Of ths dificulty Is that
there Is no agreement among the pow
ers about what ought to be done or
even what ought to be discussed. Pre-
liminary negotiations have exhausted
themselves in acrimonious controver-
sizes as to the merits of the general
restoration Of the gold standard and
tariff reforms as offering q way OF
escape from the economic moraSs. g
The situation in Germany does not
help to restore confidence. The fall Of
Chancellor Won Papen, which was pre-
dicted as result Of the elections, occa-2
sions neither surprise nor regret, but
leaves President Won Hindenburr in 4
cleft stick. Won Papen failed to secure
sufficient support to enable him 10
work semi-dictatorship within the
framework Of the constitution, which
Won Hindenburg has solemnly sworn IN
preserve inviolate. On the other hand
the government cannot flnction
through the Reichstag without making
terms with the Nazis and acceptinr as
Chancellor Adolf Hitler, whom the
President profoundly ddstrusts. Hitler
Is backed BY Westphalian big business
ana the mnitarists, who, having broken
Heinrfch Bruening and failed with Won
instrument Of their policy.
In the duid condition OF German
politics anything may happen, but the
immediate question Is the effect Of the
new government On the presence ar
absence Of Germany from the disaruaa-
ment conference. $50
It Is agreed that Sir John simon,s
statement Of the British proposals AZ
Geneva mas gone Ear to Commit khs
conference 10 full acceptance Of fhe
German claim Of equality.
toopsrighh 1892, BY the Consolidated Prexs
Association.l