Evening star., 1932-04-24
NATIONS OF WORLD UNITE
TO CONQUER DEPRESSION
StimsOn's Presence i'm Geneva Comedies
With Great Effort to Solve Major
Economic Issues.

as Britain's cessation of gold payments
brought the monetary system of
| Sweden, Norway, Holland, Portugal,
Finland and several other countries
crashing the Financial Committee
warns.
Admitting that the bases for a per-
manent solution of the world depression
are still unknown" the report makes
various urgent recommendations for
immediate though temporary relief in
order to gain breathing spell within
which time the more hopeful elements
of the situation may develop and
to endeavor within this period to arrest
the present tendencies to disaster"
Bound Up With Depression.
Political debts. tariff barriers and in
| ternational credits are inSolubly bound
up with the world depression, which
so far as Europe is concerned, is get
ting worse rather than better, in the
opinion of the committee 1t considers
it to be Its duty to express. without
reservation, its view that unless there
is prompt action in connection with
certain ma jor financial problems, such
as political debts, assistance to indi-
vidual countries will become increaS-
ingly insufficient"
Few, if any, European countries to-
day can carry out their financial obli-
cations to pay in gold the loans they
contracted during the war. Refusal to
accept goods, or to grant additional
foreign credits, has forced these debtor
states to impose control over transac-
tions in foreign exchange to protect
their currency, it is pointed out. Others
will shortly have to do the same.
Faced with barriers to their mar
kets created by reprisals," continues the
report debtor states have applied still
more and more rigorous methods of
control and have been met with still
greater distractions. Consequently the
trade of the world today is being sub
mitted to a progressive strangulation :"
The inevitability of countries having to
meet their commitments in goods, if at
all, greatly increases the risks of de-
faults. The creditor states must ac-
cept goods in which the major part of
the debts can alone be paid Z. If they
refuse to accept them the debtors can
not be expected to continue to meet
their obligations" the committee de-
clares.
Advocates Quick Methods.
In advocating quick, though palliative
measures in Central Europe (Tardieu's
scheme for a Danubian confederation
which has replaced Brands Pan
Europa idea, is approved), the Finan-
cial Committee adds:
I'VE wish to emphasize in the
strongest way our conviction that action
must be taken with the least possible
delay to avert grave consequences of a
further financial collapse in many parts
of Europe and to give chance for
remedial measures which require
further time for their development. 1t
is absolutely necessary to preserve GER
tain elements Of existing financial sta
bility upon which future improvement
can be based"
Connecting up the Disarmament
Conference, which Mr.. Stimson says he
came primarily to attend, with the
world depression, the Financial Com
mittee declares that an appreciable re-
duction of the ornaments burden lit is
81, 200 900 900 per year, that the civil
lied nations of the world are carrying,
would constitute an important step
toward balancing budgets and making
possible removal of tariff walls and
other factors which are aggravating the
economic crisis.
Value Is ProbIematicaI.
So far as the part Mr. Stimson will
be able to play in disarmament is con-
cerned, its value is problematical. There
are certain important political develop
ments impending. Upon the attitude
of Washington in regard to revision of
war debts will largely depend the posi-
tions maintained by France, Britain
and Italy toward tariffs and arma-
ments If Washington makes war debt
revision commensurate with drastic re-
auctions of armamentS, actual progress
may result. However, consideration of
political debts rests with the Lausanne
conference in May.
In Europe's debts Washington has a
powerful trading point which can even
be used in moboliizing the support of
most countries to the active defense of
the Kellogg pact and the open door in
the Orient. That Mr.. Stimson is max
ing the most of his cards" goes with
out saying. Upon the results he OBJ
tains hinges, to a great extent, the eco
nomic and political well being of the
United States of America, whose world
markets have been shot to pieces" by
the depression and whose political
prestige has been badly dented by
Japanese militarists running smuck in
the Orient.