Evening star., 1932-06-05
ECONOMIC FARLEY
STILL HOPED FOR
Overcoming of European Re-
Iuctance Is Expected
This Summer.
BY CONSTANTINE BROWN.


In spite of the tendency in most
European capitals to shy off the eco
nomic conference proposed to bs held
In London after the Lausanne Confer
ence, high Washington officials still
believe the parley will be held during
the Summer.
The reluctance of the European ma
tions to attend a conference where the
debt and tariff questions will be barred
is understandable in Washington. The
economic experts diagnose the causes
OF the world illness in accordance with
the hemisphere in which they live, and
suggest a cure in accordance with that
diagnosis.
Lay Trouble to Debts.
The European experts believe that
the ailment the world is suffering from
is caused exclusively by the heavy
burden each nation must bear in order
to pay war debts and reparations.
The American experts believe that
the crisis is mainly due TO the choking
of the trade channels by all kinds OF
restrictions by extravagant expenses
for ornaments, and especially by the
unwarranted drop in commodity prices.
They also believe that the amount each
nation has to pay on debts and repara-
tions are mere drop in the bucket and
do not materially influence the welfare
of any nation.
The European governments and pub
lie opinion in most continental states
think that America is following selfish
idea when it wants conference to deal
with problems which affect her own
welfare, while the American leaders
feel that the Europeans do not want
to take any sane steps to improve the
general situation, but merely desire to
shift the burden of the World War on
to the American taxpayer.
When these opposed points of view
are ironed out a compromise may be
reached and a conference may be held
to make an earnest endeGvor to end
todayS chaotic economic situation.
State Department Program.
Officials of the State Department be-
lieve the most urgent thing to do now
is for all nations to reach a decision
for, first, an agreement among all banks
of issue to stop the wild speculation on
foreign exchanges; second, an agree
ment between the Federal Reserve Bank,
the Bank Of England, the Bank of
France and possibly one or two other
important European banks Of issue for
policy Of supporting each other, other
wise than by individual loans, as has
been the case heretOfo.e third, COM
mon agreement to free the flow of trade
between nations at present handicapped
by embargOes, quotas and other re-
Strictions, and fourth, friendly dis
cuSsion to find means for the revalor-
ization Of the principal staple goods
produced in the world which, of course,
can be achieved only after some agree
nent has been reached for clearing the
trade channels.
The principal European governments,
while agreeing that these subjects are
of real Importance. consider reparationS
and debts of paramount Importance
and maintain that there can be no
economic stabilization until the ques-
ton Of ntergovernmcntal debts has
been finally disposed Of Since the
United States is unwilling to attend any
conference where these matters can be
discussed. it IS useless, they say, to hold
any other conference.
Hold Parleys Too Numerous.
The Italians and the French say there
have been too many conferences, fruit
less because the Americans have refused
to consider debt revision, and conse-
quently another conference is likely to
produce more harm than good. It ap-
pears that even a number of British
leaders are aligning themselves at pres
ent to this point of view. and Premier
Ramsay Macdonald who has always
understood the American objectives.
finds it difficult to get his Parliament
and number of his colleagues to fol-
low him.
In other words, tocay the disagree
ment between the American and the
European viewpoint as to the best way
of attempting to solve the world crisis
Is due to the fact that while the Ameri-
can Government wishes to place this
problem exclusively on economic
grounds, the European nations are con-
sidering it from the political angle.