Evening star., 1932-07-13
WORLD DRIVE. SET
TO LOWER TARIFFS
ATLONDON PARLEY
u. S. Will Be Asked to Join
Preparatory Move at
Geneva Next Month.
BY PAUL SCOTT MOWRER.

BY Gable to The Star.
GENEVA, July ia powerful world
wide drive for lowering tariffs and re-
organization of preferential tariffs
among certain regional groups of States,
Worldwide common action to raise and
stabilize prices by banking cooperation
in credit policy, and resumption OF in
ternational loans under government
guarantees to ensure return to the
gold standard-these will be the prin-
cipal aims of the forthcoming World
Economic Conference, according to
technicians who already have begun to
prepare it.
This conference, wherein American
participation is confidently anticipated.
and which will be held under the au-
spices of the League of Nations will be
convened. it is now said, in London
next October. The League Council will
meet here in a few days and name
small committee to fix the date and
place and issue the invitations.
A preparatory committee. including
two American members, will be sum-
moned in Geneva at the end of August.
Held for U. S. Elections.
Action on tariffs probably will be
postponed until after the American
election. Proposals for general tariff
reductions are expected. Recommen-
dations will be made, it is said for the
removal of all sorts of other trade re-
strictions like prohibitions, import Ii
censes and import quotas
Groups which will endeavor to make
preferential agreements among them
selves are said to be the Danube group,
including Italy and Germany; the
Scandinavian group, the new Dutch
Belgian Luxembourg group and the
Franco-German group, while the ques-
ton of an imperial British group mean
while will be decided at the Ottawa
Economic Conference.
The position of the United States Is
believed to be maintenance of its pol
icy not to forego the most-favored-na-
tiCn rights to the benefit Of any par
ticular group. but the United States
would do SO if Europe really got to-
gether in a general constructive organ
ization. Therefore, it is planned to
try to make some arrangement among
the different continental groups which
can be presented to the United States
as a general organization.
Another proposal will be to the effect
that central banks and the Bank for
International Settlements at Basle shall
concert their credit policies, first, to
make a worldwide attempt to raise
prices by lowering the discount rate;
and second, to stabilize prices around
the 1928 level by maneuvering the dis
count rate in common.
Finally. it is considered essential that
the present fears of capital shall be
overcome and international lending re-
sumed. There is no lack of capital,
experts say 1t is simply that this
capital is afraid to seek investment.
Confidence, it is suggested, will be re-
stored by lowering trade barriers, rails
ing and stabilizing prices and by
ensuring monetary stability.
For the latter purpose loans are
needed. These loans. it is suggested,
can be made under scme form OF joint
government guaranty, such as Is now
being given in the Austrian emergency
loan
Much emphasis is laid Eere on the
fact that this conference for the first
time since the World War will be
conference not merely of experts-there
have been many expert economic con-
ferences-but of governments, that is,
diplomatic conference with full
powers to take decisions binding on the
governments.