The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-20
TUESDAY. JUNE %. 1899.
THE LONDON DEADLOCK

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THAT the world economic conference has
come to an early deadlock is not surpris-
ing The part played by the United States
In creating such complete deadlock is, how
ever, unexpected
It was known from the beginning that
France had narrow nationalistic program
1t was known that Great Britain would teke
no initiative. 1t was known that the United
States among all the large powers was the
only one with even a Slight chance of pre-
senting program and getting it agreed to-
But now it appears that the American
policies are so conflicting that they almost
cancel each other, thus adding the United
States to the long list of countries which
really have nothing to offer.
This applies to the three major economic
issues-war debts monetary sterilization and
tariff reduction.
For many months European governments
have been pointing out that these three is
sues are inter-related, requiring joint settle
ment. Because Of domestic political reasons,
and for strategic purposes, it is necessary for
the United States to insist on separate debt
negotiations But in view of the obvious re-
lation of debts to currencies and tariffs, the
Roosevelt administration in the beginning
agreed to permit the separate debt negotia
tions to proceed concurrently with the confer
ence on currency and tariff discussions.
Unfortunately and we believe unfairly, the
administration reversed this policy and post
poned debt discussions until some time after
the conference.
That decision unquestionably has crippled
the conference.
Second is the tariff issue. The President
intended to ask congress for special powers
to make joint tariff reduction agreements at
the conference. But after delay incident to
the pressure of other legislative matters, the
President finally allowed congress to adjourn
without asking or receiving special tariff
powers.
1t was explained, however, that the Presi-
dent at least could negotiate tariff treaties
which could be held for ratification by the
next session of congress.
Thereupon, the American delegation ex-
perts submitted to the London conference
commission a provisional agenda for discus
SION including 10 per cent horizontal tariff
cut first suggested by Secretary Of State Cor
dell Hull But then Senator Key Pittman,
in the name of the American delegation,
promptly and officially denied that the dele
CATION has anything to do with the tariff
proposal.
So tariffs followed debts out the window.
That left monetary sterilization. But as
soon as the American representatives at the
conference began to discuss the subject,
denial went out from Washington. Then it
was announced Monday in Washington that
the President is opposed to any international
currency sterilization agreement at this time
fearing that it might stop the fall of the
dollar and the rise of prices before American
prices reach the desired 1926 level
AS a result, some of the foreign delegates
at London are suggesting that the conference
adjourn. Meanwhile Undersecretary OF
State Raymond Moley is sailing for the con-
ference Unless he is carrying a definite
American program from the President, it
might be sensible for the conference to recess
until at least one or two of the governments
Including the United States. are prepared to
negotiate.
A conference with nothing to do but stew
in its own juice can cause more harm than
no conference