Evening star., 1933-06-12
BY the Associated Press.

/ BY the Associated Press.
LONDON. June 12-Following is the
text of Prime Minister Ramsay Mac
Donald's speech today as chairman Of
the World Economic Conference:
"On behalf of his majestys govern
ment in the United Kingdom offer
you all a most hearty welcome to Lon
don. I hope your stay here will be
pleasant, above everything else profit
able in results, and that when you leave
you will have carved the name of the
London Economic Conference amongst
those great international gatherings
| which have brought blessings to man
| kind
THE purpose Of our meeting is Of the
| gravest Importance. His majesty him.
self has opened the conference in
gracious speech which showed his keen
appreciation of our work and his deep
concern for our success. and I propose
| to offer him in your name an express
sion Of our gratitude for the honor done
to us and the interest he has taken in
our objects.
Sixty-seven Governments Invited.
"Sixty-seven governments have been
| invited, 10 who are not members of the
League, and the importance attached
| to our purpose is recognized by the fact
that practically every government in
vited has accepted the invitation.
There is greater authority gathered
in this hall today than has perhaps
, ever been brought under one roof in
the worlds history.
THE economic life of the world has
| for years been suffering from a decline
| which has closed factories, limited en-
ployment, reduced standards of living,
| brought some states to the verge Of
| bankruptcy and inflicted upon others
| recurring budgets that cannot be bal
anced. The machinery of international
| commerce upon which the vigor of the
human life of the world and the pros
perity Of the nations depend, has been
steadily slowed up.
Cites Fall in Prices.
! "The markets are there, the labor
| to supply them is there, but the labor
Is not employed and the markets are
not filled. When We had less efficient
equipment for the making of wealth
| our national incomes were greater. All
the machinery Of prosperity is there,
| but 1t is slowing down. 1t Is not work.
ing. q
THE briefest reference to the
astounding facts will show the magni-
tude Of the problems before us and at
the same time direct our thoughts to
! the points Of attack
Since 1929 prices have fallen and
| have kept well below the levels at
which production can be remunerative.
They have fallen irregularly, moreover,
| and have distorted the normal relation
ships upon which economic activity is
pivoted. The fall In prices has added
oppressiyely to the burden Of the
worlds Indebtedness. In 1892. COM
pared with 1929, production of raw
materials had fallen 80 per cent and
exchange between town and country
had been tragically limited
National income has fallen seriously
everywhere-in some countries by 40
and SO per cent. The general crisis.
accentuated by restrictions by tariffs.
| quotas and exchange control, has re-
duced international trade between 1929
| and 1882 to less than three-fourths in
| volume, exchanging at about half price
80 Million Unemployed.
THE gold standard has had to be-
| deserted more generally than has been
| the case in time of peace since 1t was
erected into the international measure
| OF exchange and inevitably, irrespective
| OF fiscal policies and of forms of govern
| ments, unemployment has mounted up
| until the world figure. issued by the in
| ternational labor Office, has reached
sc, ,o00, 900.
This cannot go on. The world is be-
ing driven upon state Of things which
| may we'll bring 1t face to face once
again-for it has happened on scales of
varying extent before now-with time
In which life revolts against hardship,
| and the gains OF the past are swept
away by the forces of despair.
I'm this drama of deterioration, gov
| ernments and state policy have played
| an important part
Behind the subjects I have Just
| mentioned Is another in the front rank
| OF Importance. It cannot be dealt with
here because obviously this conference
| Is not constituted in such way as to
| enable 1t to consider and settle the
matter. refer to the question of the
war debts which must be dealt with
| before every obstacle to general recov-
cry has been removed and it must be
taken up without delay by the nations
| concerned. Lausanne has to be COM
PiCOS0 ILLS NehCO QucStlOI ScIClGQ
once for all in the light Of present
world conditions.
Sequel to Lausanne.
This conference is a SEQUEL to the
work done at Lausanne last year when,
by conditional agreement on how to
deal with war debts and reparations.
Europe was saved from immediate
financial collapse 1t will be remem-
horad hof n nj Rv,te
| mediate work at Lausanne the confer
ence reported that for the clearance of
the world crisis a wider conference
should be called and that the League
OF Nations should be invited to take
that in hand without delay Lausanne
| indicated the subjects which ought to
be dealt with and the general steps
which should be taken to prepare for
the conference.
! Tho Council Of the League moved at
once. In the intervening months of
preparation and negotiation the work
assigned to us has not been made
lighter nor easier. Indeed, the problems
which compose our agenda have in
some respects been intensified on both
the political and economic fields. and
we have been advised from some quar-
ters that We should postpone this meet
| ing until circumstances more promising
for its success have arisen.
Cooperation q Necessity.
What prospect is there that these
circumstances can arise if the situation
IS left to right itself or If all that can
be done is that each nation independ-
emily should take measures to protect
itself against catastrophe?
Indeed. one cause of the later
phases of the deterioration Is the fact
that the nations, left to pursue a policy
of national protection. have been driven
to resort to measures which, whilst Of
fering some temporary relief from the
pressure which threatens them, add to
the general stagnation of world trade
and so intensity the influences which
increase our trouble.
HTf tba World is left tn RIGHT itself