Evening star., 1933-06-18
IMPROVED OUTLOOK SEEN
FOR RESULTS AT LONDON
Developments Outside of Trade Parley
Breaking Down Widespread Skepti-
cism, British Economist Finds.

rary stabilization of exchanges. Tariff
and exchange fluctuations during the
conference would be destructive of the
atmosphere required for success, and
| the tariff truce already instituted and
the partial stabiliZation of exchange
now being attempted may not only re-
move this difficulty, but pave the way
| for more permanent arrangements with
in the conference itself.
Good Prospect for Agreement.
One notable tendency was to search
for some compromise between moderate
/ economic nationalism and a system
which would permit a substantial resto-
! ration of world trade and in particular
would fit national quotas into frame
work of international agreement.
On the whole. early discussions sug-
gest a good prospect for a substantial
measure of agreement on the monetary
policy and for provisional stabilization
of exchanges conditional on the ultimate
return to the gold standard at appro-
pirate PARTIES with corresponding de-
valuation.
Concerted equalization" measures to
sustain new exchange rates and to give
some substance to central banks whose
reserves are weakest seem not improb-
able. On such a basis the removal of
exchange restrictions and some OF the
new tariffs and prohibitions imposed
mainly to relieve the strain on curren-
cieS should be possible. Some of the
conditions for resumption of foreign
trading would thus be restored
Reduction of tariffs that have been
long in existence will be more difficult.
No large scale and Immediately drafted
reductions are to be expected Tariffs
are too complex, time is too short, and
the other tasks of the conference are
too numerous. But some eXcesses may
be removed, further increases arrested
and the way prepared for gradual re-
ductlon by bilateral and regional agree
ment. AS regards the latter, important
discussions will turn round the most
favored-nation clause and conditions
under which exceptions should be ad-
mitted.
In addition some safeguards may be
agreed upon against the worst evil of
all. sudden increases of duties without
notice or consultation.
Chamberlain Address Notable.
Speeches indicating the sense of deep
responsibility resting upon the confer
SASSs dlio 1CSOS5llitlOil Vi Lllc Spull III
which its problems must be faced and
the main direction in which a solution
should be sought were made by King
George, Prime Minister Macdonald Cor
dell Hull, Gen. Smuts and T. v. Soong
at the opening of the conference.
Among those who made definite pro-
posals Neville Chamberlain has had
most attention. His address was notable
for his emphatic statement in favor of
raising prices by combined monetary
economic measures, which he specified.
His proposals represented a substantial
advance over previous British policy.
along lines likely to facilitate an agreed
OASIS with America and with enough
other countries to obtain effective con-
certed action.
Mr.. Chamberlain's proposals as re-
gard tariffs marked some, though a
much smaller. advanced toward a less
national policy.
France. Italy, Poland and other
countries expressed their doubts about
monetary methods of raising prices.
But it Is increasingly realized that
while known and concerted policy is
important. policies in this matter need
not be identical.
Delegates Mood Improved.
II France desires a more stationary
level of prices from America an ad-
Justment can be made in exchange
rates. Several countries advocated de-
lloerate expansion Of public works and
concerted regulation of production.
Ihere is increasing recognition of the
TACT that currency stabilization is
neither Of real value nor possible ex-
cepo within the framework of a COM
mercial policy which makes it certain
that tariffs shall be neither prohib:tive
nor violently unstable.
The week has substantially improved
the prospects of the conferences and
the mood of the delegates. It started
with profound and widespread skepti-
cisrn; 1t ends with cautious optimism.
Copyright. 1893. b- North American Neus
paper Aili.nce Inc