Evening star., 1933-06-18
London Tension Relieved
By the War Debt Dealings
By A. @. GARDINER,

AONDON, June l7.-Tne 0rSt week
OF the World Economic Conference
ends on q distinctly optimistic note.
This is mainly due to the war debts
accommodation reached between Lon
don and Washington, which greatly
relieved the tension of the situation
and created new atmosphere Of con-
fidence.
1t is long time since the House
of Commons has been in such a cheer
ful temper as 1t was Wednesday night,
when Neville Chamberlain, chancellor
Of the exchequer, made his twice-post-
poned announcement Of the result Of
the debt negotiations with Washing
ton. The nature Of the announcement
had been anticipated in the press, but
the formal declaration filed the crowd
ed chamber with the spirit Of school,
boys on the eve OF holiday, and the
OF the schoolmaster announcing the
good news.
Both in the House Of Commons and
In the press the highest praise was
bestowed on President Roosevelt from
the representatives of all parties for
his realistic and conciliatory handling
OF the problem. Stress was laid on
his difficulty in reconciling, In face Of
a disapproving Congress, the large re-
auctions in veterans pensions with
the apparent remission of external
debts, and tribute was paid to his
courage in giving q conspicuous lead
to world craftsmanship.
It Is admitted that President Roose-
velt has given nothing away In regard
to Americas debt claims, but the fact
remains that the Baldwin settlement
Is dead and that a new settlement on
an entirely different scale is fore
shadowed. The negotiations for this
settlement will be conducted In WASH
ington, In what is hoped will be q
brighter economic atmosphere, In the
Autumn.
Meanwhile the shadow of war debts
has been lifted from the Economic
Conference, with q marked effect upon
the prospects for its deliberations. Mr..
Chamberlain's speech to the confer
ence on Wednesday went far toward
Identifying Great Britain with the
scheme Of controlled imitation and the
active side Of President Roosevelt's
financial program. Progress also was
made by the experts ot-the two co.n.
tries In reaching an agreement on the
vital question of stabilization of the
dollar and the pound.
The feeling prevails that provisional
stabilization of the pound and the
dollar, coming on top of provisional
settlement of the debt question, should
bring the discussions of the Economic
Conference much nearer world reali-
ties and go far to assure the success
OF the proceedings.
France, however, tends to view the
AnglO-American monetary program
with misgiving. Furthermore, the de-
hationist economists, who are In strong
force at the conference, are distrustful
Of the direction in which an Anglo
American combination may lead the
discussions. The Central European
powers, with Belgium and italy, tend
TO align themselves against Chancellor
Chamberlain's idea Of price raising as
the only practicable way of restoring
equilibrium to prices and costs and to
associate themselves with Frances in
sistence on the restoration Of the gold
standard as preliminary condition to
favorable issue.
1t was this vital disagreement on
financial policy which accounted for
the resistance to the appointment Of
the American delegate, James M. Cox.
as chairman Of the Monetary Com.
mittee OF the conference-a resistance
that was eventually broken down.
This incident, however. indicated .
cleavage In the conference between
those who emphasize the monetary
origins OF the depression and those
VINO attribute the depression to struc-
tural causes. It was a conflict be-
tween mnatlonists and def1ationists-
between those who want an immediate
return to the gold standard and those
who say that prices and costs must
nrst md an equilibrium.
tCopyright, l933)