The Daily Alaska empire., 1933-06-06
THE LONDON ECONOMIC
 CONFERENCE.

Failure of the Geneva Disarmament Conference to arrive at a definite scale of arms reduction, o limitation of armament expenditures, makes more serious the admittedly great difficulties under whcf the London Economic Conference, just few day. away will meet. It does not mean that success there is impossible but only genuine submergenct on the nationalistic idea by the countries par ticipating will counteract the effects of the Genevs setback.
 The London meeting is regarded by students O. the times as the most important in many years Some have called it the worlds last effort to savt itself That may be somewhat farfetched, but fall ure would unquestionably retard economic and in dustrial recovery in every nation and slow down tht notable progress that has been made in the United States in the past 60 days.
 With so much at stake it doesn't seem possible that responsible statesmen would risk failure bl jockeying for selfish national advantage. Yet tha is the rock upon which the Conference may split The differences are many and great. These have to be either laid aside composed, and conflicting interests reconcied in order that an internationa accord be established in common effort a survival
 The program set up for consideration is to lengthy to be presented here in detail. Four basi outlines have been drawn and annotated officialI as follows:
 l. In the field of monetary and credit policy, the objective must be the restora- tion of an effective international monetary standard to which the countries which have abandoned the gold standard can wisely ad- here. The notes appended clearly show that there are a great number of economic as well financial conditions which must be fulfilled before the restoration of inter- national gold standard be a practical possibility. Moreover it will be necessary to provide effective safeguards against such a restoration of the gold standard leading to fresh breakdown
 9 The unprecedented fall of commodity prices in recent years has caused grow ing disequilibrium between costs and prices, has immensely increased the real burden of all debts and fixed charges has made bus- ness more and more unprofitabe, and has resulted in a continuous and disastrous in- of unemployment throughout the world. Some increase in the level of the world prices is highly desirable and would be the first sign of world recovery. The Conference will doubt wish to explore all possibilities of counteracting this fall in prices One of the methods that should be considered is the continuation and de- velopment, where monetary conditions per- init, of a general policy of easy money designed to promote healthy expansion of business.
 B. The restoration of free exchanges is essential to the recovery of financial confidence and to the resumption of the normal flow of international credit that the governments should consider whether they cannot expedite the process In order to do this, might be organized by which resources at present mmobilized would be put into active circulation, and stabi- zation credits would be provided under ap- proprate conditions for the countries which require such assistance
 4 Finally there must be greater free dom of international trade. It has already been pointed out that one of the most significant features of the present crisis is the fall which has taken place not only
 in the value, but in the quantum of world trade. This fall has been partly caused, and has certainly been intensified, by the growing network of restrictions which have been imposed on trade during recent years. Every country seeks to defend its economy by imposing restrictions imports, which in the end involve contraction in it's exports. All seek to sell but not to buy. Such a policy must inevitably lead to increasing paralysis of international trade. Govern ments should set themselves to re-establish the normal interchange of commodities
 Thus what is to be undertaken is to formulate a mutual plan for restoration of prices and a re- sllscitaton of world trade to the end that worlc stability may be attained giving all peoples { chance for peace, happiness and prosperity
 The nations entering the Conference have agreed that it will not be possible to make progress b, pecemeal measures. "A policy of nbblng vii not solve the crisis" they have said, and "th Governments of the world must make up thei minds to a broad solution by concerted actioi along the whole front. Action in the field o economic relations depends largely upon monetar and financial action and vice versa. Concerte