The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-14
BY SIR WALTER LAYTON
written for United Pressl

Copyright 1888. by United PreSS)
LONDON, June 14.-This is the
first general economic conference
since the war composed of pleni-
potentiaries with the power to act.
There have been many economic con-
ferenceS in the past decade, but they
were composed of experts who were
called upon merely to advise, with
out authority to commit their gov
ernmentS. Hence, their recommen-
dations usually have been ignored.
Whether these plenipotentiaries
will act or not depends upon the an
swer to fundamental question. Will
the governments really turn their
backs on the ideal of national self
sufflciency, and try to rebuild pros
perity on basis of interdependence
and mutual benefit in international
trade, even though that may involve
modification of their present ma
tional policies?
If so, then it will be possible to
secure common international action
to. raise prices, re-eStablish a, stable
system Of world currencies, and re-
move barriers blocking the recovery
Of international trade.
But if not, there is little hope of
preventing a drift into ever deeper
depression.
France Asks Gold Basis
Behind the good will in the open
ing speeches, it is possible to dis
Germ the different angles of ap-
proach that will have to be recon
ciled.
The French hold that immediate
sterilization on . gold basis of the
chief curreneies would be the quick
est way of restoring confidence and
allowing trade to recover naturally.
This is their main proposal, but
they are prepared also to admit that
a system of rationing trade by
quotas, which they started and
which had been copied by many
other nations, has done them more
harm than good. They therefore
are ready to scrap it. But whether
they are prepared to go further and
reduce their tariffs, is more doubt
full.
The Germans, whose delegates |
have been chosen from non-Nazi
members of the cabinet, are pre-
occupied with their internal revolu-
ton and have hitherto showed little
active interest in the conference.
Question Is in Forefront
However, having been relieved at
Lausanne of all future reparation
payments, they have now, by de-
claring a general transfer morator-
iunn, succeeded in placing the ques-
ton Of their commercial indebted
ness in the forefront of the agenda.
Italy, Belgium and other nations
which have dense industrial popu-
lations and must import raw ma
terial will try to secure freer trade.
Countries of central Europe, how
ever, all of which have had their
savings destroyed and economic life
ruined by imitation and have i'm
posed exchange restrictions during
the crisis to prevent a new disaster
overwhelming their currencies, will
not be prepared to remove these
and other restrictions to trade I'M
less they all can agree to act to-
gether and unless they can all OBJ
tain gold or international credit to
strengthen the reserves of their CEN
trail banks.
U. S. Stand Unknown
An unknown factor is the attitude
of the United States, which a few
months ago was pressing Great
Britain to return to gold. Now, it
seems doubtful whether America
herself would be willing to stabilize
on gold until she has tried out the
possibilities of internal imitation.
Great Britains attitude is that a
return to gold is one of the condi-
lions of recovery. But, like America,
she attaches great Importance to a
rise Of prices, for, unless this hap
pens, no trade restrictions will be
lifted and all-round defaults will
be inevitable.
She, therefore, is inclined to agree
with America that agreed policy of
price recovery must come before
sterilization. But the British gov
eminent is unwilling to use more
violent weapons than cheap money
and modest government expendi-