Evening star., 1933-06-12
|PARLEY IS FACING
WORST CRISIS"
Greatest Conference Ever
Held Deals With Darkest
Situation Known.
BY PAUL SCOTT MOWRER AND
NEGLEY FARSON.

BY Gable to The Star
LONDON, England, June 12.-The
greatest economic conference ever held
met here today to deal with worst eco
nomic situation ever known.
Vast amounts of accumulated wealth
have been wiped out by catrastrophic
deflation. A vast burden of debt con-
tinues to weigh down governments,
businesses and individuals. Thirty mil
lion workers on whom depend another
100000 or 60,00o,000 women and
children, are jcbless and are being sup
ported at the expense of taxpayers.
The success or failure of this con-
ference seems, therefore, to affect in
timately the future well-being of every
one now alive The responsibilities rest
ing on the heads of the chief delega-
tions are thus enormous.
Bank Group Again Meeting.
George L. Harrison, governor of the
Federal Reserve Bank of New York
Montagu Norman, governor of the Bank
of England; Clement Moret, governor
CT the Bank of France, and Leon
Fraser, head of the Bank of Interna-
tlonal Settlements, are meeting again
today following their discussions yester-
day.
They are irving to arrange temporary
stabilization of the pound and the dol
lar for the duration of the Economic
Conference, that is to say, for 80 or 80
days. Harrison is believed to have pro-
posed the rate of $430 to the pound.
The negotiations are continuing.
Representatives of the American,
British and French treasures have Just
met to discuss the possibility of a gold
pool or combined equalization fund
for de facto stabilization of their ex-
changes.
The United States is represented by
o. M. w. Sprague and James P War
burg, economic adviser to President
Roosevelt.
The British, it is believed, refused a
combined equalization fund, which the
United States is believed to have ia
vored.
The French object to a gold pool or
any other form of redistribution of gold
by other than natural economic means.
World at Turning Point.
1t is realized that the world is at a
turning point. There is either going to
be some measure Of genuine interna-
tional cooperation or the worlds prin-
cipal economic units are going to shut
themselves in tighter than ever and try
to work out salvation on purely ma
tonal lines at whatever cost of painful
internal readjustment.
SXty-five nations are represented. but
the brunt of the negotiations will fall
on those few who control most of the
worlds gold, industry and commerce
namely, Great Britain, the United
States, France and Germany.
In one sense it could almost be said
that the key to success or failure is held
by Great Britain and the United States
alone, for if they can agree on equitable
conditions the others seem bound to fol-
low.
1t has long been said that nothing
constructive could be accomplished in
the international economic field unless
the political tension Is relaxed and con-
fldence res<ored. In this respect there
undoubtedly has been real progress.
German Chancellor Adolf Hitler's good
will speech, Italian Premier Benito
Mussolini's four-power pact, Russia's
improved relations with its western
ne1ghbors and the better situation in
the Disarmament Conference are all
expected to help here.
The large American delegation is still
in the process of organ izing. It's poll
cies, 1t is believed, will be elastic. All
depends on what actually happens. If
suitable agreements seem possible, the
United States is ready to do its part
Otherwise, the Americans are fully pre-
pared to go home and devote their
efforts to their own internal recovery.
Ten Proposals Listed.
Among the proposals which are like
ly to be discussed at the Economic Con-
ference with some chances of success.
the following may be listed:
l. De facto stabilization of the dol
lar and the pound 1t is, of course.
agreed that everything else depends
on this
2. An arrangement of closer CO.
operation between the central banks
to regulate interest rates and the flow
OF credit, with possibly also a form of
credit pool to help stabilization.
3. Extension of the tariff truce.
4. Some form of optional no-dump-
ing agreement.
S. An agreement to abolish such
trade quotas and prohibitions as were
due to f1uctuating currencies and which
would be rendered unnecessary by de
facto stabilization.
s. Possibly some sort of permanent