Evening star., 1933-04-30
Britain Hopes for Results
From Economic Parlev
BY A. G. GARDINER.

LONDON, April 29.-The news from
America this week has brought more
hopeful mood to this side Of the At
lantic.
The unusually warm terms Of the
Joint statement by President Roosevelt
and Prime Minister Macdonald on the
subject Of the Washington negotia-
tions have given universal satisfaction,
and the fears widely expressed when
America went of gold that the world
economic conference was doomed have
now been benished. even in France,
which was especially alarmed at the
prospective Of competitive depreciation
Of currencies. The presence Of former
Premier Herriot in Washington and his
assentsto summoring the conference in
London on June IL is taken as IA
vorable omen.
Much emphasis Is laid here upon the
Washington communicates insistence on
simultaneous action In the economic
and monetary fields for the ultimate
establishment Of equilibrium in In
ernational exchanges. This is taken to
indicate change Of attitude and mind
in both America and France, where the
idea prevailed that immediate stabiliZa-
ton and the fixing of PARTIES would
be sufficient to restore confidence and
raise prices. This, in the British view,
was putting the cart before the horse
Unless the conditions which have
produced the present world collapse,
such as political unrest, trade barriers
and aggravated nationalism are re-
moved, mere stabilization of currencies
would be ineffective. The same condi-
tions would produce the same disorders
In other words, the new international
financial system must rest on a new
economic and political basis Of world
relationships, which the Disarmament
Conference and World Economic Con-
ference must reach. In the meantime
the best that can be done Is to make
an agreement to check excessive ex-
change fluctuations.
The fact Is commented on that the
Roosevelt Macdonald joint statement,
while explicit on the subjects of tariffs,
quotas exchange restrictions and posi-
tive means of getting money into cir
culation, Is silent on the subject OF In
ternational debts. But Is agreed that in
this matter Mr.. Roosevelt is compelled
to walk warily.
The London News Chronicle ex-
presses the general sentiment in re-
marking that 1t would be an inauspi-
cious beginning for the World Economic
Conference If the European nations
which sent representatives to London
on June IL found themselves suddenly
faced with demand to pay the United
States their war debt installments on
June IS. It is assumed that the WASH
tngton conversations did not ignore so
vital a matter. 1t is generally agreed
in the press that the success Of the
on the willingness Of America to bring
war debts into the orbit of the dis
cuSSionS.
American influence Is assumed to be
paramount in the Roosevelt Macdonald
statements inSistence that the govern
ments can contribute to recovery by the
development of appropriate programs of
capital expenditure. This is held to
foreshadow imitation and to be contrary
to the recommendations Of the prepara-
tory commission of experts. which
feared that borrowing for public works
would weaken government credit. It Is
contrary also to the present attitude OF
the British government. Chancellor OF
introduced in Parliament Tuesday, rs-
pudiates John Maynard Keynes policy
of unbalancing the budget in order to
promote q great scheme OF public
works as q means Of reducing unem-
ployment.
Much controversy RACES over the
tariff policy Of the British government
in relation to the prospects Of the World
Economic Conference. A new tariff
agreement with Denmark was an
nounced this week and schemes with
Norway, Sweden and Argentina are
imminent. The Liberals argue that 1t
Is futile to summon q conference to
release world trade while Great Britain
Is engaged In putting more fetters on
trade, but the London Times insists
that arrangements such as Britain is
making will serve as q model for the
approaching conference.
(Copyright, 1933)