Evening star., 1933-05-07
BY WILLIAM HARD.

NDUBITABLY the crucial event Of
the year 1888 will be the interna-
tional monetary and economic con-
i ference 1t Is scheduled-tenta-
tively-as these words are written
to begin its successes or failures on
June IL in London.
Failures would mean, 1t is commonly
and truthfully said, a vast increased
outbreak Of economic nationalim and
of economic chaotic warfare IN the
world. Successes would mean, it Is
equally commonly and truthfully said,
q return to q moderate measure-at
any rate-of International economic
peace and tranquility.
But the alternatives can be stated
even more strongly. On the one hand.
along with even partial restoration Of
international economic peace and tran
guilty, there would 60 renewed free
dom of economic life not only tnterna-
tionally, but also within the Enclosures
of national boundaries. On the other
hand, along with an accentuation of
economic nationaism and of economic
warfare between countries, there would
develop today-within each nation-a
vigorous, and even violent, species OF
nationalistic state socialism.
The choice is between a certain re-
q
certain emphasized rush toward eco
nomic governmentalism. This thesis,
I think, will be abundantly verified as
the preliminaries to the international
monetary and economic conference
and the conference itself-expand their
multitudinous activities.
The origins of the conference must
be sought in the conversations which
took place in Washington in 1881 be-
tween Herbert Hoover, President Of the
United States, and Pierre Laval, presi-
dent of the Council of Ministers of
France. Mr.. Hoover and Mr.. Laval
on intergovernmental debts. They dis
cussed possible extensions Of the mora
torium, or possible Sequels to 1t. It was
agreed between them that the primary
pivot Of the problem was situated in
Europe. It was thereupon agreed be-
tween them that the initiative toward
the next move in the problem should
be taken in Europe. Whatever else
may be only surmise regarding the
outcome of the conversations between
Mr.. Hoover and Mr.. Laval in 1881. this
agreed transfer of immediate initiative
from the United States to Europe Is an
undisputable documentary fact.
Europe, it must be admitted, did not
circumstances. The momentouS con-
ference at Lausanne was summoned
It was held. 1t met in a midnight of
disheartenment. It closed in a dawn of
hope. Intergovernmenta debts owed by
Germany under the name of "repara-
tions" were virtually extinguished.
Conditional Acceptance.
It is true that the ex-allies cOndi-
toned their acceptance of the Lausanne
agreement upon a readjustment Of their
intergovernmental debts to the United
States. It Is also true, however, that
this conditionalism was and is merely
diplomatic and. indeed, merely aca-
demic. No Hitler government and no
post Hitler government of Germany will
ever resume the pre-Lausanne burden
Of reparations payments. Lausanne
was the end Of unpayable intergovern-
mental debt payments within the con-
fines of Europe. It was an end de-
sired by the United States and consid-
erably accelerated by the United States.
It is only in the light OF this fact
that the forthcoming international
monetary and economic conference can
be understood. It is only In the light
Of 1t that the meaning Of the recent
visits Of James Ramsay Macdonald
and Of Edouard Herriot to Washington
cam be grasped.
The Lausanne agreement, on the side
OF the ex-Allies, was essentially the
work of Mr.. Macdonald and Of Mr..
Herriot. Mr.. Macdonald terms him
self in politics a Socialist. Mr.. Herriot
terms himself Radical Socialist. Both
are men of 1.-THE Left" That label,
whatever it may connote IN domestic
affairs, seems almost always to connote
in international affairs policy of con-
ciliation and accommodation. At
Lausanne Mr. Macdonald and Mr..
Herriot arrived at an accommodation
with Germany; but, since they are not
only men Of "The Left" but also men
Of large International experience, they
went farther. They threw the remain
ing fragment of the problem Of inter-
governmental debtS-the fragment con-
cerning the United States-into the
caldron Of the worlds economic prob
lens In general.
It Is not important that Mr.. Mac
Donald and Mr.. Herriot diplomatically
and academically conditioned their &C.
ceptance Of the Lausanne agreement
upon subsequent corresponding inter-
governmental debt concessions by the
United States. It Is profoundly i'm
portant that at Lausanne they sounded
the first call for the international
monetary and economic conference at
Londop, ylteV thus n e6eet addIan1ed'