Evening star., 1933-07-30
British Not Optimistic
Over Economic Prospect
BY A. G. GARDINER.

LONDON, July 29.-The funeral OBJ
seuuies of the World Economic Confer
ence on Thursday were suitably charged
with assurance of glorious resurrec-
ton, but this calculated cheerfulness
did not conceal the fact that the con-
ference disperses with sense of colos-
sal and humiliating failure.
Behind the confident predictions OF
reassembly in the Autumn is a con-
sciousnesS OF vast and formless happen
ings which must take shape before the
London again, for all agree that repe-
tition of the fiasco would deal fatal
blow to the hopes Of international CO.
operation.
The two main unresolved centers of
disturbance are Germany and the
United States. The political convulSion
il Germany still leaves Europe heaving
with incalculable fears, which have COM
pietely blanketed the Disarmament
Conference and have an equally de-
pressing effect on the outlook for the
Economic Conference. Arthur Hender-
son, chairman Of the Disarmament Con-
ference, has returned to London from a
pilgrimage of peace to Italy, Germany
and France, but little expectation is en-
tertained that he will be able effectively
to rehabilitate the Geneva conference
while the menacing situation in Ger
many continues.
Even those who have been most crit
ical of the French insistence on security
in the past admit the reality of the
alarm now and, while holding Poin-
careism largely responsible for the tri-
umph of Hitlerism, acknowledge that in
the present circumstances it is unrea-
Ia $o lirt1 n
attitude in regard to disarmament than
that prevailing at the Quai d'Orsay.
Tribute is paid here to the restrained
and responsible temper of the French
government in conditions of grave diff
Guilty, but there is no misapprehension
regarding the possibilities of a serious
rupture in Franco German relations as
a result of the present combustion east
of the Rhine.
The second consideration which makes
the reassembly of the Economic Con-
ference problematical is the position in
America, which is being followed here
with the profoundest anxiety. The ques-
ton discussed in all circles is the pros
pect of President Roosevelt succeeding
in his heroic appeal to the American
Nation. The setback in the markets a
week ago caused no surprise and in ex-
pert circles was regarded as not un-
welcome fact, as the expansion Of val
ues had assumed unwarranted dimen-
sions That excessive expansion, how
ever, is held to be an inevitable result
OF President Roosevelt's declared inten-
ton to raise prices.
The general tenor Of press comment
is doubtful whether 30 vast an operation
as lowering the hours of labor and
raising prices and wages can be effected.
Conservative criticism takes the line
that the policy of fixing wages. prices
and hours is q movement toward the
establishment of a Socialist state. Per-
haps for this reason and for the ex-
ample 1t sets up for imitation by this
country, the most cordial Endorsement of
the Roosevelt policy comes from the
Labor party and from the John May
nard Keynes school of economists, who
ardently preach the gospel of expendi-
ture on public works and Of national
istic finance as the cure for unemploy-
ment.
The subject was the principal theme
of the closing debate in the session OF
Parliament this week, and David Lloyd
George urged a policy Of settling half
million men on the land and salvation
by public works and economic national
ism. But the government is not dis
posed to follow the American example.
It argues that this country has had
more experience in expenditure on pub
lie works as q cure for unemployment
than any other, and that the result has
been extravagant and unproductive and
the main cause Of the financial crisis of
two years ago. Moreover, economic ma
tionalism is impossible in the case of
q country 50 dependent on international
trade as Great Britain. It Is believed
that monetary stability is the chief
requisite for raising prices.
The strength Of the government
policy is marked by the Improvement In
the condition Of trade and the reduc-
ton Of the unemployed by q half mil
lion since the beginning Of the year.
Concurrently there has bbeen q sensible
appreciation in price levels, and opin-
ion strengthens that, with q solution Of
the currency question. world revival
would be assured. In any case there
Is no intention to follow the American
lead until the result Of the Roosevelt
experiment Is disclosed.