Evening Star Newspaper, July 23, 1933, Page 5

ECONOMIC PARLEY PROVES FRUMLESS America’s Lack of Menetary Policy Base of Failure, . Economist Declares. BY ARTHUR SALTER, Member British Economic Advisory Board. By Radio to The Star. LONDON, July 22 (N.AN.A)—The ‘World Economic Conference adjourns next Thursday after dragging on for nearly a month since President Roose- velt’s message made it clear no prog- ress could be made on the base prob- lems of currency, credit or tariffs. Those who opposed immediate ad- Journment when the President’s mes- sage was received were actuated by three motives. They thought if the conference were adjourned immediately the concentra- tion of responsibility for its failure upon America would cause tension be- tween Europe and America unfavorable to other negotiaticns. Feared For Confidence. Apart from that they believed that s dramatic and sudden termination of the conference would cause a greater shock to public confidence and dis- credit individual delegates more with their parliaments than a more grad- ual ending, in which anger and dis-/ {llusionment would be mitigated by sheer weariness and boredom, and by the diversion of the public mind to the thought of the August holidays. It was hoped, thirdly, that useful work might be done on secondary ques- tions—on regulation of the pro- duction of certain commodities such as sugsr, wheat and coffee; private in- ess; restriction of subsidies; indirect protectionism through admin- istrative devices; a connected policy of public works expansion; perhaps some Timited agreement on policy and meth- ods of raising the price level, and at least some agreement on a way in which the gold standard should ulti- mately be made to work satisfactorily. By some it was even thought that a eonditional agreement might be reached on tariff reductions to become effective as soon as currency stability ‘was assured. None of these tasks was necessarily made impossible by uncertainty as to currencies. But in fact practically has been accomplished. The nothing intrinsic difficulties would have strained | the resources of statesmanship under the most favorable conditions; these difficulties became insuperable with the psychological deterioration that attend- ed the currency dispute. Progress Is Slight. A little progress has been made in regard to the wheat and sugar agree- ments, but these are still inconclusive. British opposition to the public works scheme destroyed all chaneées of any agreement on that question, and also regarding the price-raising policy in | general. Doubts suggested by the President’s message not only as to the immedidte future but the tltimate character cf the dollar made the gold standard dis- cussion unreal. Resolutions on all other subjects, too, amounted to nothing. ‘The conference breaks up with no more results than if it had adjourned three weeks ago, and that means the | results are virtually nothing. What happened of importance in the war debts arrangement for June 15, and the ending of the British embargo on Russia, happened outside of the con- although doubtless helped Vital Knowledge Lacking. or a time, then, at least, the confer- ence has failed. Whatever might other- wise have been its chances, the Ameri- can situation made success impossible. for currency ratios are an essential element in all the main problems of credit and investment and tariff policy. And one thing is axiomatic about every conference. If it is to succeed it must be able to influence, or at least must know, every essential element in its principal problems. It was the absence even of knowledge that was the fatal difficulty. The conference could not hope to in-1- fluence the American monetary and and was ng to be, it might at least have medgov.‘o adapt its solutions to that known factor. However, it did not know. The policy was changing rapidly during the sessions of the conference. Success under these conditions was im- possible. Even if this difficulty had not exist- ed there would, of course, have been t obstacles to agreement, and they might have been insurmountable. Other countries might have proved assassins— none of the principle ones have shown 15 to 1/3 Mussolini Assumes Fifth Cabinet Post As Minister of War By the Assoclated Press. ROME, July 22.— Mussolini, premier and minister of foreign affairs, interior and corporations, a fifth cabinet job today, at of minister of war. . He accepted the request of Gen. Gazzera to be relieved of the war portfolio he held five years, then proposed himself to the King for this position. His majesty there- upon nominated Mussolini. Il Duce formally took posses- sion of the new office this morn- ing, prior to a meeting of the council of ministers. conclusively they would not have been— but as it is they had an alibi. Postponement Preferable. The American situation has, in fact dominated the whole conference. In retrospect it is clear the conference should have been postponed when the dollar went off gold, and reconvened only after the main developments of the new American policy had become known and after diplomatic conversa- tions starting with that known factor had defined the main issue clearly and tmeihndwed the mein lines of agree- ment. ‘We now have to deal with results and with the future. Certainly the les- sons of these disillusioning weeks should not be lost. The conference must not be convened again until America’s sit- uation has develcped and her policy is clearly known. There should be an effort to obtain agreement on main principles arfiong the more important countries before the full conference meets again. But there are many matters on which agreement will be vital, whatever may be the main course and policy pursued by different governments. To take one example: Supposing that high protec- tion must be assumed for a considerable period to come. It is of the utmost im- portance in that event that each coun- try which thus excludes the imports of others should accept at once the ulti- mate and inevitable consequence to its own exports. Otherwise we shall have a most gangerous period of competitive subsidies and state-aided dumping. Recovery Is Slowed. The immediate effect of the present failure wil! be loss of a great opportu- nity to accelerate and extend Te- covery movement already in progress. It will retard and restrict that recovery, but 1t is unlikely to destroy or reverse it. However, it will leave the economic life of the world to develop on more na- tionalistic and more ingerous lines, and will deprive every country of the additional prosperity which its share of the larger external trade would have given it We shall have to feel our way back more slowly and more painfully than we had hoped, to a saner, safer world. Failure of the Conference is due to & combination of misfortune—premature convocation and inadequate political preparation. The conference method is not important, but it has been demon- strated that it is of vital importance to assure conditions indispensable to suc- cess before a great conference is con- vened. ¢ (Copyright, 1933.) Cat Goes Tree-Sitter. WOODBURY, N. J. (#—Esmerelda’s a cat, not a catbird, but she has proved to be a bird of a cat at that. This vari- colored feline picked out an aged maple tree and high within its decaying trunk built a nest. Now five kittens share the nest with Esmerelda. Sale! $60 [llinois W atch ore THE SUNDAY EUROPE'S DECLINE INU.3. TRADE SEEN Conference Failure Believed Destined to Turn Nation to New Markets. By the Associated Press. itself on Franco-American differences believe tiiat event marked & new epoch in which the United States will look more to the Western hemisphere, the Wntmmfwmmmm ure. Significance is at ed to the im- align tries—with United States improved its relations London and will undertake at Washin; ton to cement these accords into m tually beneficial trade agreements. Changes May Follow. Importapt changes in this country’s commercial relationships may ensue. The making of such agreements for submission to the January session of Congress will be Secretary Hull's next big job. Already preliminary discus. sions have been opened by several Ni tions, including Argentina, Paragu Uruguay, Spain, Portugal, Czechosl vakia, Persia, Ireland and evg? Holland mdseh‘;lu;xl:ort.hnoonun tal Euro- oc. pnnm'ol negotiations indicate that at present at least there is no disposition to carry the idea of a planned and self- contained American economy to the extreme of barring all commercial con- tact with the rest of the world. Secretary Hull and others feel that to: isolate the United States completely would be to adopt & course which never could yleld the maximum in national well being and standards of living. They concede that in the present emergency & protected economy is perhaps the best recourse for the Amer- ican Government, and that the resulting higher costs require protection from products of similar advance has not occurred, but it is felt this fact does not necessarily shut out trade with the whole world. United States Setting Example. Much depends on the adoption of this country’s bold price raising plans by other countries. It is yet too early to tell how many will follow. The American bid at London for a world inflation, of credit if not of cur- rency, failed because the nations, watch- ing the Roosevelt policies with intense interest, wished to see them unfold more fully before following suit. But it be- comes apparent that the countries which adopt similar policies will be first in line for valuable trade agreements with the United States. Perhaps the most interesting event on the horizon of American foreign rela- tions is recognition of Rusisa, the pros- pects - of which grew increasingly istron‘er during the frequent and friendly conversations at London be- | tween United States officials and the, 1 energetic Soviet foreign minister, Maxim Litvinoff. 21 J ewel Movement! *30 50c a Week! 14k. white gold filled en- sed gold roller, adjusted movement. Some value! N.W. 00000000 ‘Space without increased cost as yet Seventh Street in the new SERVEL Hermetically Sealed Refrigerators..... Without requiring any additional floor space, the new Servel Hermetic brings you more shelf area—greater cubical content and greater food storage capacity at no in- crease in price as yet. New beauty, new economy and convenience at no added cost to you. Automatic electric light and vege- table crisper are regular equipment of Servel Hemetic. Servel’s sealed-in-oil mechanism brings you trouble-free operation. Approved by Good Housel keeping Institute. Servel Hermetics installed as low as $13§ Servel Crusaders installed as low as $98 62 cu. ft. Hermetic illustrated, $183.50 installed. MAYER & CO. JBetwcm D and E STAR, WASHINGTON Politics at D. C, JULY 23 1933—PART ONE. Random Sanders Heeds Advice of Republican Leaders to Sit Tight and A%ait Results of Democratic BY BYRON PRICE, Chief of Buresu, the Assoclated Press, ‘Washington. news that Republican Chair- man Sanders has decided to go abroad, adjourning Te- construction conferences for the present, means more than might Tios "of " important Republicans ce of favor sitting tight until the presems Jusk shead of it The a tion ftself would be the last to deny that such probl exilf’ormflrlr-fluumwmbewl - cal Gen. Johnson, the industries chief, stated one of them plainly when hznidh mmum: once to increase buying power— to get more money into the hands of consumers so they can pay the higher ces foreseen. official, speal priv Sl i m bt mm vigilance, the spending of the vast sums authorized by Congress might be expected to in- volve some mistakes, human nature being what it is. He added a prayer that, if scandals develop, they will all be little ones. Navy Has Friend at Court. ‘The Navy is one branch of the Gov- ernment where things distinctly are looking up. against legalized liquor at once if and when the amendment is repealed. After prohibition was adopted the Anti-Saloon League and other dry or- ganizations became gen Now, as repeal breaks into strongholds of cusing inactive. old dry the South, they are ac- themselves and each other of again with are echoing - quiry, “Do you know of a S good man—" WATER SHOW TO BE HELD AT GLEN ECHO TUESDAY Program Bponsored by Red Cross Xdfe Saving Corps Includes Eight Events. A life-saving water show will be pre- sented at Glen Echo Park Tuesday evening at 8:30 o'clock in the “crystal ppol” by Neptune’s Life-Saving Corps, District of Columbia Chapter, American will be eight separate events,! Poan and water writing. the water writing feature, swim- in red caps form a large C. P. and a large R. C. JOB SEEKERS WARNED NOT TO COME HERE| 90 Per Cent of Them Would Be Disappointed, Public Works > Administration Says The public works administration yesterday warned job-seekers mnot to come to Washington because 99 per cent of them would be disappointed. hopes of securing employment on the head- i the Hopes of preventing usel less Tibe. “Ickes" autherised the tallowing Ips, au statement to be issued: e Rt warn the gen- erally that the- public works adminis- tration staff in Washington will be limited to & small technical group to upon projects submitted to the rd. The Federal organization in each State will be limited to a small FLYING ANTS (Termites) Vaeating Unnecessary—Free Inspestion Terminix Co. of Washington 1102 National Press Bldg. Phene Natlonal 3703 to recommend projatts Wi “It 18 plan and intention to it our to money as ; ma “glo“ "o fi :gu.'mpflmm l:“bw. to Husband Was Sorry. SAN_FRANCISCO (#).—Mrs. Mare .| garet E. 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Wouldn’t you rather own furni- ture that has been legally registered and certified to be authentic Grand Rapids designs created by world- with the registration number of the piece or suite as it appears on register in the archives of the Grand Rapids Furniture Makers Guild of Grand Rapids. think of buying furniture, you owe it to yourself to see Certified-Regis- tered Grand Rapids Furniture at Mayer & Co. Remember, it costs no more to own Pedigreed Furniture. Before you even famous craftsmen and artisans and costing no more than furniture of no particular distinction? Every piece carries a bronze escutcheon Inis bronze mark_appears uine Certified-Registered Grand Rapids Furniture Exclusively at Mayer & Co. PARKING SERVICE. . . DRIVE DIRECTLY TO REAR ENTRANCE. .. YOUR CAR WILL BE PARKED - MAYER & CO. Seventh ‘ Street Between D and E