Scene SCell of World Conference and und Its lis Hosts 1 i I J. J I I I 4 v c I 4 r 4 I II I- I 1 1 4 I f. f 4 r 4 4 4 I 9 r 4 i A I 4 r I 4 23 I 4 i M I 4 y 33 43 33 I c l I 5 3 4 3 I s fr tlc g 2 s 4 st 4 e I 1 t 4 5 1 A 4 I J p w i I t Wo t. t OO i X i 1 i J 1 W t j I k The world economic and monetary conference o opening opening- nl today In London's ma magnificent new y Geology museum has as chairman Prime Minister Ramsay MacDonald l of ot Great Britain and King Ge George Gcorge D Delegates leg from 66 nations are present their dossiers packed was and welcomed Issues by to a solution of of the worlds world's vexatious problems pertinent per per- pertinent World Cooperation V Viewed wed As Key to Parleys Parley's Su Success cess Noted Authority Authority- Says Says'S Solution n s on Answer to Nationalistic Question Note Editors The article by SIr Walter Lay Layton ton the man who knows Is the first of several which will be writ writ- tenby him during during- the world economic conference giving behind behind- the scenes the pictures Sir Six Walter Is editor of the influential Lon Lon- don financial paper the Economist and has and achieved high honors honors honors hon hon- ors ors' as s direct adviser to the tho British government In postwar fi financial ft- ft i- i matters He was a member of of the Balf Balfour our debt commis commission slon sion has been a delegate to the league of nations and was Waga a member of the British delegation to the present conference un un- til ti his recent resignation By SIR sm W WALTER LTER LAYTON LATON Copyright 1933 1933 by 1933 by Press LONDON June Jun 12 This is tle first general e economic conference since the war co composed of f plenipotentiaries les with the power to act There have been many eco economic conferences conferences conferences confer confer- in the past decade but they were composed of experts who who were were ca called upon merely to advise without authority to commit their governments Hence Henc their recommend recommendations usually have been ignored Whether these plenipotentiaries will act or not depends upon the answer to a 3 fundamental question Will win the the- governments really turn their backs on the ideal of national Cotin Continued ln ed on Pace Two EXPERT POINTS HOPE OF PARLEY Continued From Page Pace One sufficiency self and try to rebuild prosperity on a basis of interdependence ence and mutual benefit in International International trade even though that may involve a modification of their present present pres pres- ent national policies If so then it will bo be possible to secure common international action to r raise prices reestablish a stable system of world currencies and remove barriers blocking blocking block block- ing the recovery of international trade But if not there i is 15 little hope of preventing a drift into even d deeper per depression Behind the good will in the opening open open- ing lag speeches it is possible to discern the different angles of approach that will have to be reconciled FRENCH VIEWS LISTED The French hold that immediate stabilization on a gold basis of the I chief currencies would be the quickest quick quick- est way of restoring confidence and allowing trade to recover naturally This is their main proposal but they arc are prepared a also o to admit that a system of rationing trade by quotas which they started and which has been copied by many other nations has done them more harm than rood They Th-ey therefore arc are arc re ready dy- dy to to scrap p it but whether whether they they are prepared to togo togo togo go farther and reduce their tariffs is more doubtful The Germans whose delegates have been chosen from members of ot the cabinet are pre preoccupied preoccupied with their internal revolution and have hitherto shown little active active ac tive interest in the conference However How ever having been relieved at Lausanne Lausanne Lau Lau- sanne of all future reparation payments payments pay pay- ments they have now by declaring a general transfer moratorium succeeded suc sue in placing the question of their commercial indebtedness in the forefront o of the agenda Italians Belgians and other nations which have dense industrial populations lations and raw material will try to secure free trade Countries of central Europe Europ however how ever all of ot which have had their savings destroyed and economic life ruined by inflation and have imposed exchange restrictions during the crisis to prevent a new disaster overwhelming overwhelming overwhelming over whelming their currencies will not be prepared to remove these and other restrictions to trade unless they can all agree to act together and unless they can all obtain gold or international credit to strengthen the reserves of ot their central banks UNKNOWN UNKNOWN FACTOR I An unknown factor is the attitude of at the United States which a few months ago was pressing Great Brit Brit- am aln to return to gold Now it seems doubtful whether America herself would be willing to stabilize on gold until she has tried out the possibilities ties of ot internal inflation j Great Britain's attitude is that a return to gold is one of the conditions condi condl I lions of ot recovery But like America she attaches gi great ln at-ln importance porta centO- centO to a arise arise rise rie of ot prices for tor unless this happens happens hap hap- pens no trade restrictions will be lifted and all around defaults willbe will willbe willbe be in inevitable She therefore Is Inclined to agree with America that an agreed policy of ot price recovery must t come before stabilization But the British government gov gay gov is unwilling to use more violent weapons than cheap money and modest government expendi expendi- tures lures The chief differences between the British and American points of view arise from the fact that much more of ot the economic life of ot Great Britain depends on international trade She is convinced an international money system will not work unless there is considerably greater freedom for trade th than n at any time since the war and more equal distribution of the trie worlds world's gold supply HOLDS ONLY SOLUTION These differences of ot approach can be re reconciled if it only the underlying I question of ot I principles that are arc to govern International al economies economics can be satisfactorily settled Although it will not be possible to secure ure agreement agree age meat ment for precedence of any item or agenda over others it should be POSe BOS- sible to draw up a time table ot of recovery recovery re re- re- re covery by which the various reme reme- dies should be applied gradually and simultaneously so that the definite in the stages stabilization of currencies curren curr cies shall coincide with the definite stages In the recovery of prices prices reo re removal moval of ot trade restrictions and re re- re of tariffs On one point however ho there Is unanimity of opinion the problem of war debts can be sC set tIed in a way that gives no offense to either cither party we cannot hope for any progress at t all The conference will therefore meet its first crisis Thursday S I