| Show MACDONALD BRINGS UP WAR DEBTS AT Mention Comes as Complete Surprise 11 f. f To U. U S. S Delegates r Reference to Delicate QUestion Question Ques- Ques tion Is Re Resented in Some Quarters Quarters By DE DE' DEWITT WITT MACKENZIE 1 Associated Press Staff Stall Writer C CONFERENCE HALL London June 12 12 PrIme Prime Minister Ramsay MacDonald opened the world economic economic economic eco eco- conference today with an emphatic emphatic em em- call caU for coordinated international l action to put an end to the depression which has cost workers their jobs job and has cut the value of international trade in two Springing a surprise which appeared ap ape ap- ap unwelcome in some quarters Mr MacDonald brought up the delicate delicate delicate deli deli- cate subject of the war debts declaring declaring declaring ing they must be dealt with imme irume- He admitted the conference was not so constituted that it could handle the problem but he emphasized emphasized sized his belief that something must be done about the debts before every obstacle to general recovery has been removed The American delegation had no noa warning a ning that h t th this c controversial sub sul- u Jec was mg raised ana anci some zeel- zeel ing w was s evident among the United States Stales delegates that it was not in good taste and might stiffen sent senti- ment ent in the United Slates States against against debt revision The Americans expressed the I ion however that Mr MacDonald was talking for home consumption WELCOMES DELEGATES Following is js the text of Prime Min ister MacDonald's speech On behalf behall of his m majesty's govern government ment in the United Kingdom i offer you all a most h hearty arty welcome to London I hope your our stay here willbe will willbe willbe be pleasant above everything else in results and that when you leave you will ill ha have ve c carved the name of the London economic conference conference con con- ference amongst those great International international inter Inter- national gatherings have brought blessings to mankind The purPose purpose o p of our meeting Is Js of the gravest importance His majesty himself has the con conf conference rence in ina D a gracious speech which showed his ls keen appreciation of our work and his d deep ep con rn for our success and andI I I I. propose to offer him in yo your r name an expression of our gratitude for forthe the honor done to us and the Interest he has taken in our objects Sixty seven governments have been invited ten who are not members members mem mern- bers of the league and the Importance importance tance attached to our purpose Is recognized rec rec- b bv the fact tact that every every every- gov government ent Invited has accepted accept ed th the invitation There is is' greater authority gathered gath ered cred in this hall ball today than has perhaps perhaps perhaps per per- haps ever been brought under one roof in the worlds world's histo history RECOUNTS HISTORY The economic life of oft the world has for tor years been suffering t from a decline which hOt has ha closed factories limited employment reduced standards standards stand stand- ards of living brought some states to the verge of bankruptcy and inflicted inflicted in in- upon others recurring budgets ets that can not be be- balanced The machinery of international commerce com corn merce upon which the vigor of the human life of the world and the prosperity of ot the nations depend has been seen steadily slowed up The markets are there the labor to supply them is there but the labor laboris is not employed and the markets are not rUled filled When we had less efficient effi elf dent equipment for the making of wealth our national incomes were wele greater All the machinery of prosperity prosperity prosperity pros pros- is iZ there but it is slowing down It is not working The briefest reference to the astounding astounding as as- I facts will show the magnitude magni tude of the problems before beCore us us' and I at the s same me time direct our thoughts to the points of attack Since 1929 prices have fallen blIen and have kept well below belo the levels levels' at which production can be tive They have fallen rallen irregularly United States Delegation to the London Economic Parley L r KEY cu I I I D 1 4 I f j c'S moreover and have distorted the normal relationships upon which economic activity is pivoted The Theall fall all in prices has added oppressively I to the burden of the worlds world's edness In 1932 compared with 1929 production of raw materials had fallen fallen tallen fall tall en 30 per cent and exchange between between be be- tween town and country had been tragically limited INCOME FALLS OFF FF National income has fallen failen seriously seriously seriously seri seri- everywhere In in some some countries by 40 and 50 per cent The he general crisis accentuated by restrictions by tariffs quotas and exchange control had lad reduced international trade between be between tween 1929 and 1932 to less than three-quarters three in v volume lume exchanging at about half price The uThe gold standard had to be deserted more generally than has hascen been cen the case in time of peace since it t was erected into the international measure of exchange and inevitably irrespective of fiscal policies and of forms of governments unemployment has mounted up until the world figure figure figure fig fig- ure issued by the international labor office has reached This can not nol go on The world worlds is s being driven n upon a state of things which may well weIl bring it face to face once again again- for again for it has happened happened hap- hap ened on scales of varying extent before beare n now with now with a time in iii which life life- revolts against hardship and of or are went swept away by fh the forces of of despair I In this drama of ot deterioration governments governments gov gov- and state policy have played an important part Behind the subjects I 1 have just mentioned is another in the front rank of importance It cannot be dealt with here because obviously this con con- ference is not constituted in such a away away way ivay as as' as to enable it to consider and settle the matter maUer I refer to the question question ques- ques tion ion the war the war debts which must be dealt with before ever every obstacle to general recovery covery has been removed and md it must be taken up without delay by y the nations concerned Lausanne has las to be completed and this vexed question settled once f for r all in the light ight of present world conditions 10 SEQUEL TO LAUSANNE This conference is a sequel to the work d done ne at Lausanne last ye year when by a a- conditional agreement on n how to deal with war debts and rep rep- Euro Europe e was saved aved from immediate immediate im im- mediate financial collapse It will be remembered that having finished it its own immediate work at Lausanne the conference reported that for the clearance of the world crisis a wider conference should be called and that the l league ag e of nations should be inVited invited in in- to take that in hand without delay Lausanne indicated indicate the sub sub- which ch ought to to be dealt with and the general steps which which- should be taken to prepare for lor the confer confer- ence The council of the league moved at once In the intervening months of preparation and negotiation the work assigned to us has not been made lighter nor easier Indeed the lems ems which compose our agenda have haven in n some respects been bren Intensified on both the political and economic fields and we have been advised from some quarters th that t we we should postpone this meeting until cir circumstances more for its success cis have arisen STATES STATES' QUE What Wha t Js there that these circumstances s can an ri arise fL Lse if the situation situation situa situa- tion Is left to right or if all that can be bcd n s that each nation independently lade inde should take measures to prot protect t itself against catastrophe against catastrophe Indeed one cause of the later phases hases of the deterioration Is Js the fact act that hat th the nations left to pursue a policy pol pol- icy cy of pf national protection have been driven to resort to measures which whilst offering some temporary relief from rom the pressure which threatens them add to the general stagnation of world trade and so ro intensify the in in- lue which increase our lour trouble If It the world is left to right itself without t international effort and international international inter inter- national agreement how long is the process of recovery to be How dark are the depths of rn misery ry and nd the un un- settlements which have still sUll to be gone through t No No one who has surveyed the facts and watched and watched their progress can doubt for a moment that the experiences of the the last few years have proved that a purely national economic policy in th this modern world i. i is one which h by impoverishing other nations crushes th those se who pursue it No nation antIon na an tion can can permanently enrich it itself 1 at atthe atthe the expense of others Mutual enrichment enrichment enrich enrich- ment is a condition of individual enrichment en en- FATAL TO PROSPERITY Nationalism in tho sphere of poll poll- tics may be essential to human freedom free free- dom SeU sufficient Self nationalism in economics is the death knell of advancing advancing ad ad- prosperity The nearer nearer we we can make the world an economic unit the bet better r will it be for each nation In any event international in In- coope cooperation atlon is our best I way to national recovery and the hc na n- naj I tion which 1 looks after alter itself in an an international in I terna onal frame of ot mind will 1 not only lead the world in enlightenment but tut in well being We arc here therefore to pursue the better course of int international agreement l The council of oC the league on the advice of the Lausanne conference app appointed a very able and most representative representative representative body of experts to report upon an agenda for our business and It is before you and will willbe be made the tie basis for your our deliberations The Thc heartiest thanks of this this' conference con ference are due to those experts for forthe forthe or orthe the work and the ability th they y have embodied in this report The agenda de deals ls only with willi government government gov gov- policy in relation to recovery ery cry and no one must think of it as being a complete program We do donot donot donot not profess to touch upon internal machinery and the trans transactions of business for instance hours of labor and rates of wages in relation to production production production pro pro- the destructive effect of speculation and gambling on recovering recovering recover recover- ing national credit or the part played by the middleman In his different activities ac ac- ac upon the lower lowering g of wholesale wholesale whole whole- sale prices CONCENTRATE EFFORTS We Wc on what primarily Pr- Pr marily manly belongs to the responsibilities of governments as to common action When v we have done our hL part 1 the vahL va va- va- va nU governments must musi lace own problems of internal industrial policy in cooperation where that is possible or necessary with wilh the international international inter inter- national l labor bor office My thanks are due to the league of ot nations for the h honor nor they have done me by inviting me to preside over the conference I have accepted the Invitation knowing full well weIl how formidable is the w work v rk but relying on the thc trust and cooperation of the whole body of delegates My thanks are due to the league of nations for the honor they have done me by inviting me to preside ov over r the conference I have accepted the invitation knowing full well how formidable is the work but relying upon the trust and nd cooperation of oi the whole body of delegates and upon the invaluable experience arid and help of Joseph head of the league secretariat and his staff from Geneva Mr AMr A venol we greet for the first time since his appointment as sec see general of the league He will shortly be betaking taking up his bis duties and w we wish him many ye years rs of high endeavor endeavor en en- deavor successfully accomplished HOLD WORLD FATE I 1 I am sure that we are all aware of heavy responsibilities which are upon us and that we have met determined determined deter deter- mined to make the conference a suc sue cess The fate of generations may maywell well depend upon the courage sincerity and width of view we are to show during the next few weeks As the experts have have reminded us us lI It It will not in our judgment be possible possible pos pos- sible to th make substantial progress by pl piecemeal cemeal measures a policy of ni nibbling will not solve this this' crisis is Have tave we come TO deliberate erate and to decide as though our respective nations were isolated units in the world Th Then m we shall f fail il and anda a world which looks upon us today with expectations ex cx- will have to drain a bitter cup of disappointment Have we come knowing that the good of each is d dependent pendent upon the permanent good of all and determined to cooperate in coming to agreements which will make a are re renewal renewal re- re newal of prosperity possible Then we shall hall succeed and expectations of the thc world the world will be justified We must not fail The men who vho must face their work in the spirit spir t of conquerors We give to the world as the note o of our cur first meeting that we are determined deter determined mined to succeed SPEED IS JS Nor can we delay Rapidity of agreement is essential to sue suc success ss s Let the world know that we can cnn show decision and give leadership O Our r program is intricate and raises subjects upon which we hold views hitherto un reconciled And yet the needs of th the thC day are areso so pressing the experiences of these years have been so 30 illuminating and so tragic that surely we wc must approach our work with fresh freh and flexible minds The Thc facts of ot our time have answered answer answer- ed many of t f the stif stiffest t. t theories and dogmas of the past Statesmanship today today today to to- day will be judged by what it devIses devises devises de de- de- de vises to dispel the stern realities of the present and to anticipate the requirements re re- re of the future I think that I express the wishes of ot the griat grat body of at delegates when I 1 say that we wc have not come to discUss discuss discuss dis dis- dis- dis cuss mere mere e economic theories ories and generalities generalities generalities gen gen- but to make practical proposals proposals pro pro- to ta m meet et urgent necessities I x should therefore invite each delegation delegation tion to submit its proposals in terms that are arc definite so that we may enter without loss of ot time into an examination examination examina examina- tion of what can be translated into action and begin d deliberations on what each of us can do in coop cooperation era I Ilion tion lion with willi the others either for th the emergency or for more moe permanent I purposes I ILet Let this London conference put j new heart and new confidence into the the world and let it mark the end of the years of uncertainties and of I policies which have brought thi this distress distress distress dis dis- dis- dis tress upon us all j Let us s see to it that before we disperse we shall have revived hope and energy and opportunity For those I Ithe the world waits and d it is in our power I Ito i ito to provide them I I. 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