| Show Failure of London Parley Ends Free Trade for Holland Dutch Forced to Protect ProtectS S Selves Against Dropping Exchange Rates B By CLAUDE A A. JAGGER Associated Press Financial Editor NEW YORK Sept 6 P Thc JP-Thc The Dutch free traders and leaders in world commerce for centuries have become the first to renounce dent Roosevelt's world tariff truce This reflects the bitter disappointment disappoint disappoint- ment of the Netherlands over the lack ack of or more tangible accomplishment at the world economic conference With its il business dependent to an Important degree upon world trade Holland h has ls been pressed severely by the he depreciation in m the pound sterling ster- ster ling ing on one side and the exchange restrictions of Germany on the other The government of 01 Holland Is now being eing pushed reluctantly into a policy polley of economic nationalism With its Intensive intensive in- in a agricultural production its leaders believe it may if iC necessary self become to a large extent ciell lent dent t. t MUST IMPORT But with its lack Inck of fu fuel l and min mm- rals and its meager production of metal products and machinery business business business busi busi- ness and financial leaders acknowledge acknowledge edge dge that Holland must continue to be belarge ben bea n a lar large e importer of Am American rican as well wells as s other goods Holland is one of the few important European countries which manufactures manufactures tures ures no automobiles It has been conent content con con- tent ent to buy most of or its cars from America Despite its small area its ils population is four fifths as large as that hat of the entire Dominion of Canado Canda Can Can- ado ada da so it provides an important mar roar ket t. t Many months in la advance of the economic economic eco- eco conference Holland joined with Belgium and Luxemburg in m the Ouchy convention wherein it was agreed greed successively to reduce tariffs year rear by year The rest of the world was vas invited to join and the Dutch dele delegation went to London this summer summer summer sum sum- mer with high hopes of or extending the Ouchy plan MARKETS lIlT JIlT Currency troubles of her neighbors have lave seriously impaired Dutch trade Germany has been the chief chier market for or Hollands Holland's highly developed dairy industry but exchange ex restrictions have lave made it increasingly difficult to sell ell in ill the big German market Holland Hol Holland land also has enjoyed a substantial export trade in agricultural products to o England but the thc drop in the pound sterling has sharply increased the cost of Dutch goods to England Holland with traditional conservatism conservatism conservatism conser conser- of her hor financial leaders has hoped to restore her trade by purely orthodox methods that methods that is by maintaining main main- taming the integrity of or her currency and nd gradually removing restrictions to o trade which have grown out of or the depression so that commerce may eventually flow once more in the old channels TRADE DEPRESSED The capital of Holland is chiefly invested in her colonial empire Inthe Inthe in the he East Indies where Dutch colonies have a population of ot some engaged in extensive production of or sugar ugar tobacco rubber and other raw materials The drop in commodity prices rices in terms of gold has of course severely depressed colonial trade There has been some agitation among mong both domestic and colonial industrial industrial in- in and business interests for devaluation de de- valuation of the Dutch currency as a means of or improving Hollands Rollands cult position but the very thought of currency inflation Is repugnant to Hollanders generally Germanys Germany's frightful rightful experience with Inflation was vas so close to the Dutch that any sort ort of bf monetary manipulation is viewed with alarm Authorities agree that lat any in inflation lation which may come comein comein comen in n Holland will be fought to the last ditch itch I |
