MR HENDERSON ON TARIFFS

Hokitika Guardian, 11 July 1931, Page 6

MR HENDERSON ON TARIFFS

A TRAGIC PARADOX. - i LONDON, May 21. A notable speech was delivered by the Right Hon. Arthur Henderson at Geneva two days ago. He was addressing the meeting of the Commission for European Union, and he appealed for immediate and resolute united action, particularly in the reduction of tariffs.

“The continent of Europe,” he said, “in common with the rest of .the world, is passing through an economic crisis of greater severity than any experienced in modern times. Tint tragic paradox ol Europe is that while men walk the streets and cannot find work to earn bread for their hungry families at home, the corn, bins of Europe' and of the countries overseas are bursting with food that cannot be sold. Our potential power to create wealth is greater than it has ever been. Capital, by countless millions, is lying idle in our banks waiting to be used. It is with the problem of how to break that vicious- circle of disaster that our committee is face to face. 1 am hoping that from now onwards \ve y shall set on one side every consideration of amour propre or of prestige, that we shall concentrate on the real economic interests of the simple men and women whom we represent. •The after-shock of the war is in great part responsible for our present situation. Armaments, beyond all question, are a contributory cause; an atmosphere of international security of freedom from the fear of war is the first condition of prosperity. For that reason 1 agree with President Hoover that the success ol the Disarmament Conference next year would do very much to bring the world crisis to and end.

•‘The 1 over-expansion of certain industries during the war, the over-expansion of the supplies of certain raw materials, the partial dislocation of the gold standard system, the fall in the purchasing power of silver and other allied monetary consequences—l need not trouble you with the recital of all the various factors which economists in recent months have been discussing. But I ask you to note this about these different causes : That there is none of them which can be dealt with by the national action which any one oL our Governments can take alone. Each ot us is impotent to control them ii we try to act alone. Not only so, but there is no ■ sectional solution, no action by any regional group, which can do very much to help the general solution. Even those, like Dr Curtins, who have proposed regional action, recognises that such regional action can only have a limited effect,-and indeed have only put 'it forward because they hoped that it might lead to something wider.”

A WORD TO RUSSIA. Mr Henderson pointedly expressed his agreement with Mr LitvinofTs denunciation of armameists-as an -important contributory cause of economic depression. “Blit,” he continued, “I don’t agree with M. Litvinoff that warlike plans against the Soviet Union are a factor in the present unrest. I ask hjm to banish from his mind any thought that members of the League are plotting war against his people. I assure him we are hoping for increased peaceful intercourse and trade between his country and ours, and we ,shall welcome all the help he can give us to secure an atmosphere of confidence and trust, based on tlie mutual observance of our international obligations.” AMERICA’S DEMAND FOR GOLD. Another’ passage was addressed to 'Washington, and its directness evoked general appreciation : “The. principal creditor countries,” said the Foreign 'Secretary,' “have insisted bn the payment of debts due to them and have refused to accept the goods which they debtor countries have to offiit They shut their eyes to the fact that international trade must take the form ot barter. The debtor must be allowed to sell his products, if he is to purchase other people’s goods or pay his debts. “But instead of this, Abe creditor countries have insisted on payment not in goods, biit in gold, and the consequent scramble for gold has largely contributed to the recent catastrophic fall in prices." A third passage was one of many devoted to the denunciation of existing tariff barriers : “In our view, among the different causes which contribute to the present world depression, the magnitude and high level of protective tariffs rank first and foremost. Everywhere in recent times countries have vied with one another in putting up barriers against trade. They are barriers against prosperity.”