ECONOMIC CRISIS

Hokitika Guardian, 19 October 1931, Page 7

ECONOMIC CRISIS

BLAME PLACED ON TREATY OF VERSAILLES. FRENCHMAN’S VIEWS. A Frenchman’s views on the world economic situation were expressed at Wellington on Tuesday by M. Malcolm Beianger, holder of the Cross of the Legion d’Honneur, and formerly a major in the army of France. The world “crisis” and “depression” did not apply to the present situation he said. Tt was more in the nature of an economic tornado, file causes and cure of which must be determined if the nations were to avoid sell'-destruc-ion. He considered it was due to the economic consequences of the Treaty of Versailles, which helped to a large extent to blind the vision and encourage selfishness and nationalism. That treaty was conceived on a narrow outlook which embodied a fear of repetiion of what had occurred, instead of being based on an idealism that would lift the world to better things than the material forces behind any Government. SHRUNKEN EUROPE, Economic depression inevitably followed highly-developed individualism in nations, and all the Governments of the world could not have saved them* selves from the consequences of the peace treaty. The treaty meant a shrunken Europe—the formation of a group of smaller empires round Germany Serving under the political leadership of the victors. Then followed a new state of affairs. None of these countries knew much about economic self-government, and they commenced to borrow for all sorts of purposes, duplicating in their own States factories and industries that were strategically situated in Austria and Hungary, and bringing ruin on both. Austria fell into economic dis order. Her resources became exhausted, and her millions were unable to buy. They could not kill Germany, but the action of the Allies was such that bitterness was bred as the result of basing the terms of the treaty on artificial after-war conditions. Groat Bri- . tain had to take action so had her , obligations, and in doing so had bled herself white to pay her debt to the United States. “America never under stood the plight of Europe,” lfe said. NATIONS GETTING TOGETHER When it came to finding a remedy, it was not a matter for one individual or one nation, the speaker continued but was one for the whole world. It ! was significant that. MM. Laval and B'riand had recently paid a visit to Berlin, , Lord Reading had .been.... to, Paris, and M. Laval waA about to visit America. It might be taken as a sign that the nations were getting to* gether and taking measures on a common basis. If they did not, society based on capital would be destroyed, leaving the door wide open for Bolshevism anu Communism. The situation should be ,\iced frankiiy and openly. They should commence with the cancellation of all reparations from Germany and the inter-allied debts. They could not put a tremendous burden of debt on people for the next 60 or 70 years, only to find that the interest paid was a« great as the principal. M. Beranger was inclined 'to think that the deliberations at the next Congress of the League of Nations might open up the era of the United States of Europe, or, if not that, some ar--angement whereby the countries would be allowed a scope of rational development according to their natura resources and riches., !