WELLINGTON NEWS

Hokitika Guardian, 3 December 1931, Page 6

WELLINGTON NEWS

THE MASTER KEY

(Special Correspondent).

WELLINGTON, Dec. 1

All the bright hopes that were entertained when Britain was pushed oil the gold standard have not been fulfilled. Britain turned down the gold standard on September 21st, and for a week or two commodity prices advanced, and the outlook appeared to be very promising. In addition to Great Britain being pushed off the gold standard she has bedn forced to abandon her traditional policy of free trade. The power conferred on the National Government under the Abnormal Importations Act enable it to impose prohibitive duties on a great many articles. It may be said that Britain is now in line with all other nations in respect to tariffs and she is now in a position to bargain with other countries. Tariffs imply restrictions of international trade, and if countries cannot sell they cannot buy. Until nations face thetariff problem world trade must continue dull and depressed. It will take time to straighten out tariff, and the two countries with bulging bags of gold, that is the United States and France, are bound to be obstacles tin the way. High tariffs have been the ideal of the Republican party in the United States, but the Hawley-Smoot tariff, which president Hoover was glad to accept, exceeds the limit. Thirtyeight countries protested against the Tariff, and threatened reprisals, hut the United States suffered from the illusion that it could get away with its high tariff It is paying the penalty for its grasping greed, for it shows all the maladies that are affecting all other countries. France is determined not to allow Germany an inch of breathing space. She is utterly opposed to any variation of the Young Plan of Reparations, and yet Prance must know that Germany is incapable of carrying out the reparation obligations. France, it is believed is using her gold hoarding to secure political prestige in Europe. She will not lend a franc or make any concessions of any hind without •political quid pro quo. Franco ’has not escaped ithe depression, on the contrary, she is feeling it severely but perhaps not to the same extent as most other countries. France lias yet to feel the effect of Britain’s tariff, and the almost total loss of the British tourist traffic, but she will feel it presently. At present France appears to be the greatest impediment, the greatest obstacle, to the economic recovery of blie world. She is playing a selfish game, and in .end she. must pay Jor it. , Yr The United States, however, holds the master key to the whole position, arid of the two the' tariff is the more important problem. The War debts must he radically reduced if they are not altogether abandoned. The moratorium granted by President Hoover, and which has yet to he confirmed by Congress, is only palliative, and the larger and more important question must he- faced. The Bankers, financiers and economists in Amei'ica axe all agreed that the war debts should be cancelled, but unfortunately the question does not rest with such men, bxit with politicians, who ‘invariably place party before country. However, such men as Senator Borah, Chairman .of the Foreign Relations Committee, sems favourably disposed to make concessions in respect to war debts, so that something may be done in this •court eciti'oni. As regards the Tariff, the Democrats have a majority of one in the House and they are likely to make a great noise. However, Congress meets on Monday next, December 7th., so that during next week the political x-eports from the United State will he of intense interest to the world.