The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, SEPTEMBER 7, 1932. ECONOMIC POSITION.

Hokitika Guardian, 7 September 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, SEPTEMBER 7, 1932. ECONOMIC POSITION.

In the course of a report on the present conditions of the country Mr D. 0. Williams, economist at Massey Agricultural College states several factors of a favourable nature are apparent. There is a feeling of greater confidence in the business air. Money policy in England is definitely more liberal and expansive than it has been for a long time past. , Lausanne demonstrated ' that agreement could he reached on an issue which a few months ago seemed insolvable. All these are factors conducive to business recovery. But they arc far from sufficient i themselves to form the basis of < >ulkl\nt prophecy. The decisions yet to he made in regard to international problems of vital economic importance may wholly or partly

offset them. It is to be hoped that the imminence of more general and intense economic distress if prices fail to recover may provide the strongest argument for .International co-operation. YNo substantial business recovery; can reasonably be expected yet unless prices rise. At the moment there- ijs''‘a more : confident feeling almoad, "and it -is possible that this may indeed 1 " provide the 1 ' necessary stimulus ■. toMffeer buying and therefore initiate nn upward price ’hi'oV’ement. But I. am sceptics.] of the permanence of tins upward movement unless working solutions can lie found to .several major international problems. The- past year lias witessed several notable attempts av dealing with complicated international problems. The most important of thes* was the Lausanne agreement in regard to reparations. The notification of the agreement is, however, conditional upon satisfactory arrangements Concerning war d-p/bts. Failure to secure postponement, reduction, or partial cancellation, will throw the reparations issue hack .to the preLaqsarine, situation. Basically this problem will turn upon the attitude which America will adopt. In the meantime political tension in Europe, particularly in Germany, is far from favourable to European recovery, hjo amount of excited jubilation over Ottawa can dispose, of the fact that European recovery is essential to Imperial progress. It can be hoped that America will) recognise also the degree to which her own interests are involved ‘in the economic health of Europe, and will therefore do her share in facilitating reconstruction there. Other issues have yet to be faced by the chief nations. The most probable occasion for such discussions is.the, World Economic .Conference, to be held in a few months’ time. While quiastiona of freer trade and more liberal tariff agreements will no doubt occupy an important place in the agenda paper, the most fundamental issue will, be that of international money policy, While monetary policy is by no means the sole determinant of j the course of economic life it is perhaps l the most important single factor. It appears .to be clear now that .deliberat©■■"'money dSntrol ha s hr err embarked upon by England. The great objective to he ’aimed at now is the substitution of intelligent international monetary co-operation for the competitive national' policies which, hitherto have, had sway, and which lyivb - contributed so miich to the intensification of the crisis.