AN INTERVIEW

Hokitika Guardian, 25 November 1932, Page 5

AN INTERVIEW

HON. D. STEWART

RETURNS TO NEW ZEALAND. (Per Press Association Copyright.) WELLINGTON, November 24. Tile 'Minister of Finance, Hon. W. Downie Stewart, returned to Wellington by the Riangitane Irom Loudon this afternoon. In the course of an interview he made, some interesting observations on the world iinancial situation. There certainly seemed to be more optimism and confidence in Britain than in Canada or America, lie said, 'the outstanding success of the huge conversion loan was a magnificent demonstration of public spirit and determination on the part of the British people. On the other hand, in Canada and America, everyone seemed nervous and apprehensive. “I did not meet many industrialists in Britain,” he said, “but those I did were cheerful 1 and confident, particularly the motor traders and manufacturers. Many prophesies were being made of an optimistic nature, but, as against that, only the day I sailed a leading figure in the financial world told me that, in hils opinion, things would get worse before they get better. Both at Ottawa and at London, I took every opportunity of emphasising the fact that all of the debtor nations were engaged in a race l against time, and that, unless effective means were adopted, without delay of the world level of prices, not only will the debtor countries crash, but the whole .system of modern capitalism will do the same. The present depression has not -previously been equalled in severity, not only in the- industrial disturbances, both primary ard secondary, but- also in the upset a hich it has caused in the budgetary positions and the international relationships of the different countries of the world. In fact, a number of Governments have had to- face bankruptcy, together with a complete economic and political collapse. This aspect of the depression is closely related to the legacy of national and international indebtedness, arising from the World War, as well as to the heavy fall in commodity prices, which has so greatly increased the real weight of all debt burdens. So far, economic remedies have been applied more from a national than an international standpoint, and world trad 1 © and commerce as a whole have suffered. It is fortunately, however, becoming more manifest that international co-operation must be successfully achieved if we are to maintain the wor' 1 as -a highly-organised, independent society, and find a way out of th© crisis.

“It is generally agreed that the first rea 1 steps towards the world’s revival ir /st clearly be the relieving of Governments from obligations which they are unable to fulfil. This means cancellation -on x considerable scale or the reduction of intex-Governmental debts in order to. re-establish the solvency of national economic systems, and to provide a fresh foundation on which general prosperity can be built. The time appears to be at hand when if this does not come by way of international agreement, it will come in the form of default.”

Mr Downie Stewart stressed the imP rtance of the forthcoming World Economic Conference, and stated, in conclusion: "Quite frankly, I do not know when the depression will end; nor did anyone I meet really know; but I am sure than one good result will emerge when daylight breaks, and that *is that we will have learned •enough to prevent a recurrence of the present paradoxical absurdity of a orisis, not of poverty, but of plenty! Many of the best and most expert brains in the world are concentrated on ascertaining how to acquire such a control over credit and currency, and the methods of production and distribution as will re-establish a proper standard of living, which should steadily improve and keep pace with our growing control over natuial resources. 5 ’