16 APRIL 1932, Page 34


Only during the last week or two hopes with regard to international co-operation in dealing with some of the acute financial troubles in Europe have been damped by the speedy breakdown of the Danubian Conference;

• and that circumstance has, to some extent, also damped hopes with regard to the outcome of the Lausanne Conference to be held in June to consider the question of Germany's Reparation payments. Before that time, however, there will be two important developments in the nature of elections, both in France and in Germany, and possibly a good deal may depend upon the outcome of these contests. Meanwhile, however, the financial state of Europe remains critical, and as it involves the continued unemployment of some millions of peoples. the repercussion on political and social life may well be serious. That is why I find it difficult at present to' take even a dear, let alone a very hopeful, view of the general outlook, for while there is a good deal in the situation which may work in the direction of a continuance or cheap money and a rise in gilt-edged securities, those events are a poor substitute for what is most required. namely, a restoration of international confidence and co-operation between the nations in everything pertaining to the re-establishment of international credit and international trade.