RESULT OF REJECTION.
I will deal first with the effect which would probably be produced by this last, and, as I think, highly improbable, development. The result of such a complete rejection of the suggestion made by the leading countries of Europe might be of a disastrous character, both as regards political and" financial- developments, for the distress of Europe is such as to have very direct connexion with social and political developments themselves. Moreover, there might be such a further appreciation in the dollar exchange as still further to dislocate inter- national finance and trade, for it would be felt that the task before Europe was an impossible one, and hopes of international co-operation would be almost annihilated and the idea of a World Economic Conference could be placed on the scrap heap. And for the moment Government stocks would decline further.