The League of Nations
The Economic Consultative Committee
[The famous editor of 1,6 Journal de Geniee sends us the follow- ing article on the recent economic discussions at the headquarters of the League.—En. Spectator.] THE great International Economic Conference which took place last year outlined a whole programme of work for the various departments of the League concerned. The Consul- tative Committee which has just met is a replica in miniature of the Conference. It had for its first task the examination of the work that has been done along the lines suggested by the Conference.
The League of Nations itself has taken an important step in the economic sphere this year, for the Conference on the Restrictions of Imports and Exports has brought the League of Nations definitely into the economic domain. One has only to remember that tariffs have hitherto always been con- sidered as an essential manifestation of national sovereignty to realize the importance of a precedent which places the dis- cussion of such economic barriers within the undisputed competence of the international institutions.
But when we come to consider the action taken by the States Members concerned as a result of the recommendations of the Economic Conference, it must be admitted that these recommendations have in the main remained a dead letter. The Green Book published by the Secretariat shows us that the tariff barriers now existing in Europe are higher than those that prevailed before the Conference met. It Is this fact that gave point to the demonstration which your Member of Parliament, Sir Clive Morrison-Bell, has again given us at Geneva, of the map which he had prepared for the Economic Conference, demonstrating the tariff barriers which have grown up between the countries of Europe by walls whose height is in proportion to the height of the tariff barriers of the several eountries. This interesting map, which it is always a pleasure to see again, presents this Continent in most remarkable guise. Be it said, moreover, that at this moment several States are contemplating new Custom duties, even more severe than those at present in vigour. Everyone here is of the opinion that France was restrained by the Economic Conference from imposing the tariffs which she was then contemplating. Her subsequent negotiations with Spain, Switzerland, Italy, and other States have been facilitated by the Conference, and have enabled the negotiation of commercial treaties to be achieved in a far more favourable atmosphere than was hoped. The Economic Conference has therefore been of value in arresting a rise in tariffs. More than this was hoped for, but if the results have remained limited we must to some extent at least attribute the cause to private interests.
In all States, the existence of a certain number of industries depends upon Protection, and naturally an enormous effort has been made to increase or at least to preserve such safe- guards as the Customs already give the manufacturer. On the other hand, the interests of the general public, such as the consumers and exporters, do not seem to have been pleaded with the energy that was to be expected. It is to this in large measure, that we may attribute the somewhat negative results of the Conference.
The Consultative Committee has considered ways and means to induce the States to revise their commercial policy. The idea of a Tariff Holiday, put forward by Sir Arthur Balfour (and of which Sir Clive Morrison-Bell is so able a pro- tagonist) has been examined by the Committee as well as the suggestion made by M. Serruys to initiate agreements between different countries on particular items of their tariffs. Such agreements have already been concluded with regard to bones and hides. By similar methods it would seem that speedier and more practical results might be achieved than by any amount of abstract consideration of tariff reduction policies.
It will be necessary, however, to choose the categories of items to be the subject of such agreements with the greatest care : this will be the task of the Economic Council. If the categories chosen are not sufficiently fundamental the reduc- tion of tariffs will produce no effect on the volume of produc- tion and on the cost of living. If, on the other hand, they are too fundamental they will cause too great a disturbance in too many branches of the productive life of the nation con-
cerned, and the agreement will be very difficult, if not impos- sible, to negotiate. It is thought here that instead of deter- mining beforehand and theoretically the subjects on which such agreements should be based, it would be better to allow sugges- tions to arise naturally during the course of the labours of the economic section of the League and the Conferences and Committees. A second Conference on Restrictions on Imports and Exports is to take place in the month of July. Just as the first Conference led to an understanding on the subject of bones and hides, it is by no means impossible that States will come forward with new suggestions at the new Conference which will be susceptible of practical solution. By these means we shall go slow, but sure, and reach positive results.
The Economic Conference of 1927 put forward certain recom- mendations touching the industrial field. Up to date these pious wishes have had no result, the Economic Committee having concentrated its attention on the commercial policies of Europe. Now the Consultative Committee has made further recommendations and desires the Economic Council to extend its field of study into the economic domain.
Last year, the question of Cartels played an important part in the Conference, but everyone soon came to feel that the hope of the employers to have their trusts blessed by the League was every whit as unrealizable as the wish of the workers to have combines internationally controlled. This year, the Committee has limited itself to more modest ambitions. The League is to make a general study of trusts already formed and their social and-economic results. This task may appear somewhat theoretical, but in actual fact it is far from being so. The greater number of States live under company laws which are eighty or more years old. The effect of such - legislation is to hamper legitimate amalgamations, while not preventing those already formed from exercising undesirable monopolies. It is thought here that a comparative and critical study of national legislation with regard to trusts. may well lead to a revision of the faulty laws concerning them, and to a closer interknitting of international industry with a resultant economic rapprochement between the peoples of Europe.
In conclusion, with regard to agriculture, the. League has not achieved any positive results, but it has succeeded in making agriculturists understand the value of co-operation in inter- national affairs. Last year, the farmers' representatives were full of reserve. This year, on the contrary, . they have asked the League to circumscribe the activities of the International Institute of Agriculture at Rome, some of whose tendencies alarmed them. It may be safely said that henceforward the weight of organized agriculture will be on the side of the League.
These results may appear small. But all who are acquainted with the complexity of economic problems must recognize that the line of approach of the League, by its very caution, is the only possible one.
WILLIAM MARTIN.
* * e * A series of important meetings of the League of Nations Union will take place next week at the London School of Economics, Houghton Street, W.C. I. On Tuesday, June 5th, " The Arbitral Principle " will be discussed with Lord Grey of Fallodon in the chair at 10.36' a.m. The Ambassadors and Ministers of the following countries have accepted an RA/Ration to be present : Belgium, France, Italy, Japan, Austria, Bulgaria, Denmark, Netherlands, Norway. At 2.30 p.m., for " The Renunciation of War," Lord Astor will
be in the chair, and speakers will ineltide Lord Cecil of Chel7 wOod, Professor Gilbert Murray, Sir Henry Lunn, and Mr. Philip Kerr. On Wednesday, June 6th, at 10.30 a.m., " TheGrowth Of Judicial Decision in International Relations " will be discussed, with Lord Phillimore in the chair. The speakers will be Sir John Simon, Professor Philip Baker, and Mr. A. D. McNair. At 2.30 p.m. the subject will be "Other Forms of Pacific Settlement" with Lord Blanesburgh in the chair, and Mr. H. A. L. Fisher, Major .1. W. Hills, and Mr. W. E. Arnold-Forster for speakers. Tickets may be obtained free on application from the League of Nations Union, 15 Grosvenor Crescent, London. S.W.1.
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