the industrial organisations concerned, give a full and authoritative picture of the world industrial situation; and eleven monographs by eminent economists deal with the problems of scientific management and industrial agreements (cartels and combines) in industry. Among the tariff and commercial documents the Report of the International Chamber of Commerce has special importance; it was based on consultations in many countries through national committees, and, unlike the other documents which mostly give an objective statement of facts, makes a series of definite recommendations which proved an invaluable basis for the work of the Conference itself. In addition a substantial volume, prepared by the International Institute of Agriculture, sets out in detail the main features and statistics relating to the agricultural situation.

The next task was to prepare the agenda. This was drawn with great care so as at once to permit a general discussion and examination of the whole world position, and to secure a concentration on problems on which practical results might be attained. The first part therefore provided for discussion on the principal features of the economic situation, from the point of view of both peace and prosperity. The second included more specific items under the three main headings of Commerce,' 'Industry,' and 'Agriculture.' In an accompanying note special emphasis was placed first on problems of commercial and tariff policy, and then, in a more limited sphere, on international industrial agreements (cartels); while it was noted that a number of the difficulties were to a peculiar extent difficulties in the first instance of Europe. This note proved a just anticipation of the character of the Conference's actual discussions.

The composition of the Conference raised an interesting problem. If its members had been Government representatives, in the full sense, with power to bind, it could not be expected that they would have agreed on resolutions involving considerable changes in the policies of their respective countries. On the other hand, if they had consisted of experts of high personal qualifications appointed without regard to the Governments, drastic recommendations of reform might have been obtained, but there would have been no assurance that they would carry weight with the different sovereign Governments, without whose action no practical results would follow. A middle system was wisely chosen the members were, with few exceptions, selected by the Governments, but on the basis of personal experience and qualification, not as the spokesmen of official policy. The Conference would thus, it was hoped, be responsible though not official, expert but not academic'; it would be free to advocate reform and influential to secure its adoption.

IV

The Conference so arranged met at Geneva on May 4, 1927. Its 194 members, appointed, with the exception of eleven named by the Council, by the Governments of fifty countries, were attended by 157 experts. Not only members of the League, but the nonmember States-the United States, the U.S.S.R. (Russia), and Turkey-sent strong delegations. Every qualification and point of view were represented: industrialists, financiers, agriculturists, consumers, officials, and representatives of workers' and consumers' organisations.

After four days of discussion in full session, the Conference divided into three great Commissions, on Commerce, Industry, and Agriculture, each so composed both as to nationality and qualification as to be in itself an international Conference. The main bulk of the work was achieved in these Commissions, and after they had finished their task the Conference in full session approved their recommendations, added a few general resolutions, and concluded its session on May 23.

We shall best understand the nature of the Conference's achievement by considering briefly the various chapters of the Report which has now been published (Constable & Co., IS.).

M. Theunis, who presided over the Conference as over the Preparatory Committee, contributed in his closing speech a survey and summary of the three weeks' discussions; and he at once emphasised the dominant characteristic of the Conference:

The Conference as a world Conference composed of those who represent different interests and policies in every quarter of the globe has considered economic problems in their international aspects and adopted an international point of view. It has recognised the importance, and in certain cases the decisive importance, of national considerations, some of which are political and social rather than economic in character; and it has recognised that it is not possible to secure the adoption of policies and systems determined in every feature by the sole criterion of what would give the maximum prosperity to the world as a whole. . . . But, as the starting point and angle of approach to the different problems, the Conference... has felt bound to assume that the greater the range of exchange of different products between those who by their resources and capacities are best fitted to produce them the greater is the general economic advantage. . . . There are practical limitations to the application of this principle in policy. But that international exchange is normally and properly not a matter of victory and defeat, or profit of one at the expense of the other, but of mutual benefit, has necessarily been the basis of this International Conference.

After a short but clear account of the main features in the world economic situation come the important resolutions under the heading of 'Commerce,' which give practical expression to

the above principles, and constitute the main achievement of the Conference.

The central theme is the reduction of trade barriers. The Conference deliberately, and wisely, put aside the issue of principle as between free trade and protection. Obviously agreement could not have been reached on such an issue in a Conference representing all countries and all points of view. The remarkable achievement was to discover and reveal an extent of common ground of policy and action much wider than would have been thought possible between those who on that question continued to hold opposing views. There was and could be no agreement on 'free trade'; but all were agreed on the necessity of 'freer trade,' and upon the methods by which it should be obtained. The opening words of the chapter on commerce bring out clearly the main feature of the Conference :

In spite of the variety of questions raised, the diversity of theories, and the legitimate national sentiments of all those who took part in the discussion, one important and extremely encouraging fact has emerged; and, having emerged, has become increasingly manifest as the work has advanced. This fact is the unanimous desire of the members of the Conference to make sure that this Conference shall, in some way, mark the beginning of a new era, during which international commerce will successively overcome all obstacles in its path that unduly hamper it, and resume that general upward movement, which is at once a sign of the world's economic health and the necessary condition for the development of civilisation.

The Report then proceeds to analyse the causes and the character of the worst obstacles which still remain. It records that some of the more extreme forms of obstruction introduced after the war-prohibition and licence systems-have partially disappeared, and commends the action already in hand by the League to complete the process. But it points out that tariffs are higher, more complex, more numerous, and are more frequently changed than before the war. Simplification, reduction, and stability are declared to be necessary. The passage in which the conclusions are formulated is categorical in its terms and phrased in forcible language which is extremely impressive as the unanimous resolution of so widely representative a Conference. Four main grounds for the resolution are first stated: that harmful effects upon production and trade result from high and constantly changing tariffs; that substantial improvement in the economic conditions can be obtained by increased facilities for trade and commerce; that tariffs, though within the sovereign jurisdiction of the separate States, are not a matter of purely domestic interest; and that some of the causes which have resulted in the increase of tariffs and in other trade barriers since

the war have largely disappeared, while others are diminishing. On the basis of these premises the Conference declares categorically that the time has come to put an end to the increase in tariffs and to move in the opposite direction.' And for this purpose it urges action upon four lines-immediate and independent reduction by the separate States, bilateral action through commercial treaties, the abandonment of the practice of putting into force excessive tariffs for the purpose of bargaining (tarifs de combat), and an attempt by the economic organisation of the League to examine, on the basis of the principles enunciated by the present Conference, the possibility of further action by the respective States.'

This is the central and crucial part of the Conference's work; and every phrase is significant and impressive as the unanimous advice of a body with an unequalled claim to reflect the collective experience of the world. It would perhaps be a mistake to obscure the significance of this central theme by setting out in any detail the other advice of the Conference under the heading of 'Commerce,' as to import and export prohibitions and restrictions, customs formalities, unification of bills of exchange, the development of commercial arbitration, the treatment of foreign enterprises, the form of commercial treaties, subsidies, dumping, discrimination in transport rates, etc. It is sufficient here to state that the dominant motive of removing the obstacles to international trade, and extending its range, inspires every paragraph. We may conclude by recalling a few of the main facts which show the importance and necessity of the main resolutions. The political readjustments in Europe have increased the number of separate customs units from twenty to twentyseven, and the length of frontier lines by some 7000 miles. The number of tariff headings and sub-headings-sometimes used as a disguised form of national discrimination-has enormously increased. Tariffs on manufactured articles have increased in real weight by an amount which varies in different countries, but tends to be not less than a third higher than before the war. And, whereas before the war conventions were usually concluded for ten or twelve years, no less than 153 out of 180 recently examined admitted change within a year. If these factors are considered, as they should be, cumulatively, we need not wonder that international trade has not kept pace with the capacity of production, or that the removal of the increased obstacles was the central theme of the Conference.

The chapter of the Report which deals with problems of Industry contains no such dramatic declaration in favour of the reversal of existing policies. It begins with an analysis of the industrial situation, and then proceeds to the central problem

of how costs of production, and therefore prices, could be reduced.' The extension of methods of rationalisation' and the collection and exchange of fuller industrial information are recommended. The main interest, however, attaches to the passage on 'international industrial agreements' (the so-called cartels, etc.). Here the Conference reports frankly that the discussion has revealed a certain conflict of views. Those who cherished the illusion that such agreements could alone remove the causes of the troubles from which the economic life of the world and particularly of Europe is suffering' will be disappointed. But as a measured and prudent statement of the limits, the conditions, the advantages, and the dangers of such developments this chapter should prove of real value. It points out that they are usually limited to branches of production which are already centralised and to products supplied in bulk or in recognised grades.' It holds that the development must be recognised as one 'which must be considered as good or bad according to the spirit which rules the constitution and the operation of the agreements, and in particular according to the measure in which those directing them are actuated by a sense of the general interest.' Under suitable conditions they may secure a 'more methodical organisation of production and a reduction in costs by means of a better utilisation of existing equipment, the development on more suitable lines of new plant, and a more rational grouping of undertakings, and, on the other hand, act as a check on uneconomic competition and reduce the evils resulting from fluctuations in industrial activity.' By these means all three parties may be benefited, not only the owners, but the workers in more stable employment and the consumer in lower prices. But the dangers are no less clearly indicated. It is essential that agreements should not 'lead to an artificial rise in prices, and that they should give due consideration to the interests of the workers. Nor must they, either in intention or effect, restrict the supply to any particular country of raw materials or basic product, or stereotype the present position of production.' As to the safeguards against such dangers, the Conference does not recommend international 'control,' but it places the greatest importance on publicity in regard both to the nature and operation of the agreements as one of the most effective means of securing the support of public opinion to agreements which conduce to the general interest, and on the other hand of preventing the growth of abuses.' And the Conference concludes by the important recommendation that the League of Nations should closely follow the movement and publish information as to its effects upon technical progress, the conditions of labour, and the movements of prices. The faithful execution of this task, in the light of the carefully stated principles