GENOA

The conference opening this afternoon at the birthplace of Columbus is more significant than most of its predecessors of the past four years. With over thirty nations participating, Germany is cast in a more active role than in any other assemblage since the war, and Russia is represented for the first time since the fall of Kerensky. At Genoa, too, the powers have to face problems which are as difficult as any since Versailles.

To a certain extent the Conference is restricted by the process of wing-clipping which has gone on since the summons was issued in January. The decision of the United States not to take part, though admittedly the only wise course, will perhaps lessen the immediate effectiveness of the Conference. German reparations, sanctions, and land armament cannot receive much attention because Poincare has made Lloyd George agree that there shall be no attempt to revise the Treaty of Versailles. Lloyd George, on the other hand, is prevented by the Conservatives at home from proceeding as fast as France would like toward the recognition of Russia.

Chief among the subjects that remain on the agenda is the stabilizing of international exchange. The chaotic fluctuations of the present day are an enormous barrier to international trade, depriving Germany and England in particular of markets for their manufactured goods., Solutions for the difficulty are almost as numerous as the delegations, but they agree broadly in emphasizing a strict regulation of the paper money issued by each country. Closely bound with this problem is that of free trade, but prejudices and difficulties of labor and transportation enter here so strongly that little progress may be expected. Aid to Russia will also be discussed, for England wants markets there, France wants her ancient debts paid, and Italy wants Russian wheat. Aid and recognition will probably be considered together, but each presupposes assumption by the Bolsheviki of the Imperial debts and guarantee of security for foreign investors.

Broadly speaking, the Genoa Conference will be a time of economic stock-taking, domestically and internationally. If the Conference is not moderately successful, Lloyd George will almost certainly fall, the conference method will lose prestige, and Europe will be at least as badly off as now. If the Conference is successful, it will mark the beginning of that European house-ordering which Secretary Hughes made the condition of American assistance for Europe in her troubles.