WORLD CURRENCY

Dominion, Volume 37, Issue 235, 1 July 1944, Page 5

WORLD CURRENCY

International Monetary Fund

The principles of the International Monetary Fund, to be discussed at a meeting set down for July .1 in the United States, were discussed by Mr. Bowden, M.P., in an address at Northland. He said that to him they appeared to be a compromise between the- ’’Bancor” and the “Unitas” proposals previously’ put forward. In an explanatory booklet issued by the

External Affairs Department it was stat; ed that the only essential function of gold in the scheme was that of a common denominator for fixing the basic exchanges between mil ions, and that the credit of any country was not to be restricted by any rates of gold. “It is not a return to the gold standard, as commonly ttnderslood,” said Mr. Bowden. “The operations of the fund will be partly in gold but mainly through credits in the name of the fund established at the Reserve Banks of the member’ countries. “So far as New Zealand is concerned, the proposal is to pay in to the fund gold to the value of about £NZ7OO.OOO, and to establish a credit in the name of the fund for tentatively £.\’Z33.0()0,000 at the Reserve Bank of New Zealand. It will be very interesting to receive the report of the New Zealand delegation which is to attend the conference.

“These proposals, however, raise another very important issue—whether there is to be united action taken by Britain, Canada, Australia,’ South Africa, and New Zealand as an Empire group, or whether each country is to be a separate member in the scheme. If acting as one, there surely would be need for New Zealand, for instance, to stabilize its exchange with Great Britain, either at the present rate or par, or an amended rate. “In view of the vital importance of this question to every farmer, manufacturer. and trader in the Dominion, the Government should state dearly its intentions without delay,” Mr. Bowden declared.