THE MONETARY CONFERENCE

Dominion, Volume 37, Issue 238, 5 July 1944, Page 4

THE MONETARY CONFERENCE

With the opening of the Monetary Conference in the United States it is evident that the discussions on post-war international economic policy have entered upon a new and vital phase. Already wide divergencies between different schools of thought have become apparent, and the intricate nature of the problems to be solved is beginning to emerge. There may be no doubt as to the fundamental unity of purpose, but the avenues of approach differ, and possibly the first major decision of the delegations will be to effect a choice in that respect. There is a growing recognition that a world wai cannot leave external relations unchanged, and that is why Mr. Cordell Hull, some months ago, urged the nations to get together and work out the details of a plan “in order to preclude a state of monetary chaos after the war.” - The most apparent divergency of view yet disclosed is that reported between the British and American delegations. The former apparently feel that the conference should direct its efforts to the establishment ot policies, in terms of goods and services, that would assist world reconstruction and then devise the monetary plans necessary for their full development. On the other hand, judging from the cable reports, the Americans appear to regard the provision of a monetary plan as a pre-requisite to the re-establishment of world trade. In the plan proposed by the experts from over 30 countries, quite as wide a divergence may. develop with respect to Hie place of gold in any international agreement of this character, this has been clearly recognized in Britain. One leading British journal some-time ago said: “If it is impossible to expect this country to return to a rigid gold standard it is equally impossible to. expect the United States to demonetize the vast stock of gold which is the basis of its impregnable liquidity.” The "proceedings of the conference are being held in open session, so that the nations concerned may be kept fully informed. . There is really nothing unexpected in the emergence of widely-differing views. They were inevitable, for the financial circumstances and needs of the nations differ so widely. Indeed, the open acknowledgment of such differences must serve a useful purpose by impressing on people the serious and involved nature of the problems. There has been a great deal of what has been termed wishful thinking regarding postwar conditions, and many very bold assertions have been made from time to. time based on little more than high-mounting hopes. . These indicate some of the hard realities that must be faced, some idea of the vast interests involved. Possibly the chief problem of the British delegates, from whatever part of the Empire they may come, will lie to fit the sterling bloc into the wider framework of a world plan, and that may not be easily effected.. But what British people, following their political instincts and intuitions, will hope for is the evolving of a sound, workable compromise.