"MANAGED CURRENCY"

Evening Post, Volume CXIII, Issue 28, 3 February 1932, Page 10

"MANAGED CURRENCY"

Mr. G. S. A. Campbell, writing in the Sydney "Herald," refers to the Bank of New South Wales latest circular, advocating a "managed" currency which would appear to be independent of either gold or sterling. y, "Whatever may be the merits of such a proposal," states Mr. Campbell, "the bank is to be congratulated for publicly proposing and advocating some alteration in the happy-go-lucky methods which are being followed in relation to the Australian monetary system. It is essential that business, especially that class of business which involves contracts in which the time element is present, should be conducted with a reasonably secure knowledge that the monetary basis of contracts will not alter very greatly where the contracts extend over some period of time. "Some definite policy in relation to this important matter should be formulated and announced so that internal business may be carried on under stable monetary conditions. The Federal Government will have to face this question shortly, for it is one of the most pressing problems oji the day, although it was hardly, if ever, mentioned during the recent election campaign. . ■ .\

"Two policies are available, (1) a gradual and controlled return to sterling, , (2) stability of exchange, and internal prices at some level to be determined. The latter would involve some definite artificial control of exchange rates. The publip as a whole is entitled to expect from those who are guiding the country some decision as to, which policy is to. be adopted in place of the present week to week drift." ■ '