FOR BRITISH CURRENCY

Evening Post, Volume CXVII, Issue 23, 27 January 1934, Page 11

FOR BRITISH CURRENCY

EAELY IIETUKN UNWISE

MR. M CKENNA'S OPINION

PRESENT SYSTEM WORkING

(Brltlsl) Official Wireless.) (Received January 27, 11 a.m.)

RUGBY, January 26. Opposition to an early return t» a metallic basis for British currency was expressed by Mr. Reginald McKenna, chairman of the Midland Bank, at the annual meeting of shareholders. He said that the success of the policy of cheap and abundant money in maintaining the general average of prices at a Jevel which rendered production profitable. was beyond question. World trade might still be disorganised, exchanges chaotic, and international dealings accompanied by prohibitive tariffs, quotas, and other restrictions, yet all these obstacles the trade of Britain had for many months- been making steady and gratifying progress. '■'...•.•:

The international situation seeitied unripe for the restoration of a universal monetary basis and the gain from universality was the only consideration which should be allowed to tempt the country back to a metallic standard. He urged that until tha world had learned how to secure ex* change stability without jeopardy to stability of purchasing power, Brit« am's inflexible task should be to demonstrate that the wise management) of money, united with no fixed attachment to gold, was both prac«. ticable and in its result highly; beneficial.