The Hokitika Guradian WEDNESDAY AUGUST 9th. 1922 IMPERIAL CURRENCY.

Hokitika Guardian, 9 August 1922, Page 2

The Hokitika Guradian WEDNESDAY AUGUST 9th. 1922 IMPERIAL CURRENCY.

A London correspondent states that a reversal of the trade position existing in the last half of 1920 is now being experienced. Then it was difficult to make remittances from Australasia to London; now there is difficulty in malting remittances to Australia. Luckily the nresent is probably a temporary phase in trade relations, Iput the fact that the change from on o extrome in hnhmco pf trade to another has occupied within 50 short IS period hns turned attention to }■!>*? need fPP po-opdL

nation lad,ween different parts of the dominions. An Imperial Economic Conference is being demanded for the do. velounent of the Empire and foremost among the questions it must face is that if currency. Immediate interest is centred in the discussion as to the need for » common currency within the Empire such s gold provided liefore tho wav. We have nothing taking the place of ..old and pending the returno to the “gold tandard the adoption of some common basis would facilitate the movement of credit and commodities within tho Empire. Ami the problem within the Empire is much less difficult than that confronting Continental Europe, for the credit of the countries composing the British Commonwealth is practicallv level. An interesting suggestion is made in the “Times” by Mr .T. F. Darling, who suggested a year ago the issue of British Treasury hills as n basis for the currencies of the dominions. He now advocates, on account of certain difficulties, an issue of Imperial Treasury Bills, not wholly British. but in which India and th c dominions, or such o£ them as were prepared to come in. would have a prorata ..'.are with Britain. This issue of Imperial Treasury Bills which would he fixed in amount, would not bo in addition to, but in substitution for existing ,Vbt Such portion of the Empire’s debt could lie placed in commission in the hands of Imperial Treasury Bill Commissioners representative of the countries interested. Tho bills could nave marked on thorn the fiercentage of each country's responsibility. It would be desirable that a percentage of gold, which, however, need not be large, should be contributed by each participating country, and held by the CVmmK‘ioners ns ;i common reserve. 11l the event of the competitive rate folImperial Treasury hills being abnormally high) a portion of the gold reserve could be utilised and paid into the Commission! rs' account with the Hank of England, thus increasing the bank’s reserve and a corresponding amount of the lulls paid off. When the need had passes! the gold could be retransferred to the Imperial Treasury bill reserve and thi bills increased. This would form a movement analogous to the import old export of gold of pre-war days, Knob participating country would of course agree not to issue currency unless Imperial Treasury hills, or gold, or (for India) silver, were held as cover, But otherwise there need be no restriction on the issue of currency. Tho credit-regulating factor would be the rate of interest as determined by the competitive rate for Imperial Treasury bills and by trade conditions.