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Hokitika Guardian, 12 July 1927, Page 2

Arno cos the visit of the European bankers to tile United States, a commentator remarks that it is quite a common event lor the beads ol great financial houses in any given country to confer about the condition of the money market or the state of tile currency. Last week has seen a remarkable' development of this practice oil an international scale. The governor of the Bank of England, the governor i.if the Bank of France, the governor of the American Federal Reserve Bank, and the head of the Gorman Reich,shank have been together in New York discussing various aspects of tlie world’s monetary problems. In particular the effects of the “ free movement of gold” restored by England’s ro-esta'blishment of the gold basis for currency, and the causes now affecting the level of the exchanges are under consideration, and it is understood that, as the outcome of this conference, joint .steps are to he taken in the various countries represented to secure stability in regard to prices and rates of exchange, so far as this is practicable. This represents a very great advance on tlie casual and incoherent fashion in which attempts were made to regulate currency and exchange conditions before the war. Tt is in part the outcome of the recommendations adopted at the Genoa Conference five years ago, and in some ways it realises the scheme for a “managed’’ currency under joint financial control which has long been the ideal of Mr J. M. Keynes and his followers. The danger is that “management.” of any kind in relation to currency matters is* always susceptible sooner or later to political influences, and when this happens there is sure to be trouble.