GOLD AND CREDIT

Hokitika Guardian, 26 February 1931, Page 6

GOLD AND CREDIT

ANGLO-FRENCH TRAXSFERS. (Th ilish Official ]\"ii cicss.) RUGBY, Fch. 21. An official .statement on recent ,discussions that took place between (.lie British and French Treasury experts says:— “Tho object has been a frank, cordial exchange of views on the principal financial questions of interest to both countries, with a view to promoting a. policy of financial co-op-eration in the existing world-wide depression. The underlying causes of the exceptional gold between London and Paris have been discussed. Tt lias been confirmed that the French authorities in no way welcome abnormal gold movements, and have boon anxious so far as possible. fo avoid anv measures tending to lning them about. The French Trcasnrv. while not considering that the methods of managing the public funds in France have had the* influence that it sometimes attributed them, never theless, readily stated Its intention of taking account, consistent with its on needs, of the repercussions which its operations might have on the monetary market. Tt has been agreed that thp two Treasuries should keep in touch on the questions arising from the reports of the gold Delegation of thp League of Nations .

It has also been agreed that cardinal importance is attached to the resumption of foreign lending on the normal scale by the creditor countries and tho French authorities have, on many occasions, made known their dosirp to encourage foreign spending on the Paris market, hut it is recognised that the present credit difficulties are largely due to a lack of confidence on t-hp part of investors and it is essential that the borrowing countries should themselves take all possible measures to restore confidence. Steps to promote effective 00-oporatiou between the markets, with a view In loan operations, would contribute to alleviate the existing denressjon. and all possibilities should he examined.

The satem-e-nt refers to the League of Nations discussions with a view to facilitating agricultural credits in Central and Eastern E'lrone. and expresses the hope that practical 1 e-sulls mav he realised at an earlv date. Tt adds that conversations were not aimed at definite infernrovinebd agreements, but thev enabled a eontract to be established on nm-sUmm affecting the financial and economic interests or both countries, w'-uh 1,0 maintained and the conversations will he renewed as circumstances require.