EMPIRE CURRENCY

Hokitika Guardian, 15 January 1932, Page 4

EMPIRE CURRENCY

COMMERCE CHAMBER PROPOSAL FOR CONSIDERATION AT OTTAWA (United Press Association. —By Electrio Telegraph.—Copyright.) OTTAWA, Jan. 13. A memorandum for Ottawa by the Empire Chambers of Commerce, recommends a uniform monetary system, and points out that though most Empire countries are off the gold standard, they are obliged to depress prices in currency contraction in order to compete in world markets. The only group of nations sufficiently powerful and self-contained to stop the present progressive deflation is the Empire. It would be essential while Empire countries are expanding currencies and raising prices to a profitable level, that they should insulate themselves against competition of outside nations which would continue the deflationary course. Central banks, under a uniform Imperial l system, could collaborate enabling equilibriation and mutual balance payments, substituting the same for suicidal competition.. A national is preferable to an international system, the most modern precedure being a central banking practice, with the rediscounting of commercial bills as backing for currency . The memorandum advocates the constitution of an Imperial General Economic Stall', and favours a preferential column appearing in every country’s tariff schedule; also bilateral agreements covering special concessions.