SILVER CURRENCY

Hokitika Guardian, 27 May 1932, Page 5

SILVER CURRENCY

AMERY’S PROPOSAL

HOUSE OF COMMMONS AVERSE

(United Press Association.—By Electric

Telegraph.—Copyright.)

LONDON, May 26

In the ‘House ol’ Coinmoiio, -nr Leopold Amery (Conservative) moved an amendment to the Finance Bd| to permit .silver as well as gold to be bought by the Exchange Equalisation Fund. This, ho 'said, womd not commit the Government to any far-reaching scheme of bimetallism. The value- of -silver had been halved, with disastrous effects in the East. The correction of violent fluctuations in silver valuer woo'd immensely improve trade with China and India. Only ten per cent, of the Exchange Fund would be needed to buy tlie world’s silver production for the present year, so as to r-e- ---■ .tore the price of silver to the same as that of 1928.

.Mr Amery added that it had been calculated that by the year 1941, there would be a shortage in the annual gold ■mppfy to the extent of forty-five ljiilions below tho requirements. Sir Herbert Samuel (Home Minister) opposed tlie amendment. He said that the United States now wanted to have silver currency because the United ■States produced three-quarters of the world’s supply of silver. Mr Amery’s scheme would not work. Mr Hilton Young, repaying for the Government, said that th's subject would bo discussed by the Imperici 1 -Conference at Ottawa before attempting the stabi’.i'ation of our currency. Mr Amery desired to withdraw h:s amendment, but the members in opposition to it challenged a division. Later they allowed it be negatived without a division.

SAFEGUARDING ST ERLING. RUGBY, May 25. During the debate on tho proposed Exchange Equalisation Account in the House of Commons, Major Elliott (Financial Secretary) pointed out that the Treasury had the power to wind up the Account at any tim e . they might consider such a course expedient. The provision for establishing the Account was -made in the Finance Bill, which enables the Treasury to borrow up to 150 million pounds to prevent tho danger of a sudden, violent fluctuation in the exchange value- of sterling, Major EHiott said that if they returned to a metallic currency, the Government would of course,, wind up the Account, but the Government had no intention whatever of going back to gold—at any rate white the gold prices were behaving as at present.