The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, JUNE 16, 1932. COMMODITY PRICES.

Hokitika Guardian, 16 June 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times THURSDAY, JUNE 16, 1932. COMMODITY PRICES.

The decision of the British and American Government* to hold a world economic conference to consider methods of stabilising commodity ipfiees had the approval of Professor Tocher, Professor of economics at Christchurch, who said that it was not surprising that proposals should be made and readily accepted for. a world conference on matters connected with

prices. It is snrprising, however, that while America should be ready to discuss matters relating to prices, it «should emphatically .point out that war debts, reparations and disarmament should be' excluded from the j agenda. Since Great Britain suspended the gold standard in September last, prices in the gold standard countries have continued to fall and the ' depression has been deepened. In Great Britnin and in most other countries which have adopted the sterling standard, however, the price fall has been checked and some prices have men. Consequently, though no great improvement lias yet been effected in those countries, conditions have been more stable and the prospect of improvement is definitely better. Meanwhile, in the gold standard countries, particularly 1 the. United States, conditions have been getting worse. The United States is now becoming alarmed at the magnitude of its Budget deficit and at the failure of the measures so far taken to promote a recovery. It is becoming more widely realised that the level of prices is governed by international conditions, father than by the influences operating within any particular country. It is therefore not surprising that proposals should be made and readily accepted for a world conference on matters connected with prices. It is surprising, though, that.while America should be ready to discuss currency, foreign exchange, the ; gold standard, [ silver, trade, and other matters, she should emphatically/point out that war; debts, reparations, and disarmament should be excluded from the agenda of the conference. There are ’ leading authorities who consider that reparations and war debts are the chief cause of /the present world-wide depression. Others consider ,it due to the scarcity and maldistribution of gold, while, many others still blame It on to! ft variety of factors, including tariff* and trade restrictions, overproduction of certain staples, high, rigid costs, etc. There is, therefore, a strong case for bringing together experts <)f different countries, holding different points of view, to make an impartial: investigation of the .facts to try to reveal the underlying cauees of the depression and prescribe whatever remedies their diagnosis may suggest. If i.t is true—ae many people suspect—that the lapk of international j agreement and co-operation in the management of the gold standard is an important cause of the , slump. international co-operation is eurelv necessary to remove those causes and promote a recovery.