OTTAWA MEETING

Hokitika Guardian, 26 July 1932, Page 5

OTTAWA MEETING

K : '■ ; A MAJOR SUBJECT THE'QUESTION OF CURRENCY. (United-Press Association—By Electric , . Teiegraph—Copyright.) / OTTAWA,/ July 25. The rapidity witu which' the 'Conference is now functioning increases the hopes ior substantial achievements. ibiscUfisidns -on all ' the'Empire com^ ,A' ,'moditiet for which new arrangements are: sought, will be in full sivnig by mid-week. ' Lord 'Hailsham’s No. 1 Committee ' for Promotion of Empire Trade will on Monday begin: recording the con- , cessions the Dominions are prepared to oii-cr i»riLu.n. . The problem of currency stands out . as a- distinct - major subject, which it ■is now certain,- wi-.l be tfickl-d '.n d-“- ' termined fashion: It is eary yet to predict the result, but a hga ... authority states that the Conference - < Will thoroughly survey the’ question of r raising price levels 5 for pVimary pro- \. ducts; This vital matter has i' been mentioned' by all' the Dominion -speakers, as one ’of • the most important and ur-i gent : objectives, and the Conference-1 Will iiot : shirk the 'difficult task, but the British delegate says. 1 it is impossible tq give an assurance that this Conference will reach affinal decision. On the - contrary, it may be. compelled to lefer -the-- problem to the Interna-, tional da ' (London. Nevertheless, the • present -Empire Board meeting will'assuredly make some pro-

gres-s 'in devising machinery to- induce higher (price levels, although it is

realised clearly '"that the aid of foreign Powers-must 1 be invoked/ in order to

ensure: 4 full measure, ■ of suebesss. Banking experts,, ■ at'/'the same - time, will review the exchange position anu make recommendations for '. -the adjustment of to n-e'W 1 -scale values. The-‘ forthcoming deliberations of the

Conference may insult in ‘a monetary

formula; for adoption within the E” pire, dr a formula for submission to

the World Conference, but; in any cast -will mark a. 1 doncerted attack on the / prob.-ems of world depi' ssion. Britain pieces the matter at the head of list 'in importance, :as evidenced. by Mr Baldwin’s declaration, “It is onr policy; .for ■ the United Kingdom to coojMite- -in •'•any practical international desgned to secure a recovery of world prices.” Mr Baldwin’s appreciation of the necessity that all ' the nations' should participate was shown when -he immediately added: “There are limit*',:/ ihoWOver, to ' whkt " evena large gi’oup of countries can do to raise if the trend of prices in the outside World fs consistently downward.” Mr Baldwin spoke of the calamitous fall in commodity' prices'' warned the Conference that Empire ’-prosperity depend* ,oa 'world prosperity, both direeb’-y and indirectly* v-;.' -

Mr Bruce -likewiste recognised that international action was necessary for increasing commodity prices, but sa l. that . the 'Empire cannot wait. / Jr meantime, it must play & lone inasmuch as the depression has reached an acute stage.

Mr Goates ; similarly -visualised higher price levels, and stressed the portance of action on a wider basis that Ottawa. He declared that he w ■unwilling to suggest remedial act'o'' foy the Empire that would prejudice generail recovery, thus the- Conference’s greatest work -willbe to discover how far it/can stabilise world’prices in anticipation 'of the’ world economic conference :

Mr Bruce will pUeh * for immediate ‘functioning of (the Conference’s ■ currency committee;

The Empire currency question hitherto has been pushed, into (the background ’for two reasons ; firstly the urgency Jof getting the Empire Trade Committee under way. Secondly, because'/ of the general .'recognition amongst.. Dominion leaders, ■ of the necessity of discussing currency monetary pojHby privately with the 73ritir,h delegates ton this subject, and impibssing them’ with the urgent necessity from Australia’s viewpoint of doing something definite at Ottawa in relation to monetary questions. Mr Bruce told Mr . Chamberlain tha-t Australia’s position -was extraordinarily difficult. The burden was consequent upon depressed commodity _pj'-ice« on Australian people, in respect to external debt, was terrific. ■ 7

While Australia isdetermined to pay loan interest, Britain must r«ai.ise tnat if Australia encountered additional devastating reyerses,. , for example bad seasons , and draughts, the Common wen I .th with all the will in the world could not possibly meet its obligations. There was the reason why it was essential to' Australia that >’ e questioned! currency and Empire mono, farv policy should be promptly grappled with in the most serious wavi Although Mr Bruce is not prepared to be drawn into preliminary conversations at Ottawa, trend of .opinion is that Britain, must give a lead because [London is' still the financin’, centre of the Empire and world, and also* because combined strength of British 'Government and Bank of England is incalculable., 'Seeing th°t dumber One Committee , ‘is favourab'v launched, and busily dealing with Empire trade, Dominion' leaders, .'consider that no time should 'be lost in tackling currency and discovering whether the British Government.-, is prepared to u*c its on war., combining with the Bank of England. Already currency has been the sub-

ject of . long private conversations between the ■ British and Ministers. It vhas been decided .thai; banltr ing consultants '.shall not be ailoivedja the present arguments to . the Coiifpiv cnce. Th© final negotiations will be etrictly confined to British and Dominion Ministers.' The present indications are that New Zealand and Ind’a will range themselves with Australia and prove powerful allies.

MEETINGS OF COMMITTEES

(Received ,th‘s day at 9.30 a.m.)

.OTTAWA, July 25

The heads of delegations had their first full-dress meeting for -reviewing progress*. It was decided that the Economic Co-operation Committee meet for the first time to-day and the Currency Comn: itte-o to-morrow. The Customs Committed met and appointed Mr W. Downie Stewart, as chairman. It was decided to form an expert -subcommittee to investigate customs hindrances to Empire- trade, /