EMPIRE CURRENCY

Hokitika Guardian, 12 August 1932, Page 5

EMPIRE CURRENCY

OTTAWA DEPORT IMPROVED EFFECT ON PRICES.*,,, (United Press Association—By Electric; Telegraph—Copyright.) OTTAWA, August 10. The Monetary Sub-Committee’s report was adopted this afternoon by the: main committee, as follows:First: .It is desirable : to raise the-, general level of wholesale prices. .. • Second: The plan would bebfhe raising of gold prices. This can be done only by international action. . Third : The monetary factor, was not alone responsible for the fall in prices. Other factors including the political had effect, notably reparations, which , are being dealt with, elsewhere, but are beyond the scope of Ottawa.

Fourth : The,British Commonwealth’s monetary policy should be on sound lines towards raising, price levels by low interest rates, and plentiful sup : ply of short-term, money. This should not take the form of financing..public expenditure, but should be directed towards stimulating industry, afid reviving confidence in business. Fifth: Efforts should' be made to stabilise the exchange between the vnriouk countries. .

Sixth: The committee refrains, from proposing any machinery for this purpose, hut merely suggests there should be co-operation to this end. Seventh: It also advocates international co-operation to; this end. Eighth: The scability of interna-, tional exchanges .can best bo obtained by a metallic base to currency. While some of the experts ■ on the sub-com-mittee 1 have expressed definite views on gold, as the only sound base, the report refrains, from expressing an opinion on the subject, in ; vievv of the' world confcreiiee, which 'is being held shortly. ■ ' ' Mr Brueo substantially approves the currency declaration in the compilation of which Messrs Phillips, Under-Secre-tary of the British Treasury, Stra-’ kosch Schuster, and Melville played a prominent part. • i It is unlikely that the introductory speeches, of the Dominions’ leaders ata'the first currency will be published simultaneously with the o report, " because _ it might divert attention from tlio importance of the- .actual findings wdiich represent tlie Empire’s financial policy formulated at Ottawa. '• ... Regarding the cta’reney report the British representatives on the c6mmittee, were convinced ] that the present agreed statement will have an immense pysehological 'effect; ■ ■ Tnere’ is no 'mentidn of. an ■ Empire bn'hk. " There'-is ifiOHmention: any London clearinghouse for the Dominion trade No ..specific - steps. for the stabilisation 'of the exchange are mentioned. Britain, as.being leader of the world’s''finance, now says: ‘‘Our financial position is-steadily improving. Money is-, cheap. Therefore, there is no Heed for" any radical - acr turn.” The. publication of I ' the report is expected immediately to improve all, round. ”Y' , ,* ‘ !! f It is anticipated that the stock mar-■ kets will instantly respond, reflecting a slow wave of confidence, resulting in. higher commodity prices. ' ‘. The Currency Report, which is the EfnpirA’ s financial pronouncement - to: -.theViworld, may, at first reading, be regarded as innocuous.. Nevetthelew; it has a tremendous import. English and Dominion Bankers and economists have drawn, up this report, aftermost lnatuve consideration. Messrs Chamberlain, Stevens, Bruce and Coates were among the members of the committee which to-day agreed upon tie policy mentioned. This represents; the utmost that Britain can say, or do. The Dominions, and particularly ■ India, take the view that the -Ottawa Conference should have gone slights’ further, by indicating a fixed policy for at taast one year, thus giving some sense or stability ..