EMPIRE CURRENCY

Hokitika Guardian, 13 August 1932, Page 5

EMPIRE CURRENCY

MONEY MERGER

SCHEME OUTLINED BY BANKER

(United Press Association—By Electric Telegraph—Copyright.)

OTTAWA, Aug., 11. Mt Darling, a director of the Midland Bank, gave a luncheon to joumal- ' ists, and outlined hia scheme of Imperial co-operative credit. He urged a “merger” between the pound sterling and the Canadian dollar as the hrst / step towards bringing the whole Empire currencies together. He advocated creating a snper-Central Empire * bank, with a credit of a hundred million sterling. This credit would tie created by each Empire Government undertak-

ing to repay—in gold at 3 per cent—its share of the credit. Government obliv> gations would take the form of treasurybonds, ultimately payable in gold. -It was unlikely that they would b'e called for/ hut would thus have the force npd value of gold security. The. credit balances thus created would be Used to settle balances of payments between the British. Empire countries, and as a ? ! .' basis for local currencies,: thus being ’,\ CO hindered as equivalent to gold. ifr ’Darling again emphasised his belief .in the re-moSetisation of silver u the most effective way of raising ' world prices, The profits of the Super-Central bank could be used in the first instance to purchase silver, with this objective. Only 117 million ounces of ''silver were required to restore the fineness and increase the weight of Empire silver coinages. to 1 those of'the Indian rupee at its present (-■ sterling equivalent—eighteen pence. . V 'Mr Darling’s'definite aim is the establishment of international bimetal- ; | using more silver as money. He used as an illustration-that millions of Indian women were carrying all their savings on their persons in the form of bangles, ear-rings, trinkets, and ornaments. They would purchase • more goods if silver were given a new value. He said: “The credit system is not now forthcoming, but it is not through lack of" credit. .It is through lafck of. septirity on which to lend.” - Darling said he had not read the \ . conference’s currency report, but bis effort to secure n new world-wide pub- ; ' liHty foHbis well-known views at this juncture was obviously made because aWare ’the Conference, experts . bftre npt agreed upon the idea of an .J- Empire -bank, and have not mentioned

; '• .-' v Mr Havenga took the view that . South Africa, at present, was wedded to the gold standard, and the Central * Bank Was unacceptable because it fright be construed Ri conflicting with ’ the. Dominion pffefdgative and powers 'hs'self-govefltihg tiuits:’' ‘ It would «ot be surprising, however, ! .if the Empire Dank proposal were yet included in the report before it is issued to-morrow. AUSTRALIAN OPINION. ' - , SYDNEY, Aug. 12Th'e proposals adopted by tlio Currency Committee at the Ottawa Confercnee are generally approved by Australian financial, commercial and political circles, the opinion being that they form a sound basis of policy for the .guidance of British Empire’legislatures..