The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 15, 1932. THE MONETARY ISSUE

Hokitika Guardian, 15 August 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 15, 1932. THE MONETARY ISSUE

The conclusions at Ottawa in regard to the cuirsai'Cy question, can be considered as only the first sb:p in the effort to solve the matter with some degree, not only of Empire consideration, but also of world-wide interest. Looking to the general state of world finande, the subject is of outstanding importance. Deflation has been going' on for some time, and it is necessary to arrest that condition if the first step, towards prosperity is to he assured. The world as a result of the war period is very much in debt—the war debts of the nations reaching a formidable sum. In addition there are the reparation payments to . be reacted from the defoatid nations. It has l>eon the - declared policy of Great Britain to. work for the cancellation of both war debts and. reparations anti a very fine gesture has been made in that direction. Lately at Laiisianne a ,n agreement was reached to reduce Germany’ war obligations to a sum considered capable of adjustment, but, this was contingent on the Allies war debts being reduced by the United State®. At the moment these negotia-

tions are at a standstill because of America’s embroilment in the presidential election, but there are pointers tha* tiioms good will come out -of the negotiations ultimately, and with the burden of debt lightening the , world .situation will be relieved. But this is going to take some time, 'and for the present there is the monetary report; from Ottawa to throw some light on ' tlie'i general.. situation. .The cur•’♦eh'cy 'report ns drafted from the Empire pbi'iit of view. It proposes a general rise in price levels to be accomplished by raising-gold prices, but this requires international action. The monetary factor alone was not the , cause for the' 'fall in prices—international politics (notably reparation payments) were' contributory; to the position. The ,hope for the monetary policy is a trade, and industrial revival rather than a lavish public works expenditure, and to aid a trade revival , national; finance should be available. There is the further suggestion to stabilise exchange between the Dominions, in preference to leaving the - position • Uncertain. It is sugr gested this stabilisation could ho brought about by both mutual nimd notional co-operation, with a metallic base far eurrfinoy. There is not much that is immediately tangible iff the report, for details, to be consummated calls for evolution rather than revolution, FOr that reason recovery can not' be sudden; and the hetit can , hasten slowly only. It has to be borne in mind that the report as promulgated, is by the be-t men in "British finance, and ■with a fii-d knowledge of world affairs. Their views . are entitled to respect, but it' can well be understood tl# disappointment, that there is no way. pointed out for immediate rlecovery. This forces the conclusion that artificial aids are not considered equal to the situation.. The royal road will be work and industry, with, production on sound lines. If Ottawa- offers to the' Dominions improved ’ trading relations for the surplus productions of .the country, there will‘be a material gain, arid the position will improve, but all the time the. internal affairs ■of the country must He managed economically and sanely, so that the boat Utsv/As ■in the end will be won.