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Hokitika Guardian, 20 February 1933, Page 4

Three instances of wise policy to the general interest, and not merely that of a particular country were cited by Sir Arthur .Salter in an address from London which was broadcast throughout Aimidrica. One of these- was American, one English, and one European; each of them was. a help and encouragement for the task of the Economic Conference The first was the monetary policy pursued by the Federal Reserve system, which counteracted the effects of hoarding, panic, and the withdrawal of foreign balances by deliberately making money cheaper and more plentiful. The second instance was the English conversion operation. The third instance was the ■settlement of reparations at Lausanne. Thesd events from 1932 pointed the wav to the chief tasks of 1933. He did not expect agreement this year as to what should bo the world’s permanent monetary system. They must expect the countries which lire! gone off goM to remnjn on a provisional and tentative svstem for some years; and this year they would do better to con--c/'-f-ate on securing; an increase of prices to an agreed level by the aid of monetary policy. Tf there were definite agreement and a determined willingness to co-operate on the part of the r-uicipal financl-d cruntries tli& methods could certainly he found The simple t of all would be to instruct an international institution (such as the Rank' of International Settlements) to isme a limited number of notes which would be accepted as gold

by all 1 the participating countries. If a “world poli’y of controlled reflation” could bo achieved, whether by this or an. alternative method, every proolom with which they were faced .would he lightened. Enterprise would be stimulated; the burden of debts would be lightened; the dangers of wholesale bankruptcy and default which were throat-eii'ing the whole credit system would ho reduced.