CURRENCY MATTERS

Hokitika Guardian, 22 June 1933, Page 5

CURRENCY MATTERS

■ AT CONFERENCE STATEMENT BY MR CHAMBERLAIN (British Official IF/YeicssJ 11UGBY, June 20. Mr Chamberlain, speaKing to , the suo-eoniinitiee cf die monetary commission, wiiich is considering immediate for dealing with wor-d trade, retailed timfc since. ’Uctober, 1929, wholesale commodity prices, expressed in gold, had declined onetnird, and raw material prices 50 to 60 per cent. So long as traders tiiougiit prices were going to be stiil worse, they would not embark on business operations, therefore any action which had a flavour of deflation on the part of the Central Banks would be extremely injurious. “Tire intentions of the banks should be- stated,” he said “so that all the world may know tlieir purpose, and the policy they intend to pursue. Cheap money by itself does not constitute a remeuy for all the evils inflicting the world, but it is an indis- j pensable back-ground for economic recovery. Dear money, or, even in the present conditions, moderately dear money is a handicap to world recovery. I want to emphasise the extreme desirability for co-ordination of the credit policy for the leading central banks. If the banks pursue policies which lead in the opposite direction, or even if. they adopt diffeieirt methods in trying to achieve the same end, we shall not secure what- we want.”

He advised that Governments should 6 ee that the central banks had the powers required to preserve an open credit policy. The second monetary sub-commis-sion adopted unanimously the first two points in the United States’ resolution, that stability of the national monetary field should be attained as quickly as possible, and that gold should be re-established as an international measure of exchange values.

The conditions proposed by Lord Hailsliain, that each country should be able to determine the time and parity at which it should return to the gold standard were also accepted. The sub-committee to deal with the silver question; over which Mr Pittman will preside, was also appointed.

PROBLEM OF STABILISATION. LONDON CIRCLES CONCERNED. LONDON, Jnne 20. London conference circles are increasingly concerned over the problem of currency stabilisation. It is hinted that if America should adopt an isolationist policy, Measures may be concerted from the stabilisation of the European currencies. It is significant in this connection that European bankers met yesterday at the Bank of England. The speeches at the second monetary sub-commission were wirelessed. They indicated that leading countries agreed on the desirability of a general ultimate, return to the gold standard, but Lord Hailsham made it clear that Britain would not be rushed. Each country must decide the matter for itself, and choose an opportune moment Possibly in consequence of this, the American delegation this evening issued an explanatory statement, saying: “In returning to a gold exchange basis, there is no attempt to bind any Government as regards what parity it may establish. What we seek is unity of action, based upon a gold standard exchange, supplemented by a more favourable and higher use of silver.” AMERICAN ATTITUDE TO PLANNEW YORK, June 20. The “New York Times’ ” Washington correspondent says: “American participation in any international monetary stabilisation plan to-day seemed more remote than ever. It is felt that progress could be made with other monetary questions, such as exchange restrictions, and other such items, with stabilisation temporarily awaiting the outcome. It is also maintained that all progress must be collateral and interlocking. The U.S. Treasury Department that it had formulated no permanent gold policy, and indicated that until this basic decision is reached, any kind of stabilisation, temporary or permanent, must ho viewed as unwise.

LIFE OF THE CONFERENCE. LONDON, June 20. Mr Hull predicts that the Conference wiil lent thirty cr forty days or more. Ho thinks the situation is normally favourable and prophesies a fair measure of success. Mr Hull took pains to emphasise the American delegations’ absolute unity.