PREMIER’S VIEWS

Hokitika Guardian, 20 September 1933, Page 5

PREMIER’S VIEWS

N.Z. CENTRAL BANK

AND THE LONDON CONFERENCE (Per Press Association —Copyright). WELLINGTON, Sep. 19. “It i s not very likely that such a gathering of nations will be seen again. The expense and the practical difficulty of getting unanimity among nations with such diverse interests precludes this possibility. The Conference will remain a great experiment, -which, in my judgment, will not be repeated.” With these words the Premier summed up his impressions of the World Economic Conference in an address delivered at the Town Hall to-night. The occasion was a citizens’ reception to the Rt. Hon G. W. Forbes, the Hon R. Masters and members of the New Zealand delegation to the Conference. In spite of inclement weather there was a representative assembly, and speeches by the Prime Minister and Mr Masters which reviewed the events of "the conference, the work of the delegation, ami the economic and trade outlook in Britain, wdjre frequently [punctuated with applause. Reviewing the wol'lc of the conference Mr Forbes said the question of central banking was particularly interesting to New Zealand in view of its legislation to establish a Central Bank in the Dominion, “This discussion was

carried on by leading authorities and representatives of many central banks in other countries. The universal opinion was that the necessity of a central bank as part of the finacial machinery of a country admitted of no argument, and that the unsettled state of currencies and exchanges throughout the world made its lunctions mure than ever necessary. The value of consultation e lit ween central banks

and interchange of information on monetary movements and policy was considered to be very great. The knowledge thus secured by a central bank enabled it to carry out its financial policy with some degree of confidence ,and with a greater chance of success than if it lacked that information. Further co-ordination of central banks was considered essential to monetary stabilisation. Mr Forbes said the conference had been in session for nearly seven weeks and when the' adjournment took place, there been a feeling of disappointment that it had accomplished so little. “It certainly started off with an ambitious programme and high hopes, but when one • considers those matters that had to be dealt with covered the whole field of finance and economics and that an agreement of sixty-four different nations had to bo secured, it is little wonder that it fell short of the expectations of 'its well-wishers. How* ever, the sittings enabled u great deal of useful work ty bo dyne, and afford ed an opportunity of an interchange of views between representatives of various countris. The immediate cause of the breakdown of the conference was inability of the Government of the United States of America to co-operate in any scheme of financial stability. After a visit to that country and hearing at first- hand of the serious internal position, which had come to a head in the early stages of the conference, one could appreciate the stand taken by the President The decline in the exchange value of the dollar had to take second place to an urgent need of improvement of the domestic, situation in the United States and therefore the desire of a European gold block for stabilisation could not be made through forbei of circumstances. Hence the impasse that occurred.”

DAIRY QUOTA PROPOSALS

A REVIEW BY THE PREMIER

Referring to meetings held during the sitting of the conference between representatives of the Dominions and the British Government, Mr Forbes said that, after several lengthy discussions with them, it had been admitted that a quota on butter presented many difficulties, and it was decided to allow it to stand over meantime. The question of a quota on cheese was then pressed. The British Minister of Agriculture, Major Elliot, stated his Government had iust launched a scheme of milk control, which could only be successful if-the market price of cheese were raised from its then low level. Mr Forbes continued :—“We drew attention to the fact that there was'; no increase in the amount of cheese imported into Great Britain, and that, therefore, the low price could not he attributed to a glutted market. We also pointed out that, if cheese imports were restricted, it would cause n change over to butter maufucture to the extent of the surplus quantity of cheese above the quota; and, further, that it would press entirely on New Zealand.

We contended that chees could not be considered anniq from all otliev dairy produce. Tbe Mobster of Agriculture continued. st"e«sin.n- tbe facts that the success of the British milk scheme depended noon the nr ice of cheese. That price bad to be raised, and be su'd onlv a quota restriction would do it. As we were anxious to preserve goodwill, mo sne'gesi'cd that if o-enld he helpful if a yonroson''stive of the farmers could visit Now Zee lend and discuss the matters with the farmers here. 'This invitation was aeeov+nd. and the Nni h ; n.,' Union has arranged for Mr Tin on.ag Baxter to come to the Dominion.”