CONTROL OF EXCHANGE

Rotorua Morning Post, Volume 2, Issue 238, 28 May 1932, Page 5

CONTROL OF EXCHANGE

W7 ^Brltish Ofilclal Wlreless)

equalisatjon fund return to gold standard. not contemplated at present debate in commons

RUGBY, Thursday, The Finance Bill proposals to esablish a £150,000,000 exchange qualisation account was elosely deated in the House of Commons at ie comnxittee stage of the Bill last ight. The purpose of the proposed acDunt is to enable the Treasury to xeek and control cux'rency fluctuaons. Provision is made for the Treasury ' wind up the account when it conVNprs suclx a course expedient, and \bre is a proviso that in any event it \to be wound up not later than six \nths after the date on which last rfir's Act suspending the gold standd ceases to have effect. Several members resisted this pro;o, protesting that it contemplated return to the gold standard. Major W. E. Elliott (Finanoial Sectary of the Treasury) gave an asrance that the Government had no tention whatever of going back to e gold standard; at any rate, while >ld pxices were behaving as at prent. In further speeches it was sug>pted that the proviso was unnecssary as the remainder of the clause ive the Treasury all the powers they >quired, and Sir Robert Horne (Con■rvativo, Hillhead, Glasgow, and a >rmer Chancellor of the Exchequer) iid the proviso gave the false imression that the intention was to reirn to gold at the old parity. He slced the Government to reconsider ie whole question in the light of \e debate. Major Elliot said he could not dis»gard the appeal from a former hancellor of the Exchequer, and he xve the undertaking desired.