LEGATES REPORT

Rotorua Morning Post, Volume 2, Issue 596, 29 July 1933, Page 5

LEGATES REPORT

■^jtjsh Official Wireless)

IiILISATION OF PRICES Wm SOUND LINES I ADVANCED I, r.OLD STANDARD

9 . Rugby, July 29. ■r.pire delegates to the World ■fconference have embodied Kpjn a lengthy report in the Kfffhich they say: — ■ ondersigned delegations are Bjced that the Ottawa agree■wdy have had beneficial ef- ■ . jjjany branches of interK trade, and that the process Kf0 continue, as the purchasWL 0f the various countries I jncreases. R andersigned delegation reconviction that the lower■jemoval of barriers between Rjtries of the Empire provided 1% Ottawa agreements will not Ejlitate the flow of goods beKeni, but will stimulate the ■-of the trade of the world. Ke monetary sphere the prim1. 0f action towards a rise in ■tras stated to be the creation tfenance, within the limits of Kance, of such conditions as ■j'arevival 0f enterprise and ■jjcluding low rates of interest ftabundanee of short term ijjnflationary condition of adIJaieans of payment to finance ijjpenditure. was deprecated ■idei'ly monetary policy deli with safeguards to limit the |0'f violent speculative moveIdf commodities and securities.

Raising Prices ».;e then the policy of the Brit9'jinionwealth has been directed «ag prices. Sfthe last few months the perRadherence of the United KingH the policy of cheap and plen■joney has been increasingly e£H under the more favourable ■j'jns created for the time being Bliange of policy in the United Rand by the halt in the fall of ■;rices. Be undersigned delegations are Baion that the views they exBat Ottawa as to the necessity Biise in the price level, still hold land it is of the greatest im|ce that a rise which has begun |j continue. Ky price level will be. satisfacKiich will restore normal activl:) jndustry and employment, ■iensures an eeononiie return to ■froducer of primary commodi■ar,d which harmonises the burIfldebts and fixed charges with Baie capacity. Ifay, therefore, consider that the laments of the British Comliealth should persist by all rneans prpower. whether monetary climie, and within the limits of H finance, in the policy of furpg the rise in wholesale prices Iftere is evidence that the equillaks been re-established. liiith reference to the proposal ISiiad been made for the expanI of Government programmes of laloutlay, the British Commontl delegation consider this is a Cer which niust be dealt witb by e Government in the light of its p experience and its own condi-

9 The Gold' Standard 1'Ite delegations now reaffirm the I; that the ultimate aim of the lary policy should be the restorl of a satisfactory international ti standard under wbich interna-llco-operation would be secured ■maintained with a view to avoidissfar as practicable fluctuations lie purchasing power of gold. I'The problem with which the world l.'aced is to reconcile the stability lucliange rates with a reasonable Isare of stability, not merely in K price level of a particular counI;. but in world prices. I'An international stability of expge rates is facilitated by the fact b the Government of the United pgdora has no commitments to othicoantries as regards the future of piing, and retains complete freepin this respect. "Among: the faetors working for teconomic recovery of the coun3 of the Commonwealth, special Tortanco attaches to the decline in - rate of interest on long term