FISCAL POLICY.

Ashburton Guardian, Volume 53, Issue 15, 28 October 1932, Page 5

FISCAL POLICY.

ECONOMIST'S OBJECTION. EFFORT TO OBTAIN FREER TRADE. [United Press Association—Copyright) LONDON, October 26. Sir Walter Layton, the distinguished economist, has written to the Prime Minister (Mr Ramsay MacDonald) resigning from the Parliamentary Committee" of the World Economic Conference.

Sir Walter's letter explains that in a recent interview with Mr Neville Chamberlain (Chancellor of the Exchequer) he found some of the views of the Government and himself so different that he could not fully represent it on the committee.

Sir Walter Layton said he found that the Government believed that reasonable freedom of trade could be restored through international negotiations with foreign countries, within the limits of. the Ottawa agreements, and subject to a strict insistence on most-favoured-nation rights. Tn Sir Walter's opinion that would have little effect on the protectionist system of the world. What was wanted was that Britain, whose attitude would be almost the decisive factor, should press for plans on much bolder and broader lines in co-operation with low tariff countries and with those to whom the restoration of foreign trade was all important. The Prime Minister wrote regretting Sir Walter Layton's resignation, saying that he hoped for Sir Walter's assistance as his known divergence of aims, so far from hindering the Government, would really have helped them. Sir Walter had misinterpreted the Government's attitude. "The main difference between us," said Mr MacDonald, is our varying estimates of securing progress on the lines you favour, which depends on the policy of other countries as ,well as on our own." Ho expressed hope for Sir Walter Layton's assistance as the Conference developed on any points which he had well considered.