WORLD EXCHANGE

Ashburton Guardian, Volume 53, Issue 212, 20 June 1933, Page 5

WORLD EXCHANGE

THE LINKING OF CURRENCIES.

LEVEL NOT YET INDICATED.

ENGLISH BANK'S OPINION

(United Press Association—Copyright) LONDON, June 19.

The monthly review of the Westminster Bank expressed the opinion that it is too early yet to suggest at what level the pound can be linked either to gold or to other currencies, even on the assumption, which remains to be proved, that other countries will be willing to sacrifice their national interests and co-operate in maintaining the free working of an international standard of exchange.

RESOLUTION BY MR PITTMAN.

RE-ESTABLISHING OF GOLD.

(Received This Day, 12.15 p.m.)

LONDON, June 19. Senator Pittman submitted to a subcommittee, a draft resolution on stability, in fayour-of nations assuming an obligation to. rapidly bring about, stability by re-establishing-" the, gold standard, confining gold to covering circulation : - and settling international balances, v This will entail the withdrawal of gold coin and bullion from circulation and the establishment of a legal minimum of gold cover, also re-monetisation of silver.

In an interview, Mr Pittman said that his resolution meant that Governments would employ gold as a measuring a-od for international exchange. Countries that adopted a gold reserve to secure their currency might carry part thereof in silver. Mr Couzens (United States) said that as a novice in international politics, he was acting as a human sponge. What he absorbed seemed to indicate that the nations had not suffered sufficiently to meet; complete humility. They must lie humbler before hoping to reach an agreement. Unfortunately, most nations were "cocky" about nationalism and thought they could "paddle their own canoes." Howevei the Conference, resulted, the American delegates must soon decide between a nationalist and an internationalist policy.

AMERICAN OFFER TO JAPAN.

OTTAWA AGREEMENTS OPPOSED.

LONDON, June' 19

The "Daily Express" understands that 'the United States , has opened negotiations with Japan with a view to stabilising the dollar and the yen, of which 100 are now worth 25 dollars. The A mei 'i caiis are offering stabilisation at 26 or 27 dollars.

However, it is understood that this remarkable piece of generosity bears the condition that Japan shall join forces with the United States in oppo sition to the Ottawa Agreements.

At present Japanese, goods are flooding the United States, which prefers Japanese goods to be dumped to those of the British Empire.

DECISION TO BE DEFERRED.

PENDING AMERICAN'S ARRIVAL

(Received This Day, 11.4 Q a.m.) LONDON, June 19.

It is announced from Washington that Professor Molley, who is President Hoover's personal adviser, on economics, will leave for London on Wednesday. Pending his arrival it is anticipated that decision regarding the proposed temporary currency stabilisation, will be postponed.—British Official Wii' e l ess -" " "'•'' -

ESSENTIALS FOR SUCCESS.

ACCOM) WITH ECONOMIC FACT

LONDON, June 17. ' The city editor of "The Times" says that immediate legal stabilisation of currencies in terms of sold is out or the question, but it is understood that an agreement tn keep British. French and American exchanges within certain limits mav be possible if, among other things, an American equalisation fund is established to assist control of the dollar. A "temporary experimental period of so-called 1 elastic stabilisation Is possible, but success must depend on whether the stabilisation figures accord with commercial and economic facts. A satisfactory preliminary agreement by these three countries would enable the Monetary and Economic Confer once to tackle the ouestion of exchange stabilisation "and removal of exchange restrictions on a broad frout. Until this point is settled restoration of international trade is out cf the question.