CURRENCIES OF EUROPE

Ashburton Guardian, Volume 69, Issue 268, 25 August 1949, Page 5

CURRENCIES OF EUROPE

General Revaluation Urged DEBATE IN ASSEMBLY l N.Z.P. A.—Copyright) (Rec. 11.40 aim) PARIS, Aug. 24. Lord Layton, the British representative, speaking on the second day of the European Assembly’s debate on European economy, today urged a general revaluation of European currencies, and pressed for combined action. He said it would be better in the present circumstnces to allow certain currencies to go free for a time to enable them to find a natural level. He did not believe the present currency exchange ratios could long be maintained. Experience had shown that to adjust the economy of a country to exchange rates which were out of scale might mean years of distress and unemplo3'ment. Lord Layton insisted on the, need for immediate political co-operation to make economic collaboration effective.

Mr B. Ohlin (Sweden) urged' the lowering of tariffs and a general revaluation of currency as preliminary steps toward economic unity. M. Felix Gaillard (Francd) urged that European countries should combine with their overseas territories to establish in Africa, Asia and Europe a huge market to be exploited in common after solving political difficulties.

Kassim Gulek (Turkey) said the Assembly should draw up a specific plan for a Customs union and for a European monetary institution. ' Sterling Under British Control Mr Roger Motz (Belgium) said they must be bold and introduce convertibility of European currencies not later than the beginning, of next year. Speaking of the suggestions from the British representatives that Europe should enter into the sterling area, lie argued that sterling came under British Government control with the nationalisation of the Bank of England. That would mean putting the credit of European countries in the hands of Britain. Another proposal would be to place the Bank of England under international European control. “That is possible, but all the possibilities contain dangers, and the only serious method to avoid governmental intervention m currency problems is to relate the pound sterling with golfi. If the pound could return to this basis we might accept it as international currency.

Two resolutions were submitted urgently demanding concrete steps toward economic unity in Europe. Both requested a special session of the _Assembly in January to deal with this issue.. One was backed by Mr' Churchill’s European movement and the other was proposed by the French Socialist, M. Andre Philip.