CURRENCY POLICY

Auckland Star, Volume LVIII, Issue 151, 29 June 1927, Page 7

CURRENCY POLICY

. KEEPING STABILITY. Re-Establishi, ent Of Gold Standard. IMPORTANT NEGOTIATIONS. (British Official Wireless.l UUGBY, June 28. The Chancellor of the Exchequer, Mr. Churchill, in the House of Com mons. in a discussion on the Government's currency policy, said the policy had been the re-establishment of the gold standard and the maintenance as far as possible of the stability of currency and international achange. This policy had carried with it a steady correction in the dispersion of tne prices of various commodities, Xothing was mere important to the well-being of the country than a correct valuation, in terms of menev, of the different forms nf effort. Referring to the Geneva re«o!ut : m and the gold movement which had recently taken place on the initiative of the Bank of France. Mr. Churchill said he agreed that •Wμ.- withdrawals had prejudically affected the money market and the rates at which the Treasury cojld borrow. Co-oj>eration between thr>e heads of , tbo jrreat national banks had increaM-d. \t the present moment the Governor of the Bank of England and the governor or deputy-governor of the Bank of France were travelling to the United States to see the poverror of the Federal Reserve Bank and Ur. Schact. head of the Reirlis-bank, was travelling on the same ship. They would fee for the first time in this intimate matter the hiphe-t tir.ancial authorities of Germany. Fra:icv. Britain and the United Mates in amicable consultation and co-operation. It would l*> premature to say. and hi had no warrant for sayinp. what result* might be cxj>ec;ed from their deliberations.