BANK ACCUSED.

Auckland Star, Volume LXII, Issue 143, 19 June 1931, Page 7

BANK ACCUSED.

POLICY IN ENGLAND. 9 Reported Condemnation by Experts. OFFICIAL DENIAL. ) (United P.A.—Electric Telegraph—Copyright) (Received 1 p.m.) ' i LONDON, June 18. 3 The Parliamentary correspondent: , of the "Daily Herald" says the report , of Lord MacMillan's Committee on i Finance and Commerce, which was i appointed in November, 1929, will be I presented to the Government this I week. The writer forecasts that there will bo a majority report severely criticising the . Bank of England's policy during the i trade depression, and suggesting that the bank at present could materially . improve trade by making credit more , easily available and by increasing the • amount of money circulating. This policy should be carried out in ' co-operation with the Central Reserve I Bank of America, the Bank of France and the other great central banks. The report, says the correspondent, does not advocate a reduction in wages and salaries as a practical remedy for the trade crisis, which is diametrically opposed to the -.view expressed by Dr. Sprague, economic adviser to the Bank ' of England, in an address to the Statintical Society, in which he said the central bankers are of the opinion that they can do nothing for trade until drastic cuts in wages and salaries are effected. The report is likely to create a sensation, as the Bank of England's policy will be openly condemned by the com--1 mittee, which includes some of the greatest financial experts in Britain. There will also be minority reports, ono of which will propose protection and the establishment of a National Investment Board to issue both short and long-term loans to industry. : Lord MacMillan has officially issued a statement declaring that the "Daily Herald's" forecast of the Finance and Industry Committee's report is entirely unauthorised, and is a complete travesty of its contents. The committee hopes to present its report next week. The terms'of reference of the Committee of Inquhry into .Finance and Industry were stated in the House of Commons on November 4, 1929, by the Chancellor of the Exchequer, Mr. P. Snowden. They were "to inquire into banking, finance and credit, paying regard to the factors both internal and international which govern their operation, and to make recommendations calculated to enable these agencies to promote the development of trade and commerce and the employment of labour." The members .were Mr. H. P. (now Lord) MacMillan (chairman), Sir Thomas Allen, Mr. Ernest Bevin, Lord Bradbury, Mr. R. H. Brand, Professor T..E. Gregory. Mr. J. M. Keynee, Mr. Lennox Lee, Mr. Cecil Lnbbock," Mr: :KeginMd' McKenna, Mr. J.--T. Walton-Newbold, Sir Walter Kaine, Mr. J. Frater Taylor and Mr. A. A. G. Tulloch.