EASED CURRENCY.

Auckland Star, Volume LXVII, Issue 238, 8 October 1936, Page 7

EASED CURRENCY.

CHANCELLOR SPEAKS.

"Like Cracking Ice to a

Polar Explorer."

EFFECT OF FLUCTUATIONS. British Official Wireless. (Received 2 p.m.) RUGBY, October 7. The Chancellor of the Exchequer, Mr. Neville Chamberlain, in a speech at a dinner given by the Lord Mayor of London, said there was some indication of an improvement in export trading during the 12 months, due to more prosperous conditions in countries which were formerly good customers of Britain. The step taken by the French Government and the assurances given by the British and United States Governments that readjustment is not to be followed by any deliberate depreciation of pound sterling or dollar was like cracking ice at the approach of a warmer season to a Polar explorer whose ship liad been frozen for many months into immobility. Sterling was still free. It was not linked to gold or any other currency. There was no alteration in the credit policy necessary to preserve the internal prosperity of Britain or of any other country in the British Empire. "We welcome most heartily," he said, "the French announcement of its desire to follow up the reduction in duties and abolition of certain quotas which it has already effected with elaboration of a new Customs tariff, from which quotas will be entirely excluded." He added: "I think it .very unlikely that we are in for any new system of managed currencies, but before we return to gold we must provide security against the violent fluctuations in the value of gold as expressed in terms of commodities which have occasioned so much disturbance in recent years. "If we can do that, and it is a matter for further international co-operation, then I do not see any insuperable difficulties in the way of our ultimately arriving again at a currency system based on gold."