LONDON FUNDS.

Auckland Star, Volume LXX, Issue 139, 15 June 1939, Page 15

LONDON FUNDS.

DEPLETED BALANCES.

VIEWS OF BUSINESS MEN.

EXTERNAL LOAN SUGGESTED,

\ (in..iM suggestions for dealing with London bank balances a meeting of the council ( liamber of Commerce tlii- iik>rni nir in ~ report which urged tin 1 of an external loan to ease tin- |ni-f-sinthat, t lircntened to result imminent maturity of large f'"i"li"i I*'-< m~, to finance defence ptir-po-cf. and to in servicing essential I lie removal of arbitrnry limits on fie1 11 wj( interest rates was urged, also stimulation of exports, and the regulation of tlie volume of imports by con- '• nnd rationing of exchange by the banks.

Present System. I I lie report, pointi-d out that regulaof the kind had worked effectivelv "llier occasion-*, and it was considered that, should further regulations tie net-cm ry, in place of the pre"in'iiiiH and cmti j*7 i< *;i tod system the Government should determine the amount, of sterling funds a\ailalde for imports. Should the figure entail a rediietiiui. then it. wim suggested that a procedure could be applied whereby the lio\eiiimcnt could announce four separate pel . entases of reductions to be "I'l'lied by each linn to its own imports. |„uted on the total imports of the firm during a previous standard period of at least 12 months, so that the following four categories of increasing rates of reduction would obtain:--! nifed Kingdom goods, other Hriti-h goods. Bonds from most favoured nations, and other goods. It was contended that that would give import houses a certain amount of elasticity as between different commodities, and also between different countries as Kiiurces of supply. It was contended that reduction of import* indicated bv the means mentioned would have the effect, of stimulating manufacturing industries. It was felt that any protection afforded manufacturing "industries should come as the result of a carefully considered (Jovernment plan for the fostering of secondary industries and that it was not advisable that the position caused by the temporarv shortage of London funds should be "used as a basis of protection which, if used as a means of protection, if considered advisable, should be expressed by means of a Customs tariff, as the Ottawa agreement was still in force.

Re-planning Business. The report «uggeatvrl that in order to facilitate re-planning ..f business the terms of award* sTioiml T>e tor a substantially longer |>eriod than twelve months. there should lie an increase in the flexibility of hours and conditions in industrial employment, and approval should be expressed of the (»<ivemment's policy in encouraging the transfer of workers from public works to private productive em plo v men t. It whh stated that u ropy ,»f the report hud been sent to the Prime Minister, the Right Hon. M. J. Savage, but bo iar no reply had been received.