EMPIRE MONEY.

Press, Volume LXVIII, Issue 20623, 12 August 1932, Page 11

EMPIRE MONEY.

rOVCI AT OTTAWA.

B JBIBE TO KAISE WHOLE-

SALE PRICES

STABILITY OF EXCHANGE

_„ ,|SM A3SOCIMIOS-B1 H.KIMO

reived August 11th.. 5.5 p.m.)

■ OTTAWA, August 10. -,, Monetary Sub-Committee's reA wUcb is the Empire's financial jLeement to the world, may, at reading, be regarded as mnoNevertheless it has a tremendous (jW V English aEII Dominion bankers have drawn up a report *!., most mature consideration. \ Neville Chamberlain, Mr S. M. * jj r H. H. Stevens (Canada), and I'.j'g. Coates were among the mem"of the committee which to-day jjjjd n pon a policy. This represents TaJmoßt that Britain can say or do. particularly India, take t e view that the Ottawa Conference awidhiw g° ne B]i s htl y iariheT in in " gating » flxed P olicj ' for at least a «r a seDSe ° f stabilit:r- ---* jeport of the sub-committee, as adopted by the main Committee, is as fallow— . (1) It is desirable to raise tne general tad of wholesale prices. - ,« The best plan would be by the toTonly by international action. K) The monetary factor was not «]na responsible for the fall in prices Orttr factors, including political, had «T effect, notablv reparations, which «i being dealt with elsewhere, but Ml beyond the scope of Ottawa. (4) The British Commonwealth aatttary policy should be on sound jißtt, toward raising price levels by 'aw interest rates, and a plentiful supplt of short-term money. This should i»t take the form of financing public ttptaditnre, but should be directed totart stimulating industry and reviving reaJdenee in business. (5) Efforts should be made to stabil- ;« exchange between the various countries. , . (6) The committee refrains from promoting any machinery for this purpose, tatmerely suggests that there should be eo-operation between the countries. (7) It also advocates international coeaeration to this end. (8) The stability of international exStages can best be obtained by a mettllie bate to currency. While some a the experts on tho sub-committee lire expressed definite views on gold u the only sound base, the report refrains from expressing an opinion on this robject, in view of the World EcoÜBiie Conference which is being held shortly. Mr Stanley Bruce and Mr J. G. Coates etenpied the greater part of tie day on the Cumscy Committee. Therefore, no tune wtt ipent in contact with the Britiifc delegates, but negotiations are being reirantd to-morrow with the prospee* «f *b early agreement. Mr Bruce sn&tatfally approves of the Currency Committee's declaration in the com{alatton of which Mr Phillips, UnderSecretary for the British Treasury, Mr tokosch, Sir George Schuster (FinanU Adviser to the Viceroy of India), ad Mr Melville played a prominent jirt. The main committee on monetary jtßey, in adopting the sub-committee's njort, decided, that before publication, He report should be submitted to tho kads of delegations on Friday. It is unlikely that the introductory lgeeehes of the Dominion's leaders at it first Currency Committee's session iH be published simultaneously with lit report, because it might divert atttatkm from the importance of the UtSal findings, which represent the Emfin's financial policy, as formulated at Qtitwa.

Commercial Eolations. Ike committee on commercial rela^

tins with foreign countries met for the fait time and elected Mr H. N. Havenga (fSftoth Africa) chairman. It appointed »tab-committee for a detailed examination first, of the relation of inter-Im-|sial preferences to trade with foreign entries; second, the interpretation of tie most-favoured nation clauses, partittlariy with reference to the developWBt of regional preferences and systems of import quotas. The sub-committee on economic co-

tperation prepared a statement outlinag the various Imperial organisations *fieh were now functioning with a to Ailing gaps. This committee's »wk will not be completed at Ottawa. It will prepare a series of reports for &• respeeSve Governments on which «Mh may act individually.

Canada's Case. Angle-Canadian experts together throughout 4he day were discussing de- , *8» «£ Canada's case. Both parties abandoned the apparently unsatisfactory method of attempting to evaluate the r wp*etfo« figures, and they are now diseasing item by item and exploring the whefe poifioa. It is unlikely that c «°*4i wHi; reply to Britain's mSmo- **»&■, bnt the desired result is exPeetod to be achieved through the a^tooasions. « « officially announced that as a "!■* «t the Canadian Cabinet's re- ?•* «f the reciprocal proposals, to- %« negotiations with the British exr™ «W progressing satisfactorily. It * Rggetted that the serious discrepan- *>*» between the British and Canadian *l»e» were due to the fact that the "wistieians worked on different years. J* •» pointed out as an example that J****'" mi imports were 500,000,000 SK?» "npared with 1930 imports of "JJM.OOO dollars. **• «poke«man stated that there is i ?9w nor hint of a split, or threatrerigaations from the Canadian 7*Mt Everything is proceeding harSfWly. The spokesman deprecated J? P»Mished report that it is a one- ?* whilst, and that Mr Bennett J** eventually overide any rebelg* colleagues. The emphasis on the J***| lather reveals the true position, (JjL/* i» expected that Canada's diffifl^fLjffl resolve themselves speedily. WUiada will be in line with the 2» Dominions, whose negotiations l2*»t Britain are reaching the Thus the progress of the has not been materially imDeadlock Causes Anxiety. "Montreal Gaz-„ fiSj-T «a editorial headed, "Grave >t Ottawa," says: "The imjCL™ attributable largely to Mr jq2j£™« disposition to run the GovijJJSJ* *« a one-man show, and his *»'aJ n t 0 *PP J y the same "Methods as he has 'followed of domestic affairs. The <SfSf J* * n wouß, and unless reme- . 1" v*aference will close with the

two Empire units mostly concerned, namely, Canada and Great Britain, sharing only in its lesser achievements. As far as the other Dominions and Colonies are concerned, the negotiations are sufficiently advanced to ensure a successful issue. Canada now stands more than ever at the parting of the.ways," American Story Denied. The New York newspapers repeat the absurd story that the British Government has offered to guarantee the £500,000,000 Australian 3J per cent, conversion loan in London, replacing the existing overseas debt, provided Australia is willing to concede what tariff concessions Great Britain desires. The "Herald-Tribune" says Australia would gain £7,500,000 annually under this offer. Mr S. M. Bruce says the story is absolutely without foundation. No such suggestion was made at Ottawa. EFFECT ON WORLD MARKETS. AIM AT HIGHER PRICES.

(Received August 11th, 9.30 p.m.) OTTAWA, August 11. The decision as ascertained to-night from a source of the highest authority, will probably have immediate effect on the world's markets. Although the dominion delegates consider that Great Britain might have agreed to a firmer declaration that her policy of the past few months would be a stable policy, say, for the next twelve months, it is <onsidered in Dominion circles that the mere statement backed by the British Government that prices should rise is in itself sufficient to make prices rise. The report means that Great Britain says "We will do everything possible to foster and stimulate better prices. We are determined that prices shall lise and we shall take drastic measures to defeat the depression." The bare official announcement from Ottawa that the Empire is determined on lusher prices will have a stimulating effect.

No Mention of Empire Bank. The British representatives are convinced that the present agreed statement will have an immense psychological effect. There is no mention of an Empire bank, no mention of a London clearing house for Dominion trade balances, and no specific steps for the stabilisation of the exchange. Britain, as the leader of the world's finance, now says: "Our financial position is steadily improving. Money is cheap, therefore there is no need for radical action." The publication of the report is expected immediately to improve prices all round. It is anticipated that the stock markets will instantly Tespond, reflecting the new wave of confidence and resulting in higher commodity prices.

FALL IN PRICES.

CONDITIONS IN BRITAIN.

PROFITEERING ALLEGED.

OTTAWA, August 10.

Mr E. J. Hogan (ex-Labour Premier of Victoria), interviewed, said his investigations in London had convinced him that a revival of profiteering was one of the principal causes of the British peoplo's present. inability to buy Australian goods. Illustrating this contention, he pointed out that British distributors and traders were making larger profats r.ow than ever previously. The cost ot living in Great Britain was 43 per cent, higher now than before the war, although wholesale prices of commodities in Great Britain were 7 per cent, lower than before the war, showing a roaring of 50 per cent. Australian producers were selling v-heat 33 per cent, lower, butter a./ pei cent, lower, mutton 23 per cent, lower, lamb 11 per cent, lower, apples 52 per cent, lower, and wool 12.4 1 per cent, lower than in July, 1914, but the consumers were not getting the benefit of this fall in-prices. In the seven years 1922-29 Australian imports from, and interest payments to Great Britain were £3,000,000,000 more than Australia received for her exports to Great Britain. He added that British bondholders had made no sacrifice to help Australia A reduction in interest charges payable to Great Britain was necessary to Australia, and also a drastic reduction in distributors' and retailers' profits. These were economic necessities to both Great Britain and Australia, in order to increase consumption and make trade flourish again, replacing the preset condition of economic stagnation which the Ottawa Conference was striving to relieve.

EMPIRE FRUIT.

DISCUSSION AT OTTAWA.

BONUS ON EXPORTS CONSIDERED.

(Received August 11th, 7 p.m.)

OTTAWA, August 10.

The Canadian Horticulutral Council gave a luncheon to the Empire fruit exports. Never before was there such a representative gathering of Empire producers and such an unusual opportunity of comparing notes to mutual advantage. Messrs Osborne and Mills (Australia) and Messrs H. E. Napier and F. Hamilton (New Zealand) were among those present. The following subjects, which had been under consideration by the various Empire fruit interests, were discussed: — (1) A bonus on exports. (2) The artificial advantage of the exchange rate, to some sections of the Empire. . .. (3) The advisability of uniform packages. .. (4) The desirability of adopting an Empire trade mark. (5) The development of trade between the various sections of the Empire. . . (6) Co-operation on advertising. It was suggested that the creation of an Empire fruit federation would be of considerable advantage in furthering these objects. A sub-committee was formed with instructions to consider how such a federation could be brought into being. . It was suggested that an Empire Conference should be held in 1933 at some Dominion capital. It was mentioned that Australia had already approached the Dominions with a view to holding the first conference in the Commonwealth, therefore, if the suggestion is approved, the conference probably will be held at Melbourne.