AN EMPIRE BANK.

Press, Volume LXVIII, Issue 20624, 13 August 1932, Page 15

AN EMPIRE BANK.

FINANCIER'S PROPOSAL.

IMPERIAL CQ.OPEBATIVE CREDIT THE AIM. OTTAWA, August 11.. Mr J. F. Darling (director of the Midland Bank, an advocate of an Im-1 perial currency, and author of the plan for the employment of tho Rex as a new money to unify the Empire) to-day gave a luncheon to journalists,-to whom lie outlined a scheme for Imperial cc~ operativo credit. He urged a "morger" between the pound sterling and the Canadian dollar as the first step toward bringing the whole of the Empire currencies to, pother. He advocated creating a super central Empire Hank, with a credit ul £XOI),OOU,uOi). This credit would be created by each Empire Government undertaking to repay—in gold at the old parity, and bearing interest at, say, 8 per cent. — its share of the credit. Government obligations would take the form of Trodsurv bonds, ultimately payablo in p-old. Tt was. unlikely that they would he called for but would thus have the force and value of gold security. Credit balances thus created would be used to settle the balances of pay. ments between British Empire countries, aud as a basis for local currencies, thus bejng considered as equivalent to gold. Mr Darling again emphasised his belief that tho remouetisatioii of silver was the most affective way of raising world prices. The profits of the super Central Bank could he used in the first instance to purchase silver with this objective. Onlv 117.000,(100 ounces of silver were required to restore the fineness and increase the weight of Empire silver coinages to those of tho Indian nipco at its present sterling equivalent of 18 peure.

Aiming at Bi-Metallisro. Mr iWling's definite aim is the establishment of international bimetallism, "sing more silver ns money. He used as an illustration that millions of Indian women were carrying all their savings on their persons in the form of bangles, oar-rings, trinkets, and ornaments. They would purchase more «onds if silver were givon a new value. Uesnid: "The credit system is not now functioning, but it is not through lack of credit. It is through lack of secunjy on which to lend," Mr Darling said ho had not read the conference's currency report, hut his nffort to secure new world-wide publicity for his well-known views at this juncture was obviously made because he was aware that the conference experts have not agreed upon the idea of an Empire Bank, and have not mentioned silver. Mr N. C Huvenpa. took the view that South Africa'was at present wedded to the gold standard, and a Central Hank was inaceeptahle, because it miaht he construed as conflicting with the Dominions' prerogatives and powers as self-governing units. Tt would not lie surprising, however, if the Empire Bank proposal is yet included in the report before it is issued to-morrow.

BRITAIN AND CANADA.

MORE CHEERFUL ATMOSPHERE, (BRITISU Ol'FlCUt. WIBELKSS.I RUGBY, August 11. Further conversations between the British and Canadian delegations have created a cheerful atmosphere l at Ot' tawa. The examination by the export* has led, among other things, to the substantial amendment of the Canadian proposals regarding British iron and steel products, and it is now understood that the British producers are likely to roeeive approximately 80 per cent, of tho privileges asked from Canada, while in other directions also it is believed the Canadians will find themselves able %q make a substantial advance on their .original offer without seriously jeopardising the interests of their own producers. ~ „. , t> u Mr J. H. Thomas, Mr Stanley Baldwin, and Mr Neville Chamberlain have booked their passages homeward at the end of nest week, but Sir Philip CunU«e*l4«!ter will make 8 Canadian tour; and Lord Hailsham will visit Calgary before returning to England.

A DISIMAJSIONED COMMENTATOR,

BRITAIN DRIVEN TO

HUCKSTER

LONDON, August; U- ' The "Manchester Guardian," in a leading artieJe, Pays: "Ottawa is a sad disillusionment to those who took the opening speeches scriouslv. Great Britain has been driven >ntn a huckstering spirit against her will. Imperial sentiment is all very well hut it does not transcend ceo. nomlc interests. It is impossible to reconcile protectionism and economic nationalism with freer world trade.

A LABOUR REGRET,

FEARS FOR SRJTISH CONSUMER

(Received August 12th, f P-m-)

OTTAWA, August 11

The Labour advisors to the British delegation (Mr J. Bromley and Mr W. Citrine) have handed Mr Baldwin a letter' expressing their 'regret that the Conference, "instead of fulfilling the high hopes of a friendly and mutual rcciprpefty, descended to the realm of sordid Waning, with grave daogw to the British consumer, who vvtU pay the penalty." This document is. re, g'arded. as political propaganda. ihe Labour representatves are talcing an early move to protest agamst possible food taxes.