EMPIRE MONETARY POLICY

Press, Volume LXIX, Issue 21033, 8 December 1933, Page 18

EMPIRE MONETARY POLICY

SUGGESTED CONFERENCE COMMENT ON PROPOSAL The suggestion that an imperial monetary conference should be called to the stabilisation of the exchanges among Empire countries, made by the Federation of Chambers of Commerce of the British Empire, v/ as commented on by Professor A. H. Tocker and Mr A. F. "Wright, president of the Canterbury Chamber of Commerce, yesterday. Professor Tocker was doubtful whether there was anything to confer about at pre. sent, and Mr Wright remarked th-" divergent views about the exchanj,' problem were held by the primary l ' producing and the importing interests in the chamber. At the World Economic Conference, said Professor Tocker, a joint statement had been issued by the Empire countries about monetary policy. Since then there had been considerable fluctuation of the dollar and some rise in prices, and things looked better. Beyond that, however, it was doubtful whether Australia, New Zealand, Canada, or South Africa were in a position to tie themselves up with a permanent Empire monetary policy. Concerning New Zealand and Australia, it was impossible to say -what the future rate would be. In addition, New Zealand was establishing a reserve bank, and the country was probably not ready to determine a general monetary policy until the bank was in being. A monetary com. mission in Canada had just recommended the establishment of a central reserve bank. A Future Possibility. Professor Tocker did not think England was ready to lay down a definite and permanent monetary policy. Probably in the future the Empire countries would tie themselves to gold again, but at present it would be difficult to determine at what level they would do that. There was no doubt of the desirai bility of stable exchanges between the ' Empire countries, and over a 'wider area, if that was possible. It appeared that such a stabilisation would probably be discussed between. England and America, and something might come out of the discussions. However, there was no immediate danger of unstable currencies within the Empire, and the countries concerned had already affirmed the importance of maintaining stable exchange rates. Mr Wright said that his chamber had adopted a report concerning exchange rates, in which the conflicting interests represented in the chamber had been harmonised. The opinion expressed in this report had been that if the New Zealand exchange rate was to be altered, due notice should be given by the Government, or that any alteration should be gradual, so that the possibility of a dislocation of trade because of the change might b«. obviated.