THE BENEFITS OF DEVALUATION

Press, Volume LXXII, Issue 21908, 8 October 1936, Page 11

THE BENEFITS OF DEVALUATION

Chancellor Hopes For World Prosperity

DANGERS OF ECONOMIC

Nationalism

(UNITED PRESS ASSOCIATION—COPYRIGHT.)

(Received October 7, 7.50 p.m.)

LONDON, October 7,

The Chancellor of the Exchequer (Mr Neville* Chamberlain), at a bankers’ dinner, expressed the hope that a new era of world trade and prosperity would follow the removal of quotas and exchange control. Such a development, he said, should be the next step to devaluation of gold bloc currencies. Sterling would remain free, but in the end we would come back to an international monetary standard on the only basis giving general confidence —a system based on the free exchange of gold.

,jMr Chamberlain said rearmament expenditure had not gone far enough to affect Britain’s trade revival, although it had upset the estimates, but even without this impetus the country’s trade continued to expand. International trade was also showing signs of revival, and progress was being helped by the growing realisation that economic nationalism could be carried to extravagant and harmful lengths.

AMERICA’S CURRENCY POLICY

PROTECTING DOMESTIC VALUES

PRESIDENT’S POWER TO DEVALUE

October 7, 7.30 p.m.)

WASHINGTON, October 6,

Mr Roosevelt indicated in an interview to-day that if he is reelected he will ask Congress to extend his legal power, to devalue curtency, which normally expires on January 30, 1937. Mr Roosevelt said the primary purpose of the American currency policy was to protect domestic values, for which reason emergency powers should be invested in the Government to prevent the destruction of domestic values through the unexpected action of other nations.

The inference is drawn from the reference to an emergency that Mr Roosevelt is not contemplating further devaluation under existing conditions.

GERMANY NOT EXPECTED TO DEVALUE MARK

POSSIBLE INTRODUCTION OF EXPORT CURRENCY

(Received October 7, 5.5 p.m.)

BERLIN, October 6,

Share prices rose because of increasing nervousness about the future of the currency. Well-in-formed circles, however, believe that devaluation is not imminent but the creation of an export mark, which would be exclusively for use abroad for the purchase of German goods, is considered more likely.

ITALIAN BOURSES TO REOPEN

(Received October 7, 5.5 p.m.)

ROME, October 6. The bourses will reopen tomorrow. s