PROSPERITY’S KEY

Dominion, Volume 24, Issue 188, 7 May 1931, Page 9

PROSPERITY’S KEY

Cost of Manufacturing Must Come Down

ADVICE FROM BANKER

By Telegraph—Press Assn. —Copyright

(Rec. May 6, 8 p.m.) London, May 6.

It has become known that Informal discussions took place at the House of Commons between Mr. Montagu Norman, Governor of the Bank of England, and a group of Labour members, who expressed the opinion that the remedy for the depression lies in central banking action, aimed at the restoration of the price level

Mr. Norman is understood to have denied that there is any royal road to prosperity, via currency regulation. He added that banking circles held

that the main hope lies in a reduction in manufacturing costs, not only in the basic industries, but in the more prosperous trades, and particularly In the sheltered industries, which hitherto have resisted the depression. In these costs are included soaring overhead charges and high taxation. . AMERICAN OPINION , Initiative in Individuals NO GROUP MANAGEMENT • Washington, May 5. Breaking a two years’ silence; Mr. Andrew, Mellon, United States Secretary of the Treasury, said on Tuesday that the solution of the present economic distress would be found in individual initiative, and not by “surrendering the management of business and industry to the Government or to any board or group of men.” Mr. Mellon was addressing a luncheon given to foreign bankers. DEBT SETTLEMENT Burden on Gold Deplored BRITISH BANKER’S VIEWS ’ Washington, May 5. Sir Alan Anderson, Director of the Bank of England, before the International Chamber of Commerce on Tuesday, discussing a warning against placing the burden of international settlements on gold, asked if it would not be better to cancel such obligations. The Chinese delegation urged the chamber to bring about an immediate international conference to stabilise the price of silver.' Dr. W. H. Coates, the British financial expert, asked 'the chamber to support proposals for establishing a gold standard in China, and to assist ' in bringing about the change. Dr. Coates said that attempts to improve the silver standard or bring about a stabilisation of the value of silver were clearly condemned to failure. lie said that the .movement away from silver as a monetary metal was still in progress, and was reducing the demand for ore, while the supply was increasing.