EMPIRE CURRENCY

Dominion, Volume 25, Issue 94, 15 January 1932, Page 11

EMPIRE CURRENCY

Imperial Monetary System MEMO. FOR CONFERENCE London, January 13. A memorandum for the Ottawa Conference by the Empire Chambers of Commerce recommends a uniform Imperial monetary system. It points out that, though most of the Empire countries are off the gold standard, they are obliged to depress prices by currency contraction in order to. compete in the world markets. The Only group of nations sufficiently powerful and self-contained to stop the present progressive deflation is the British Empire. It would be essential that while the Empire countries are expanding tlielr currencies, raising prices to, a profitable level, they should insulate themselves from the competition of outside nations which continue their deflationary course. Central banks under a uniform Imperial system could collaborate, enabling equilibration by mutual balance of payments, substituting this for suicidal competition. A national Is preferable to an international system, the most modern ■' procedure being central banking practice with the rediscounting of commercial bills as a backing for currency. The memorandum advocates the constitution of an Imperial general economic staff, and favours an Empire preferential column appearing in every Empire country’s tariff, and a schedule of bilateral agreements covering special concessions. '