EMPIRE MONETARY POLICY

Dominion, Volume 25, Issue 274, 15 August 1932, Page 8

EMPIRE MONETARY POLICY

Mnf much is added to the original cabled summary of the Currency rnmmitteT’sreport to the Imperial Economic Conference in the fuller statement of to findings published this morning. ' The report has been Adopted bjthe Conference but there is no hint of any move to apply it by actual measures or the creation of machinery. y P P tWS K iSSSvXmers had hoped that an attempt would be made to form and consolidate a sterling group, by .defining the relative exchange values of other Empire currencies to sterling. The inference, however, has contented itself with a general statement of X wide enough to include the “very * «Sd at Ottawa. It seems clear that some if not all of the delegates a not wish to bind themselves too closely. They have the Internationa Conference in view and are subordinating the immediate occasion < °“T XXS"ion in monetary measures ;£ sents the ideal. ‘ Nevertheless the Ottawa Conference might well have seized the opportunity to translate its deliberations into more concrete form; such conclusions to remain tentative and provisional pen result or lack of result, at London. As matters stand the Empire does not go much beyond adopting a policy to make money and credit cheao and plentiful. Important as is that decision, it cannot be over looked that? Great Britain, the. dominant financial partner, has already adopted that policy and put it into force. One point in the report deserves particular emphasis in Lew Zealand. It considers the policy of cheap and plentiful money shou d be applied on sound lines. Its application should not take the form of “inflationary creation of additional means of payment to. finance nublic expenditure, but should be directed toward stimulating industry and reviving confidence in business.” In the light of this the New Zealand Government should consider its budgetary policy, which involves leaning on the banks to an abnormal extent. n P r^ se ” circumstances this may be financially justifiable, but only if definite limits of time and amount of accommodation are set.