CURRENCY STABILISATION MOVE

Dominion, Volume 26, Issue 220, 13 June 1933, Page 9

CURRENCY STABILISATION MOVE

Bankers Meet British Treasury Officials j

PRELUDE TO WORLD CONFERENCE “Gentlemen’s Agreement” Considered Likely By Telegraph—Press Assn.—Copyright (Received June 12, 7 p.m.) London, June 12. The political correspondent of the “Daily Mail” says that considerable headway has been made at meetings of Treasury officials and Mr. Montagu Norman, governor of the Bank of England; Mr. Harrison, of the United States Federal Reserve Bank; and M. Moret, of the Bank of France. An early announcement is expected to be made in regard to the temporary stabilisation of currencies. M. Moret pressed for Britain’s return to gold, but the Government insisted that must be preceded by a settlement of war debts, the redistribution of gold, and the abolition of exchange restrictions. Nevertheless, Britain was ready to accept temporary stabilisation proposals in order'to avert failure of currency stabilisation. The bankers discussed the possibility of constituting a joint British-French-American equalisation fund, otherwise France and America should separately establish funds on the British model. It should then be relatively easy to stabilise currency. A gentleman’s agreement is considered most likely.

The discussions between the Treasury and the bankers, who were assisted by expert advisers, began on Saturday and continued throughout Sunday, says a “Sun” representative. It is reported that they are endeavouring to reach a temporary stabilisation truce of the pound in relation to the dollar, and the franc in relation to the pound, and, If successful, to submit a fait ttccompll at the opening of the conference.

Yesterday’s comings and goings at No. 10 Downing Street were surrounded with secrecy. Some of the Ministers were hastily summoned to No. 10 in the evening, following a dispatch from Washington. Sir John Simon, who was recuperating at Le Touquet. was recalled, and returned by special aeroplane, and went immediately to No. 10.

EVE OF CONFERENCE Consequences' of Failure STABILISATION IMPERATIVE - London, June 11. On the eve of the World Economic Conference newspaper comment stresses the difficulties, but indicates that the world situation Is so grave and the consequence of failure so disastrous that the nations will be driven to finding at least a partial solution of currency and trade problems. Thus Sir Arthur Salter, in an article in “The .Time?,” declares that success means the ' turning of the tide, a revival all over the world, and a diminution of economic nationalism, whereas failure would Involve indefinite postponement. The conference, he says, must first face the question of currency and monetary policy, because tariff negotiations are impossible except in relation to provisionally stabilised exchanges, while the task of adjusting indebtedness of all kinds is only measurable when jt Is known how far monetary policy is to be directed to raising the price level. No exchange stabilisation can last, however, unless based on a reformed tariff system and a normally working credit system. America’s depreciation of the dollar has made stabilisation more Imperative.

According to the “Dispatch,” several foreigners under the leadership of America, supported by Germany and Japan, will vigorously attempt to kill the Ottawa Agreements in order again to undersell Britain in Empire markets.

The Russians are desirous of raising industrial loans.

The “Sunday Times” says that Germany will urge that industrial States exchange manufactures for raw materials with undeveloped countries, which is interpreted as an attempt to regain her colonies.

Italy Is optimistic, and will press for reduced tariffs, trade quotas, the return to gold of. the dollar and sterling area of currencies at the highest possible rate. The Geneva Labour Conference urges the World Conference to undertake international action in the interests of thirty million unemployed. “The Times,” in a leader, says: “The Conference must not be allowed to fail. It must see the world on the way to recovery, if nations are not to lose all faith in the capacity of their statesmen. The difficulties are not insuperable. The responsibility of the delegates is clear and inescapable. With goodwill and de-

termination they should certainly discharge it." The invasion of London by the delegates continued yesterday, many arriving by air. Herr Dollfuss, of Austria, travelled by his own aeroplane, with a Fascist bodyguard, and was greeted by Count Ciano and other Italians at Croydon airport. DAILY SITTINGS Procedure Not Yet Settled • uncial Wireless Rugby, June 10. It Is anticipated that the World Economic Conference, which opens on Monday afternoon, will sit daily thereafter from about 11 o’clock in the morning till 6 In the evening. The procedure at the Conference still remains to be definitely settled, but it is thought probable that any suggestions brought forward during the second reading debate will be examined and collated by the Conference secretariat, and resolutions to be laid before the Conference will be framed accordingly. On the basis of : the preliminary agenda, prepared by the Committee of Experts, the Conference is likely to set up two or three fairly large commissions after the second reading debate. They will have their own sub-commit-tees to consider details of the large problems remitted to the Commissioners, but every effort is being made to avoid cumbersome machinery and to facilitate rapid work by the Conference in order to release for their duties in their own countries the eminent statesmen who are serving as delegates to the Conference. GENERAL SMUTS ARRIVES Official Wireless. Rugby, June 10. General. Smuts, the South African Minister of Justice, who has flown by the Imperial Airways route from theCape, reached the Croydon airport this morning, to attend the Conference. HIS MAJESTY’S SPEECH Unsuitable Hour for N.Z. WORLD-WIDE RADIO EVENT Reports received by short-wave radio listeners in Wellington during the last few days are to the effect that his Majesty’s opening speech at the Economic Conference would be treated as an event of the first importance in wireless circles in many parts of the world. The King was reported to speak at a very early hour this morning by New Zealand time. On account of' the inconvenience of the time no attempt was made to relay the address in New Zealand. As the King speaks his remarks will be recorded by the Blattnerphone process, and his recording will be transmitted on short-wave some hours later by the British Broadcasting Corporation. The New Zealand Broadcasting Board has arranged to receive this transmission, and his Majesty’s voice should be beard in Wellington at about 5.45 p.m. this evening. Short-wave stations in many parts of the world were preparing for the King's speech last evening. One Wellington listener said it was probable that at least 60 short-wave stations would be working on the opening ceremony of the Economic Conference. Although New Zealand listeners would be solely short-wave enthusiasts, the prospects were that the transmission from the world conference would constitute one of the most elaborate “link-ups” yet attempted.