BANKS AND BUSINESS
POLICY TOWARD INDUSTRY
EVIDENCE OF EXPERTS
United Press Association—By Electric Telo-
graph—Copyright.
(Received 18th November, 9 a.m.) LONDON, 17th November.
The Bank of England is always silent, and its Governor, Mr. Montague Norman, is its sphinx. Yet some of the motives actuating the bank's policy, idiscussed in Mr. Norman's evidence before the MacMillan Committee, are now published for
the first time. la his evidence Mr. Norman declared his faith in rationalisation, and spoke of the necessity of tho marriage of financo and industry. Ho did not argue that the fluctuation of the bank rato had any serious internal effect, and discounted tho theory that an increase in credit would result in an increase in employment, except over a long period. Asked how far the bank was infree agent, he replied:'"lt is free as far as the legislative position goes, but it is not free as far as the international position is concerned. The whole international machinery is bound together, and ■ necessarily works as a whole." INDUSTRY'S ILL-LUCK. He did not believe, he said, that the unfortunate position of industry was due to finance, except insofar as finance was dependent on certain international liaisons from which it could not and should not detach itself. It was the long period of mischance which had disheartened industry. Ho did not think the fall in prices of raw material aggravated the economic position. ■Ht expressed the opinion that an increased volume of credit by buying securities would affect industry over a long period, but not over a short period. He was not sure that there was any certain relation between the fluctuations in the volume of credit and the fluctuations of employment. There might be, and there might not be. SIB OTTO'S OPINION. Among other witnesses, Sir Otto Niemeyer was inclined to think that joint stock banks on occasion went too far in the direction of participation in industry. '■ Sir Ernest Harvey, Deputy-Governor of the Bank of England, said that the bank must be free from political pressure. It was not the duty of a central bank to enter into ordinary banking business associated with trado and commerce.
Sir Josiah; Stamp did not see : why the Bank of International Settlements should not deal with all kinds of .international problems. V
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Bibliographic details
Evening Post, Volume CXII, Issue 121, 18 November 1931, Page 9
Word Count
379BANKS AND BUSINESS Evening Post, Volume CXII, Issue 121, 18 November 1931, Page 9
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