CURRENCY REPORT

Evening Post, Volume CXIV, Issue 38, 13 August 1932, Page 10

CURRENCY REPORT

MR. BRUCE'S OPINION

(Heeeived 13th August, 2 p.m.)

OTTAWA, 12th August. Mr.' Stanley "Bruce sees importance in tbe currency report dealing with the British Government's declaration on the rise of price levels as peing essential. Britain, in effect, says that existing conditions regarding cheap money are the best contribution she can make, towards increasing prices, and her policy during the past three months has been deliberately designed in this direction. Mr. Bruce instances the 4 per cent, bank rate reduction, the conversion loan; and the Bank of England's policy of expansion by.buying securities, thus getting more money available;-.

/It is a pretty satisfactory declaration," said Mr. Bruce. "My "views are well known, and it can be interpreted that Britain will continue her present' pokejv^lt is a good starting contribution and means much to ' Australia, which is faced with the position that she practically cannot pay her debts, and only the recent good seasons have pulled her through. "Continued policy low interest rates have a special significance for Australia, because it gives her a chance of converting her securities shortly falling due." Mr. Bruce considers that Mr. Neville Chamberlain has gone a step further than during . his May speech in the House of Crfmmons. The report also Tcmoves any apprehension that Britain is likely to plunge back to the_ gold standard before the conditions which necessitated her departure therefrom are remedied.