POINTS IN DEBATE

Evening Post, Volume CXV, Issue 105, 6 May 1933, Page 13

POINTS IN DEBATE

CRITICISM IN COMMONS

XONDON, May 4. Continuing his speech- on tho exchange equalisation resolution, Mr. ' Chanibcrlaiu said the question of profit or loss from tho Equalisation Fund did not arise till the fund was finally 1 wound up. A valuation of the i'uud recently made showed that'if wound yp it would balance on tho right side, which showed the skill with 'which the ' operations had been conducted, but the , House must not fall into the error of thinking the question of profit or loss j was the ono object to bo kept in mind. 1 The object was to prevent exchange I moving rapidly either up or down. i These operations had been conducted during tho whole year without loss to i the Exchequer. The House ought there--1 fore to trust the Government to deal with tho larger sum now -sought. ■ Sir Stafford Cripps (Lab.) said ho presumed it was proposed to increase the fund in order to counteract the floating money which had been going about the world since currencies went ■off gold, thereby injuring national currencies. Mr. Chamberlain might have taxed this undesirable capital. America having followed France in paying ofl: gold bonds in paper currency,, it was hopeless to think of returning to a system which, though primarily intended to pay international debts by transhipment of -metal,.had now become a question of hoarding. The '.use of the additional £.200,000,000 would bring no inflation to industry; it might have, been more advantageously used for the benefit of tho people. Sir Herbert Samuel (Lib.) said that they seemed to be going into an uncharted sea. It was preposterous to vpto £200,000,000 to help ..America keep up,her new currency. Sho might tako-au opposite course, establishing a stabilisation fund for tho purpose- of keeping down the dollar as part of the policy inflation. Mr. Chamberlain: I stated emphatically that there was "no intention of using tho fund to support, the dollar. Sir. Arthur Samuel: It was to bo used to iron out inequalities of the dollar. Nobody can control exchanges, toio only way to set commerce going is by lowering tariffs with an undertaking by Franco and America to make the gold standard work. Mr. Chamberlain, replying, admitted that it was anomalous that this was the only fund on which information wns not given to the. Public Accounts Committee. The Governjiiepit was]

quite willing to do so if the information stopped there, and did not reach the whole world, but tho principal object was to counteract speculation, and tho publication of the state "of tho fund iit different times would only furnish the speculate' with valuable information.