WORLD DEPRESSION

Greymouth Evening Star, 7 May 1931, Page 7

WORLD DEPRESSION

• C ■ y-! . BANK GOVERNOR’S OPINIQN. ' [BY CABLE —PRESS ASSN. —COPYBIGHT.] —’ ■ 1 LONDON, May 6. It has become known that informal discussions occurred at the House of Commons between Mr. Norman (Governor of the Bank of England) and a group of Labour members, who expressed the opinion that the remedy for the depression lies in central bank-. ing action, aimed at the restoration of price levels. Mr. Norman is understood to have denied that there was any royal road to prosperity by way of currency regulation. He said that banking circles held the opinion that the main hope lies in a reduction in manufacturing costs, not only in the basic industries, but in the more-prOsperous trades, particularly in the sheltered industries, which had hitherto resisted the depression. In these costs were to be included, soaring overhead charges and high taxation.

STATE TRADING A FAILURE.

WASHINGTON, May 6. The Australian Press Association interviewed Mr. Watts, who stated that of the several inferences concerning tho world-wide depression contained in . the address by delegates to the International Chamber of Commerce during tho past two -days, he had been most <_\ interested from the Australian point of view in the wadely-emphasised expression of the belief that the .Governmental operation of utilities in trades and business had proved a failure, and in the general agreement that the depression can be most feasibly counteracted through primary initiative on the z . part of business interests themselves. Government co-operation, though necessary, should be held to be of secondary importance. It is believed that relief lies not in the domain of political action, for where legislative programmes for the cure of economic ills have been undertaken, State Socialism, with failure immeasurably worse, has been the result, since Governments cannot effectively suspend the operation of economic laws. Mr. Watts held that such opinions, had been proved logical by repeated failures in the field of price regulation, and most recently by/the almost complete breakdown of economic condi--tions in Australia and New Zealand, where Governmental ownership and operation had the most universal application. “Government co-operation is imperative,” he said, “but leadership must come from business.” ■ GOLD SUPPLIES 1 LONDON, May 6. ' In a written reply to Mr. Lambert’s question, Mr. Pethick Lawrence gives details of the world’s gold holdings, firstly in December 1929, secondly in April 1931, thirdly the proportion to currency • United 'States 880.3 millions—969 millions—lll.l per cent. France 335.1 —447.7 —72. Germany 115.1 —115.1—63.7. Italy 56.1—57.4—35.9. Britain 147.7—146.3—41.8. ,