“COMPLETE SUCCESS”

Greymouth Evening Star, 12 August 1932, Page 7

“COMPLETE SUCCESS”

CLAIMED FOR OTTAWA BRITISH OFFICIAL SURVEY [BY CABLI& —PRESS ASSN. —COPYRIGHT.! (Recd. August 12, 1 p.m. OTTAWA, August 11. The British spokesman attended the Press interview, and’ gave a much more elaborate survey of the conference than hitherto. It is regarded as the most important announcement since the conference opened. He stated that the British delegation expects such progress as to make it possible to hold a plenary session next Thursday, at which the preferential agreements between Britain and the Dominions will be signed and sealed. There-is every indication that the conference, which is progressing satisfactorily, will be a complete success, in which Canada will fully participate. The preference system which Britain initiated last year, has definitely come to stay, and will be widely expanded. « It is forecasted’ that there will probably be an enlargement of the Empire Marketing Board, the Dominions contributing to, the cost, in view of the proved value of the Board’s work, particularly agricultural work. One of the duties of the new body will be to keep the ‘Ottawa trade agreement under constant review. It was emphasised that the British delegation is anxious to reach a very good and generous agreement with Canada, not for negative reasons, but for cementing the closer relations .already existing between the two countries. “We fully recognise the position of Canadian industries. It is no part of British policy to do anything prejudicial to the development of secondary industries in Canada, Australia, New Zealand, or any other Dominion, just as the Dominions have no desire to prejudice the development of British agriculture. Britain and Canada have their’ own domestic problems. Each respects and appreciates the other’s problems. Facing the tash in this spirit undoubtedly there will be an amicable agreement.” . Replying to an American correspondent, he emphasised that Ottawa is not aimed against foreign countries. It is a British Empire effort to get. together to survive the world depression, and it is hoped to open fresh channels of trade, which will give a helpful lead’ to the whole world. He indicated that no recommendations would be made at Ottawa to the World Monetary Conference, nor will there be any official link, but the Ottawa resolutions will naturally have an important bearing on the forthcoming international discussions.

CANADIAN CONCESSIONS [OFFICIAL WIRELESS.] RUGBY, August 11. Further conversations between the British and Canadian .delegates created a cheerful atmosphere at Ottawa. The examination by experts led among other things to a substantial amendment in the Canadian- proposals regarding British iron and steel products, and it now 'is understood that British producers are likely to receive approximately eighty per cent, of the privileges asked from Canada, while in the other directions also it is believed Canadians will find themselves able to make a substantial advance on the original offer, without seriously jeopardising the interests of their own producers. Mr. Thomas, Mr. Baldwin, and Mr. Chamberlain have booked passages homeward at the end of next week, but Sir P. Cunliffe-Lister will’ make a Canadian tour. Lord Hailsham will visit Calgary before returning to England. ' FREE TRADE PRESS COMMENT LONDON, August 11. The “Manchester Guardian,” in a leader, says: Ottawa is a sad disillusionment to those who took the opening speeches seriously. Britain was driven into a huckstering spirit against her will. Impcirial sentiment is all very well, but it does nat transcend economic interests. It is impossible to reconcile protectionism and economic nationalism with freer world trade.

CURRENCY REPORT.

-OTTAWA, August 10.

Regarding the currency report, the British representatives on the committee were convinced that the present agreed statement will have an immense psychological effect. There is no mention of an Empire Bank. There is no mention either, of any London clearing house for the Dominion trade balance. No specific steps for the stabilisation of the exchange are mentioned. Britain, as being the leader of the world’s finance, now says: “Our financial position is steadily improving. Money is cheap. Therefore, there is no need for any radical action.”

The publication of the report is expected immediately to improve prices all round. It is anticipated that the stock markets will instantly respond, reflecting a wave of confidence, resulting in higher commodity prices. The report, which is the Empire’s financial pronouncement to the world, may, at first reading; be regarded as innocuous. Nevertheless, it has a tremendous import. English and Dominion bankers and economists have drawn up this report, after most mature consideration. Messrs Chamberlain, Stevens, Bruce and Coates were among the members of the committee which to-day agreed upon the policy mentioned. This represents the utmost that Britain can say, or do. The Dominions, and particularly India, take the view that the Ottaw’a Conference should have gone slightly further, by indicating a fixed policy for at least one year, thus giving some sense of stability.

EMPIRE SUPER-CENTRAL BANK.

OTTAWA, August 11

Mr Darling, a director of the Midland Bank, gave a luncheon to journalists, and outlined his scheme of Imperial co-operative credit. He urged “a “merger” between the pound sterling and the Canadian dollar as tho first step of bringing the whole Empire currencies together. He advocated creating a super-Central Em-

pire bank, with a credit of a hundred million sterling. This credit woujd be created by each Empire Government undertaking to repay,—in gold at old parity and bearing interest, say 3 per cent.—its share of the credit. Government obligations would take the form of treasury bonds, ultimately, payable in gold. It was unlikely . that they would be called for, but would thus have the force and value of gold security. The credit balances thus created would be used to settle balances of payments between the British Empire countries, and as a basis for local curencies, thus being considered as equivalent to gold. Mr Darling again emphasised his belief in the re-monetisation of silver as the most effective way of raising world prices. The profits of the super-Central bank could be used in the first instance to purchase silver, with this objective. Only 117 million ounces of silver were required to restore the; fineness and increase the weight of Empire silver coinages to those of the Indian rupee at its present sterling equivalent, eighteenpence.

Mr Darling’s definite aim is the establishment of international bimetallism using more silvei' as money. He used as an illustration that millions of Indian women were carrying all their savings on their persons in the form of bangles, ear-rings, trinkets, and ornaments. They would purchase more goods if sliver were given a new value. He said’: “The credit system is not now functioning, but dt is not through lack of credit. It is through lack ( of security on which to lend.”

‘ ’ Mr. Darling said he had not read the conference’s currency report, but his effort to secure a new world-wide publicity for his well-known views at this juncture was obviously made because he was aware the Conference experts have not agreed upon the idea of an Empire bank, and have not mentioned silver.

Mr. Hayenga took the view that South Africa, at present, was wedded to the gold standard, and the Central Bank was unacceptable because it might be construed as conflicting with the Dominion prerogative and powers as self-governing units.

It would not be surprising, however, if the Empire Bank proposal were yet included in the report before it is issued to-morrow.

EMPIRE MARKETING.

OTTAWA, August 11.

The question whether the Dominions should bear a proportion of ,the cost of the Empire Marketing Board, was discussed at a meeting of the sub-com-mittee on economic co-operation. The view was expressed that tlie Board had done excellent work. Its objective of facilitating the development of marketing of Empire goods in Britain had attained a gratifying measure of success. The Dominion representatives unanimously agreed that the work should be continued. Delegates expressed the view that Britain should not be asked 1 to bear the whole cost. The Dominion Governments might take over a share, making annual contributions.

Canada has made considerable progress in negotiating trade agreements with India, and South Africa. A revision of the treaty with Australia is nearing completion, and slight modifications in the New Zealand treaty are still being discussed.

FRUIT-GROWERS’ PROPOSALS.

OTTAWA, August 10. '

The Canadian Horticultural Council gave a luncheon to the Empire Fruit experts and never before was there such a representative gathering of Empire producers, and so unique an opportunity of comparing notes to mutual advantage. Mr Osborne Mills (Australia) and Mr Napier Hamilton (New Zealand), were among those present. .

Subjects which have been under consideration by various Empire fruit interests were discussed. The first was that of paying fruit growers bonuses on their exports of fruit; secondly there was the artificial advantage of the exchange to some sections of the Empire; thirdly, the advisability of uniform packages; fourth, the desirability of adopting an Empire trade between various- sections of the Empire; sixth, co-opera-tion in advertising. It was suggested ?that the creation of an Empire Fruit Federation'would be of considerable advantage in furthering these objects. A sub-com-mittee was formed,. with instructions to consider how such a federation could be brought into being. It was suggested that an Empire conference be held in 1933 at some Dominion capital. It was mentioned that Australia had already approached the Dominions with a view to holding the first conference in the Comnjonwealth. Therefore, if the' suggestion is approved a conference will probably be held at Melbourne'.