RAISING PRICE LEVELS

Greymouth Evening Star, 13 August 1932, Page 7

RAISING PRICE LEVELS

OTTAWA POLICY OUTLINED CURRENCY REPORT [BY CABLE —PRESS ASSN. —COPYRIGHT.]

(Recd. August 13, 11.30 a.m.) OTTAWA, August 12.

The heads of the delegations adopted the Currency Committee’s report, and authorised the publication of the report, which says:— Firstly, the world-wide rise in the generaj levels of wholesale prices is in the highest degree desirable. The evil of falling prices must be attacked by the Government and' individual action in all cases, whether political, economic, financial or monetary. Secondly, the Governments represented at Ottawa record the conviction that international action is urgently necessary. They announce a desire to co-operate with other nations, in any practicable measures for raising wholesale prices. Thirdly: Investigating how to help to raise prices. The conference recognises that Britain’s central position, not only among Empire countries, but in world-trade finance, makes Britain a main factor in anything that can be done. • ■ i

Fourthly: The Conference recommends that the British Commonwealth should act in conformity in line with the policy indicated ixf Mr Chamberlain’s statement (see below) as far as lies in their power. The primary line of action in the monetary sphere towards the rise in prices should be the creation and maintenance —within limits of sound finance —of such conditions as assist the revival of enterprise and trade. These conditions include low rates of interest abundance of short term money, and rate of interest on all various types loans should be kept as low as financial conditions permit. It is necessary a,t the same time that these favourable monetary conditions should be achieved, not by inflationary creation of additional means of payment to finance public expenditure, but by orderly monetary policy,' safeguarded, if necessity should arise, by such steps as will restrain and circumscribe the scope of violent speculative movements of commodities ox* securities. It must be remembered that the success of such policy would be hampered, and might be nullified by the failure to modify ox* remove important non-monetary obstacles, many of which are international in character, and require international remedy. The British commonwealth should, nevertheless, take all the steps in its power to increase public confidence, especially in the field of business enterprise, and to facilitate trade. Fifthly: The Conference recognises the great importance to traders of the exchange stability in as wide an area as possible. A complete solution to this problem must aw’ait restoration for a satisfactory working international, standard. Meanwhile, pending, such solution, ’ the Conference considered the possibility of achieving valuable results in two directions; first, creating an area of stability among the countries regulating theix* currencies in relation to sterling; secondly, avoiding wide day-to-day fluctuations, between sterling and gold.

MR CHAMBERLAIN’S STATEMENT.

The Conference therefore welcomes the following statement made by Mr Chamberlain: —“His Majesty’s Government desires to see the wholesale sterling prices rise. The best condition for this would be a rise in gold prices. The absence of a rise in gold prices inevitably imposes limitations on what can be done for sterling. A rise in prices cannot be effected by monetary action alone, since various other factors which have combined to bring about the depression must also be modified or removed before the remedy is assured. The British Government, nevertheless, recognises that an ample supply of short term money at low rates may have a valuable influence. The Government is confident that the efforts which have successfully brought about the present favourable monetary conditions can, and will, unless unforeseen difficulties arise, be continued.”

OFFICIAL SPOKESMAN’S REVIEW

OTTAWA, August 12.

The British delegation had long dis' missions with the delegations of Canada, Australia, India and South Africi and pushed the work a stage further. The British delegates also met the Rhodesian delegates. The British delegates later consulted their own industrial advisers. There have been further long consultations between British and Canadian officials, and British and Australian officials.

The spokesman of the Conference emphasised that negotiations were proceeding as quickly as was practicable, and said there still was an optimistic spirit and a good chance of a satisfactory agreement all round. The holding of a plenary session on Thurs. day next does not necessarily complete the Conference’s work, but it is hoped then to dispose of the greater part of it. The delegates' concerned, will certainly remain in Ottawa until the task is completed. There is . a strong probability that the -decisions will, be embodied in a multilateral agreement, thus, as far as possible, tying them up together in one harmon(ious whole. This is an Imperial Conference, not a series of individual conferences.

An American correspondent asked; How can the promotion of Empire Trade help the outside world? The spokesman replied blandly: “Wait and see!”

Questibned regarding Russia, the Spokesman said that the Dominions’ anti-dumping proposals were receiving very earnest consideration. The decision thereon would form part of the final agreement. He predicted that the general tenor of the agreement would be published immediately after the Conference’s endorsement. He said no major agreements have yet been concluded.

Britain, as a mark of gratitude for Canada’s lavish hospitality, is entertaining the members of the Canadian Cabinet and their wives at dinner on August JS, and subsequently giving a party and a dance to which everybody associated with the Conference will be invited.

AUSTRALIA—N.-Z. NEGOTIATIONS.

OTTAWA, August 11. The official announcement made to-day that the Conference would probably close on August 18, came as a surprise to the Domxinoß delegates. They, despite holding l°ps conversations with the British Ministers, have not yet succeeded in obtaining any definite indication of an ultimate decision regarding any commodity, although there is a hopeful tone throughout the proceedings. It-is considered that dairy produce and fruit will offer difficulty. The most ticklish problem is meat, on which Mi* Bruce and Mi* Coates are taking up an unswerving stand. It has bCen emphasised to Britain that a restriction on the foreign meat im ports, plus a small duty, represents the Dominions’ minimum requirement, foi* an agreement to which the Dominions are prepared to give an adequate return.

It is known that both Australia and New Zealand could conclude their negotiations with Britain in half an hour, if Britain would declare herself, but her decisions necessarily are being postponed, pending a speeding up of her xiegotiations with Canada.

The generally accepted view is, now that the Conference closing date is an. nounced, that Britain.will be prepared to make concessions sufficient to satisfy the Dominions, who, nevertheless, are anxiously awaiting the moment when they will learn the extent to which their desires are to be fulfilled. - \

BRITISH LABOUR PROTEST.

OTTAWA, August 11.

The Labour advisers to the British Delegation, Messrs Bromley and Citrine, have handed to Mi* S. Baldwin, a lettex* in which they express their regret that the Economic Conference in stead of fulfilling the high hopes of friendly and mutual reciprocity, has descended to the realm of sordid bargaining, with a grave danger that the British consumer will pay the penalty. This document is regarded as political propaganda. The Labourites are taking an early move to protest against possible food taxes.

FILMS QUOTA.

OTTAWA, August 11. A sub-committee has been formed to considex* fi|ms and wireless sets. The Conference spokesman admitted that there is a possibility of the Ottawa Conference imposing a quota on foreign films. AUSTRALIAN APPROVAL. SYDNEY, August 12. The proposals adopted by the Currency Committee at the Ottawa Conference are generally approved by Australian financial, commercial and political circles, the opinion being that they form a sound basis of policy for the guidance of British Empire legislatures. ,