CURRENCY CONTROVERSY

Greymouth Evening Star, 4 July 1933, Page 5

CURRENCY CONTROVERSY

MR. ROOSEVELT’S OBJECTIVE “PERMANENT STABILISATION” [BY CABLE —PRESS ASSN. —COPYRIGHT.] (Received July 4, 9.30 a.m.) LONDON, July 3. Senator Hull issued Mr. Roosevelt’s statement as follows: — “I would regard it as a catastrophe, amounting to a world tragedy, if the Conference called to bring permanent financial stability and greater prosperity, should, before a serious effort to consider this problem, allow itself to be diverted by proposals purely artificial and temporary, affecting the monetary exchange of only a few nations. Such diversity shows a singular, lack of proportion, and failure to remember the large purposes, for which the Conference assembled. “Our broad purpose is permanent stabilisation of every nation’s currency. America seeks a kind of dollai - which a generation hence will have the same purchasing debt-paying power, as the dollar value we hope to attain in the near . future. That objective means more to the good of other nations than a fixed ratio for a month or two, in terms of the pound or franc. ' ' ■ •

“Gold, or gold and silver, can well continue to be the metallic reserve behind currencies, but this is not the time to dissipate old reserves. The temporary fixing of exchanges will not. answer the restoration of world trade. We must rather mitgate existing embargoes.

PRESIDENT’S GENERALITIES. [OFFICIAL WIRELESS.] RUGBY, July 3. Issuing Mr Roosevelt’s communication, setting forth the position of the United States Government relative to the suggested international currency measure proposals, Mr Hull explained that he was making it public in his capacity as Secretary of State, not as Chairman of the American delegation. The delegation, at no time, had jurisdiction on this subject, which was clearly a Treasury matter, Mr Roosevelt’s communication concluded: “The Conference was called to better and, perhaps, cure fundamental economic ills. It must not be diverted from that effort.”

After pointing out that the conference has been called to bring about more real and permanent financial stability and greater prosperity to the masses of all nations, he said: “I do not relish the thought that insistence on such action should be made an excuse for the continuance of basic economic errors that underlie so much of the present world depression. The world will not long be lulled by the specious fallacy of achieving temporary and probably artificial stability in foreign exchanges on the part of a few large countries only. A sound international economic system of nation is a greater factor in its well-being than the price of its currency, in the changing terms of currencies of other nations. It is for this reason that the reduced cost of government, adequate Government income, and the ability to service Government debts are all so important to ultimate stab- ( ility. The too-old fetishes of the socalled international bankers are being replaced by efforts to place national currencies with the objective of giving to those currencies the continuing purchasing power, which does not greatly vary in terms of commodities, and the need of modern civilisation.

DOMINIONS AND CREDIT LONDON, July 3. The Sun Service understands that Mr. MacDonald, at the Empire delegations’ meeting, assured the Dominions that while France remains on gold, Britain would prevent the franc appreciating against sterling. This partly concedes the Dominions’ requests, but in view of the sparing dollar, fails to meet the Dominions’ desire that Britain adopt a dramatic policy of credit expansion. The Dominions will continue to press Mr. MacDonald.

MR. MACDONALD’S EFFORT. (Received July 4, 11.30 a.m.) LONDON, July 3. ’ Mr. MacDonald spent the day trying to save the Conference. Everybody, except himself, desires its termination, but nobody has the courage to take the initiative. The European gold countries are particularly incensed at Mr. Roosevelt’s statement, and are. considering abandoning the Conference to the other Powers. Meanwhile there is a deadlock, one committee adjourning sine die, and the others until July 7. MR THOMAS’S COMMENTS. LONDON, July 3. Mr J. H. Thomas, speaking at the Canadian Dominion Day dinner, in the presence of the Prince of W ales, several members of the Cabinet, Mr Bennett and Mr Forbes, referred to the critical situation of the World Conference, and added: “We received to-day the cruellest rebuff ever delivered by a responsible statesman, but I am’ still optimistic.” At the Empire Chamber of Commerce Congress luncheon, Mr Thomas, referring to the World Conference declined to believe it dare fail, because civilisation itself was at stake. ’ If the 'Conference disappointed the toiling masses of the world, nobody could blame them if these masses turned to a revolutionary course.

BRITISH DECLARATION. LONDON. July 2. The “Telegraph” says it learns that Britain is issuing a declaration simultaneously with that of. the Gold Bloc, asserting her determination “to defend our currencies at any cost.” Tho British declaration emphasises, firstly, the undesirability of States entering into a currency competition in order to acquire a temporary advantage in international trade. Secondly, it says what is needed is the regulating of currencies to smooth out. as far as resources permit, the fluctuation of exchange due to speculative influences.

STOCK EXCHANGE QUOTATIONS. [BRITISH OFFICIAL WIRELESS.] RUGBY, July 3. Stock market business was limited, pending a clearer currency outlook,

but the undertone was fairly good. Firmness was displayed in certain industrials, South - African mining shares, and oils. Gilt edgeds. where changed, were easier. War Loan 3-s per cent. £9B/17/6. There was a sharp break in the sterling-dollar quotation this morning. The dollar slumped to 448 X, but recovered later to 4431. TARIFF. TRUCE. LONDON, July 3. New Zealand has agreed to adhere to the Conference tariff truce.