MONEY PROBLEMS

Gisborne Times, Volume LXXII, Issue 11539, 19 June 1931, Page 5

MONEY PROBLEMS

SENSATIONAL REPORT NEARLY READY ‘ / ~ BANK OF ENGLAND’S AIETIIODS

CONDEAINED 1

(U.I’.A. by Elec. Tol. Couxriafit' (Recoived Juno 18, 9..5 p.m.) , ; LONDON,. Juno 18. ’ The Daily Herald lobbyist, V" says: The report of the McMillan cbnimittee on ‘‘Finance and Commerce”, wliich was, appointed in 1929, .will be presented to . the Government this week.-;;; ...- . .......... .

, m The writer forecasts that there will be majority reports severally 'criticising, the .Bank , of. England’s policy during the trade depression and suggesting that the. bank at present could materially improve trade . by making credit, more 'easily available and by increasing: the amount 'of money Circulating. This policy should be carried out. in eo-opora-tion with the Central Reserve Bank of America, Bank .of France, and other great central banks. •- The report does, not advocate wage and salary reductions as a practical remedy for tho firade .crisis, which is! diametrically opposed to the view expressed by Dr. Sproule, in an ad-,di-ess to, the Statistical Society, and in which lie declared that the central bankers are of opinion that they can do nothing for trade until drastic cuts iu wages and salaries are' affected.

The report is likely to .create, a sensation, as the Bank of England’s policy will.'be openly condemned by a committee, including some of the greatest financial exports in Britain.

There will also be minority reports, one of which will .propose Protection and the establishment of a National Investment Loard to issue both short .and long term loans' to industry.