CURRENCY CONTROL PLAN

Hawera Star, Volume LI, 27 May 1932, Page 7

CURRENCY CONTROL PLAN

LATE edition

ACCOUNT FOR £ 150,000.000 POWERS FOR FINAL CLOSURE PROVISO IN BILL OPPOSED. RECONSIDER ATI ON PROMISED. (British Official Wireless.) Received 12.50 n.m. to-da.y. lUIGBY, May 26. The Finance Bill proposals to establish £150,000,000 on an exchange equalisation account were closely debated in the Houise of Commons in the committee stage of the Bill last night. The purpose of the proposed account is to enable the Treasury to check and control currency fluctuations. Provision is made for the Treasury to wind tip the account when it considers such a course is expedient and there is a proviso that, in any event, it would be wound up not later than six months after the date on which last year’s. Act suspending the gold standard ceases to have effect-. Several members resisted the proviso protesting that it contemplated a return to the gold standard. Major W. E. Elliot gave an assurance that the Government had no intention whatever of going back to gold, at any rate while gold prices were behaving as at present. In further speeches it was suggested

the proviso was unnecessary as a remaining clause gave the Treasury all the powers required. Sir Robert Horne said the proviso gave the impression that the intention was to return to gold at the old parity. He asked the Government to reconsider the whole question in the light of the debate. Major Elliot said he could not disregard an appeal from a former Chancellor .of the Exchequer and he gave the undertaking desired.