BRITISH FINANCE BILL

Hawera Star, Volume LI, 28 May 1932, Page 5

BRITISH FINANCE BILL

AMENDMENT NEGATIVED. SILVER RESTORATION PLAN. (United Press Association —By Electric Telegraph Copyright.) LONDON, May 26. An amendment to the Finance Bill to permit silver as well as gold to be bought by the exchange equalisation fund was moved in the House of Commons last night by Mr. L. C. M. S. Amery (Con.). He said this would not commit the Government to any farreaching scheme of bimetallism. The value of silver had been halved, with disastorus effects in the East, Mr. Amery said, and a correction of the violent fluctuations would immensely improve trade with China and India. Only ten per cent, of the fund would be needed to buy the world’s silver production for the present year and to restore the price to the same as in 1928. Mr. Amery added it was calculated that by 1941 there would be a shortage in the annual gold supply to the extent of £45,000,000 below requirements. Opposing the amendment, the Home Secretary (Sir Herbert Samuel) said the United States wanted silver currency because that country produced three-quarters of the world’s supply. Mr. Amery’s scheme would not work. The Minister of Health (Sir Hilton Young), replying, said the subject would need to be discussed at an Imperial conference before Britain attempted stabilisation of its currency. Mr. Amery desired to withdraw his amendment, but the opposition challenged. for a division and later allowed it to be negatived without a division. The Financial Secretary of the Treasury (Major W‘. E. Elliott) pointed out that the Treasury had power to wind up the exchange equalisation account at any time it might consider such a course expedient. The provision in the Bill for the establishing of the account enabled the Treasury to borrow up to £150,060,000 to prevent the danger of a sudden violent fluctuation in the exchange value of sterling. Major Elliot said that il Britain returned to metallic currency the Government would, of course, wind up the account, but the Government had no intention whatever of going back to gold, at any rate while gold prices were behaving as at present.