MONETARY POLICY

Hawke's Bay Tribune, Volume XXIII, Issue 75, 10 March 1933, Page 8

MONETARY POLICY

RAISING OF STERLING PRICES. MOTION IN THE COMMONS London, March 9. In the House of Commons Mr S. S. Haminersley submitted a motion demanding that the Government, without awaiting international consideration of gold prices, give effect to a whole-hearted policy for raising sterling prices. The Rt. Hon. L. C. M. S. Amery, m seconding the motion, said that the Government at Ottawa missed a great opportunity of linking Empire fiscal policy with Empire monetary policy. He appealed for bold encouragement, promising new industries Government assistance.

Mr Neville Chamberlain, replying, said that an Empire monetary policy wa s not practical politics. It would mean that the Dominions would have to accept Britain's control of the value of sterling. Mr Chamberlain said that sterling prices remained remarkably steady though the gold prices of the United States had fallen 20 per cent., France and Italy 12, and Germany 16, which, he thought, showed that Britain’s monetary policy had countered the effect of world forces. Our foreign trade had halved m the last few years The idea that this could be replaced by a stimulus to Home trade was doomed to disappointment if the taxpayers’ money was used to subsidise selected industries would not other countries ti'jke steps to counteract it? The hard fact was that Britain could not prosper while the whole world was depressed. The International Conference agenda contained most of the problems which must be solved before world prosperity was attainable.

Mr Hammersley’s motion was carried by 128 votes to 35.