BRITISH POLICY

Hokitika Guardian, 10 March 1933, Page 5

BRITISH POLICY

FINANCE QUESTION RAISING STERLING PRICES. (United Press Association--By Electric Telegraph—Copyright.) LONDON, March 9. In the House of Commons Sir S- S. Hammersley (Conservative) submitted a motion demanding that the Government, without awaiting lor any international consideration of gold prices, should give effect to a whole-hearted policy of raising sterling prices. Mr Leopold Ame'ry seconded the motion. He said that the Government had at Ottawa, missed a great opportunity of linking an Empire fiscal policy with an Empire monetary policy. He appealed for bold encouragement for promising new industries and for Government assistance also to build a new Cunard liner, and for the electrification of the railways, with help of a subsidy. Mr Chamberlain, Chancellor of the Exchequer,, in replying, said that an Empire monetary policy was “not practical politics.” Such a policy would mean that the Dominion would have to accept Britain’s control of the value of sterling.

Mr Chamberlain said that sterling prices ImdA'emained remarkably steady though| the._golcl. prices in the United States hjld|fallen by twenty per cent., in France and Italy by twelve "'per cent, and in Germany by sixteen per cent. He thought that these iacts show ed that Britain’s monetary policy had countered the effect of world forces. The foreign trade of Britain had been halved during the last few years. The idea, however, that all this fall could be replaced by any stimulus to the Home trade was doomed to be disappointed. If, said Mr Chamberlain,, the taxpayers’ money were to be used to grant subsidies for selected industries, would not other countries take steps to counteract such subsidies? The hard fact was that Britain could not prosper while the whole world was depressed. The International Economic '■■■ Confer-: ence agenda contained most of the problems which must be solved before world prosperity would be attainable. Mr Hammersley’s motion was carried by 128 votes to 25. -

BETTER TONE IN MARKETS.

INTEREST IN U.S. POSITION.

RUGBY, March 8

A better tone was revealed in the London financial markets when the Stock Exchange opened.,, „,Thpre. was a. decided improvement . in sentiment, operators taking a more favourable view of . the United States situation. More interest was* shown in South African mining shares; which showed a small general advance.. The purchase of gold amounting to £3,283,689, which is announced by the Bank of England, has raised the total inflow of gold into England since the beginning of the year to £4,117,991. Dealings in foreign exchange, meantime, are again permitted in all currencies, with the exception of the dollar. On the stock exchange, British funds gained 1-8 to 9-16. War Loan with a minimum of 37i dollars. Those earning less than fifty will take , q twenty-five per cent, cut, with a minimum of fifteen dollars. The cuts are retrospective, starting from March- 6. The studios can no longer exist unless substantial cuts in pay are made, s aid the spokesman for the producers. The studios will remain open pending action by tile employees ‘ regarding the reductions.