COMMON ACTION

Manawatu Standard, Volume LIII, Issue 237, 4 September 1933, Page 7

COMMON ACTION

EXTERNAL MONETARY POLICY. UNITED STATES AND BRITAIN. BANK REVIEW’S OPINION. (United Press Association. —By Electric Telegraph.—Copyright.) Received September 4, 8.5 a.m. LONDON, Sept. 3. Discussing the World Conference, the Midland Bank Review says the time has come for considering again whether common action upon tho pound and dollar, brought into practical association by tho co-ordination of external monetary policies, is not the next step to world recovery. If President Roosevelt’s more radical plans of internal policy succeed, it is desirable that the resultant substantial rise in tho prices of primary commodities should bo communicated to the entire block of countries attached to the sterling, and to this end the deliberate regulation from both sides of the sterling and dollar rate is required. Britain and the United States now have identical objectives. The position reached in America is such that British co-operation is possible and may, indeed, be needed to turn the scales in favour of. success, states the Review. Official opinion in America probably no longer takes the extremist view that the external value of the dollar can be allowed to go entirely free. If so, the door is wide open to the coordination of policies.

GOLD’S HIGH PRICE.

“COMPLETE EQUANIMITY” MANIFEST. Received September 4, 9 a.m. ‘ LONDON, Sept. 3. The city editor of tho Observer, discussing gold’s new record, explains that the weakness of sterling is due to the seasonal demand in London for foreign exchange, and Continental financiers are increasing their withdrawals of short term capital. The position is regarded officially with complete equanimity and no effort was made, in the past week to interfere with what is regarded as the normal course of events.

The Sunday Times says that financial quarters -frill not be astonished by the rise. Cold may reach £7 in the coming week and ultimately £B.

RECOVERY MACHINERY".

RIFT AND SUCCESS. WASHINGTON, Sept. 2.

A new rift in the soft coal industry as well as the reticence of Mr Henry Ford has disturbed the first week-end rest of the National Recovery Act administration.

Conferences on labour contracts between the Appalachian bituminous coal employers and the United Mineworkers of America are at so complete a standstill that the advice of General Hugh Johnson, the administrator, was again sought by the disputants. In the case of Mr Ford, the officials are simpl.v awaiting word from the manufacturer, who has till Tuesday to accept the automobile code or do business without the Blue Eagle.

Both problems are paralleled by two events hailed as recovery achievements. The twelve-billion-dollar oil industry’s code became effective to-day, and the American. Federation of Labour attributed to the- Recovery Act programme a five-billion-dollar increase in purchasing power, an amount sufficient to raise retail prices 17 per cent.

SIMILARITY TO DOMINION

MR WALTER NASH’S COMMENT,

SASKATOON (Saskatchewan), Sept. 2,

The National Recovery Act codes introduced in the United States are similar to those that have been operating in New Zealand for more than, thirty years, Mr Walter Nash, the New Zealand Labour M.P., informed the Canadian Club to-day. He said codes were of little value unless they were made compulsory in all industry. Any steps which tended to lift the purchasing power of the mass of the people and make for an even spread in the distribution of wealth, were beneficial.

EMULATION IN BRITAIN

TRADES UNIONS’ DESIRE

LONDON, Sept, 2. The Trades Union Council has decided to propose a motion at the forthcoming conference urging the Government to follow President Roosevelt’s plan to shorten hours, increase wages, and finance public works, in order to reduce unemployment and save industry.

RECIPROCAL TARIFFS. TREATY NEGOTIATION. WASHINGTON, Sept. 2. The Government is considering asking in the next session of Congress for authority to negotiate commercial treaties, embodying reciprocal tariff concessions, particularly with Canada and Latin America countries.