SEVERE CRITICISM

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 5

SEVERE CRITICISM

BANK OF ENGLAND POLICY DURING DEPRESSION MacMILLAN COMM ITTEE MAJORITY REPORT (United Press Association—By Electric Telegraph—Copyright) LONDON, 18th June. The “Daily Herald” lobbyist says that the report of the MacMillan Committee on Finance and Commerce, which was appointed in November, 1929, will be presented to the Government this week. The writer forecasts that there will be a majority report severely criticising the Rank of England policy during the trade depression, suggesting that the Rank at present could materially improve trade by making credit more easily available and increasing the amount of money circulating. This policy should be carried out in cooperation with the Central Reserve Rank of America, the Rank of France and other great central banks. The report does not advocate wage or salary reduction as a practical remedy for the trade crisis, which is diametrically opposed to the view expressed by Dr. Sproulc in an address to the Statistical Society in which he declared that the central bankers are of (he opinion that they can do nothing for trade until drastic cuts in wages and salaries are effected.

The report is likely to create a sensation, as the Rank of England’s policy will be openly condemned by a committee including some of the greatest financial experts in Britain. There will also be minority reports, one of which will propose Protection and the establishment of a national investment board to issue both short and long terms to industry.

OFFICIAL STATEMENT “FORECAST A COMPLETE TRAVESTY" (Received 19th June, 11.45 a.m.) LONDON. 18th June. Lor McMillan officially issued a statement that the “Daily Herald’s" forecast of the Finance and Industry Committee’s report was entirely unauthorised and a complete travesty of the contents. The committee hopes to present the report next week. 1