THE EMPIRE

Nelson Evening Mail, Volume LXVI, 15 August 1932, Page 7

THE EMPIRE

OTTAWA CONFERENCE CURRENCY REPORT (United Press Association— By Electrio Telegraph— Copyright) OTTAWA, 321-1 1 August Hoads of delegations adopted tiie Currency Committee's report and authorised publication. The report .says, firstly, Unit a world-wide rise in general levels of wholesale prices is in the highest degree desirable. The evil ol falling prices must be attacked by Government and individual action in all cases, whether uolitical. economic financial,, or monetary. Secondly, Governments represented at Ottawa record the conviction that international action is urgently necessary. They announce a. desire to co-operate with other nations in any practicable measures for raising wholesale prices Thirdly, investigating how to help to raise prices, (he Conference recognises that Britain’s central position not only among Empire countries hut in world trade and iinancc makes Britain a main factor in anything that can be done. T'lio Conference therefore welcomes the following statement, made by Mr Chamberlain :—“ JI is Majesty s Government desires to see wholesale sterling prices rise. The best condition for this would he a rise in gold prices. Iho absence of a rise in gold prices inevitably imposes limitations on what can bo done lor sterling. A rise in prices cannot be effected by monetary action alone, since various other factors which have combined to bring about the depression must also he modified or removed lie fore a remedy as assured. The British Government nevertheless recognises that an ample supply of short Girin money at low rates may have a valuable influence. The Government is confident that efforts which have successfully brought about the. present favourable monetary conditions can and will, unless unforeseen difficulties arise, be continued.” Fourthly, the Conference recommends that the British Commonwealth should act in conformity in lino with the policy indicated in Mr Chamberlain’s statement as far as lies in their power. The primary line of action in the monetary sphere towards a rise in prices should to the creation and maintenance —within the limits of sound finance —of such conditions as assist the revival of enterprise and trade 1 'these conditions include low rates of interest and an abundance of sliort term money. The rate of interest on all the various types of loans should bo kept as low as financial conditions permit. It is necessary at the same time that these favourable monetary conditions should be achieved not by inflationaiy creation of additional means of payment to finance public expenditure, but by an orderly monetary j.olicy safeguarded, if the necessity should arise, by such stops as will restrain and eircumslcribe the scope ot violent speculative movements of commodities or securities. It must be remembered that the success of such a policy would be hampered and might be nullified by failure to modify or remove important lion-monetary obstacles, many of which are international in character and require an international remedy. The British Commonwealth should nevertheless take all steps in its power to increase public confidence, especially m the field of business enterprise, and to facilitate trade. Fifthly, the Conference recognises the great importance to traders of exchange stability in as wide an area as possible. The complete solution ot this problem must await restoration lor the satisfactory working of an international standard. Meanwhile, pending such solution the Conference considered 1 lie possibility of achieving valuable results in two directions—first, creating an area of stability among countries regulating their currencies in relation to sterling; secondly, avoiding wide clay to day fluctuations between sterling and gold. Regarding fluctuations between sterling and gold the conference noted with satisfaction that Britain had already established the machinery aimed at preventing wido fluctuations in sterling and gold value caused by speculative, movement. Regarding area stability the coniercnce ?e----cognises the value of countries within the British Commonwealth whose currencies are linked with the sterling, maintaining stability between their exchange rates, and the conference looks to a rise in the general level of wholesale prices as the most desirable means of facilitating this result. Sixthly, the conference recognises that the monetary policies’ ultimate aim should be the restoration of a satisfactory international monetary standard. Such standard should function not merely to maintain stable exchange' rates between all countries, but also to ensure the smooth, efficient working of the machinery of international trade and finance. This postulates an international agreement among the world’s great trading nations. While certain States represented at Ottawa hold very different , views on the question of the most desirable standard, the conference refrains from making any recommendations on the subject in view of the fact that the question will shortly be discussed at tho International Conference.

However, there are several conditions precedent to the re-establishment of any international monetary standard, the most important being, firstly, a rise on the level of commodity prices to a height more in keeping with the level of costs, including the burden of debt and other fixed and semi-fixed charges. Secondly, the adjustment of political, economic, financial and monetary factors which caused a breakdown of the gold standard in many countries, which, if not adjusted, would inevitably }cad to another breakdown of whatever international standard may be adopted. Tho conference omphasises uliat it is of the utmost importance to the future working of any international standard that international co-operation should be secured and maintained with a view to avoiding as far as is practicable wide fluctuations in tho purchasing power of the standard of value. DEPRESSION IN UNITED STATES WASHINGTON, 12th August. President Hoover said the conference he had summoned would engage in a general discussion aimed at loosening ere dit, speeding the movement of agricultural commodities into consumption, eliminating slum districts, and stimulating railway replacement and repairs.

MIAMI TRIAL I MIAMI, 12th August. The jury wero taken to the former home of Mrs Miller to inspect the scene of the shooting. TOC H LONDON, 12th August. It was announced that two Toe II ambassadors, tho Rev. F. E. lord, for three years travelling chaplain in India, and Ilenry Chappell, recently at All Hal-

lows, London, are meeting at Singapore 10-inoiTow as a preliminary to a tour ot Australia, New Zealand, China and Japan to help Toe 11 in every way possible. They will carry the Prince ol Wales’s message us patron. OIYMPIC GAMES ROWING LOS ANGELES, 12tb AugustFurther results at the Olympic Games wore:— FOURS WITH COXSWAIN.—FINAL Germany } Italy i Now Zealand BOXING 1181 bs CLASS.—SEMI-FINALS Gwynno (Canada) gained a decision over Villanueva (Philippines); Zieglarski (Germany) gained a decision over Lang (United States). 1271bs CLASS. —SEMI-FINAL Sehlcinkoffer (Germany) gained a docision over Alessandvi (Italy). Robcldo (Argentina) gained a decision over Cnrison (Sweden). 1471 bs CLASS.— SEMI-FINALS ' Cainpe (Germany) gained a decision over Alilbcrg (Finland). lUynn (United States) gained a decision over McGieaie (Britain). SWIMMING The 200 metres breaststroke iucAs semi-finals resulted.- —First beat: Ivoika (Japan) 1, Tsuruta (Japan) 2, Adjalladui (Philippines) 3. Cavtonnet (branee) 4, Reingoldst- (Finland) 5. Time, 2imn 44.9 sec—a new Olympic record. Second heat. —Sieias (Germany) 1, Yldefonzo (Philippines) 2, Nakagawa (Japan) 3, Spence (Canada) 4. lime, 2min 47.6 secs.

RAILWAY REVENUE TRAFFIC APPEARS TO BE ON MEND 'By Telegraph—Press Association) WELLINGTON, 13th August. “I am pleased to be able to announce that for the four-weekly period which ended on 23rd July, there lias been an improvement in the net revenue of £33,000, compared with the corresponding period of last year,” said Mr Roussell, General Manager of Railways, in a statement to-day regarding the latest railway returns. ‘‘There was a marked decrease in every item of general expenditure, the decrease for the four weeks amounting to £62,000. The decrease in gross revenue was £29,000, leaving an increase in net revenue of £33,000.” Quantitatively traffic appears to be on tbo mend, judging by the general tendency of the last four weeks. Actual figures of net revenue for tbo financial year to 23rd July show £196,946 for 1932, as against £183,519 during the coricsponding term last year.