RAISING PRICES

Nelson Evening Mail, Volume LXVI, 10 March 1933, Page 5

RAISING PRICES

GOVERNMENT ACTION DEMANDED COMMONS RESOLUTION (United Press Association—By Electric Telegraph—Copyright) LONDON, Bth March. In the House of Commons Mr S. S. Hammersley (C.) submitted a motion demanding that the Government, without awaiting international consideration of gold prices, should give effect to a whole-hearted policy of raising "sterling prices. Mr L. C. M. Amery (C.), 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 a bold encouragement to promising new industries; Government assistance to build the new Cunarder, and the electrification of railways with the help of a subsidy. Mr Neville Chamberlain, Chancellor of the Exchequer, replying, said that an Empire monetary policy was not practical politics. It would mean that Dominions would l\ave to accept Britain’s control of the value of sterling. Sterling prices remained remarkably steady, though gold prices in the United States had fallen 20 per cent., in France and Italy 12 per cent., in Germany 16 per cent., which he thought showed that Britain’s monetary policy had countered the effect of world forces. Our foreign trade had been halved in the last few years. The idea that this could he replaced by the stimulus of Home trade was doomed to disappointment. If the taxpayers’ money was used to subsidise selected industries, would not other countries take steps to counteract it? The hard fact was that Britain could not prosper while the whole world was depressed. The international conference’s agenda contained most of the problems which must be solved before world prosperity was attainable. Mr Hammersley’s motion was carried bv 128 votes to 35.