ECONOMIC CONFERENCE.

New Zealand Herald, Volume LXIX, Issue 21118, 27 February 1932, Page 11

ECONOMIC CONFERENCE.

CANADIAN DELEGATES.

GOVERNMENT PARTY ONLY. CURRENCIES OF THE EMPIRE. DESIRE FOR STABILISATION. By Telegraph—Press ■Association— I Copyright. (Received February '2O. ">.5 p.m.) OTTAWA. Feb. 25. The Prime Minister oC Canada, Mr. R. B. Bennett, and the Leader of the Opposition, Mr. W. L. Mackenzie King, found themselves in agreement to-day in the belief that Oanada's representation at the Empire Economic Conference at Ottawa should consist of supporters of the Government, not- of all the parties in Parliament.

Referring to the matter in the House of Commons, Mr. Bennett said the Prime Ministers of some of the Dominions from time to time had contended that it was rather unsound that only one party should bo represented at Empire conferences, and that tho Government of the day should be assisted by the Leader of the Opposition. However, that view did not obtain, and was not likely to obtain, in Canada.

Mr. King: Hear, hear. Mr. Bennett said he was glad Mr. King agreed with him. Tho principle upon which opposition to this view was based was that tlie Government, of the day must assume responsibility for what was done at tho conference.

The Houso adopted a resolution proposed by the Minister of Trade and Commerce, Mr. 11. 11. Stevens, that the Canadian delegates to tho conference he instructed to initiate support of measures for tho stabilisation of the currencies of all the British countries in such a manner as to facilitate trade between the component parts of the Empire and to promote Imperial economic unity.

.A memorandum for submission to the appropriate Ministers in Britain and in the Dominions was passed at a meeting of the Council of the Federation of Chambers of Commerce of the British Empire about the middle of last month. Its text contained the following:— Owing to tho accumulation of gold in the United States and France, due to their unwillingness to accept payment in goods or services, there has been a steady contraction of currency in active circulation everywhere in an endeavour to attract fresh gold or retain existing stocks. While most Empire countries are now off tho gold standard and the struggle to attract or retain gold has ceased, they are nevertheless obliged to continue to force rlown prices bv currency contraction in order to remain competitive in world markets. Every contraction by one nation is followed by contractions in others, so that the advantage which the first, hoped to gain is promptly neutralised by the action of the rest. All then are once more in the same relative position, but on a lower and worse level.

No one nation can stop this progressive deflation, because any one nation which attempted to increase its currency in active circulation, pay a reasonable price to primary producers and raise the purchasing power of its people would put itself out of competition.nl world markets. While no one nation can do it, there is only one group of nations sufficiently large and sufficiently self-contained which could, and that is the British Empire, representing one-quarter of tho population of the world and containing within i(. all things necessary for life. If once a uniform mynetary system were in force in'all Empire countries, it should not be difficult to devise machinery for close collaboration between their respective Central Banks, which would enable timely steps to be taken to keep the balance of payments between them in equilibrium, and so substitute sane co-opera-tion for insane and suicidal competition. Tho Federation regards the introduction of a uniform monetary system in all the countries of the Empire as of tho most vital importance. MOTOR INDUSTRY. BRITISH MANUFACTURERS. MEANS OF ASSISTANCE. (Received February 2C>. 6.5 p.m.) British "Wireless. RUGBY. Feb. 25. The Secretary of State for the Dominions, Mr. J. IT. Thomas, to-day received a deputation of British motor manufacturers. They submitted views regarding the means by which their industry might be helped by the Ottawa Conference.