OTTAWA ISSUES

New Zealand Herald, Volume LXIX, Issue 21250, 2 August 1932, Page 9

OTTAWA ISSUES

CURRENCY MATTERS WORK FOR ECONOMISTS , AMERICAN PUBLICITY HARMFUL SUGGESTIONS FOREIGN MEAT IMPORTS By Telerrrnph—Press Association—Copyright (Received August 1, 5.5 p.m.) OTTAWA, July 31 The cooks who are .busy at Ottawa pro paring the Empire meal have not solved the problem regarding a ll the ingredients. Ihoy do not expect the banquet will lie a lavish one, but they are concerned merely with providing an honest working man's dinner. They consider they have already solved the butter problem. There is no difficulty about bread because the wheat farmer has produced abundantly. Regarding meat they have the roast \ready in the pan. Assorted fruits adorn the sideboard. The only question that remains is: "Can we provide gas for the cooking?" In other words, that is the currency problem. There is a bountiful supply of everything a hungry man needs. Can ho have it? Can Ottawa put the starving Empire in a position to purchase its meal ? The early stages of the discussion of the monetary problem indicate that it will probably be wise that the conference holiday arrangements will give time for the incubation of the ideas which have been outlined. The utmost secrecy was observed regarding the trend of the suggested action, because, if any hint was disclosed, it might conceivably embarrass Britain if i£ involved a volte face or the amendment of the original proposals at the Dominions' behest. Place of Economists Moreover, premature predictions of a final scheme might entail world-wide repercussions. If the policy adopted meant general curtailment of production, it is difficult to imagino what might happen. Economists are walking the corridors with a consciously important aii 1 . They have now taken their places under the spotlights down stage. Everybody in the select audience is weighing their words. Even if, as is anticipated, the preliminary currency speeches are released on Tuesday in abridged form, they will not contain a single word of the plan now being discussed, but will merely butline the sorry plight °f the Dominions and also embrace a review of Britain's returning financial health. They will show that Australia and India have developed a common tie out of the common distress. The present interregnum of official business does not mean complete stoppage of progress. On the other hand, it means accelerated activity on the part of the sub-committee reviewing the currency problems. These experts will accomplish really effective work at the week-end. They have been asked two questions:—Firstly: Is it advisable or practicable to raise commodity prices, and if so, how ? Secondly: Is it advisable and practicable to stabilise exchanges, and if so, how ? Serious Consideration It is agreed that the answers cannot be furnished within a few days. The report will involve the most serious consideration of any subject before the conference. The heads of delegations, especially the British, realise their deep responsibility and are not likely to make any essential progress toward a decision until next week after returning from the Niagara trip. Some remarkable and sometimes mischievous guesswork articles, are appearing in American newspapers, notably the suggestion that Britain, instead of extending preferences, will cancel portions of Dominion indebtedness. How such a plan would assist the primary producer to sell his'goods profitably it is impossible to see. Beside, apart from the war debt owed to the British Government, all the Dominion loans represent a debt to private lenders on the London money market. Indeed, if all the Dominion loans were suddenly wiped out, that would not bo a remedy, and could not be compared with the effectiveness ol a provision for preferences enabling the primary producer to evade complete ruin toward which ho lias been approaching in the last two years. Meat from Argentina Another .suggestion which has beer given harmful prominence in New Yorl is that the Dominions are asking Britain to reduce imports of Argentine chilled beef by 45 per cent. The Dominions' meal proposals include a quota, but do nol specify any hard and fast figure, or whal should be taken off Argentine imports. The proposals merely express tho desire that the Dominions bo given a bettei chance of securing payable prices in what is now a saturated market. There is a suggestion, however, that Britain should reduce imports of foreign froaen meat by 57A per cent. This is cat culated to afford Australia and New Zea< land infinitely more favourable marketing conditions. MOVE LOSS OF EMPIRE TRADE NEGOTIATIONS WITH FRANCE LONDON. July 31 Tho Sunday Times says it expects ar early trade agreement between Franci and' tho United States as an anticipator} counterblast to Ottawa, forestalling tin possible loss of trado with British coun tiies.