MONETARY POLICY

New Zealand Herald, Volume LXXIII, Issue 22543, 7 October 1936, Page 14

MONETARY POLICY

TRADE RESTRICTIONS WITHDRAWAL ADVOCATED QUESTION OF EXCHANGE RATE CURRENCY STABILISATION [ilY TELEGRAPH PRESS ASSOCIATION] WELLINGTON, Tuesday Monetary policy was discussed by the congress of the Empire Chambers of Commerce to-day, and a resolution was carried urging, among other things, the removal, as far as possible, of restrictions on financial payments, exchanges and trade. Mr. Arthur Aiton (Derby) moved on behalf of the council the resolution, which stated that the congress viewed with satisfaction the now being made to stabilise the franc, dollar and pound sterling in relation to each other, and urged His Majesty's Governments to do everything in their power to promote n speedy success. The congress was convinced that complete success could not l>o ensured until all nations stabilised their respective currencies in agreement with the franc, dollar and the pound. It further desired to emphasise the importance of the statement of the British Government that the requirements of internal property in Empire countries must bo taken fully into account in a policy toward international monetary relations. Currency Depreciation Tho congress also laid stress on the withdrawal, as far as possible, of restrictions 011 financial payments, exchanges and trade, if money were to follow its natural course of furthering to the best advantage the development of commerce generally. Mr. Aiton said he was sorry to see in New Zealand that some people had been bitten by the Douglas credit bug, and thought they would get something for nothing. Nothing could be got for nothing. The depreciation of currency could not continue. It was a form of disease that politicians particularly were susceptible to, but it was a disease that they should be inoculated against before they became politicians. Mr. It. L. Barclay (London) seconded the motion. He said it was not credit that was the basis of wealth, but wealth that was the basis of credit. They wanted in London to encourage the colonies, and lend money, but they must make the condition that the objects were credit worthy. Amendment Proposed Professor Torleiv Hytten, of Sydney, did not agree that exchange should be stabilised, and moved to add the words "as far as internal conditions will allow." This found support, including that of Mr. W. Machin, of Christchurcli, who said that as regarded the deflation of currency, New Zealand now found herself in very good company. Mr. Martin (Wellington) assured the British delegates that the prices New Zealand was receiving even today in Britain were such that she could not carry on without the exchange. "We would be obliged to reduce our importation to a very serious extent," he said.

In replying to the amendment, Mr. Aiton said that in spite of all that was said, ho was unrepentant. What had been done by the exchange rate could better have been done in another wav.

The amendment was lost and the resolution carried by a large majority.

The conference carried a resolution reaffirming its opinion as to the benefits to inter-Imperial trade which would result from uniformity within the Empire of legislation 011 the lines of the British Carriage of Goods by Sea Act, and accordingly urged upon the Governments of New Zealand, South Africa, the Irish Free State, and Malta the desirability of enacting similar legislation at the earliest possible date.

DUAL TAXATION HANDICAP UPON TRADE ABOLITION ADVOCATED [BY TELEGRAPH PRESS ASSOCIATION'] WELLINGTON, Tuesday A resolution urging the abolition of dual taxation in certain Empire countries was carried at the congress of the Empire Chambers of Commerce today. Sir Albert Atkey (British Associated Chambers) moved the resolution, brought down in the name of the council, expressing the hope that the development of Empire trado might bo freed from tho handicap occasioned by the taxation imposed in certain Empire countries and States upon British nonresidents trading through agents in such countries and States unless stocks are held by the resident agent or the agent has general authority to make contracts on behalf of his principal, or there is a branch or management in the country where the business is transacted.

Sir Albert said he thought tho object of doing away with dual taxation was sufficiently clear, and 110 looked for unanimous support for the resolution. Mr. F. W. Cook (Britain) seconded the resolution, which was carried after a brief discussion.

DOMINION'S CENTENNIAL

INVITATION TO DELEGATES HON. W. E. PARRY'S ADDRESS [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Tuesday An invitation to the oversea delegates to tho congress of the Empire Chambers of Commerce to return to New Zealand for tho centennial celebrations in 3.9-10 was extended this afternoon by tho Minister of Internal Affairs, the Hon. W. E. Parry, if delegates could not bo present at tlint time, he said, they could help to mako tho celebrations a success by recommending their friends to visit the Dominion in 1910, when New Zealanders would "keep open house." Mr. Parry made some reference to New Zealand's political experiments and also to tho Maori race and foreign elements in tho blood of her people, saying that it was duo to their happy experience with these that New Zoalanders were such staunch supporters of the League of Nations. ITe referred to New Zealand accomplishments, particularly in sport, but also in literature and the arts. Tho Minister admitted that New Zealand in the past had made mistakes, some of which were obvious. It .would be her duty with her coming-of-ago in 1940 to create a national spirit to rectify them. That spirit would not sunder the bonds of Empire, but would give Britain a grown-up family of virilo sons in place of a tribe of dependent children.