BRIGHTER TRADE

New Zealand Herald, Volume LXXIII, Issue 22543, 7 October 1936, Page 13

BRIGHTER TRADE

FAVOURABLE VIEW REACTION ON MARKETS BRITISH MINISTER'S PLEA REMOVAL OF BARRIERS By Telegraph—Press Association—Copyright (Received October 6. 6.5 p.m.) British Wireless RUGBY, Oct. 5 To-day's events, including the devaluation of the lira and Italy's modification of import restrictions, an important speech made at Geneva by Mr. W. S. Morrison, the Financial Secretary to the Treasury, and the announcement by the French Minister of Commerce that France is elaborating a Customs' tariff from which quotas will be entirely excluded, have created a favourable impression in London. The markets generally had an optimistic tone to-day. The newspapers 'give prominence to Mr. Morrison's speech before the Economic Committee of the League of Nations, in which lie sai.d that there was an intimate connection between general economic problems and political problems. The present situation, he believed, appeared to offer an opportunity for removing the obstacles in the way of international trade. The Economic Committee should resolve to consider in the first case the obstacles to trade flue to currency difficulties, and whether these obstacles took the form of exchange restrictions or quotas. Intensified Competition Expected

Mr. Morrison foresaw that the British Government would bo faced by very strong pressure on the part of certain interests in the United Kingdom to counteract the intensified competition which would result from devaluation on the Continent. Such pressure would be difficult to resist, and ho called upon other Governments to help the British Government in this respect.

Before the committee's business was concluded he hoped to submit tw r o resolutions for its consideration. The first

would cover the question of exchange restrictions and quotas, and the second would deal with commercial access to raw materials.

Mr. Morrison suggested the appointment by the Council of the League of a committee composed of representatives of the Economic and Financial Committee of the League and other qualified persons to study and report on the entire problem of raw materials. Example Set by France

M. Jean Bastid, the French Minister of Commerce, stated that France hoped that other countries would follow her example in bringing about a new monetary system. This was necessary to assist economic recovery in the world. In reducing one quarter of its quotas and its Customs tariffs, the French Government had made a gesture to the world, but this could not have been done without a realignment of the franc. Other countries would have to reciprocate. The French Government was willing; to take the necessary measures to liberate capital and facilitate the circulation of money and goods. On Mr. Morrison's proposal, M. Charles Spinasse, Minister of National Economy in France, was appointed rapporteur of the work of the committee to the League Assembly.