WORLD TRADE

New Zealand Herald, Volume LXXIII, Issue 22545, 9 October 1936, Page 11

WORLD TRADE

REDUCING BARRIERS FURTHER PROGRESS MADE ACTION BY VARIOUS STATES By Telegraph—Press Association—Copyright (Received October 8, 6.5 p.m.) British Wireless RUGBY, Oct. 7 The progress of the movement for a reduction of trade barriers, following upon the realignment of currencies, was demonstrated again at to-day's meeting of the Second Commission of the Assembly of the League of Nations at Geneva. The Swiss delegate, M. Stucki, said his Government had devalued the currency principally to show its willingness to participate in an international gesture toward economic recovery. M. Stucki announced that Switzerland would progressively reduce her tariffs. Tho Czechoslovakian delegate, M. Vevcrka, said his Government had taken up the study of the question of abolishing exchange control in order to secure its abolition as quickly as possible. Dr. van Lanschot, representing the Netherlands, intimated that his country had abolished the quotas on leather, furniture and linoleum, and that other quotas would bo withdrawn as a step in the direction of abolishing hindrances to trade. The Times, in an editorial article, urges the British Government to take the initiative in promoting reciprocal agreements for a revival of international trade. "Mr. S. M. Bruce, of Australia, at Geneva," says the paper, "gave warning that there was not unlimited time in which to make adjustments and that! there was grave 6ocial and political! danger in delay. The urgency he em-j phasised must, indeed, be obvious tcH everyone."

BASED ON GOLD WORLD CURRENCIES MR. CHAMBERLAIN'S HOPE Britifih Wireless RUGBY, Oct. t The Chancellor of the Exchequer, Mr. Neville Chamberlain, in the course of a speech at a dinner given by the Lord Mayor of London, Sir Percy Vincent, said there was some indication of an improvement in export trading during the 12 months. This was due to more prosperous conditions in countries which formerly were good customers of Britain.

The step taken by the French Government" in devaluing the franc, and the assurances given by the British and United States Governments that readjustment was not to be followed by any deliberate depreciation of the pound sterling or the dollar, was like cracking ice at the approach of a warmer season to a Polar explorer whose ship < had been frozen for many months into immobility.

Sterling was still free. It was not linked to gold or to any other currency. No alteration in credit policy was necessary to preserve the internal prosperity of Britain or of any otfier country in the British Empire. "We welcome most heartily," said Mr. Chamberlain, "the French Government's announcement of its desire to follow up the reduction in duties and abolition of certain quotas which it has already effected with the elaboration of ,a new customs tariff, from which quotas will be entirely excluded. . "I think it very unlikely that -we are in for any new system of managed currencies, but before we return to gold we must provide security against the violent fluctuations in the value of gold as expressed in terms of commodities which have occasioned so much disturbance in recent years.

"If we can do that, and it is a matter for further international cooperation, then I do not see any, insuperable difficulties in the way gt our ultimately arriving again at a Currency system based on gold."-

BANK OF FRANCE DEVALUATION ; RESULTS INCREASED GOLD STOCKS PAEIS, Oct. 7 To-day's statement by the Bank of France shows an increase of 17.000,000,000 francs, or about £162,000,000, due to devaluation. It is expected that there will be a large increase in gold stocks, possibly of 2,000,000,000 francs. Three aeroplanes already have brought cargoes of gold from Brussels, and in addition a shipment has arrived ■at Marseilles.