MR M'KENNA’S SPEECH

Otago Daily Times, Issue 20319, 30 January 1928, Page 8

MR M'KENNA’S SPEECH

NOT GENERALLY ENDORSED. fpre«» Association— By Telegraph — OopyngDt , LONDON, January 27. (Received Jan. 29, at 5.5 0.m.) Mr Gilbert Vyle, president of the Associated Chambers of oCmmerce, in a speech, criticised Mr Reginald M’Kenna. He said: “No doubt New York read Mr M’Kenna’s speech with the greatest acclamation, but as an Englishman I read it with dismay and regret. Mr M‘Kenna has harmed British traders. Manv men equally competent disagree with Mr M’Kenna.”—A. and N.Z. Cable. “The conclusion is formed on us that, in a very real sense, the world is on the dollar standard,’’ declared Mr Reginald MTvenna, the chairman, at the Midland Bank meeting. He added that America was able to control the world price level, first, because she could afford to lose large quantities of her huge gold stocks without the risk of the reserve falling below the legal minimum; and secondly, with the great wealth of her central banking system she could aborb large quantities, at the same time depriving it of the credit-creating powers. This would continue as long as the existing conditions remained. The United States had shown that while gold might be retained as the medium for international payments, it could be deprived of its function as the ultimate standard of value.