THE MONETARY SYSTEM

Otago Daily Times, Issue 21543, 15 January 1932, Page 7

THE MONETARY SYSTEM

UNIFORMITY RECOMMENDED MEMORANDUM FOR OTTAWA (United Press Association.) (By Electric Telegraph—Copyright.) OTTAWA, January 13. A memorandum for the Ottawa Conference by the Empire Chambers of Commerce, recommends a uniform monetary system, and points out that though most of the Empire countries are off the gold standard they have been obliged to depress prices by currency contraction in order to compete in the world markets. The only group of nations sufficiently powerful and selfcontained to stop the present progressive deflation is the Empire. It would be essential that while the Empire countries were expanding their currencies to raise prices to a profitable level they should insulate themselves against the competition of outside nations which continue a deflationary course. The central banks, under a uniform imperial system, could collaborate, enabling the equilibrisation of mutual balances and payments, substituting the same for suicidal competition. A national system is preferable to an international one, the most modern procedure being central banking practice with the rediscounting of commercial bills as backing for currency. The memorandum advocates the constitution or an imperial general economic staff and favours a preferential column appearing in every country’s tariff schedule, and bilateral agreements covering special concessions.