WORLD CONFERENCE

Otago Daily Times, Issue 21982, 17 June 1933, Page 11

WORLD CONFERENCE

STERLING AND THE DOLLAR TEMPORARY STABILISATION GENTLEMAN’S AGREEMENT REACHED (United Press Association.) (By Electric Telegraph—Copyright.) LONDON,. June 16. , (Received June 16, at 5.5 p.m.) The Daily Mail says: “It has j been definitely decided that the Bank of England and the American Federal Reserve Bank will conclude a gentleman’s agreement for the temporary stabilisation of sterling and the dollar. The rate is still undecided, but will probably be 4.05. It it understood that M. Moret has pledged the Bank of France to aid both England and America to maintain the agreement, thus enabling pre-stabilisa-tion, which is a necessary prelude to final stabilisation based on the new gold content of sterling.” The News-Chronicle says: “ The gentleman’s agreement does not mean that either sterling or the dollar have been linked with gold. It is doubtful whether the figure at which the exchange has been stabilised will be announced. There is no indication that the American representatives can guarantee that America will not be forced to de-valuate if stabilisation checks the inflationary boom.” The News-Chronicle also states that Mr Chamberlain will inform the market that he does hot wish money to leave England to purchase American securities, thus extending the Treasury ban. It is not intended to interfere with dealings in American shares already held in Britain, but unless the market arbitrage difficulties are overcome the London prices of shares will be divorced from those in New York. The Chancellor is seeking the co-operation of the arbitrage dealers, but the request has not the force of law, Mr Chamberlain’s request to the market suggests that the authorities realise that the pound is at present over-valued to the detriment of British exports and suggests that Britain has made a rash bargain in an endeavour to patch an awkward failure at the outset of the conference to reach a durable agreement, AN AMERICAN DENIAL DISCUSSIONS MERELY EXPLORATORY. WASHINGTON, June 16. (Received June 16, at 7.45 p.m.) The Secretary of the Treasury (Mr Woodin), in a formal statement to-night, said that the United States Government had not agreed to any stabilisation of currency. He stated that such reports from .London could ,not be founded on fact. “The in London with regard to the subject,” he added, “ must be exploratory only, and any agreement on the subject will be reached in Washington and not elsewhere.” THE GENERAL DISCUSSION VIEWS OF THE DELEGATES (British Official Wireless.) RUGBY, June 15. The general discussion was continued throughout the day. Mr Connolly (Ireland) suggested exploration of the possibility of making the Bank iof International Settlements an agreed clearing house for international exchange and transfers, and the co-ordin-ation of its activities with the central banks of all countries. He thought gold should be the yardstick of values and the ultimate factor of settlement of balances. He said he would like to see the development of an international clearing house of commodities. Tewfik &ushdi Bey (Turkey) emphasised the importance of international cooperation. Alberto Pani (Mexico) desired to see the rehabilitation of silver and the stabilisation of its price.

M. Salnais (Latvia) advocated a gradual reduction of tariffs in the first place on agricultural products and raw materials.

Dr Callas (Estonia) maintained that countries should be placed in a position to pay their obligations in goods and services. Mr Soong (China) urged that, while stabilisation was being sought for a gold currency, it might also be found for silver, for which a reasonably stable value was • more important than an increase in value. China intended to raise the standard of living. Its consuming power would then provide the greatest of all markets in the world, which might be a decisive factor in bringing a real and lasting recovery to the whole world. Mr Bennett (Canada) said he was whole-heartedly in agreement with Mr Chamberlain’s monetary programme. He urged the United Kingdom and the United States to stabilise their exchanges. Then Canada would be willing to stabilise its dollar on London and New York. He also agreed in the main with Mr Chamberlain regarding trade restrictions. The accumulated carry-over of 350,000,000 bushels of wheat could only be effectively dealt with by international agreement, involving a possible reduction of acreage till the carry-over was disposed of. Many importing countries by raising their tariffs had diminished the demand and aggravated and perpetuated the disastrous fall in prices. These countries should seriously consider the feasibility of enlarging the demand. Mr Forbes (New Zealand) maintained that excessive debt charges must be included in any adequate list of trade obstructions. The New Zealand producers were most reluctant to agree to the limitation either of exports or production. They should concentrate on ■securing expansion of consumption.

ADDRESS BY MR FORBES : LIMITATION OF EXPORTS : OPPOSED. LONDON, June 15. ■ Mr Forbes was the last to address the plenary session at the conference. He said that he was particularly impressed by the speech of Mr Chamberlain suggesting measures, for the improvement of trade and monetary relations. New Zealand would do its utmost to support as a practical basis co-operative action leading to a general recovery. Unless commodity prices were so raised as substantially to reduce the real burden, the existing debts must generally be scaled down, which mmht, indeed, be necessary in addition to°raising the price level, though an adjustment of debts must be a question for consideration mainly by the parties and countries immediately concerned. Thb problem, however, was of such pressing and general concern as to warrant the conference’s consideration. Mr Forbes urged the conference to deal with equitable shipping conditions, particularly the right of ships, without discrimination of nationality, to compete in trade which would not merely be local and coastwise. Referring to the quantitative regulation of trade, Mr

Forbes said that the producers of New Zealand disapproved of the limitation of exports or of production. Instead, they hoped for the removal of barriers and the restoration of purchasing power to enable the absorption of increased supplies. A CORDIAL RECEPTION. LONDON, June 15. There was a sparse attendance until Mr MacDonald’s announcement of the chairmen of committees, after which Mr Forbes immediately spoke. The delegates remained and cordially welcomed Mr Forbes, who was the last speaker in the general debate. All interest now centres on the Monetary and Economic Committees. India and every dominion except Australia participated in the general debate, DAILY TELEGRAPH’S COMMENT. LONDON, June 16. (Received June 16, at 7 p.m.) The Daily Telegraph, in an editorial, says: “Mr Forbes’s reluctance to agree to a limitation either of exports or production is natural, but regulation is in the very air in our times.” BUSINESSLIKE METHODS MR MACDONALD PLEASED. 1 LONDON, June 15. “ I congratulate the delegates heartily on the proceedings since Monday. This is the most businesslike' and expeditious conference over which I have ever presided,” said Mr Maconald, in closing the general debate at the World Economic Conference. Mr Forbes, who to-day changed his mind and decided to speak, was absent when he was first called, but later he addressed the conference. MR HULL MORE HOPEFUL. '* -■ LONDON, June 15. “ I am more hopeful of the conference’s success,” declared Mr Cordell Hull (America). “The unexpected and businesslike abbreviation of the general discussion indicates a businesslike conference throughout. No final stabilisation agreement, however, is yet indicated.”. RUSSIAN RESOLUTION I AIMED AT BRITISH EMBARGO. LONDON, June 15. M. Litvinoff submitted to the conference a draft resolution, evidently aimed at the British embargo, under which Governments would agree to withdraw all measures of economic aggression, jerimination, and boycott, irrespective of the motives underlying them. THE COMMISSIONS CHOICE OF PRESIDENTS. LONDON, June 15. The conference accepted the recommendation of the bureau that Mr J. M. Cox (United States) should preside over the Monetary Commission and that the vice-presidents should be Signor Jung (Italy) and Dr Kienbock (Austria), with M. Bonnet (France) as rapporteur. _■ It was also agreed that Dr Colign (Holland) should preside over the Economic and Trade Commission, with Herr Kragmann (Germany) and Mr le Breton (A rgentina) vice-presidents. THE OTTAWA TARIFFS I VIEW OF M. HERRIOT. PARIS, June 15. M. Hcrriot, in an article in Les Annales, said: “ I cannot see how the Ottawa Imperial preferential tariffs can be aligned with the World Conference’s programme. CURRENCY STABILISATION A PERSISTENT RUMOUR. LONDON, Juno 15. A persistent report that the Bank of England has issued a confidential letter advising stockbrokers in the matter of dollar dealings is widely interpreted as heralding stabilisation of the dollar and sterling. But another view is that it is merely discountenancing heavy commitments pending developments. THE GERMAN PRESS LITTLE ATTENTION TO CONFERENCE. BERLIN, June 15. The German press is so preoccupied with jthe Austrian tension that it devotes little attention to the conference. The press considers that England has adopted the right method respecting war debts.

MR CHAMBERLAIN’S STATEMENT COMMENT BY THE TIMES. LONDON, June 16. (Received June 16, at 5.5 p.m.) The Times, in a leader, says: “Mr Chamberlain’s statement should completely reassure anxious souls who are apprehensive, lest Britain should be rushed into a premature return to the gold standard. Few will cavil at the British decision to remain off gold until there is a reasonable certainty of the stability of exchanges and a higher price level. The debtor and primary producing countries have only too much reason to know that the post-war gold standard had become an india-rubber footrule. Many of Mr Chamberlain’s conditions for a return to gold are incapable of early fulfilment. The real merit of the statement is that it clears the air and enables the delegates to concentrate on approximate stability between the principal currencies and also on measures to secure conditions necessary for the re-establishment of an international standard.” THE FINANCE COMMISSION MR COX’S OPENING REMARKS. LONDON, June 16. (Received June 17, at 0.55 a.m.) Mr Cox, in opening the Finance Commission, said: “We were all agreed before the conference that there was unprecedented general disorder throughout the world. Our task is the treatment of it —the maximum of treatment and the minimum of talk. We must be patient and face the perplexing details with an understanding of national situations. Let us promote the treatment by sustained efforts. Let us get to work.” A committee was immediately appointed to select committees, comprising Mr Cox, Signor Jung, M. Kienbock, and M. Bonnet, with representatives of Britain, Germany, Finland, and Czechoslovakia. • . Mr Bruce represents Australia on the Monetary and Economic Committees.

Mr Forbes is a delegate to the Monetary Committee, and Mr Masters is a member of the Economic Committee. NEW ZEALAND DELEGATES IN TOUCH WITH DOMINION AFFAIRS. (Per United Press Association.) WELLINGTON, June 10. Throughout the voyage to London of the New Zealand delegation to the World Conference the members were kept informed of the affairs in the Dominion by a daily wireless message. The Postmaster-general (Mr A. Hamilton) said to-night that adequate arrangements had been made to keep Mr Forbes and Mr Masters in touch with New Zealand news. The Eangitata is equipped with a short wave installation, enabling twoway communication.