A COOL RECEPTION

Otago Daily Times, Issue 21983, 19 June 1933, Page 7

A COOL RECEPTION

CURRENCY STABILISATION SCHEME ATTITUDE OF -AMERICA COUNTER PROPOSAL TO BE MADE (United Press Association.) (By Electric Telegraph -Copyright.) NEW YORK, June 17. (Received June 18, at 7.25 p.m.) The Washington correspondent of the New York Times states that the Treasury Department revealed officially today for currency stabilisation which have been submitted to President Roosevelt from the World Conference. They are not agreeable to the American Government, and the American delegates have been ininstructed'within what fixed limits they may act, but no specific point of stabilisation between the pound and the dollar has been designated, although it is made clear that the Administration does not propose to enter . into any temporary or permanent agreement calculated to-give foreign countries the economic advantage of deflated currgncics. A Treasury official stated that the United States should not be placed in the position of closing the door te Btabilisation, and added that all realised the importance of such action. In the opinion of observers the President's coolness with regard to early stabilisation is attributable to the importance with which he regards a tangible improvement in domestic prices. He does not wish to risk a setback until other phases of the conference, such as the lowering of trade barriers, have been canvassed, which might have given the nation a corresponding advantage. Both President Roosevelt and Mr Woodin (Secretary of the Treasury) are represented as having "strong views on the stabilisation negotiations with indications that the Administration's conference policy would be rigidly controlled from Washington in view of the extensive stabilisation discussions which Anglo-American experts had at the time of Mr MacDonald's visit. The following part of the Treasury announcement is regarded witb. unusual interest in diplomatic circles": "While the stabilisation discussion in London is not one which this Government initiated, we are willing to listen but do not wish to be placed in the position of trying to reach a deal. A counter proposal will be made." EARLY DECISION EXPECTED LONDON, June 16. Though it is officially declared that a ■tabilisation agreement has not been reached there are reliable Indications that a decision will be arrived at in a few days. It is expected that an agreement will be announced early next week. BRIEF SITTINGS OF COMMISSIONS LONDON, June 16. What is going on at the Bank of England in the direction of exchange stabilisation between sterling, the dollar, and the franc is undoubtedly an all-sufficing, reason why this morning the Monetary Commission and the Economic Commission of the conference had the briefest of sittings and then adjourned till 10.30 a.m. on Monday. The Monetary Commission appointed a committee to appoint a sub-committee to deal with selected subjects on the agenda. It is proposed to co-ordinate the whole of the suggestions into a week's general debate under sub-headings, including production, marketing, wheat,' and other raw products, and measures and prohibitions affecting commerce. t FINANCIAL JOURNAL'S VIEWS. LONDON, June 17.

(Received June 18, at 7.25 p.m.) ' The Investor's Chronicle says: "It appears possible that the pegging of the sterling and dollar rate between 3.95 and ' 4.05 will be attempted, together with a controlled sterling arid franc rate as now obtains. From the British viewpoint it is essential to insist .that the arrangement should be only provisional, for in riew of the comparative Anglo-American wage levels the rate should not be higher than 3.60." FINANCIAL RECONSTRUCTION "APPOINTMENT OF SUB-COMMIT-TEES. (British' Official Wireless.) RUGBY, June 10. The Committee of the Monetary and Financial Commission of the World Conference this afternoon decided to recommend to the plenary commission on Monday the creation of two sub committees, one on an immediate measure of financial reconstruction, and the other on permanent mi: asures for the re-establisliment of an international monetary standard. The first committee will consider the following questions: —Credit policy, price levels, limitation of currency, fluctuations, exchange control, and problems of indebtedness and resumption of lending. The s'econd. committee' will consider the functions of central banks, co-ordination of their policies, monetary reserves, and ■ilver. Mr Cox welcomed the unanimous agreement reached as a happy augury. The committee also decided on the suggestion of Dr Kienbock (Austria) and the chairman to invite the president of the Bank for International Settlements (Mr Leon Fraser) and representatives of the Financial Committee of the League of Nations now in London to co-operate with the coirimittee. THE TARIFF TRUCE FORTY-ONE NATIONS PARTICIPATE. (British Official Wireless.) RUGBY, June 10. ; It was announced that 41 nations had now signified adherence to the temporary tariff truce. These nations represent among them approximately 80 per cent. ■»f the world trade. j EMPIRE INTERESTS MEASURES TO ENSURE PROTECTION. LONDON, June 16. Mr Bruce and Mr Forbes joined Mr iChamberlain and Lord Hailsham to discuss how best to spread the Empire representations and to ensure the protection of Empire interests in all the committees. ,_ POLICIES DISCUSSED. LONDON, June 16. The dominion and British delegates held a long meeting, which Mr Bruce, Mr Forbes, General Smuts, and Mr Ben- . iiett attended. They discussed policies lor committee* and conferred in «mne»-

tion with voting on proposals which several nations are submitting at the weekend as resolutions for committee debates. A further meeting of the wheat countries in the forenoon led to the story that an agreement to curtail acreage had been reached, but the report was unjustified. Australia is still hostile. In any case, the conversations were merely preliminary. _ ECONOMIC - COMMISSION PROPOSALS OF AMERICA. LONDON, June 17. (Received June 18, at 7.25 p.m.) The American delegation's suggested agenda for the Economic Commission proposes 10 per cent, reductions in import duties from June 12, including a corresponding reduction in surtaxes and also a corresponding liberalisation of other import restrictions and the equitable operation of import quotas. It also proposes an extension of the Customs truce sufficiently long after the close of the conference to enable a stable basis for the developing of international trade' adjustments by bilateral negotia- ' tioM or otherwise.