WORLD CONFERENCE

Otago Daily Times, Issue 21985, 21 June 1933, Page 7

WORLD CONFERENCE

POLICY OF UNITED STATES A “STANDSTILL” ATTITUDE DOMESTIC DEVELOPMENTS AWAITED (United Press Association.) (By Electric Telegraph—Copyright.) NEW YORK, June 19. (Received June 20, at 7 p.m.) The Washington correspondent of the New York Times says: “There is every reason to believe that the Roosevelt Administration is determined to maintain a standstill attitude towards foreign affairs pending a definite indication of how the domestic recovery programme is going to function. “ Treasury officials reiterated that the Government will not participate any ‘ experimental or emergency ’ stabilisation proposals, while'even the comparative mild 10 per cent, tariff reduction unofficially proposed by the American delegates in London has met with widespread disfavour. “ Considerable significance is attached to an official announcement that Professor Holey, the President’s economic adviser, will sail -for London on Wednesday. He will not serve as a delegate, but will give Mr Hull information on the trend of events at home, which is interpreted to mean that he will explain the necessity for exerting caution in any international agreements tending to retard domestic recovery.” REJECTION OF STABILISATION FEELING IN ENGLISH CIRCLES DANGEROUS TREND OF AFFAIRS. LONDON, June 20. (Received June 20, at 10.15 p.m.) The Daily Telegraph says: “It Is difficult to minimise the surprise and disappointment of English financial circles at the news that President Roosevelt has rejected the temporary stabilisation of the dollar once again. America’s money policy is drifting. Without stabilisation neither tariffs, quotas, nor other matters can be discussed with a prospect of success. The spectacle of a currency being deliberately depreciated until It reaches a level favouring that country's export trade is comparable to steering by a shifting landmark. The danger lies in Britain being driven into a united European front against the United States, a position which was only with difficulty averted at Lausanne.” The Times says; “Some of President Roosevelt’s advisers have their gaze fixed on the internal situation and so are blind to the international aspects. Others are preoccupied with world causes of the crisis. This lack of co-ordination is proving disconcerting to the conference. It would almost appear that the American delegation has been sent without a definite idea of the objectives which it is expected to pursue. It is possible that there will bo more effective direction when Professor Holey arrives. He la regarded in the United States as a leading advocate of purely American remedies, while Hr Hull is prominent on the international ride.”

DEVALUATION OF CURRENCIES

BELIEVED TO BE IMMINENT.

LONDON, June 20,

(Received June 20, at 8.50 pan.) Daily Mail experts calculate that the real equivalent of the pound is between 3.40 and 3.60 dollars. To make it 3.05, as some suggest, would bring a grievous increase in British unemployment. If the^pound was overvalued the export industries would be handicapped. The city editor i of the Daily Express says: “Worldwide devaluation of currencies is believed to be imminent. Financial authorities now recognise that stabilisation will not be possible until the amount of gold in each coin is reduced, when the central banks will be able to write up the value of their gold holdings. Thus the Bank of England’s holding, with gold at £7 per ounce, would be valued at £300,000,000 instead of £187,000,000, and the £7 basis would raise the United States holding to £1,200,000,000, and thus provide money for an increased programme of public "works.” ■■■ - ■ REMOVAL OF TRADE BARRIERS BRITAIN’S ATTITUDE DEFINED. (British Official Wireless.) RUGBY, June 19. An important statement on the British attitude towards some of the major questions before the Economic Commission ' was made when the commission discussed commercial policy. A French delegate (M. Sardut) suggested that the first duty was to aim at abolishing the existing anarchy of production. • An agreement between producers afforded a logical point of departure for discussion. This suggestion was not persisted in, and the delegates of Greece, Belgium, Russia, and Uruguay spoke on the urgency of removing trade barriers. The French contention received support from ■' Herr Gosse (Germany) and later Mr Walter Runciman (Britain) express'd the view that these proposals for the regulation df production were not in conflict with the general aim .to lower the obstacles to international trade. He warned the delegates against living in a world of make-believe in dealing with trade barriers. Tariff reductions would be a burden unless they were real and effective. Multilateral reductions would fulfil no new purpose unless they covered a very wide area. The British delegation would not wish for multilateral arrangements, which penalised countries on a low tariff basis. The sacrifice should not be disproportionately borne by the low tariff countries. AMERICAN PROPOSALS RESOLUTION on currency ' STABILITY. LONDON, June 19. Senator Pittman submitted a draft resolution on stability to the sub-com-mittee, in favour of the nations assuming obligations rapidly to bring about stability by re-establishing the gold standard, confining gold to covering circulation, and settling international balances. This would entail the withdrawal of gold coin and bullion from circulation, and the establishment of a legal minimum of gold cover, also the remonetisation of silver. In the course of an interview, Senator Pittman said that the resolution meant that the would employ gold as a measuring rod for international exchange. Countries adopting a gold reserve to secure currency might carry a part thereof in silver. Senator Couzens said that as a novice in international polities he was acting as a human sponge. What he had absorbed seemed to indicate that the nations had not suffered sufficiently to show complete humility. They must be humbler before they could hope to reach agreement, Unfortunately, most of the nations

were “ cocky ” about nationalism, and thought they could paddle their own canoes. However, the conference had shown that the American delegates must soon decide between a nationalist and an internationalist policy.

MONETARY QUESTIONS

ACTIVITIES OP THE COMMISSION. (British Official Wireless.) RUGBY, June 19. The Monetary Commission adopted a recommendation to create two sub-com-mittees, one to examine immediate measures for financial reconstruction and the othei to study permanent measures for the re-establishment of an international money standard. The first sub-committee, under the chairmanship of Signor Jung, considered c •’dit policy, price levels, limitation of currency, fluctuations in exchange, control of indebtedness, and resumption of international lending. These are regarded as immediate measures. As the delegates of the second subcommittee were unprepared to proceed with consideration of the credit policy, the question of the raising of price levels\ was under when Mr Chamberlain suggested that in order to test how far the delegates were in agreement, or were prepared to modify their views, he would draft for to-morrows debate a specific resolution dealing with price levels and credit policy. The suggestion was accepted, and the committee agreed to extend the same method to other questions. WORK OF THE CONFERENCE SECOND PHASE COMMENCED. (British* Official Wireless.) RUGBY, June 19. With meetings of its two commissions (monetary and economic) the conference to-day began the second phase of its work. The proceedings are well up to schedule,. and the commissions and subcommittees are now settling down to the problems with which they have to, deal. A certain amount of in the programmes of the two commissions is inevitable, but Mr MacDonald will be mainly concerned with the task of coordinating their labours.

PRESIDENT’S ADVISER TO LEAVE FOR LONDON. (British Official Wireless.) RUGBY, June 19. It is announced from Washington that Professor Moley, who is President Roosevelt’s personal adviser on economics, will leave for London on Wednesday. Pending his arrival it is anticipated that a decision regarding the temporary currency stabilisation will be postponed. WHEAT RESTRICTIONS NO INDICATIONS OF AGREEMENT. LONDON, June 19. Mr Stanley Bruce first conferred with Argentine representatives and then with both Canada and America on the question of wheat restrictions, but no progress was made toward agreement, THE TARIFF TRUCE FORTY-EIGHT NATIONS PARTICIPATE. (British Official Wireless.) RUGBY, June 19. Forty-eight countries, including all of Europe, with the exception of Jugo-. slavia, have now adhered to the tariff truce.