WORLD CONFERENCE

Otago Daily Times, Issue 21986, 22 June 1933, Page 7

WORLD CONFERENCE

CURRENCY STABILISATION NO SIGN OF AGREEMENT HINT OF EUROPEAN ACTION (United Press Association.) {By Electric Telegraph—Copyright.) LONDON, June 20. . (Received June 21, at 8.55 p.m.) Conference circles are becoming increasingly concerned with respect to the problem of currency stabilisation. It is hinted that if America adopts an isolationist policy measures may be concerted for the stabilisation of European currencies. It is significant In this connection that European bankers met yesterday at the Bank of England. ATTITUDE OF UNITED STATES / NO IMMEDIATE ACTION NEW YORK, June 20. (Received June 20, at 8.45 p.m.) No stabilisation of currencies in the Immediate future is foreseen by the United States Government. The Washington correspondent of the New York Times says: “American participation in any international monetary stabilisation plan to-day seemed more remote than ever. It Is felt that progress could be made with other monetary questions such as exchange restrictions and other such items with stabilisation temporarily awaiting the outcome. It is also maintained that all progress must be collateral and interlocking. “ The Treasury Department emphasised that it had formulated no permanent gold policy and indicated that until this basic decision had been reached any kind of stabilisation, temporary or permanent, must be viewed as unwise,” INTENTIONS OF THE BANKS DEFINITE STATEMENT OF POLICY REQUIRED. (British Official Wireless.) RUGBY, June 20. Mr Neville Chamberlain, speaking before the sub-committee of the Monetary Commission, which is considering immediate measures for dealing with world trade, recalled that since October, 1929, wholesale commodity prices expressed in terms of gold had. - declined by one-third, and raw material prices by 50 to 60 per cent. He said that so long as traders thought prices were going to be still*, worse they would not’ embark on business operations. Therefore any action which had a flavour of deflation on the part of the central banka would be extremely injurious. “The intentions of the banks should be stated, so that all the world may know the purpose and policy that they intend to pursue. Cheap money by itself does not constitute a remedy for all the evils that are afflicting the world, but it is an indisputable background for economic recovery. Dear money—or even in the present conditions moderately dear money—is a handicap to world recovery. I want .to emphasise the extreme desirability of the co-ordination of credit policy among the leading central banks. If the banks_ pursue policies which lead in an opposite direction —or even if they adopt different methods in trying to achieve the same end—we shall not secure what we

want.” Mr Chamberlain added -that the various Governments should see that the central banks had the powers required to preserve an open credit, policy. THE QUICKEST SOLUTION A RISE IN PRICES. (British Official Wireless.) RUGBY. June 20. “I agree that a rise in prices, if achievable, is the quickest way out of the depression, and I accordingly welcome Mr Chamberlain’s statement, dedared Mr Bruce ip, his first conference speech, addressing the Monetary Subcommittee. Mr Bruce advocated the following essential measures: —First, Abundant credit ani cheap money; secondly, a wider extension of open market operations; thirdly, the active use of increased credit by the public or Governments; fourthly, currency stability. These should be followed by the abolition of exchange restrictions, the removal of prohibitions and similar trade barriers, and a resumption of international lending. WHEAT PRODUCTION VIEWS OF AUSTRALIA. (British Official Wireless.) RUGBY, June 20. During the sitting of the Economic Commission the general discussion was mainly devoted to wheat. Mr Stanley Bruce said that Australia felt that the great object of the conference should be to increase world purchasing power, and as far as possible to avoid reduction in world production. “Restriction of production seems to us a terrible policy to accept,” he said. “ We in Australia have great obligations to the world to develop a great continent and turn all its resources' to the benefit of mankind.” It had been suggested that the trouble was that the primary industries in overseas countries had increased production and disorganised world markets. That would not bear examination. There had been increasing constriction of European markets by the ever-rising tide of protection for European agriculture. The results of the quotas imposed had been to stimulate internal production and raise prices. The conference must get rid of nationalist ideas- and co-operate for the common good. MR BRUCE’S SPEECH WELCOMED. * LONDON, June 20. Mr Bruce’s speech at the conference is welcomed in Canadian circles, Canadians claiming that Mr Bruce has now come to a position in accordance with their views in his willingness to consider a reduction in production. Mr Bruce stated that while Australia would never consent to such a policy of despair as restriction, “ we are prepared to cooperate in every possible way to solve the world’s problem.” ■ The afternoon’s wheat talk was postponed till to-morrow at the request of Sir Bennett. Hopes of an ultimate agreement to regulate exports now seem brighter, but there is little likelihood of "The big four settling the matter among themselves. V OPINION IN CANADA. WINNIPEG, June 20. “Most encouraging,” said Mr John I. M’Farland, general manager of the Canadian Co-operative Wheat Pool, todav when he was informed that Australia had joined the big four wheatexporting countries in agreeing to some form of wheat acreage limitation as a temporary measure., .No comment was offered by grain traders or members of the Winnipeg

Grain Exchange. It is known that they are opposed to any scheme for reducing the amount of wheat grown in Western Canada. NO DEFINITE DECISION. SYDNEY, June 21. The Federal Minister of Commerce (Mr Stewart) stated: “We have not made a final decision as to whether we shall oppose restriction of the wheat acreage as proposed at the London Conference.” MR HULL’S PREDICTION “FAIR MEASURE OF SUCCESS.” LONDON, June 20. Mr Cordell Hull, the leader of the American delegation, predicts that the conference will last for 30 or 40 days more. He thinks that the situation is normally favourable, and prophesies for it a fair measure of,success. Mr Hull took pains to emphasise that the American delegation was absolutely united. AMERICAN RESOLUTION TWO POINTS ADOPTED. i (British Official Wireless.) RUGBY, June 20. The Second Monetary Sub-commission unanimously adopted the first two points in an American resolution: “That stability in the national monetary field should be attained as quickly as possible, and that gold be re-established as an international measure of exchange values.” A condition proposed by Lord Hailsham that each country should be able to determine the time and parity at which it (should return to the gold standard was also accepted. A sub-committee to deal with the silver question, over which Senator Pittman will preside, was also appointed. A RETURN TO GOLD DESIRABILITY RECOGNISED. LONDON, June 20. (Received June 21, at 8.55 p.m.) It was indicated that the leading countries are agreed on the desirability of a general ultimate return to the gold standard, but Lord Hailsham made it clear that Britain would not be rushed. Each country must decide the matter for itself and choose an opportune moment. Possibly in consequence of this attitude the American delegation this evening issued an explanatory statement, saying: “In returning to a gold exchange basis there will be no attempt to bind any Government with regard to the parity it may establish. What we seek is unity of action based upon a gold standard exchange supplemented by a more favourable and higher use of silver.” THE TARIFF TRUCE ) AGREEMENT WITH RESERVATIONS. TOKIQ, June 21. (Received Juno 21, at 10.20 p.m.) Cabinet has decided to agree with the tariff truce proposals, subject to reservations enabling retaliation against other nations adopting discriminatory trade measures.