WORLD RECOVERY

Otago Daily Times, Issue 22101, 3 November 1933, Page 6

WORLD RECOVERY

PRICES AND CURRENCY CO-OPERATION ESSENTIAL (FSOJf Ouh Parliamentary Repobteb.) WELLINGTON, November 2, «We cannot get out of our difficulties unless there is co-operation with other countries/' declared Mr Downie Stewart in the House to-day when opposing an amendment to the Reserve Bank Bill moved by Mr Savage which sought to take away from the bank the right to purchase shares of the Bank of International Settlements. “ If we are to be saved by the rise in prices/' Mr Stewart said —"and practically the whole of our internal credit is linked up with world prices—then surely it is of some importance for us to have some say in the policy of an international body that is trying to operate in such a way as to get the world out of the depression.” Mr Lee: How are we going to have a Bay? ... , ~ Mr Stewart: We would have a better chance of having a say if we have some shares than if we had no interest in the bank at all. As for the other objection that power to purchase shares in the Bank of International Settlements is not immediately required. Sir Otto Niemeyer points out that that is not a matter of immediate practical politics, but that a similar clause is being put into the constitution of all central banks because the Bank of International Settlements is becoming of more and more importance. Unless a world policy can be evolved on currency and similar problems there is a long way to go before we can restore ourselves individually. So far as it ds anticipating a possible need or a possible decision at a later date, this Parliament is frequently passing legislation on the same analogy. Mr Stewart said that he remembered a few years ago putting through a clause which provided that goods coming-in by aeroplane should be liable to duty. The House thought it was rather far-fetched, but it was impossible to say how long it might be before that clause was needed. “I think the directors of this bank.” said Mr Stewart, “ would be wise_ enough to see whether or not it was in New Zealand’s interest to have a holding in this bank.”