INTERNATIONAL FUND

Otago Daily Times, Issue 26274, 4 October 1946, Page 5

INTERNATIONAL FUND

RELATION TO EMPLOYMENT IMPORTANT CONCESSION (Rec. 11.45 p.m.) NEW YORK, Oct. 3. The United Kingdom won an important concession from the governors of the International Monetary Fund when it was agreed that the measures taken by a country to protect itself from a threat to its full employment programme might be considered by the fund as coming within its authority to allow currency revaluations to correct “ fundamental disequilibrium,” says the Washington correspondent of the New York Times. The Chancellor of the Exchequer, Mr Hugh Dalton, who is the British governor of the fund, hailed the interpretation of “ fundamental disequilibrium ” as removing any doubts lingering in men’s minds regarding the fund's relation to unemployment. Experts said the political significance of the interpretation to Britain was to remove fears in some quarters that the monetary fund retains the same rigidity as the old gold standard. The United Kingdom has fought consistently to ensure that the new system should have sufficient elasticity to protect nations from the transmission of depressions from one country to another.