FINANCIAL POLICIES

Poverty Bay Herald, Volume LV, Issue 17502, 26 February 1931, Page 7

FINANCIAL POLICIES

BRITAIN AND FRANCE IMPORTANT DISCUSSIONS RELEASE OF CREDITS (British Official Wireless.) Bee. 10 a.ni. RUGBY, Feb. 24. An official statement oil the recent discussions between British and French Treasury experts says the object has teen a frank and cordial exchange of views on the principal financial questions of interest to both countries with a view to promoting a policy of financial co-operation in tlie existing world wide depression. The underlying causes oi the exceptional gofd movements between London and Fans have been discussed. It has been ’confirmed that the French authorities in no way welcome the abnormal gold movements, and have been anxious, so far as possible, to avoid measures tending to bring them about. The French Treasury, wliile noL considering that methods ot managing public lunds in France have had the influence sometimes attributed to them, has, nevertheless, readily stated its intention of taking account, consistent with its own needs, of the repercussions which'its operations might have on the monetary market. Jt. was agreed that the two Treasuries should keep in touch on questions arising from the reports of the gold delegation of the League of Nations, and also agreed that cardinal importance attached to the resumption of foreign lending on a normal scale by creditor countries, and the French authorities have on many occasions made known their desire to encourage foreign spending on tile Palis market, but it recognised that the present credit difficulties were largely due to a lack of confidence on (he part ot investors, unci that it was essential that borrowing countries should themselves take all possible measures to restore confidence.

Steps to promote effective co-operation with a view to loan operations would contribute to alleviate the existing depression, and all possibilities should be examined. The statement refers to the League discussions with a view to facilitating agricultural credits in central and eastern Europe, and expresses a hope that practical results may be realised at an early date. It adds that the conversation's have not aimed at definite interprcvincial agreements, but have enabled contact to be established on questions affecting the financial and economic interests of both countries, which will he maintained, and the conversations will be renewed as circumstances require.