WORLD TRADE

Poverty Bay Herald, Volume LXII, Issue 18756, 12 July 1935, Page 12

WORLD TRADE

CONGRESS IN PARIS .STABILISATION PROBLEM fv\ ' l ' London, July 2. : The proceedings at the Congr.es* of the. -international Chamber nf Com-meree-In Paris wore discussed by Mr Spencer Watts, leader of the Australian* delegation, on his return to London to-day.‘ He said that, regarding currency stabilisation, there were three groups, the sterling group, America, arid the gold, bloc, and each Rad a lengthy draf t resolution. •‘After much negotiation, America moved a resolution based on the draft submitted by Australia. This was 'adopted, and consultations among tfce>. principal Governments are expected shortly. Regarding ‘international trade, ho said ,t)ip.t there was a final unanimous agreement that, the recovery of world tradfe and, * the balancing of budgets without currency stabilisation were impossible, ' Individual countries could not prosper until trade barriers were abolished Or diminished.. Australia secured an amendment to the resolution for the organisation of production, to make it clear that the conference opposed Government control of production, especially the restriction pf primary production. The Australian delegates were congratulated on their action, and the effective part that they had played at the conference. All the Australian delegates were emphatic that Australia should continue its association with .the international ■ chamber.. v> OPINION IN BRITAIN ' A real advance towards stabilisation is not expected for some months. A general- election in Britain is in the offing, and it is suggested that the Prime, Minister, Mr Baldwin, would prefer the tumult and the shouting to die before he initiates policies demanding patient and continuous effort over H long period if success is to be assured. The dangers attending premature, ill-conceived stabilisation, are greater than those that could rise fToiii dijatoriness. There is virtually unanimity among British bankers, including IK* Bank- of England, that no basis of Stabilisation other than gold should bo sought. ' • British opinion is divided on the point Whether stabilisation should be effected without delay. One school argues that Britain has no cause to be dissatisfied with the economic progress that has been made in the period unstable exchanges. There is little sign of the progress ending, and, therefore, why should they worry about the exchanges? Others are probably influenced in. their views by the trended international trade, and they urge that Britain, has no hope of regaining hoi former volume of oversea trade. Therefore, while excessive fluctuations iaf.the. value of sterling are to be deprecated, it would be foolish to worry unduly about the external value of the pound. The beneficial effects ot Stabilisation at present are considered to • be problematical, while the dan jjers of gold stabilisation are real.