Expert in Finance

Stratford Evening Post, Issue 36, 9 September 1930, Page 5

Expert in Finance

SIR OTTO NIEMEYER ARRIVES. BANKING LAWS. "SOMETHING MUST HE HONE.” WELLINGTON, This Day. With the object of discussing financial and economic problems of vital Importance to the Dominion with the Government and. representatives of the banks, Sir Otto Niemeyer, a high official of tile Barfc of England, arrived at Wellington yesterday morning by the Makar a from Sydney, Re was accompanied by Mr R. M. Kershaw, liaison officer between the Bank of England and other banks of Hie Empire, “As your Govern'ment has already announced,” remarked Sir Otto Niemeyer on board the Makura. “the primary object of my visit, which is being made at the invitation of the Prime Minister, is to confer w:ih and advise the Government in regard to the banking currency and exchange problems of New Zealand. As was pointed out last week, the permanent banking legislation of New Zealand was largely suspended by war regulations which are still in force, and which ar e due fo- replacement. Sir Otto Niemeye r made it finite clear that he had at present nothing to say for publication regarding his mission to the Dominion, beyond a smili'ng remark that, in respect to New Zealand’s banking legislation, “something will nave to bo done, and that before very long.” lie stated that he expected to remain in New Zealand about two wieics before returning to Australia. On arrival at the wharf, Sir Otto Niemeyer was met and formally welcomed by Lieutenant J. C. Elworthy, R.N., A.D.C. to his Excellency the Governor-General, Mr A. D Park, Secretary of the Treasury, Mr R. E. Hays, financial, adviser to th e Government, and Mr D. Ardell, representing the Minister of Internal Affairs. Later he met the ActingPrime Minister, Hon. E. A. Ransom, the other Ministers at a meeting of the Executive Council., Sir Otto Niemeyer will be the guest of the Governor-General and Lady Bledisloe at Government House during his stay in Wellington. Yesterday afternoon Sir Otto Niemeyer spent a considerable time in consultation with Dr. Theodore Gregory, economic adviser of the mission', who arrived from Sydney a week ago and who is sailing to-day hy the Makura tor America. BRITAIN’S POSITION TO-DAY. That tlio economics position of Great ißrita|iu to-day Was “by no means as bad as it is parted” was ai definite pronouncement of Sir Otto Niemeyer (when asked for his view. It was very easy to take exaggerated views one way or the other, but, /personally, lie was not at all pessimistic about the situation. There [were some bad features such as the unemployment figure of 2,000,000, and the depressed state of many of the “heavy” industries and the cotton industry. On the other hand, there were many other industries, including the motor trade, that were in a much better position. There had been a great deal of industrial development in recent years in the South of England. In addition there had been a very great deal of what was known as rationalisation of industry and this (was still in progress. Taking everything into consideration said Sir Otto, he was inclined to tlie view that public opinion in general was rather unduly pessimistic about tlio present position of Britain and her future., THE GOLD STANDARD. Dealing briefly with the problem of gold and its relation to commodity values Sir Otto Niemeyer said the currency question was an international one that was most certainly capable of solution. “I have always believed that there is no alternative to the gold standard, but, Of course, all that it does is to relate a whole series of countries to a single measuring rod which is the value of gold. The gold standard itself does not fix tlio measuring rod”. Tlio gold problem could be dealt with in two ways, through the Bank of International Settlements or through the League of Nations. i

Sir Otto Niemeyor said much progress had been made toward ‘co-op-eration between the banks of Europe, where distances are less and bankers are more closely connected in the direction of co-operation be-

tiwceu the Central Banks and the new Bank of International Settlements. This is a new venture, a njuw jundoi‘taik(ing flu wuiujju nearly all the big Central Banks in tne world are concerned. It is in the making, and we do not yet know what it will produce, but it is a more systematised effort at co-oper-ation than there has j>oen no far. Co-operation has been a spasmodic and individual effort, hut it has become a little more systematised and no doubt that will spread to other countries”. There was, however, said Sir Otto, room for a great deal more co-operation, and also lor “a lot moro central banks’- s He declined to comment on th© hugely increased gold holdings of the Bans of France during the last twelve months.

FALLING PRICES. Regarding commodity prices, Sir Otto Niomoyer remarked that these were still falling throughout the world, and showed no signs of ceasing to fall. The result, particularly in tile case of -Australia, was to he seen in the prices of wheat and wool. It was difficult to see any rise in cither of these products. “Of course”, said Sir Otto, “the problem of the export price of wheat is one that does not concern New Zealand, though you are of course very much interested in wool and dairy produce. Nelw Zealand has two great advantages over Australia, in that you have a very much, more varied production and no droughts to contend with”.