EMPIRE AND WORLD TRADE

Taranaki Daily News, 12 July 1933, Page 7

EMPIRE AND WORLD TRADE

DOMINION CONSULTATION

AMERICA’S LEAVING GOLD

MR. CHURCHILL REJOICES

“THE STERLING CONVOY”

By Telegraph—Press Assn.—Copyright London, July 10.

Replying in the House of Commons to a question whether, in view of the “breaking down of the conference,” he had asked the Dominions to hold an emergency Empire conference to safeguard their interests,. Mr. Ramsay MacDonald said that the conference was continuing and Britain was consulting constantly with the Dominions. Mr. Winston Churchill said he rejoiced that the United States, had come off gold. The gold bloc- countries played an important part in the world’s business compared with the non-gold countries. When gold was dethroned sterling was likely to become the world’s most trustworthy measure.

“We are the most heavily taxed nation in the world,” he said, “and there is no hope of modification of the burden without succesful price and wages raising. The Government should aim at organising and guiding the sterling convoy, at the centre of which stands the Empire, on a steady plan controlled by revaluation, in an endeavour to raise prices.” Sir Herbert Samuel said that all parts of the House agreed that the conference must not abandon its tasks. The recent jumps in the sterling prices of commodities had been remarkable. Mr. L. C. M. S. Amery said that the real trouble was that the Government had not made up its mind on which side of the fence it stood. It could not run with Montague Norman the hare and hunt with Roosevelt the hound. “The doctrine of economic internationalism is incompatible with our national interests,” he said. “If the world were one economic unit there would be unlimited competition from Japan, which would prove disastrous: to British industry. The only available compromise would be for nations wishing to work permanently together to form economic groups. We made a beginning at Ottawa; why not encourage the peoples of Europe to form a similar group monetarily and economically?” DESIRE FOR STABILITY THE RE-ESTABLISHMENT OF GOLD. RESOLUTIONS OF COMMITTEE... British Wireless. Rugby. July 10. The scope of the future work of the World Economic Conference is still under examination by the conference bureau, which to-day approved of the reports of the two sub-committees of the Economic Commission on indirect protectionism and co-ordination of production and marketing. Both sub-committees unanimously favoured continuation of the conference. The bureau also agreed that drafting committees of the two sub-committees on subsidies and commercial policy, on which differences of opinion have arisen, should be appointed to report to the bureau on the different viewpoints in the monetary field of the conference work. The decisions in Friday’s sub-commit-tee on immediate measures were reported. The sub-committee on permanent measures of financial restoration reported that four resolutions were ready for submission to the bureau, and that the sub-committee on silver would report this week. The four resolutions referred to are:— > i. ' (1) That in the interest of all concerned, stability in. the international monetary field be attained as 'quickly as possible . , (2) That gold should be re-established as the international measure of exchange values. - (3) That under modern conditions monetary gold is not required for internal circulation but as a reserve against central bank liabilities and declaration. (4) That in order to improve the working in future of the gold standard greater elasticity should be given to central banks’ regular provisions. Talk of the conference going into recess at the end of next week preceded the bureau’s inconclusive meeting, at which there were indications that the time had been occupied with a battle of> what shall not be retained on the. agenda paper. For example, France wanted to limit the sub-committee’s permanent financial measures to the question of silver, but there was strong support for submitting a list pf subjects to the bureau. This was ultimately decided upon, .France making the reservation that she would not participate in the discussion. There were sufficient subjects remitted to the five commissions to justify their appointment. The drafting committee will submit a remodelled agenda to to-mor-row’s bureau. The present atmosphere of the conference is by no means suggestive of virility and purposefulness.