BRITISH POLICY

Taranaki Daily News, 13 July 1933, Page 5

BRITISH POLICY

FUTURE CURRENCY AIMS MIDDLE COURSE MEANTIME REACTION OF THE FRANC DECISION OF UJS. AWAITED CRITICISM OF THE BUREAU By Telegraph—Press Assn.—Copyright. Rec. 5.5 p.m. London, July 12. The Daily Telegraph’s City editor says banking circles interpret Mr. Chamberlain’s declaration on Monday to mean the Treasury has decided the pound will not be deliberately depreciated; in other words, the Treasury is not contemplating currency warfare but is shaping a middle course toward helping . the gold countries to hold the fort until President Roosevelt makes up his mind. It is certain the gold countries will be greatly assisted by such a declaration of policy, and the franc yesterday was a trifle firmer. Sir Josiah Stamp, broadcasting from Britain to the United States, said the success of Mr. Roosevelt’s measures would depend on the mettle and moral calibre of the American people. “The great thing they have to fear is too high a speculative activity with inevitable reactions,” he said. “If hopes for the future dash frantically ahead of existing facts, disillusionment may well have results too fearful to contemplate. American psychology and its ability to rocket ahead on the Stock Exchange are the greatest obstacles to the success of Mr. Roosevelt’s programme.” The Times in a leader declaring that the bureau’s decision was an unheroic avoidance of the question and likely to split the conference, emphasises the absurdity of the sub-commission discussing indebtedness without considering credit, control of exchange and price levels. “The bureau is thereby keeping the conference alive,” says the paper, “'but what would happen if President Roosevelt still is not ready to talk of stabilisation when the sub-committee has concluded its emasculated discussion?. The gold countries would then certainly demand an indefinite or lengthy postponement, tantamount to the end of the conference.

“It is increasingly obvious that it will be difficult to achieve world-wide agreement acceptable to the gold countries, America and the Empire; consequently it is imperative that the members of such groups, especially Britain and its trading associates, should use their own opportunity to solve their own problems.”