EMPIRE BANKING POLICY

Taranaki Daily News, 16 October 1934, Page 9

EMPIRE BANKING POLICY

STABLE EXCHANGE RATE NEW ZEALAND IS COMMENDED. BASIS OF TREATIES AT OTTAWA. OTHERS SHOULD FOLLOW SUIT. By Telegraph—Press Assn—Copyright. Rec. 8.45 p.m. London, Oct. 14. The Financial Times in an editorial on Empire banking recalls the announcement of the New Zealand Reserve Bank that no alteration in the London exchange rate is contemplated for a long time. “Equally important action will no doubt have to be taken by the other new Dominion central banks within a measurable space of time,” the paper says.

“It is to be hoped the example of New Zealand will be followed and that alterations in intra-Imperial rates w’ill be few and far between, indeed, Imperial monetary stability is the real basis of the Ottawa Agreements.

“Imperial co-operation with London in this connection is essential and postulates the need of some practical form of frequent consultations in which London will listen to the Dominions besides seeking to advise them. Each Dominion, however, possesses a full measure of independence in its internal monetary policy,* which no one at London would seek to circumscribe.”