NEED FOR WORLD CO-OPERATION

Timaru Herald, Volume CXXXVII, Issue 19578, 26 August 1933, Page 17

NEED FOR WORLD CO-OPERATION

DEMAND FOR PLANNED SYSTEM PROPOSALS SUBMITTED BY NEW ZEALAND United Press Association— By Electrlo Telegraph—Copyright (Received August 25, 5.5 p.m.) BANFF, August 24. A picture of the world marking time, until the United States Recovery scheme has been further advanced, was painted by members of the Institute of Pacific Relations. Currency and Price Levels. The disAission on trade agreements and the possibility of bilateral treaties in the Pacific countries was swung by the Chinese members, into a full dress discussion on currency problems. The Chinese members declared that tariffs were only one aspect of the larger problem, in which exchange stabilisation stood pre-eminent. The British members took an almost optimistic view of the possibility of progress. There was a strong suggestion of the view that a further depreciation of the United States dollar was highly improbable, and it would be possible to get together on a currency stabilisation programme some time next year. Once that was achieved, it was thought that the embarkation upon a scheme of international price-raising would be possible, by means of the expansion of Central Bank assets in various countries. This expansion might then be followed by large scale programmes of public works, and the restoration of employment to something like normal proportions. Some suggestions were made that sterling might be the currency upon which the other exchanges would peg theirs, but it was pointed out that this was relatively unimportant. So long as agreement included Britain, France, United States and Japan, sufficient impetus would be given the scheme to bring others into it. The resultant stability and confidence would clear the way for the resumption of international lending and borrowing, with a further possibility of trade agreements, clearing the blocked channels of international commerce. New Zealand Plan. The New Zealand scheme of planned and licensed exports, as the proposed model remedy for international exports and imports, throughout the world, was discussed. The plan contemplates the exchange of products among nations on a quota system. This issue precipitated a debate between those who argued that the work! must accept a planned economy, or deteriorate, and those who saw difficulties in the proposal. Supporters of the plan conceded that they were conscious of the danger of large scale planning which would lead to monopolistic control, but they urged that Governments could prevent such control from pressing too heavily upon the consumer. Opponents argued that export and import quotas, in highly industrialised countries, where there was a wide variety, would lead Governments into more trouble than they had on their hands already. An adjournment came, with the discussion going on as to the probability of great international cartels, offering a way for controlled production and export, without leaning too heavily upon the Government arm.

The New Zealand plan received a substantial measure of support from the United States members.