OBSTACLE TO WORLD RECOVERY

Timaru Herald, Volume CXLII, Issue 20531, 24 September 1936, Page 9

OBSTACLE TO WORLD RECOVERY

GENEVA ISSUES REPORT MENACE OF WEAK EXCHANGES EACH COUNTRY’S OWN PROBLEM British Official Wireless (Received September 23, 5.5 p.m.) RUGBY, September 22. A report presented by the Financial Committee of the League of Nations states that the lack of proportion between prices and currencies, which leads to a deficiency of equilibrium in the exchanges, is t*e greatest obstacle in the way of world-wide recovery. The report endorses the view of the economic committee, that it is indispensable for the restoration of normal economic intercourse, to close the abnormal gap which separates the price level in different countries. The report fully shares the view that it is for each country to deal with its own monetary problems, and a world conference could not, at this stage, prove helpful, and any attempt at international economic co-operation should be confined in the first instance to a limited number of countries which are likely to have a decisive influence on the course of events. The report emphasises agreement with the view that no currency adjustment can bring about any improvement in the economic situation, unless it is accompanied by relaxation leading to the ultimate abolition of exceptional import restrictions.