TRADE WITH U.S.A.

Timaru Herald, Volume CXLIII, Issue 20720, 6 May 1937, Page 7

TRADE WITH U.S.A.

DISCUSSION ON ANGLO-AMERICA POLICY British Official Wireless (Received May 5, 6.30 pun.) RUGBY, May 4. The Chancellor of the Exchequer (Mr Neville Chamberlain) and the President of the Board of Trade (Mr Walter Runciman) had questions to answer in the House of Commons relating to co-operation with the United States in, and other aspects of the monetary and economic policy. Mr Chamberlain said that general co-operation was maintained with the United States Government and other parties to the triparite monetary declaration of last September for the purpose of maintaining as far as possible the equilibrium in gold. In pursuance of that policy, gold was purchased when necessary and no change in the system was contemplated.

Regarding the cost of living, the Chancellor said that with increasing prosperity and improved employment there was a natural tendency for prices to rise above the very low level to which they fell during the slump, but there had been no abnormal development at home, and the cost of living was still decidedly lower than before the depression. Mr Runciman was questioned about the prospects of a trade agreement with the United States. He replied that it would not be safe to assume that the recent increase fa United Kingdom exports and re-exports to the United States was mainly attributable to the reductions which had been made in the United States tariff. Since 1934 the value of the imports of merchandise from the United States into the United Kingdom had increased from about £82,000,000 in 1934 to £93,000,000 in 1936. Explanatory discussions in relation to the AngloAmerican trade agreement were proceeding.