WORLD CURRENCY PROBLEMS

Timaru Herald, Volume CLVI, Issue 22935, 4 July 1944, Page 4

WORLD CURRENCY PROBLEMS

Opposition To Gold Standard National Party Caucus (N.Z.P.A.) WELLINGTON. July 3. Conclusions reached by to-day's caucus of Parliamentary members of the National Party on international monetary stabilisation were released by the Leader of the Opposition (Mr 8. G- Holland). A full discussion took place on proposals for the establishment of an international monetary stabilisation fund and on a report of the Party's special committee set up to investigate the plans. Mr Holland said that while the Opposition would welcome any organisation which would improve world trade and facilitate the free flow of

goods between nations and prevent competitive exchange fluctuations, further comment would be withheld until the outcome of the conference now being held in the United States was known. Conclusions Reacherl Definite conclusions on important fundamentals of the question were, however, reached by the caucus, said Mr Holland. They fell into four groups, which he outlined as follows: (1) “That any proposal to induce New Zealand to base its economy or currency on what was known as the old gold standard will meet with the uncompromising hostility and vehement opposition of the Party. (2) “That no international monetary arrangements should be permitted to include provision lor interfering with New Zealand’s internal economy and with the National Party’s plans for providing full employment for the people. (3) “That the Party agreed with the point of view being freely expressed in Britain, that it was putting the. cart before the horse to discuss currency matters without also tackling the vital question of commodity prices and price stability. (4) “That it is imperative that there should continue to be the greatest freedom for the expansion of trade inside \vhat is known as the sterling area.” While they did not wish to express any final opinions on the probable outcome of the comerence new being held in the Unitea States, his colleagues, said Mr Holland, viewed with much concern any scheme that would give any other country twice the voting strength of Britain in the management oi an international fund.

The Opposition’s special committee would continue at further meetings to consider the whole question and its effect on the Dominion said Mr Holland.