ATTACK MADE ON BANK OF ENGLAND.

Star (Christchurch), Volume XLIV, Issue 144, 19 June 1931, Page 1

ATTACK MADE ON BANK OF ENGLAND.

GREAT FINANCIAL EXPERTS’ CRITICISM. (United Preps Assn.—By Electric Telegraph—Copyright.) LONDON. June IS. The report of the Committee of Inquiry into Finance. Industry and Commerce. which was appointed in November, 1929, under the chairmanship of Mr 11. P. MacMillan, will be presented to the Government this week, writes the diplomatic correspondent of the “ Daily Herald.” The writer forecasts that there will be a majority report severely criticising the Bank of England’s policy during the trade depression, and suggesting that the bank, at present, could materially improve trade conditions by making credit more easily available and increasing the amount of money in circulation. This policy should be carried out in co-operation with the Central Reserve Bank of America, the Bank of France, and other great central banks. The report does not advocate wage and salary reduction as a practical remedy for the trade crisis. This is diametrically opposed to the view expressed by Dr Sproule in an address to the Statistical Society, in which he declared that central bankers are of opinion that they can do nothing for trade until drastic cuts in wages and salaries are effected. The report is likely to create a sensation as the Bank of England’s policy will be openly condemned by the committee which included some of the greatest financial experts in Britain. There will also be minority reports, one of which will propose protection and the establishment of a National Investment Board to issue both short and long term loans to industry. The terms of reference of the committee were:—To inquire into barking, finance, and credit, paying regard to the factors, both internal and international, which govern their operation; and to make recommendations calculated to enable these agencies to promote the development of trade and commerce and the employment of labour. The members of the committee are; The Right Hon H. P. MacMillan. K.C. (chairman). —Formerly Lord Advocate for Scotland. He has been chairman of several important committees, including the Home Office Committee on Street Offences (1927). Sir Thomas Allen.—Vice-chairman. Co-operative Wholesale Society, and chairman Co-operative Insurance Society. Mr Ernest Bevin.—General Secretary of the Transport and General Workers’ Union. Lord Bradbury.—Formerly Secretary to the Treasury. The Hon R H. Brand.—A director of the Lloyds Bank, Ltd. Professor T. E. Gregory.—Professor of Banking in London University. Mr J. M. Keynes.—The noted economist, and secretary of the Royal Economic Society. Mr Lennox B. Lee.—Manager, Sir E. Armitage and Sons. Mr Cecil Lubbock.—A director of the Bank of England. Mr Reginald M’Kenna.—Chairman of the Midland Bank, and Chancellor of the Exchequer (1915-1916). Mr J. T. New’bold. —Socialist research worker and lecturer. He resigned from the Communist Party in 1924. Sir Walter Raine.—Managing director, J. Raine and Sons, coal exporters. Mr James Frater Taylor.—Vice-chair-man of Sir W. G. Armstrong-Whitworth and Co., Ltd. Mr A. A. G. Tulloch.—Joint managing director and deputy chairman of the District Bark Ltd.