IMPEDIMENTS TO TRADE.

Wairarapa Age, 7 October 1936, Page 5

IMPEDIMENTS TO TRADE.

REMOVAL URGED BY BRITISH MINISTER. BEFORE LEAGUE ECONOMIC COMMITTEE. FRENCH DELEGATE CONCURS. RUGBY, October 5. A call for complete removal of exchange restrictions and quotas so that international trade could attain increased prosperity was made to-day by Mr. W. S. Morrison, Financial Secretary to the British Treasury, in a speech at the League of Nations Economic Committee. Xhere was, he said, an intimate connection between general economic problems and political problems. The present situation appeared to offer an opportunity for clearing away obstacles in the way of international trade. He suggested that the committee should proceed quietly, but with a resolve to consider in the first case obstacles to trade due to currency difficulties and whether these obstacles take the form of exchange restrictions or quotas. The British Government would be faced by very strong pressure on the part of certain interests in the United Kingdom to counteract intensified competition which w’ould result from devaluation on the Continent, Such pressure would be difficult to resist, and he called upon the other Governments to help the British Government in this respect. Before the committee’s business concluded he hoped to submit for consideration two resolutions, the first to cover the question of exchange restriction and quotas, and the second regarding commercial access to raw materials. He suggested the appointment by the Council of the League of a committee composed of representatives of the Economic and Financial Committee of the League and other qualified persons to undertake a study of the entire problem of raw materials and to furnish the League with a report. (Continued on page 7.) ITALY’S ACTION. STEP TO READJUSTMENT. (Received Tuesday, 10.40 p.m.) WASHINGTON, October 5. Italy’s devaluation is welcomed by bankers and economists as a contribution to a general readjustment of parities preceding stabilisation and the revaluation of the lira. AMERICAN HOPES. MOVE TOWARDS REBUILDING COMMERCE. EVERYTHING GOING WELL. (Received Tuesday, 9.15 p.m.) WASHINGTON, October 5. Mr. Cordell Hull (Secretary of State) expressed approval of France, Switzerland and the Netherlands devaluing their currencies and lowering import duties as “a move towards rebuilding international commerce.'’ He eaid it showed that other countries recognised that extreme restrictions imposed on the trade of the world created a common injury and were ready to move toward rebuilding international commerce. The only comment of Mr. H. Morgenthau (Secretary to the Treasury) regarding stabilisation was that everything seemed to be going extremely well.

M. Bastid, the French Minister of Commerce, said that France hoped that other countries would follow her example in bringing about a new monetary system. This was necessary to assist the economic recovery of the world. In reducing one-quarter of its quotas and its Customs tariffs the French Government had made a gesture to the world, but this could not have been done without realignment of the franc. Other countries would also have to reciprocate. The French Government was willing to take the necessary measures to liberate capital and make the circulation of money and goods easier. On Mr. Morrison’s proposal, M. Spinasse, Minister of National Economy in France, was appointed rapporteur of the work of the committee to the League Assembly.—(British Official Wireless.) OPTIMISM IN LONDON. SPEECH MAKES FAVOURABLE IMPRESSION. RUGBY, October 5. To-day’s events, including Italy’s devaluation of the lira and modification of import restrictions, Mr. W. S. Morrison ’s important speech at Geneva, and the announcement by the French Minister of Commerce that France, following Saturday’s reduction of tariffs and the abolition of some of the import quotas, is elaborating a Customs tariff from which quotas will be entirely excluded, have created a favourable impression in London, and the markets generally have had an optimistic tone. Great prominence is given in the papers to the speech delivered at Geneva this morning by the Financial Secretary to the Treasury in the committee of the Assembly which deals with social and economic questions.—(British Official Wireless.) NO DEVALUATION IN POLAND. WARSAW, October 5. Cabinet has decided that it is not necessary for Poland to devalue the currency.