BANK OF ENGLAND

Wairarapa Daily Times, 19 June 1931, Page 5

BANK OF ENGLAND

SEVERE CONDEMNATION OF DEPRESSION POLICY. Press Association Electric Telegraph—Copyright LONDON, Thursday. The “Daily Herald” lobbyist says the report of the MacMillan Committee on finance and commerce, which was appointed in November, 1929, will be presented to the Government this week. The writer forecasts that there will be a majority report severely criticising the Bank of England’s policy during the trade depression, suggesting that the 'bank at present could materially improve trade by making credit more easily available and increasing the amount of money circulating. This policy should bo 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 a wage and salary reduction as a practical remedy for the trade crisis, which is diametrically opposed to the view expressed by Dr. Snroulft in an address to the Statistical Society, in- übich. liff ed that central bankers are of. the opinion they can do nothing for trade until drastic cuts in wages and salaries are effected. The report m likely to treats a sensation, as the Bank of England’s policy will be openly condemned by the committee, including 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. A TRAVESTY. (Received Friday, 11.45 a.m.) LONDON, Thursday. An official statement lias been issued that the “Daily Herald’s” forecast of the McMillan finance and industry committee’s report is entirely unathorised, and is a complete travesty of the contents.

The committee hope to present the report next week.