THE EXCHANGE CRISIS.

Wanganui Herald, Volume LIII, Issue 16044, 7 February 1920, Page 3

THE EXCHANGE CRISIS.

I jpHTATN’R SOUND POSITION* Atestealian aad N.S.- Cable Association. - ' NEW YORK, February 5. 'flit New York Sun’s London correspondent interviewed the Hon. Reginald '.McKenna, who said: America is right in refusing to lend money to Governments which have not . put their own house in carder. England will prove she is willing to do heii share in restoring industrial life where it has collapsed in Europe.”* Continuing, Mr McKenna said: "I am strongly in accord with Senator Glass’s statement. It is Ijhe imperative duty of the Governments of the world to limit their expenditures to their incomes from taxation. There would be an adverse British balance of trade if England were not selling goods on credit in order to help restore Europe. Britain’s output is very good. The Labour situation in Britain is less ■threatening than in any of the leading -countries of the world. There is no ground for fear of any decline in Britain’s mercantile marine power. Competition in trade between England and the United States exists, but only friendly competition.” OTTAWA, February 6. The Minister of Finance "conferred with leading banters on the exchange situation. The opinion is expressed that Government action would nob lessen the unprecedentedly heavy discount on Canadian money, since the causes were international. WASHINGTON, February 5. Senator Thomas, declaring that the exchange system was seriously threatening America’s export trade, introduced a resolution to create a monetary commission. to confer with similar commissions from other nations in an attempt to stabilise the moneys of the world.