WORLD PRICES.

Waikato Times, Volume 111, Issue 18632, 10 May 1932, Page 8

WORLD PRICES.

MANAGED CURRENCY,. BUSINESS OPINION. EMPIRE SYSTEM URGED. Sympathy toward a properly administered Empire-managed currency for the purpose of bridging the gap between currency and the value of commodities, was expressed in a resolution carried at a meeting in \\ ellington of the executive of the Associated Chambers of Commerce of New Zealand.

'ln commenting on the measures adopted by the New Zealand Government to adjust the national expenditure, Mr Wm. Machin, president of the association, said that the country was taking opportunist methods of baling with the situation —it .was not dealing with the vital question. The one general question that affected this Dominion was the immense, unprecedented disparity between currency and the value of commodities. The British Empire Federation of Chambers of Commerce, the Federation of British Manufacturers and representatives of other business concerns in Britain were going to Ottawa with the_ idea of dealing with that question. However acute the position m'ght be in Britain it was far more acute here. Mr Machin said, his mind had altered on the question recently, especially since seeing a conservative like Britain taking such unprecedented

steps toward managing her currency. He did not think the main question was that of the standard of the currency, it was a question as to who would manage it; in New Zealand it was possible that inappropriate persons would manage it. A matter for discussion was the aspect from which, the association viewed the Ottawa Conference. How far was the business community of New Zealaud in favour of a managed currency in r#« lation to her commodities?

Obligations of Now Zealanders. ■Mr Machin said he had no need to enlarge on the obligations of New Zealanders to meet their commitments In terms of currency as oompared with the Impoverished returns they were getting for their commodities. The association had put many Important suggestions before the Government for the purpose of reducing costs, but it was impossible to get our expenditure wholly down to the ratio of our export prices. That being the case, there was the question of some other method of bringing into line the prices of commodities as against currenoy. One way was now open for a considered Empire policy in regard to, a-managed currency. After a full dlsoussion, the meeting carried unanimously the following resolution: “This executive regards the question of an Empire-managed currency as the most important qufcstion that will come before the Ottawa ■Conference. This association will view sympathetically the adoption of ■a system of managed currency, for the purpose of bridging the gap between the present standard of currenoy and world prices, if such system is authoritatively put forward by Great v Britain at the conference, provided -A the management in New Zealand of such a scheme is entrusted to a private banking organisation divorced absolutely from Government oontrol.’*