URRENCY PROBLEMS

Waikato Times, Volume 111, Issue 18641, 20 May 1932, Page 7

URRENCY PROBLEMS

AMERICA AND GOLD. A BANKER'S CONCLUSIONS. ABANDONMENT IMPROBABLE. United Press Assn.—Elec. Tel. Copyright. WASHINGTON, May 18. The .Governor of tho Federal Reserve Board, Mr Eugene Meyer, in a statement before the Banking and Currency Committee of the Senate, confidently predicted that the United Slates would not- go off the gold standard. There was not the slightest doubt in the mind of any responsible official of ability, said Mr Meyer, of the intention of the United States to stay on Lhe gold standard. No nation had gone off it except through necessity. There were none that did not want to return to a metallic basis. Mr Neville Chamberlain, British Chancellor of the Exchequer, had said that Britain must return to a metallic basis. Mr Meyer said the United States could not alono control the world price level, especially in the face of conditions more serious than they had ever known. MONETARY REFORMS. ANGLO-AMERICAN CO-OPERATION. United Press Assn.—Elec. Tel. CcpyrlirlH. LONDN, May 18. The Financial Secretary to the Treasury, Major W. E. Elliot, iu the House of Commons, indicated that Britain was willing to co-operate with America in monetary reform. The statement lias aroused widespread interest. “ Any attempt at a friendly cooperation wilh men of goodwill, pursuing a similar policy,” Major Elliot said, “ will be doubly welcomed by Britain.” Mr Churchill requested that 'the statement should be officially communicated to America. Major Elliot; I am Financial Secretary to the Tresaurv, and I cannot conceive my statement on behalf of the Government being ignored here or elsewhere." AN ECONOMIST’S ADVICE. A CYCLE OF CRISES. INTERNATIONAL CURRENCY. LONDON, May 18. “ A substantial rise in prices Is so far ahead that producers should concentrate on reducing costs by improving equipment and processes and reducing overhead charges by re-organ-isation." Thsi advice from Professor 11. Stanley Jevons, economist, is published in tho Times Trade and Engineering Supplement. ‘The writer deduces that gold prices have nearly reached bottom, and probably will remain stationary for some years, with a sharp fall about 1938. This will precede a final cycle of crises, continuing at least until 1943. Professor Jevons considers that his calculations would be upset by another world war. The crisis could be scientifically shortened otherwise, by the derision of important commercial nations to establish international currency as a basis for expanded credit.