EMPIRE CONFERENCE.

Waikato Times, Volume 112, Issue 18697, 25 July 1932, Page 7

EMPIRE CONFERENCE.

THE CURRENCY QUESTION. RAISING THE PRICE LEVELS. United Press Assn. —Elec. Tel. copyright. (Received July 25, 11.30 a.m.) OTTAWA, July 24. The problem of currenoy stands out as a distinct major subject at the Empire conference, and It Is now certain It will he taokled In a determined fashion. It Is early yet to predict the result, but a high British authority states the conference v/11l thoroughly survey the question of raising the price levels for primary products. This vital matter has been mentioned by all the Dominion spokesmen as one of the most important and urgent objectives, and the conference will not shirk its difficult task; but the British delegate says it is impossible to give an assurance that this conference will roach a final decision. On tho contrary, it may be compelled to refer the problem to the Intelnational Conference in London; nevertheless, the present Empire Board meeting will assuredly malco some progress In devising machinery to Induce higher price levels, although It Is realised olearly that the aid of foreign Powers must be Invoked in order to ensure a full measure of success. Banking exports at tho same time will review the exohange position and make recommendations for an adjustment of exchanges to the new scale of values. The forthcoming deliberations of the conference may result In a monetary formula for adoption within the Empire or a formula for submission to the world conference, but in any case it will mark a concerted attack on the problem of world depression. Britain places the matter at the head of the list in importance, as evidenced by Mr Stanley Baldwin’s declaration, that “it is our polloy for tho United Kingdom to co-operate in any practical international soheme designed to socure the recovery of world prioes." Mr Baldwin’s appreciation of The necessity for all nations to participate was also shown when he immediately added: “ There are limits, however, to what even a large group of countries can do to raise prices If the trend of prices In the outside world Is consistently downward.” Mr Baldwin spoke of the calamitous fall in commodity prices, and warned the conference that Empire prosperity depends on world prosperity, both directly and indirectly. Mr Stanley Bruce likewise reoognised that international action was necessary for increasing commodity prices, but said the Empire cannot wait and in the meantime it must play a lone hand, inasmuch as the depression has reached an acute stage. Mr Coates (New Zealand) similarly visualised higher price levels and stressed the importance of the fact that action on a wider basis than Ottawa' would prejudice general recovery. Thus the conference’s greatest work will be to discover how far it can stabilise world prices in anticipation of the world economic conference. ? MR BRUCE INSISTENT. SOMETHING MUST BE DONE. AUSTRALIANS’ TERRIFIC BURDEN. United Press Assn. —Elec. Tel. Copyright. (Received July 25, 11.30 a.m.) OTTAWA, July 24. Mr Stanley Bruce to-morrow will push for the immediate functioning of the Conference’s Currency Committee. The Empire currency question has hitherto been pushed in the background for two reasons—firstly, the urgency for getting the Empire Trade Committee under way, and secondly, because of the general recognition amongst the Dominion leaders of the necessity for discussing the currenoy and monetary policy privately with British Minister’s. Mr Bruce already has been in consultation with Mr Neville Chamberlain (Chancellor of the Exchequer)and other British delegates on 'this subject, and impressed them with the j urgent necessity from Australia’s I viewpoint of doing something defin- ' it.e at Ottawa in relation to monei tary questions. j Mr Bruce told Mr Chamberlain that l Australia’s position is extraordinarily 1 difficult and the burden, consequent j upon the depressed commodity prices lon Australian ipeople in respect to external debt was terrific. While Australia was determined to pay tier loan interest, Britain must 1 realise that I • If Australia encountered additional devastating reverses—for example bad seasons and droughts tho Commonwealth with all tho will In the world could not possibly meet her obligations. That was tho reason why it was essential to Australia Uic question oi ; currency and the Empire monetary ' policy should be promptly grappled j witn in the most serious way. | Although Mr Bruce is not prepared ] to be drawn inlo preliminary converi sntions at Ottawa, tho trend of I opinion is that Britain must give a ! lead because London is still the financial centre of the Empire and Hie I world, and also because the combined | strength of the Brilish Oovernmcnt land the Bank of England is incaleulI able. ! Seeing that the. Number One Comj milieu is favourably launched and busily dealing with Empire trade, I lie i Dominion leaders consider that no ! time should ho lost, in tackling cur- ' coney. and discovering whether the I British Oovernmcnt is prepared to use its power, combining with the : Bank of England. (UuuUuued iu ueikt guimnu.y

i Already currency has been the suh- [ jecl of long private conversations i between the British and Dominion j .Ministers, and if | has been decided that the, ; banking consultants shall not bo allowed to present argumonts to the Conference. The final negotiations will bo strictly confined to British and Dominion Ministers. The present, indications arc liiat. New Zealand and India will range | themselves with Australia and prove powerful altioo.