A.—6.

(6) The other to consider " Permanent Measures for the Re-establishment of an International Monetary Standard," with the following items on its agenda : F unctions of Central Banks ; Co-ordination of their Policies ; Monetary Reserves ; Silver. Whenever the need became apparent, each of these two Sub-Commissions appointed small sub-committees to study special problems or endeavour to harmonize divergent opinions with a view to framing draft resolutions to be submitted to it. The Economic Commission divided up its programme of work as follows : — (a) Commercial policy ; return to normal conditions of trade ; progressive abolition of trade restrictions and foreign exchange control; tariff and treaty policy, including the regime of the most-favoured-nation clause. (b) Co-ordination of production and marketing : Wheat and other foodstuffs (sugar, wine, coffee, &c.) ; raw materials (coal, timber, &c.) ; industrial and agricultural agreements, &c. (c) Measures other than Customs duties and prohibitions : Various measures coming under the heading of indirect protectionism; marks of origin ; veterinary and phyto-pathological questions. (d) Direct and indirect subsidies (especially shipping subsidies). (e) Public works. Most of the countries represented at the Conference were represented also on each of these Commissions and Sub-Commissions. New Zealand was represented on the Monetary and Financial Commission by the Prime Minister (Right Hon. G. W. Forbes), with Professor A. H. Tocker assisting on the Sub-Commission dealing with Immediate Measures of Financial Reconstruction, and with Mr. G. C. Rodda assisting on the second Sub-Commission dealing with Permanent Measures for the Re-establishment of an International Monetary Standard. On the Economic Commission, New Zealand was represented by the Hon. R. Masters, assisted by Dr. R. M. Campbell. V. WORK OF THE COMMISSIONS. Monetaky and Financial Commission. (a) Immediate Measures of Financial Reconstruction. This Commission had six separate subjects to deal with, which may conveniently be considered in pairs. A number of meetings was devoted to an exchange of views on the general aspects of the questions forming the programme. This initial work brought to light the interdependence of the majority of problems involved, and the necessity of first settling fundamental questions which might pave the way to the agreements the Sub-Commission was seeking. This early general discussion lasted for days, and revealed in clearer outline the division of views and the variations of emphasis that were apparent in the opening stages of the Conference. Credit Policy and Price-levels. —The first subjects dealt with were world credit policy and price-levels. There was considerable discussion on this matter, lasting several days, but much of it was general in nature, and there were few if any definite and concrete proposals upon the adoption of which the countries represented on the Commission could be unanimous. Again there were certain countries which urged as an essential preliminary to further action the necessity for stabilization of exchange-rates and restoration of gold standards. A definite divergence of views emerged between this group and the larger group of countries which had suspended the gold standard, and which for the most part favoured more expansive monetary policies, based upon the maintenance of easy credit conditions and low interest rates. It was realized that the solution to the question of immediate money measures depended very largely on the conclusions reached regarding permanent money measures, and on the agreements, if any, which would result from the deliberations of the Commission dealing with economic matters such as trade and tariffs, production and marketing control.

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