Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-05
FINANCIAL POLICY
URGED IN BRITAIN
Industries Advocate Central
Clearing House and Empire
Currency and Tariffs.
~ The Assoeistsd Press.

~ The stsseistsd Press
LONDON, November 5-~An all-Brit-
sh Empire financial policy, inclu5ing
currency. new consideration CT silver
values ard empire tariffs was before the
country today II was In the form OF
q resolution adopted b. Joint commit
tee OF the Federation % British Indus
tries and the Empire Economic Union.
The committee adopted the resolution
at the conclusion OF an exhaustive
study OF the currency and financial
policy.
The national government, It declared,
should either summon an international
conference on silver Immediately or
make haste" to be represented ON any
such conference called by any other
country, and IL recommended the res
toration OF silver TO It's former place
In the monetary system Of the world"
No permanent system OF bi-metall ism
was mentioned, but the report declared
that measures should be taken 70 In
crease the purchasing power Of the
consumers Of India China and the Far
Est b. authorizing central banks %
keep IAN equitable proportion" cf their
metallic reserve IN silyc-.
Condemn Gold Standard.
Great Britain's return to the gold
standard in 1925 was condemned and
the resolution urged that no steps be
taken TO return TO the international
money standard now until it has been
ascertained Great Britain and the en-
pire win benefit by such a move.
Discussing fiscal policies, the report
said there Is little prospect OF an imme-
diate or far-reaching change in the
policies Of France and the United
States, but there Is room for "a very
substantial reversal OF the present drain
OF gold" possibly through revision Of
the fiscal policies of Great Britain and
other parts OF the empire.
Our free trade policy" It said.
proved n misfortune for the world as
well as for ourselves by handing over
gold which would have been steadily
diffused through consistent overseas
investment 10 others less capable of
using it for world purposes"
Sterling Urged as Base.
In conclusion the report declared the
monetary system might we'll be based |
on an imperial sterling currency so ad-
tusted as TO maintain a reasonable |
price stability for the British common |
wealth. Such a system, it said, should |
lie powerful enough to govern, through |
external trade, the value of the medium |
OF exchange and, indirectly, the value |
Of the currencies of the rest Of the |
world.
THE British Empire" the commit |
tee reported, sis not. in the political
sense, a unitary state. There Is in 1t
no central authority as in the French |
Empire, which could impose a single
currency system. Any monetary unity
attainable must be arrived at by free
cooperation.
Urge Central Clearing HOu~-.---5
"There would seem to be no consti-
tutional or practical difficulty in the
central banking authorities OF the en-
pire agreeing to constitute central
empire bank which would act as a
clearing house for all"
While admitting that the real solu-
ton would be q monetary system which
would give reasonable stability to prices
and q measure of security against the
sequence of alternate boom and de-
preston, the committee said It felt
that in the absence Of sufficiently far
reaching international cooperation to
effect such a purpose the nations of
the empire should not neglect the OPP
portunity afforded by the extent of
their trade and resources to secure for
themselves the benefit of stable ex-
changes and comparatively stable
prices, and ito give by their success
an encouraging example to the world"