Financial Notes
CENTRAL BANKS CONFER.
In view of the extent to which the international financial outlook is affected by the policy of the Central Banks of the leading countries, it is not unsatisfactory to learn from the New York cables that there will very shortly- be some con- versations in New York between the Governor of the Federal Reserve Bank in that city and the Governor of the Bank of England, the President of the Reichsbank and the Deputy- Governor of the Bank of France. It is by no means the first time that some of these gentlemen, at all events, have held informal conversations respecting Central Bank policy, and it is not improbable that we might have seen even higher money rates at the various centres if there had not been a certain amount of mutual understanding and co-operation between the Central Banks. Latterly, however, there has been a good deal of disturbance, and one cannot help thinking unnecessary disturbance, of money rates in connexion with the artificial pegging of the French franc at 124, a policy which has involved the accumulation by the Bank of France of huge foreign credits and some considerable buying of gold here and in the United States. It is satisfactory, therefore, to know that the Deputy Governor of the Bank of France will be amongst those who are about to meet in New York. In view of the many post-War problems, including the great expan- sion of credit and large capital requirements on the part of many countries, there is all the greater need for economy in the matter of gold movements ; and such economy can pro- bably be best achieved by co-operation between the four banks which play so great a part in controlling credit and gold movements all over the world.
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