303R. A. de V. Leigh to Harrod, 13 April 1933 [a]

De V. Leigh comments upon a letter (not found) written by Harrod on 11 April, in which a scheme proposed by the Chamber of Commerce was criticized. He attaches a copy of the correspondence on this subject between himself, C. L. Wall, F. Morris, M. A. Heilperin and A. C. Dobbs which appeared week by week in The Times Trade and Engineering Supplement between 31 December 1932 and 11 March 1933. [1]

  1. 1. On June 1932, the London Chamber of Commerce issued a "Memorandum on Monetary Policy", which had aroused widespread discussion. A. de V. Leigh, the secretary of the London Chamber, further discussed the proposal in two articles in The Times Trade and Engineering Supplement ("New Monetary Policy. London's Chamber's Proposal", 17 December 1932, p. 275, and 24 December, p. 303). From the starting points that "all trade is, in essence, barter" and that the value of money derives from its quantity, the London Chamber recommended that international payments should be settled not in terms of gold, but in terms of "goods", via a Central Bankers' Clearing House where exchange rates would be fixed by agreement and not "pegged". As to currency, the Chamber recommended that it "should be issued against the rediscounting with the Bank of England of eligible commercial three-months bills, the proceeds of which will be used for current production and distribution", so that "the currency would rise and fall automatically with trade activity."

    The correspondence on this proposal run weekly in The Times Trade and Engineering Supplement, under the title "New Monetary Policy" in the period indicated in de Leigh's letter. In a later issue, de V. Leigh further discussed "the gold fetish" in an article on "The Monetary System and Means to Consumption. Realities and Make-Belief" (25 March 1933, p. 31), which was discussed the following week by M. Heilperin.

    1. a. From the London Chamber of Commerce, Oxford Court, London # , one page TLS, in HCN 10/10/15.


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