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1 
FINANCIAL DIFFICULTIES, PRICE AND CREDIT PROBLEMS 
|. Currency Instability. is concerned with the question of stabilization of cur- 
rencies both in connection with existing international 
Whereas the instability of exchanges, whether obligations and with the development of international 
within a country or abroad, 1s a very serious trade barrier credits ; 
and that where instability exists the difficulties apply Jo ge à : ; 
not only to imports of foreign goods but also to com- M orcover stabilization ec si ont clement and in 
mercial transactions within the country itself ; and many COUnÉFIES @ Pré ê on 
fluctuation of internal prices, resulting from unstable the balance of international payments. 
currencies, causes additional difficulties ; and Instability is both a national and an international 
; ; problem because it not only hampers and impedes the 
Whereas no reference is made in the reports to the domestic trade of those countries whose currencies are 
temporary stimulus to export trade which a depreciating unstable, but also unsettles the foreign trade of countries 
currency so frequently creates ; and without general whose currencies are stable. 
stabilization international trade cannot flourish on a ; ; 
sound and normal basis Furthermore the increase in exports so frequently 
noticeable where currencies are fluctuating is merely 
a) Restrictions or control of foreign exchange : temporary and masks an actual loss of wealth. 
Whereas restrictions or control of foreign exchange Although the determination of the moment and the point 
provided they go no further than mere measures of at which stabilization shall occur in any country necessarily 
supervision, are not a serious trade barrier ; is an internal question; the general interest of interna- 
tional trade is involved. 
b) Measures relating to the export of capital Countries with sound currencies have an interest to 
Whereas restrictions placed upon the export of assist countries with unstable currencies in every effort 
capital, which appear to survive only in countries towards recovery. 
whose Sane is unstable, are not justified by the The Committee believes that means for international 
urgencv of nationa' requirements. cooperation in solving, the problem fault be devised and 
. nT _. that the Internationa amber of Commerce should be 
The Trade Barriers Committee is of opinion prepared to promote such cooperation. 
That some of the fundamental difficulties in trade 
and industry still lie in the continued instability of 
important currencies. This instability affects not only 2. Control of prices. 
the countries whose currencies are unstable by creating 
budgetary and commercial difficulties but also in turn Whereas it appears that the system of fixing minimum 
i comp lementary difficulties for other countries prices for export which was employed by certain 
} Jact espite certain periods of Sictitious prosperity countries during periods of inflation has almost 
observable in some countries, internationa commerce entirely disappeared, and 
cannot flourish on a sound and normal basis so long as 
instability of currency exists. Whereas National Committees have observed in 
The Trade Barriers Committee moreover endorses this connection that certain’ measures relating to 
the Resolution passed by the Committee on Interna- import and export trade, and which exercise an indirect 
tional Settlements (1) and influence on prices, are still employed 
(1) The Committee on International Settlements met in Rome The Trade Barriers ; Committee confirming the 
on October 12th and 13th, 1926, under M. Pirelli. resolution on raw materials, is of opinion 
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