THE MONEY MARKET.

Auckland Star, Volume LIX, Issue 226, 24 September 1928, Page 4

THE MONEY MARKET.

THE GOLD STANDARD, POSITION OF SWITZERLAND. It will probably be a matter for surprise to many people to know t.iat Switzerland, which has one of the most stable currencies in the world, does not base that currency on the gold standard. This aspect of the question has been occupying the minds of leading Swiss business circles for some time past, and it is expected that the Government will take steps at an early date to reintroduce the gold standard. It is stated that the National Bank of Switzerland has had misgivings that if compelled to pay out in gold the result of heavy withdrawals might have an adverse effect on Exchange, and would simply lead to unrestricted hoarding. On the other hand the Zurich Chamber of Commerce draws attention to the psychological aspect; namely, that as soon as the man on the street sees that he can have as much gold as he likes at any time he will cease to hoard it. It is also questionable whether the average person nowadays would wish to have a great deal of gold currency, in view of the greater handiness of making payments with notes. In this connection Mr. J. A. C. Allum, who was in Switzerland sonie eighteen months ago, states that he noticed quite a lot of gold in circulation there, and also saw persons who were anxious to change it for paper. The Zurich Chamber of Commerce is asking the Government to arrange for a return to the gold standard, subject to certain conditions, should the banks’ supplies of gold currency be jeopardised.