The Gold Standard.

Press, Volume LXVIII, Issue 20495, 14 March 1932, Page 10

The Gold Standard.

The Kugby message this morning, reporting a speech in the House of Commons by the Chancellor of the Exchequer, is of considerable interest because it generally defines the Government's attitude on two points, the present position of sterling and its ultimate relation to gold. Mr Chamberlain said enough to show that the Government does not desire a rapid recovery of the pound, Avhich must in present conditions handicap industry and is not likely to be maintained. But he looked forward —through an indefinite period—to a time when the pound will again be stabilised on n metallic base, and though he said nothing to indicate whether he meant stabilisation at the old parity or at ii new, the importance of his reference to gold as the imperative standard is not diminished. Very few will disagree with him. The practical question is not whether the gold standard should be permanently abandoned but how and when it is to made more conveniently and safely workable; the problem, in other words, is not so much the management of currency as the management of gold. On this point the latest speech of Mr Reginald McKenna, chairman of the Midland Bank, is specially interesting, because, his belief has sometimes been taken to be that gold should be finally thrown over and currency be managed without it; but in this speech, to which Ave referred the other day, he made it clear that what he insists on is better management, with gold or without it. If the gold standard can be "soundly " managed," an end which " can only "be secured by well ordered international action," currency problems will present no difficulty. If this is impossible, then it will be necessary to " rely on a managed standard without " any metallic base at all," and again proper control of the standard, whatever it is, will simplify the problems of currency, as such. But the gold standard has only to be reformed; any other has to be devised. The world will probably choose the way which is set with fewer difficulties and better illuminated by experience.