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Hokitika Guardian, 1 November 1921, Page 2

O.NI-: of the boldest schemes yet advanced for the .stabilisation of exchanges is that of W. Goodlill’e, an English writer on rurrency problems. Outlining his plan in a recent letter to the ‘‘Nation,” Air Goodlilfe suggests the establishment of a single currency, which hi; terms “Afundic” currency, to servo for all purposes of international trailing. This currency while backed by an efficient gold reserve, contributed anil guaranteed by the various nations through their Governments, would itself have a noil-metallic basis of value. Ah' Goodlilfe suggests, tentatively, that tho unit should bo the average price of four bushels of wheat

for the fifty years last past. This j would Ik: computed afresh each year ( a sort of ‘'half century moving aver- , i a ge” —and for the present year it would represent A value in sterling of 19s 11 1 l-20d, or for all praetieal pur-, poses, 20s. This currency would bn ' used to discharge all international debts, ft would he beyond the reach of speculators, it would lie Worked through bankers, involving no change . in the present machinery ui commercial . finance." and. which is very important, it would not inflate Hie currency. Each nation would provide, out uf a special Customs lax, a yearly land for not more than thirty years, to give its “Alnndie” notes 50 per cent backing of gold. Each nation is allowed to issue internal currency against. Afun- , die” gold verve to the extent of that reserve and no more. Criticism of such a scheme is a matter for the high financial experts, hut we give a very brief outline of it because the remedy illustrates vei'y strikingly the nature of the disease it intended o rountor,.ct. As we unlerstand the implications of the proposal, fluctuations of foreign exchange would disappear, ami the intrinsic value of the authorised currency in an,- nation would he a purely domestic affair. For all external purposes it would use- the “Alnndie” currency and would fully guarantee its

share of the value of that currency. The probable effects of such a system upon the internal currencies of the nations would provide a very interesting economic study,