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Hokitika Guardian, 7 June 1922, Page 2

An indirect result of the war has been a depreciation of the money of most of Hie countries of the world. The United States of America is now the only large nation wiiose currency exchanges freely for gold at its face value. Our own pound note, for example, is according to its face, payable in gold; but the convertibility is only nominal. As a matter of fact a gold pound abroad , will, at the time of writing, buy about, one-tenth more than a paper pound, so that our paper money is to tluit extent depreciated. The depreciation of our money is however merely nominal in comparison to that elsewhere. The currency of both Austria and Russia is now practically worthless, the German mark is worth less than one-sixtieth ot its face value, and the French franc .about one half. This depreciation of currency has been a fruitful source of international misunderstanding. There* arc those who believe that Germany derives an advantage in foreign trade from her depreciated exchange and ideas of this sort have even been mndo the basis of legislation. On the other hand there are some who believe that American currency is relatively more valuable than ours because America, has, in some way held us up and managed to extort more than a dollar’s worth of pounds for a dollar. In other words it lias been urged that it > s an actual advantage for one country to have the exchange against her, and it ha s also-been urged tlint another country gains by having a favourable exchange. Both views are false. No country can gain any direct advantage from its exchange position which merely reflects the value of its money in terms of gold. When exchanges are unstable, a s they are at present, there is loss all round through the difficulties a variable exchange puts in the way of international trade.

The Christchurch Press in referring to the Prime Minister’d visit to Cferiri-

church on Monday goes on tb say tlint the 'crop of deputations was rather a light one, so far as numbers went, but what it lacked in that respect it made up in the variety of subjects discussed which ranged from the Otira tunnel to wife-deserters, .from the mine.rial possibilities of the \V ost Coast to thfc fresh ail 1 home for children. A Very representative little band of West Coasters dealt with a number of matters affecting their district. The chief feature of the representations made regarding the Otira tunnel was the statement as to the traffic which may be 1 expected to pass through it. it wHulu he too much to expect that some of the North Island critics of that enterprise will he pleased to learn of the enormous quantity of dairy produce, timber, and coal, besides the thousands of bead of live stock which the ■Const will send over to Canterbury by Wily of the tunnel, but the figures recited by Messrs Jeffries and Michel will confirm Canterbury’s firm belief in the value of that work. It is natural that the Coast should want to make use of the tunnel for the transport ot its dairy produce host season, even though it will not by then be open for regular

traffic, and it is gratifying that Mr Massey gave a sympathetic hearing to the deputation’s request in this ■r rtion. The time occupied in the transit of this produce through the tunnel two or three hours a week, would not interfere materially with the work of construction being carried oil, arid it would he of great value to the producers on the other side of the ranges. The other matter of outstanding importance touched on by the deputation was the question of Government rs.sisfjnnce fin prospecting. II is impossible ieir anyone who knows the history of ~ie West Coast to lielieve that the wealth of its mineral resources has been nearly exhausted. There arc areas which have hardly been trodden . by the pl‘os)>eolor, and there seems no ' reason why some of these should not prove as rich as those localities which i gave Westland the name of the “Golden 1 Coast.” Mr Massey being among those who believe in the yet unexplored pcs- : sibilities of the Coast, again gave a ! sympathetic reply. Most of the other j matters brought before him by the deputation entailed expenditure by the Government, and regarding these Mr Massey was naturnly cautious, though ■ lie left the impression that if funds j

permitted he would do what he could