THE GOLD EMBARGO.

Hokitika Guardian, 30 November 1922, Page 1

THE GOLD EMBARGO.

.'"•oino few weeks ago the Public Accounts Commission of the House ol Representatives inquired into the claims of the gold producers of the Dominion for the losses sustained by them during the currency of the one Imrgu on gold. As the evidence before | the committee was not ordered hy the | House to he printed, it is therefore ' considered to he confidential, and it is I impossible for those interested to ob- ! lain a copy of tho evidence. 'flic findings of the Public Accounts 1 omniiltee are as follows: ill The embargo was placed on gold at the rcquo.Nl of the Imperial Government. i2) I’l:e gold could only he sold to the Imperial authorities, and documents showed that the Imperial Government was the purchaser at C.'t 17s 9d per ounce, all export being prohibited. (3) After the embargo was lifted the |-• ire of gold fluctuated very much, and the banks gave notice that they would only deal with gold on commission and this policy was carried out. i I) There is no evidence to show that undue profits were made hv the hanks. No pisdits were made by tin* New Zealand Government. The gold was very useful to the Imperial Government, probahiy beyond its value. It, however disclaims ally liability in the way ot compensation. The evidence disclosed the fact that the cost of production of gold increased during the war and ns the gold producers suffered in tins respect, the committee recommends that the British Chancellor he again urged to grant special consideration. The gold producers of this country do not take the resolutions of this Committee seriously. Tf Mr .Massey wished to he fair to the gold producers why did he not appoint a properly constituted commission, one with power to sibpoetia and examine witnesses, and then make public the results oi the nqueiry.

Paragraph -I says (here is no evidence to show that undue profits were made by the banks. However, it, is certain that lor a considerable time after the embargo was lifted the door was left open for tlie banks or private speculators to make direct and undue profits. Mr Massey’s government was to blame for this in not giving prompt notice lo tlie producers of tlie lifting of the embargo. Again, it is idle to say the banks made no undue profits. What provided the hacking for the millions in note issue that the banks wore allowed to circulate, and from which they derived vast profits, ami incidentally made large profits lor the Government by wav of tax on note issue, or was tin- Government in the unhappy plight of Russia and Germany, and allowing paper money to he printed for which they had no hacking. Can the lion Mr Massey say that the gold producers of the country have had a square deal. If not it is up to him to shoulder his responsibility and see that they get it now.