Untitled

Hokitika Guardian, 14 November 1923, Page 2

The introduction by the Soviet Government of a new unit, the “chevronets,” wliieli is to replace the pa] cr rouble this year, and various projects for the stabilisation of emTeiicy in Germany, have directed attention to the finest ion whether such efforts are likely to bo successful. Tbe history of currency suggests that such changes, it made bv a resolute Government, need oi-elision little or no disturbance, says a. correspondent of tbe ‘'Morning JV-st." Most of the inhabitants of any country have very little money in

their possession at any one moment: the minority of well-to-do jier.plo are not greatly affected by iiio camelling of a currency which has become so much depreciated ns to he almost useless. Thus the Germans who were living ni investments in marks were ruined long ago. and have nothing more to lose if the mark ceases to he a legal unitv of value. The workmen, who form the vast majority have had their nominal wages raised as the mark fell, and are not directly affected by the I chaos of tbe currency. For these reasons one would suppose that-, apart from the inconvenience, tbe social effects of the cancellation of a much depreciated currency may lie greatly overrated. The classic instance of the demonetisation of a large mass ot paper money was. of course, the cancelling of the French Revolutionary asffgnate in March. 1706. The mere fact that it excited little attention either then or afterwards is significant. The first issue of assignats was made by the Nutiotttd A*sejnb!y In fPitumH of

1789, and eventually there were in circulation assignats and mandats to the nominal value of 45,000 millions of friincs. A decree was issued declaring that they had ceased to he legal tender, and instead of business being paralysed by lack of currency, foreign gold as well ns the old French money emerged from the stockings of the thrifty, and within the year the assignat was no more than ail unhappy memory. History will doubtless repeat itself if, like the French Directory, the Herman Government. having repudiated the old paper is bold enough and wise enough to deal honestly with the new currency.

It has remained for ox-President Wilson to lecture his American countrymen in the most outspoken manner it is possible to conceive on the subject of the United States attitude towards European affairs resulting from the aftermath of the war. We know of course that Mr "Wilson had a very personal touch in H'gnrd to the. treaty of -peace which marked the end ot the war, but America did not ratify that action, and Mr Wilson passing out of public 1 ilk> owing to the nature of his health, has left the nation without n loader on the pro-treaty aspect. His health has recovered to some extent, and the vigorous speech lie made so appiopriately on the anniversary of Armistice Day must have been like a clarion call to the nation. It has created something of a sensation. Act what lie lias said has been said before by many commentators on the world situation as it has developed. Coming from vit hill, however, should have a quickening effect on public opinion. Mr Wilson is still a figure to count, upon as regards political thought, the move so for the fact that his health will not permit his personal return to power. What he has to say. theielore F said from the heart, not for personal aggrandisement. hut for national advancement. His latest speech will lie one of his most memorable addresses yet given to the public