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Hokitika Guardian, 21 February 1924, Page 2

Conditions precedent to the restoration of the gold standard, it was pointed out in the address by Sir Charles Addis, mentioned above, were laid down by the Ctinliffo Report of 1918—the cessation of Government borrowing, the efFcetivo use of the Bank of England rate of discount, and the legal limitation of fiduciary note issues. It could not be too widely made- known, lie said, that tni.s is the official British monetary policy, for it made all the difference whether buyers and sellers abroad saw uncertainty or weakness of policy, on the one hand, or whether, on the other, they were convinced of tlie firm determination of the British people to ensure that sacrifices already made should not have been made in vain. Sir Charles Addis emphatically denied that the official monetary policy L a main cause of the existing trade depression and unemployment and an impediment to recovery. The main cause is the loss of export trade, duo pnitly to the impoverishment of our loreign customers, and .still more to the disorganisation anil unseft lenient of Europe. Neither does lie believe in inflation as an alternative to a return to the geld standard, in which connection lie made the point that hank deposits and notes in circulation are twice as much, while prices are only half as much again ns they were before the war. Tlieiefnro a margin of credit is still available for the revival of trade when it comes. If it- i.s true that production is forking up to the limit of its yro.'•enl capacity to absorb credit—and in the opinion of most people probably this i ; the case-the only result of inflation would he to raise prices and induce speculation without increasing production.

In the opinion of .Sir Charles Addis there is a good deal of exaggeration ciirront in regard to the evil results of price variation, for such fluctuations, so long as they are not abrupt- or excessive, have an economic service to perform. At the same time, through the reaction of gold movements on the Bank Bate, the gold standard indirecttv served to check undue fluctuations in tile price level. The speaker considered the proposals for stabilisation were still vague in outline, and the remarks which followed were evidently directed against the author of A i met. oil Monetary Reform.” It would require, Sir (.'bailes Addis said, more cogent arguments than bad vet been advanced to persuade the world ol business and finance that it was wise to substitute a new and untried form of managed currency for the automatic gold standard, which had grown up with tile prosperity of Great Britain, was tainiliar to its people, and was suited to their practical genius.

Tm: A. and I*. Association with its headquarters at Grcymoutli, is to he congratulated very sincerely on the sneer-:- of tlie two days’ show which closed yesterday. Grcymoutli has proved ait excellent centre for such functions. The locale is an admirable one in every wn.\. Apart from the central situation, tin: grounds available with the first-class appointments at hand, are excellent, arid were made the most of. The innnagi meiit of the Show seemed to be all that could lie desired. Willing workers directed various branches, with, no doubt a well-directing bead. The exhibits were a credit to all concerned. The display proved to lie file best on record so far as West Coast shows may compared, and the success should inspire the other towns to emulate the line display to the credit of tlio sister town. The public patronised tho display well, which of course is most cmoiuaging. The show at Greymouth on the reputation it is accumulating, shmdd become the popular event of tin Coast, and its success marks the allround advance being made in agricultural and pastoral pursuits. By extending itself for these shows, the Coast is pursuing an excellent form of advertisement, for such events must go for in assisting to advertise the district. To ensure full success, these shows call lot -a free display of co-operative help horn the settlers as a whole, and with tout support in full play, the annual gatherings cannot fail, but he a success and of groat advantage to the Coast as a whole.