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Hokitika Guardian, 25 June 1924, Page 2

A meeting of the Saw-millers’ Federation Executive took place at the Secretary’s Office. Wellington, on 26th. and 2"tli of May, and a very heavy accumulation of work was disposed of. One item of prime importance and interest to all industrialists in the Dominion says the “Industrial Bulletin," concerned the Dunedin Exhibition, 1925-26. It was disclosed that the specifications provided that thr. fpptrnchir f«r ft* o

Exhibition Buildings might, at his option, use for construction a “good class” of Oregon Tine in place of New Zealand timbers, and immediate steps were taken by the Executive to secure the use of only Now Zealand woods. Ilad Oregon Pine been used it was estimated that fully £21.000 would have been lost to New Zealand workers in wages alone, besides a further £O.OOO to the country in freights, royalties, ete., and the whole of this £IIO,OOO would have been sent out of the country to pay foreign workmen and foreign shipowners, etc., besides adding to the already very adverse exchange. Thanks to the representations of the Federation, however, largely aided by the intervention of the Minister of Industries, it was pleasing to note from a leecuit Pro's Association message from Dunedin, which notified the acceptance of the tender of Messrs. Hie Fletcher Construction Co., l.td.. and Love Bros., that the Directors ol the Exhibition Company bad decided that only New Zealand timbers should be used. It is rather surprising that the Exhibition Company Directors should even contemplate the use of foreign timbers for the buildings to the detriment of Dominion industries and workmen. when it is realised that the Company is to he subsidised in part by these very industries and workmen, by a (Jovermnent grant of £25,000 (and possibly more, from a recent statement by the Prime Minister).

An echo has been heard in Australia ol tbe various proposals made in the United Kingdom and the United States to supplant the gold standard by a “managed” currency based upon a price index of commodities. In London a number of leading hankers have declared strongly against any experimenting in the matter. They consider that any plan of the kind cannot he applied to the exchanges. One of the most authoritative, statements on the subjects is contained in the financial and commercial review of the Swi.sy Corporation just, to hand from London, li dismisses factors like index numbers, sod unemployment figures as being too vague to serve as a basis for currency. In addition the relation between the volume of currency, and the level of prices is complicated. This is indicated by llic fact that although in England in 1021 prices fell bv more than .‘iff per cent., the volume of the paper circulation contracted by only 12 per cent. In addition, while the currency did not show any important change in 1923 there were violent fluctuations in com. modifies. coll on having moved between 20.b0d, and 15.15(1 a lh., and jute between C‘3fi and £‘-’0 os. a ton. The Swiss Bank directs attention to the fact that these fluctuations arc due to supply and demand, and are necessary to regulate production. It points out that it is not the business of currency to impede them, hut to give free play to the factors which determine them. The view i- expressed, (bill Ibe new school of thought exaggerates the importance of currency in trade. The fall of the mark did not result in the destruction of Dorman trade. As long as there are any goods in existence they can always he exchanged one against another. Domestic prices depend largely on exchange fluctuations, and the index numbers of wholesale prices i iso with adverse movements of t lie exchange. A fiduciary currency not based on gold would it is pointed out. make international transfe-.s very difficult, and would destroy the solidarity of markets which is assured by gold.