GOLD CURRENCY

Hokitika Guardian, 11 March 1925, Page 4

GOLD CURRENCY

U.S.A. EXPORTS. .uriHALIAN AND N.Z. CABUB AUBOCIATION. NEW YORK, Alan li 9. There have been recently very heavy gold exports from the United States, approximating 130 million 'dollais, ever since January ], which suipriso even the American bankers, though the fact of the exports is causing no npprohem

Jt is generally conceded that the tide of gold has turned from the l nitod States, owing to the salvaging of the European currencies, and the restoration of national confidence, which lias largely been due to the operation or the Dawes plan. This also lias restored the confidence of the American investors in European securities. .Moreover since there is a. prospect el Britain’s return, to the gold standard, various other countries arc anxious to follow this example, and are now awaiting Britain’s example. While the best authorities here an agreed that the world is ready to resume the gold standard, there is strong feeling that it will he essential, first to hold an international currency conference at which plans would bo discussed to co-ordinate action un a comprehensive scale, and at w bit h reform measures would be adopted. This view is upheld in the report ol the .’senate (’imimissicn on a gold and silver inquiry, which, however, discriminates regarding the basis ol a gold resumption possible lor different Lulu].can countries. This report declared that Britain. Switzerland ami Holland are capable of an immediate return to gold payments on the prewar standard, lint this is impractii able for France, Belgium, I taly, Xcnvay and Denmark. In the report the devaluati 11 Oi their currency is suggested I'm them, or else the introduction of a new gold currency unit. In the meantime though there are improved conditions for drawing gold from the United Stales, sin.li a moveeiit is greatly eeiitir-ed. I*”i' install'e. London not keeping the American gold, as the experts there are exceeding the imports. Thus, South Atiwea is .-.hipping gold to London, and London is shi| ping gold to New York. Xew York is shipping gold to Australia, to India, and to Egypt. It is belli here that, following upon tlu- increase ol the federal Rcseiwo Bank rate for discount (cabled on February 27) the process of returning to the gold standard will lie .facilitated for Britain if the interest rates on money in London are higher than the rates in Xew A'ork. In tliis connection, the Americans feel that it is not their duty to preserve any differential rates hv maintaining artificially low rates, hut that it is England’s duty to do so, by incron sing her own rates.

The opinion here is that the reduction of the United' States’ excessive supply of gold should he beneficial. The Chairman. Senator Oddic, of the Senate Commission, to-day visited President C’oolidgo and asked him to call a world conference on the currency question. President Coolidge. however, has given no indication of a definite decision.