The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH 31st, 1925. AUSTRALIAN RETURN TO GOLD DEFERRED.

Hokitika Guardian, 31 March 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MARCH 31st, 1925. AUSTRALIAN RETURN TO GOLD DEFERRED.

The announcement by the Australian Prime Minister that the export of gold will be permitted under license is really an intimation that the Commonwealth Government. does not consider the time yet ripe for a return to the gold standard (says the city editor of the "Sydney Morning

Herald"). In that we think that the Government lias acted wisely. To return to gold; lbefone Great Britain would have the result of altering our whole system of exchange. W'-‘ do the greater part of our trade with Great Britain. We buy more from Great Britain than from any other country. Furthermore, the greater part of payments tor the trade we transact with countries other than Great Britain is effected through Loudon. We borrow on the London markets. Our principal hanks have offices in London, where they keep large balances for the purpose of making our trade settlements. If we retain to gold before Great Britain does, the effect would le to make our exchange dependent® 1 upon the lluituations of the dollar. Our exchange. with Great Britain would vary trom day to day. and when an Australian Merchant bought British goods he would never know what the cost would he until the time of payment came, and when an exporter sold ottr produce to Great Britain ho would never know what lie would receive for that produce until the time of payment came. We would have a relatively stable, exchange with the United States and Canada, with which we did last statistical year a trade of £ tfi.9'28,1 19. and a daily varying exchange with Great Britain, with which we dill a trade of £108.928,343 last year. In the matter of loans, we would have to stop borrowing altogether, or go to tile United States, The Commission in South Alriea. which recommended a return ol gold there oil July 1. -recognised that dif» ticulty, and recommended that South Africa, when she returned to the gob. standard, if that event occur rot I before the British return, should retrain from borrowing. From the risks which have been outlined, the decision of the Commonwealth Government has relieved us. It, as the result o the importations now taking place, any hank in the future increases it.s gold stock to an amount which it considers redundant, it will he able to obtain a license to export the redundancy, provided that thereby the gold held by that hank is not reduced below the nmuuilt held on January 1 last, atid that the gold held hv the hanks of the Commonwealth is not reduced below the aggregate holdings of January Ist. last.