WELLINGTON NEWS

Hokitika Guardian, 7 May 1925, Page 4

WELLINGTON NEWS

THE (.'OLD STAX DADD. (Special to "GuftrdiMi”.) It is marvellous the delusions: a good i!iany people Iml.l regarding tlk* gold •standard. When it was announced last week that X.Z. .anil Atistfalia had joined with Britain in restoring the gold standard sonic people expected that sovereign, would immediately lie | placed in ei renla t inn. that the exchange rate between X./. and Australia and X'ew /calami and London would Lo sharply reduced and that produce prices wntthl ti-e. None ol these expected things have happened, and matters were ju-i as they were the week h. fore it reverted to the gold standard, and are likely to c.uiiiiuc so for some time to come. We have changed over to the gold standard without, adopting a gold eitrreney. and that is why sovereigns are not likely in he put into eiretilat ion. Bank notes are still legal lender, and in (ashing a rheipte one cannot refuse to accept the notes that the paying teller hand' out Localise they are legal tender. The reversion io the gold standard may La explained as lifting the embargo on the export of gold. Tim position is capable ol simple explanation. Supposing that through the sale of the country's products, or through the borrowings ol the (.oveniiiit’ii t. the Bank ol Xe'.v Zealand has accumulated say a milium sterling, and desired to transfer a half million from London to Wellington. The Hank would naturally endeavour to ' . liect li e transfer in the ordinary way 10 exchange. I .ei m suppose that the cost of this « xeltauge is I per cent, and 11 has been higher t'han that in recent ■ months, the Lank a pirtnighl ago would have to pay that rate, or do without the transfer. Now it would he possible for the Bank to transfer the money in actual gold, provided the freight, parking, insurance and incidental charges plus the interest on the money during the period ol transit did not exceed I per cent. I( ii exceeded that amount the transler by voucher, iic 1 1 v tebeoraphic trausjer w odd be cheaper, if th • cost of shipping gold would be bss t’.e’i gold V. nald be shipped. This means that transfer by voucher would he steadied by the power to ship gold, and the rale hv the former mi tiled must necessarily t ■ lower than the cost of shipping the yellow metal. A stable exchange rale regaint: d entirely by the cost ol transporting gold i- established, ami a sttihilisat i n is a. stimulant lor trade. So far as our exchanges are com erned they have been stabilised for some weeks in rosp-eel to London cod Australia. lat net «.) jo respect to the I'nited States win re exchange rates have been constantly varying. I fade tan never flourish where there is no certainty and the reversimi o| the gold standard removes some ef tl: • uncertainty. Home pm pit enticipat. d that our hanks would immediately make an a u non K-'iiieil on the siil i•< •I. quite forgetful .it the tact that X./.. banking i- el i.-aly cmm eted will. and largely doiiimil d by A ii-i ra I at. 'Ala n the banks in Australia have -■ ’ 111 <• I mi I heir line of cation. New Zealand will I hen !■ ■ aLle to dm ide upon v.hat is host to I ■ (lone. Australia’s ioliieoiee over New Zealand Ifuniiee is .In ■ to .he bo-l th.tt at-, in di hi to Australia, ami if a balance were struck at any give u moaieol ii would I-a I'olltul teal Wo a}- 1 riobtoi to \i‘o I l-c. li.a to t 1 e ( ' 1.01 ei at least £!..Vt:.Li ; ti. \ SU'.T KB STORY. Last >e;ti No: Zealand ua- icvooriil wit h a visit Ir an a ( kin.a • Siv r team ii.moose.l ef I'iiimo--ily stmLoil'. This team soeitl 82 days in New Zealand and pltiyed numerous laate'ies in all parts of Ihe Dominion and they were popular with the spectators because they played with zeal and displayed a fine span dig .pint. The lour (Oided wi t h a small credit h:i Ic a e. 1 1 wa - a bold advent tire on the part of ice Nil. Z 1 aland Kootba!! A soi int ion to incur the risk. lor the Association embarked i n tin- • xoen u jure cf iftidtil. and there wa> only lEb in the hank when the venture started. The profit- for the lour would have Ismi! very much larger but for the topsy-turvey notions of the Chinese. Hut everything Chinese i- somewhat peculiar and lo the New Zealander soon what indi omits. lips team hooded io New Zealand minus the essi-ni it.l i jiiip io ol oi I ols and si ek>. and II was ;oi j las -1 b! e to allow 11 i a 111 to lake the Held in bare feet, so tile Associa- 1 lion had to lind them in hunts and seeks, and some of the poorer students in pocket money. This eosi the As--iieialinn V>7 I. and most people will be di lighted that the A-soeiat ion lual- | this bill. The Ass !i ialnm <1 lined with L'2'i and lini,hod with £•>•!. llial is ii doubled its hank ha la ne,. Lv the vettl tire alter paying besides the ouli;i cists, tie cists of ground- and Inti ,nr Don steamer lares .02,'1d. radway lares f'.'ilib inn if laia- £3,-8. print ins; am! advertising io b. and hotel ace iin nimbi tu hi 012 AL Musi people v ill 10,11. e with th" I etna rks ol one of the ill’ll gales who said: "The Assiieial ion has lmt sull'er'eti. I lie a. Hilialeil assoi iatinns have not suffered : you lia.ve all got your money hark, and y.,it have had some glorious games. You Slave helped to popularise the game in New Zealand. This is the ha 1.l IK «• -she 1 of the leo-i x>:eeessfl|l lour ever held in X< w Zealand."