RETURN TO GOLD.

Hokitika Guardian, 18 May 1925, Page 4

RETURN TO GOLD.

A HANK DU'S VIKW'S. WKI.I.IXB'mX. .May IT "The decision to ivtiini lo tin.- gold standard came as a surprise lo the Empire." said a prominent luniks r to whom file ]>ieffect id tin.' reversion to tin.' gold standard upon the Xi'W /('aland loan was nlerrcd. “While t!ii' Kinpiro generally hoped that tl'o day would soon c one \\ lion the gold standard would do I stored, tin.'iv was a not int-oii-i«lci'al»l«■ I My ol public opinion which thought llial the action, wlicn it can up was badly tiniMr ('inii’lliill. iio said, nni'i have had Ids advisers. Uni it seem -d as though lie was seeking the spevtacitlar. the fmaluial mop. lbii when men uiiii any knowledge o, finance were asked to judge hetwdoi Mr Churchill and stick other', as .'lf I’clix Sinister. I)r Waller l.caf. and Mr J. M. Keynt'ss, they would have no hesitation in following tke>e three ant itoril i: Dritain was making a slow lilt very steady iveovoiy. unit many t;..login that iir-ler.d ■■! of'ipitate action it. would have I o wco Lo have carried on even for another twelve months and so learn a ] O'ltion of security he fore making ulau could only lie termed a financial experiment. “'ll is impossible." lie 'aid. "to ignore the suggestion that toe goal

standard was restored very largely at the iimt ignatioii .>t Antertca. wuieo u,,w holds, I think, t hivo-fourths of the world's gold stock'. Ameiicu is threatened with the de]U'ecial ion in value of those stocks unless the nations of the world become gold hovers. and it is to Ik* observed that t" some extent Uriiain has made I'fnvision for n supply of "M-:: ■) <k>llars in gold to he available in l.iiglaml. Xevv. if Britain linds that her geld supplies are being depleted, dm will apparently have CO alterimliw tail to increa- • the l’.ank rate ill order |,, attract gold, and if this is s > it will jiievitat.lv re-act detrimentally upon I!ri t i'h trade ami industry, and in this way slm will lose far more than she was theoretically gaining by a return to the gold standard. "It is a ease where experts differ, and dill' r Widely. In sue!. circumstances the first consideration should have been to play for safely, and this I insider has rad lieen done." The possibility of this increase m tlm Hank rate, he added, would inevitable frighten investors and would account for the small subscriptions to jhe Dun. ■to a: lu.o o .