Untitled

Hokitika Guardian, 19 May 1925, Page 2

Thk ta.sk of stabilising currency is not going to l:-o accomplished by any ready at hand methods. Those who are qualilied to speak with authority on the subject differ rather widely, and r« a consequence when the doctors differ the patient must suffer more or less. The return to tho gold standard is the latest effort to secure .stability, but it i.s not clear whether this will he wholly olfeetivc. It will, at least, he partly so, and has achieved something of that purpose already, hut it is too early as yet to speak authoritatively on the final outcome of the financial stroke. Artificial methods of controlling business, whether in regard to trade or commerce have their limitations. There is always the rebound to be taken into account. By that we mean the adverse circumstances created by any new set of conditions which may he devised. There are gold standard gains of course. The difference in sterling value was noticeable at on e. and it meant an enormous enhaii ement to England. It has been calculated that- based on the ten per cent discount which prevailed at Home nhont n year a»x«>, the increment in favor of (Treat Britain was probably a hundred millions a year. The gold standard was popular with the people in that it created greater trading confidence, and in that, factor was the greatest stability. It is not clear yet. after the great waste of the war period, that there is enough gold for the world’s needs, hut if Britain may command the use of a share of the total, sufficient for the country's needs, exports agree the return to the gold standard may now he opportune. But that gold is still a scarce commodity is evidenced hv the fact that despite the return to gold, it- is alleged there is little chance for some decades to come to have sovereigns again in. ready circulation.