The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MAY 22nd, 1925. AN AMERICAN VIEWPOINT.

Hokitika Guardian, 22 May 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MAY 22nd, 1925. AN AMERICAN VIEWPOINT.

The American viewpoint on the gold standard question is not without interest. for some are savin'; that the British return to gold means much to the United States whore there is a store of overplus gold. But the American press rather resents some of tho comment on the subject, and a financial review puts forward the following which indicates that on the whole Britain is not likely to go amiss in stabilising on the gold standard as in the pre-war days. The paper proceeds: Some of the adverse comments upon the gold standard by dignified and learned economists on the other side, read very much like utterances that were familiar in this country in years when the gold standard was under attack. At that time London was represented as the dictator, and the indignant back country orators wanted

to know why the Foiled States should not have “a monetary system ot its own.'’ Lombard street in those 'lays u as said to he seeking to enslave the world, ami it is easy to guess that the late Senator Heller, of Kansas, if alive to-day, would smile over Sir Josiah Stamp s declaration that these recent rate advances "seem to show clearly w ho it is that tracks the whip and who obeys tile signal." Pelfcr certainly would say that if any whip-cracking ’ was to lie done it was time the United States had a turn at it. And so the references of other eminent gentlemen to the "golden chariot ot America,’’ the “golden cross.” etc., remim us inevitably of the famous "cross of gold ’ slice h which made Mr lily all a 1 _ ‘ caMfuinlo tor tin* j>iv>i*loin:y. \V«* luivr I been all though that sari of thing in tile polities of tins i onlltry. but it seems a little strange to have such an mithur.-l among me e onoinie authorities i I London. Of course it is ) ior the British iconic to deride for tnem.selves. a.-, n was for the Aineritan pen, !e in other years to delerniine for thennoL o>. what their monetary systi .n 'hall be. Our interest now as tln'ii is simply in having a common monetary base with the other commercial countries of the world, and wo ) have always understood that the ad vantages <.f .-urli a world system wen' ; in no degree exclusive, hut shared byall the lonntries trading under it. There i.s every reason for supposing that the mutual advantagis to be derived from .a restoration of the prewar si, ihility in the exchanges are . as well understood in London as anywhere. and we are not aware that any arguments or solicitations have been addressed to that quarter from here. The interest of Great Britain in world trade is not so ouil to that ol any other . cuiintrv. The sulpert. however, is one ' of general interest, am! surely discussion is not out of order. ’I he chiol objection to the resumption of gold payments aupears to lie that it would link : up the monetary system ol Great Britain with that of the l nitod States, and that this will subject industry and business in that country to till the insitudes. This sounds again like the old argument for “a monetary system of our own.’’ and raises the question whether the entire latter-day tendency to more intimate and reciprocal reln- ’ tions between countries, with increasing iiitcrdcpendeiuo. is a mistake? Me have been led to believe that the increasing solidarity of interests was normal, inevitable and generally beneficial ; that instead of making each member of the international community subject to all the disturbances occurring elsewhere, the elici t was to absorb or dissipate the shock of every disturbance, so that it would he of little effect anywhere; in sport, that the eflect is to promote stability rather than cansinstability. If this view is not cor- ■ reet. how are the objections to a common standard o.f value ever to he overcome(ln the other hand, if there are gams to the economic organisation of the world from a common standard of value, and they are shared by the countries on the basis of their part in international trade, it is perhaps allowable to wonder why so mm h cm] basis should he laid upon the temporary costs of regaining the common standard and so little upon the permanent benefits to result? The papier pound sterling having advanced from $-1.21 in January 1921. to $4.80 in January. P!12.1. why should a. further advance to $4.8(1 appear so formidable? Whether the pound sterling has advanced or the dollar lias declined, the price-adjust-ments incidental to their near aplusiri.rh have been made, and if they ever are to he brought together it would seem that they should not he allowed to a'.'ain fall apart. The crucial question would seem to he. is it worth anything to restore normal trade facilities in t world; to have a common language ot values? Unemployment is a serious problem in England at this time, and of course an increase of industrial msts is not wanted. The most important (actor in costs, however, is volume of business and stability of operations. If the elimination cf exchange fluctuutons contributes to this it would seem that the gains are likely to much exceed any possible increase of costs resulting from a higher discount rate. Indeed, if British exports recover to their pro-war relation to imports, a high discount rate will not lie needed to maintain gold payments. This is only one of numerous questions that, have arisen in the period of reconstruction. Mas it a mistake fot London and New A ork to co-operate in tile loan to put Germany on her feet, despite the certainty that her competition in world trade would lie felt? Is it worth while for Germany to go through the stress incidental to the restoration of the gold standard, with money at 12 to 2o per cent ? Germany does not doubt it and i.s pulling ahead even at that ? Compared with such problems, the task of restoring the pound sterling to its time-honour-ed position does rso;. seem very great, i

Auckland liki.* (iiri.xtchiirrh departed 'coin tile accepted rule in the appointment of a deputy-mayor, it has been the custom generally where the highest placed candidate in the polling lor the Borough Council sought the position of Deputy .Mayor, that the appointment by courtesy was so made. At Christchurch this neck, the City Council very designedly ignored the claims of .Mr Sullivan Al.J'. for the position of deputy-mayor despite the fact that not only by his position oil the poll, but also by 1 1 is talents, he was worthy of tile appointment. Auckland has acted somewhat similarly except that the rejected Labor City Councillor is not so well known throughout the Dominion. But he has been before the people on several occasions and served tin local bodies. However, the point is that being eleeted by the citizens at the head of the civic poll, he has a right according to use and practice to the first refusal of the deputy-mayor-ship. When it is seen that his nomination hv a fellow oui nl l lor did not draw forth even a seconder, it will be gathered that there was a very definite set against the candidature. I here is mansion from time to time to rail against the Labor party for its class prejudi es, but here the position is reversed, and a class set is made against Labor which is net accorded a fair deal. This paper does not hold any brief for Labor, as our readers w ill have recognised, but there was no occasion as far as we can si e for Auckland and Chrislchurch to depart from [last practices and not play the game in civic politics. There is least occasion o! all to bring class into local and municipal affairs, but the city councils in two leading metropolitan centres have set a very had example in that respect. The action will not have any mollifying effect, rather the reverse. ai.d the occasion, will lie kept in mind for retaliation when opportunity oilers. Il is not good to encourage so antagonistic a spirit. Looking to the reverse side, it would he very acceptable, v.e think, to give the Labor men something of the yolk ol resior sibility to hear, and to give the gentlemen a closer insight into the management of alfairs. Il would have been valuable training, anil il the Auckland 1 al»ir man is of the same calibre as Mr Sullivan, the experience would lie turned la iim-'hl advantage for the benefit of I he people ill the future. Oil all point.- we tan only reject the illjudged action of the two city councils.