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Hokitika Guardian, 6 August 1925, Page 1

Touching on the extent to which this country would be allncled b\ the i<tnrn to the gold standard a return as vet incomplete—Air F. J. Hdlesto,,. ALB., sail! in Parliament on AA ednosdav that our prices were going to be regulated by tho supply of gold. It was the general opinion ol economists te.it tlie 7iipply of gold would not bo maintained in proportion to the increasing production of goods. This meant mat in Hie absence of sonic such (heck as a managed currency, there would in natural! course lie a (all in prices. In anv case it seemed fairly certain that prices were not going to rise as they had in the last twenty years or >«• Economists were of opinion. Mr Tiolloton added, that if prices tell interest would also fall, though not poruaps until two or three years after prices had fallen. A fall in prices might make it difficult t“ meet, our interest obligations on external loans. At the same time tho possibility that interest might fall should carry a warning against continued heavy borrowing at the present juncture. The country should not embark on any big works while interest remained at its present lot e.