The Guardian And Evening Star, with which is in corporated the West Coast Times. TUESDAY, OCTOBER 20, 1925.

Hokitika Guardian, 20 October 1925, Page 2

The Guardian And Evening Star, with which is in corporated the West Coast Times. TUESDAY, OCTOBER 20, 1925.

In d ism-sine. Ihe ■ 111< ■- 1 ion nt iinon y as applied to wage-, the confusion that ari-o- in ro-pcet to tin l real 'aloe of i lie -y-tem of payment, a Nea 'lurk banking journal reviev. s tie .-übieet rather ini ci e-l i ugly. Tie- :iif i le proceeds to -ay that the tendency ol people to think in terms of money, wages or prices, regardless ol purehasiM li value, always has been a great source ol (onfusiou in the business world, and it is the chief factor in the wage controversy. The llritish workin’s undinibtely believe with the utmost sincerity that they are lighting j to maintain the standard oT living, hut that is not all there is of the situation. The reduet ions in wages are intended to make British products move into consumption, increase production, give continuity of employment villi larger actual wage payments, and reduce the cost: of living. Those results if realized would permanently improve all social conditions. Sir Josiali ('. Stamp, a member of the Court of Ini|iiiry in the coal ease, added to the opinion of the Court a personal note in which he ex pressed the view thaT the restoration of the British currency to the gold value had increased the cost of British coaS and other products to foreign purchasers. and to tliis extent had been n factor in the falling off of business. Tt is true that taking this effort by itself it may be considered a factor in the situation. It is bad to have any chan go in the value of money, and the main argument on behalf of the resumption of gold payments in Great Britain and every other country has been that it was a necessary step to secure stability in exchange relations, and a linn basis for trade. This is the explanation of the whole movement back to the gold standard. The immediate effect of raising the British currency to gold would be the reverse of the influence of the decline of the franc upon French ex-, ports during the past vear. The latter undoubtedly stimulated French experts. hut it increased the cost of imports and increased the cost of living, with the result that miinv wage controversies have occurred in France. That the falling value of the old German currency made it easier for foreigners to buy German goods is well known, but no class of people in Germany were more eager tor the country to got hack on a gold basis than the wage-earners. Moreover, the advance of British currency to the gold value had direct effect in cheapening the cost of all foodstuffs and other imported products to the entire population. Scarcely more than a year ago Great. Britain was paying a premium of about 10 per cent over the gold price of all purchasers made in the Fnited Suites, and the working-man was inlying it in the price of his bread and bacon. The argument against gold resumption consists in taking acnuiit of part of the effects and ignoring the others. There are readjustment- to be made lsuli v, ays in getting the trade of the world bac k upon a common level and into balanced relations, but on the whole they are beneheial to all concerned. and must be made to restore general prosjierity.