The Guardian And Evening Star, with which is incorporated the West Coast Times. Monday, September 8th, 1930 BIMETALLISM.

Hokitika Guardian, 8 September 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. Monday, September Bth, 1930 BIMETALLISM.

Ak extremely interesting a lid sugges* tive eemment on Austruliit’s financial crisis says a contemporary, has been offered by the Vancouver “Sun," which regards the Commonwealth’s situation as peculiarly significant because “what is handicapping Australia is also* worrying the world." The suggestion that a five years’ moratorium on interest payments should be granted, or that external debts should be repudiated, though it' represents a quite insane view of finance, may be explained not simply as a crude exhibition of dishonesty but as a protest against that “automatic increase of debts," which is an inevitable consequence of a general fall in prices. From this point of view the fall in prices which has be universal for some years past is the root of all our industrial and economic evils, and it is dne in turn to the comparative failure of the world’s currency to keep pace with the evergrowing volume of the world’s trade. Currency represents the demand tor goods, and if there is not much money in circulation to offer in exchange for goods there is little effective demand and no competition for them, and general prices will fall. But a long-sus-tained fall in prices is liable to injure all communities in two ways. To the producer the decline in his returns means the necessity for curtailing output and dismissing hands. But, quite apart from this, to those who have to meet fixed interest charges or to repay loans and advances, the fall in prices is doubly injurious. For, as prices go down, a larger and still larger quantity of goods must be produced and sold to raise a fixed amount of money, and, therefore, the liabilities of the debtor are in effect automatically increasing so long as prices continue to fall. While all the world needs gold, the gold actually existing as currency or specie and the credit documents based upon it—-the world’s money, in fact—will naturally tend to gravitate into the hands of the richest producing and trading countries; as witness the enormous accumulation of gold in the United States to-day. But this means that the smaller or poorer countries have to put up with an inadequate supply of currency, and this reduces their demand for e-oods. All this helps toi explain why British trade has fallen off to such an alarming extent in Asia and in South America where there is little gold in use and where the vast populations use silver exclusively as a medium of exchange and standard of value. But the use of silver introduces a new factor into the problem and may point to its solution. For many ages the world used cold and silver jointly as fullpowered money, with gold as the chief standard of value. But in 187:!, when t.lte dosing of the European and American mints to the coinage of silver—except as small change—reduced the world’s metallic currency by 50 per cent, the importance of the. silver factor became plainly manifest. From

1875 to 1895 prices fell tbrouirhout the world with unexampled rapidity, and consistency, and the result was a universal depression in trade and industry which ultimately induced most of tlio great commercial nations to demand the restoration of silver to the old basis of bimetallism so as to increase the volume of currency, enhance the demand for goods and cheek the ruinous in-

flation of debts. But the "money power” in Britain and America, which profited, by the monoply of gold that it had secured, was influential enough to resist all appeals for this urgentlyneeded reform. The return to bimetallism, was happily rendered unnecessary after the Boer War by the rapid increase in the world’s annual output of gold, which, owing chiefly to the introduction of the cyanide process, grew from £80,099,000 a year in 1897 to £80,000,(W!) a year in 1912, causing a general rise in prices, attended by widespread prosperity. But now that prices have fallen again through the failure of the gold supply, a demand is once more heard for the reinstatement of silver to expand the volume of metallic currency, and so the bimetallic controversy must bo fought out on its merits again.

Notice was given ih tile House last week by Mr Jits OBfien (Westland) to ask, the, Mitiistei’ Of Mines if he will have the Utlwoi'ked alluvlai gold deposits ill Wettlattd thoroughly prospected i by mentis of boring and sinking, so as to ascertain whether such deposits would pay for working by dredging or hydraulic sluicing. Recent inventions in dredging and lifting water by means of electric pumps, Mr O’Brien said, would allow much ground to be-worked successfully that would not nay a few years ago, and it is well-known that promising alluvial deposits exist.at Naahere, Kumara, Rimu and South Westland. In these times, when there is the urgent need for more gold being produced, it might be expected that one of the first matters to receive attention would be the shaping of a policy affecting a, revival in gold mining. Jt is believed that a special aid to the encouragement of mining would he a bonus on the market price of gold, but the Government is not disposed, apparently, to take this course. • The. development oif gold mining might well he brought to the front bv a. line system of prospecting, anti Mr O’Brien has suggested a method for action. Every year Parliament votes a sum as a subsidv for prosnecting, and seems content with that effort. A very small proportion, as a rule, is expended. Hence the special reason why the Mines Department should be more alert to its obligations in this matter. The Department, we take it, exists urimarilv for the promotion and encouragement of mining, and as the intrinsic value of gold mining is so vital to the national prosperity, a scheme should be devised to fester the industry. The Member for Westiand asks for special attention to alluvial propositions—a wise course, for success in that direction would toon diminish unemployment, A gold rush would have a, very enlivening effect, doing the country as a whole immediate good by lifting it out of the slough of desonir by creating an active trade revival in the immediate future. The request is sane and sensible, and promising great returns. The Government has geological officers who could launch spell a scheme on practical lines, and the project might well be taken up in the general interests of the Dominion oresueritv. As a matter of fact the gold mining industry lias been far tco long neglected.

The annual meeting of the Westland Racing Club takes place at 8 o’clock to-morrow night. At a meeting to be held next Monday arrangements will be made for the holding of “an old time” dance at the Soldiers’ Hall on the Bth. prox. Already a good deal of interest is being manifested in . the event, and the function is sure to be popular with all votaries throughout the district. The express from Christchurch on Saturday night was over two hours late. The delay is attributed to engine troubles which began early on the journey, the train being late in arriving at Springfield. There was further delay along the line, and in one of the tunnels the train pulled up and had to be broken into two sections, and so hauled to Staircase station. One of the sharp corners on Ruatapu road on the motor route to Lake Mahinapua, is now being improved, and will facilitate traffic, The track drive from the railway line to the lakeside is now very pretty and is in fair order for motoring, though narrow. Boating parties also patronise the lake now that Mahinapua Creek lias been cleaved considerably of late. No doubt during the coming season the lake will be as poular as ever with picnic parties. When the train is not running, motoring and boating always affords access to Lake Mahinapua. Indications are now being given that the goods traffic on the West Coast line has passed its maximum and is beginning to decline. This development may I be attributable only to the present de- J press ion and the renewal of competition with the West Coast coal from the Australian trade, but, whatever the reason, the remarkable increases, month Ivy month, in the aggregate tonnage 'drawn eastward ‘through the

Otira Tunnel are, for the first time since railway communication with Westland was first, established in August, 1923, being displaced hv decreases. The position is revealed by the following comparison ol traffic in August over the last, three years:—ls2B, 55,-32-1 tons - 1529, 69,420; 1530, 60,118.

New Spring hats opened to-day at Addisons. Inspection invited.—Advt.

St. Mary’s weekly social to-morrow (Tuesday) night at 8 o’clock instead of the Thursday of this week.—Advt.

| A dance will be held in the Public Hall, lvokatahi on Wednesday next.in aid of the hall funds. Music by Black Hand Orchestra and excellent arrangeljiuus assure comfort- of patrons.

The death of a respected Grevmouth resident, Airs Elizabeth Eruerton, occurred last evening at the residence of her daughter, Mrs E. Rosewail,. Alarsden Road. The late Airs Bruerton, who was G 5 years of age, was a native of Smethwick, Staffordshire England. She had been in tailing health for some time past. She is survived by two sous, William (Alolbourne) and Joseph (Grevmouth), anil two daughters, Mesdames Ruddali (Boddytown) and Rosewail.

Following a reference to whitebait, brought up at the meeting of the Navy League, Christchurch, a story apropos of the m uch-relished It dr was told by a member. An Englishman and his wife lie said, came to live in Christchurch. They were told, in due course, of the various native delicacies, and of course, of whitebait. The wife of the Englishman accordingly went to a fish shop, ‘ft want some whitebait,” she said. “Acs, hdw milch?” enquired the fishmonger. "Oh I there’s only my husband and myself, I think two small ones would dot”

We regret to record the death of an old pioneer, Air William Alorgan, an old and highly resnected resident of Greenstone and Alitchells (Lake Brunner). The deceased was in the employ of Keech and Malloy in the early days of Kumara and later had a store at Greenstone, then taking up farming pursuits at Alitchells. He was a notable figure in the district and and carried on briskly until lately. He was approaching 90 years of age, and leaves three sons (William of the Deeds Registry Office Dunedin. Richard in the North Island and Edward at lake Brunner) and one daughter Airs, Pickering of Inchbonfiie. The funeral takes place at Hokitika cemetery to-morrow.

New season’s tennis balls, 1931 marking, just arrived, 4s pair at Yarrall’s Sports Depot, llevell St.—Advt.

All new Spring goods now opened up at AloKay’s.—Advt.

We have a very fine assortment of summer dress materials, silk voiles, crepe, clarise, mousselines. Also spotted and floral prints and t-obralcos. McKay’s.—Advt.

AVith the continued fine weather tennis players’ will be looking forward to early playing this season. AVith this irt view A. W.‘ Antra 11 lias landed his new season’s tennis rackets, and is now showing all the boat makes, and as usual the prices are right, ranging from 15s. Call and inspfict.—Advt. Addison can show you the newest in house furnishings qf every description. These have been carefully chosen anu will add charm to your home.—Advt. Whitebait ar« now making their appearance throughout the Coast. Patersons have just opened their new stock of whitebait netting, 80in. at Is lid ud 2s 6d yard. Be prepared for an rly run.—xYdvt. We liaWe .much pleasure in extending to you a cordial invitation to view our extensive showing of our new spring and summer millinery. Special show days: August 25th, and 27th. Schroder and Co.—Advt. Just opened—A good assortment of art silk coloured quilts, in all sizes at McKay’s.—Advt.