BRITISH ANXIETY

Hokitika Guardian, 17 September 1931, Page 5

BRITISH ANXIETY

OVER GOLD STANDARD.

(United Press Association.—By Electric

Teiegra p h. —Copyright.)

RUGBY, September 15. In the House of commons, Lt. Hon. ■Mr Graham (Labour), late Pr: sicient of the Board of Trade, opened discussion on the Budget resolutions. Be said that unless commodity prices could be raised all over the world, they must envisage a winter in which in the leading industrial countries of Europe and America, there would be no fewer than thirty million, people dependent on public: assistance. A situation might develop in Gtnnany and other parts of Europe and even the United States, rendering maintenance of the present monetary system impossible. Mr Churchill, as Chancellor, (who in 1925, took the lead in Britain's restoration of the gold standard), described the essence of the gold standard as the securing of a stable return for the wages of labour. He said that the artificial and abnormal abstractions of gold in the last few years had created a new position. He asked what would happen in the event of ■the ceaseless fall in prices during the last -three years continuing for fh c ' next five. He declared all the countries of the world can either utilise gold for the function it has hitherto discharged, or devise some new index of exchange, the continued fall in prices and destruction of credit will reduce civilisation in a short time to bleak the ferocious barbarism. 1 hope the Government, without a moment’s delay, will convene the most powerful conference possible to open ujL a grand inquest into the law's of the abstraction of' gold, and the consequent fall in prices.’’ Air Graham said that if Britain adopted a tariff policy then other countries, by forcing up retaliatory barriers, would injure Britain, more than she could injure them. Air Churchill appealed for a declaration of a majority of the House of Commons upon the principle of immediate protection for industry ancL agriculture.

Sir Norman Angel] (Labour) accus't ed Air Churchill of inconsistency in seeking the perpetuation of economic nationalism by means of tariffs, and •at the same time advocating concerted international action to secure the stabilisation of gold. Sir J. Simon said the position of British currency in. relation to exteri nal trade had to be faced, because if he increasing [adverse trade balance ■would, unless checked, constitute a threat to sterling more serious than t*he temporary Budget deficit. It • was plain that if a" country by adding together visible and invisible exports ' was unable to balance trade, there would be on offer a larger amount of sterling representing Britain’s purchases, than there would be of foreign currencies representing their dealings ■with Britain, with Che inevitable con. - that sterling would be exto the same kind of strain from which the vigor and energy of the Government had just saved it.. He was forced to conclude that the only available remedy was an emergency ■' tariff. It was only a negative and partial measure, .but it was essential.