EMPIRE CURRENCY

Hokitika Guardian, 18 December 1931, Page 5

EMPIRE CURRENCY

CREATION OF MONETARY UNIT. BANK DIRECTOR’S SOLUTION. (British Official Wireless.) RUGBY, November 17. A plan for .Giiipiie curjomy, under Britain's monetary leadership, was enunciated by Mr. J. K. Darling (a d.router ol tne -Midland Bank) to the textile Institute at Belfast. "We .should envisage the creation, of an -imperial monetary unit, on which the pound and otner currencies would he nased, masing rc so strong that the dollar, franc and other currencies could not aiiord to remain independent of it.

“i'he essential factor is the retention of the. freedom of the pound, which it has regained. Nature yields loiirteen ounces ol silver for each ounce of gold, which is now valued seventy-foul compared with silver. The solution is to revert to Nature’s ratio, and employ both silver and gold as money, imparting thereto the relative value conimen.surate with then natural value.

“If we await an international conference to cure tlie world crisis, we may he faced with general bankruptcy, through inability to liquidate our debts. The departure from the gold standard would retard the adoption of the entire plan, hut would facilitate tlie-part relating to Britain and India, The Governments of the Empire should agree to constitute a super-hunk, pool the Empire’s gold reserve, and raise the price thereby, simultaneously rehabilitating .silver, and preventing the accumulation of gold by one country.”

THE CANADIAN DOLLAR. SILVER MUST BE STABILISED. OTTAWA, Decern her 10. Mr Bennett has called the leading hankers to a conference to-day, to discuss the stabilisation of the Canadian dollar, now at 20 per cent, discount in the United States. Flans are being formulated for the establishment of a Canadian money market, independent of New York. Mr Stevens declares that it is a mistake to lean on the gold standard. Silver must he stabilised as currency. CANADIAN EXCHANGE. WHY IT IS DEPRESSED. OTTAWA, December IC. In v connection with the Canadian Bankers’ Conference with Premier Bennett, one authority advised that if Canadian drafts and cables on London were handled directly from Canada, and not through New York, the dollar would he selling in New York at ninety cents, instead of at eighty-one cents. UNION CASTLE STEAMSHIP COMPANY RUGBY, December 17. The Union Castle Steamship Company has decided that it is inexpedient at present to pay the preference dividends due on 1/7/31 or 1/1/32, as tlie trading results have not shown fho expected improvement. South Africa’s maintenance of the gold standard adversely affected her overseas trade, .and the conversion of the company’s resources was essential.