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Hokitika Guardian, 21 June 1932, Page 4

The subject of filie world’s monetary system was recently dealt with by a noted Swedish economist, Professor Gastar Caosel, and in the course of a statement on the subject he said the first condition to international co-opera-tion would obviously be a complete abandnment of- the war debts. It should simply he eaid to the countries claimed war debt payments that those claims had proved to be so completely destructive of the world’s monetary system, and thereby of the whole world economy, that they ought to be abandoned- A postponement woud be of no use whatever. A gold-stabilising policy would also involve a restoration of free movement of capital without political control. There was no possibility whatever in the immediate future of restoring the gold standard as an international monetary system. As to the British credit cf £150,000,000 for “protecting the British currency,” nobody seemed to know the real aim of the policy. In circles representing trade and production there was a strong desire that the new Exchange Equalisation Fund should be used for depressing the external value of the pound below its internal value in order that British exports should get an extra bounty and the home producer an extra dose of protection. Such a policy was, however, absolutely incompatible with a policy aiming at a restoration of an international monetary system of any stability. It was necessary for the internal economy of Great Britain that British monetary policy should have a definite objective. 1 England should never forget how groat the interests are which are bound up with the solution of its own monetary problem. The formation of a sterling group of page- currencies rationally regulated for safeguarding stability would secure for Great Britain an independence of arbitrary and Imp-hazard influences and of endeavours to exploit monetary resources for political ends, and would thus finally break the intolerable ;■■-iw«r that has been built on huge accumulations' of gold reserves. As a Fader of the sterling group Great Brit/ in won-d ’ acquire the authority find lead to which it is so ilastly entitled.