U.S. FINANCE

Hokitika Guardian, 2 July 1932, Page 2

U.S. FINANCE

the gold standard. One of .the most - significant happenings for some time is ,the passing .by the United, States (House of. Representatives of a Bill authorising the cash payment to soldiers of £480,000,000. The plan involved the printing of notes to that amount, and was tantamount to, deliberate inflation. Although the measure has been rejected by the (Senate, its p-s'-age by the other House indicates how strong is the feeling >n ■the Uni:ed States in favour of a drastic change in the monetary system. Followed to its natural conclusion, inflation of the kind (would drive the United ■States off gold wjthin a few months. Many in the country would support the 'abandonment of the gold standard, although the Republican Party has again avowed its support of gold.'A revaluation of the dollar would make the return of the whole world to . a common monetary standard very much „easier. •As was poited out last weak by Mr Churchill, the value of gold throughout tihe world has been enhanced at the expense of ad other commodities; while the United State-s remains faithif til to gold, a general readjustment of prices will be difficult. A. recent report of the Finance ’Committee of the League of Nations shows that a return ’to the gold standard Will ultimately be nectary; the standard it, suggests, however, is not the former standard, but one- controlled .by the central banks, and fixed on a basis that will permit..pf a generally higher levei of prices.