The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, JULY 18, 1932. CURRENCY REFORM.

Hokitika Guardian, 18 July 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, JULY 18, 1932. CURRENCY REFORM.

It wais stated by Mr Neville Chamberlain in the- British House of ; Commons last week that there will be no • return to' the gold standard by Britain. There is at the present time a conflict of opinion among experts over the measures necessary to manage the gold , standard bettor. A striking example of This conflict of opin.on is to be found in the Yeport of the Gold Delegation appointed three years ago by the Economic Committee of the . League of Nations. (It had been hoped that the Delegation, which included seme of the .world’s leading monetary authorities, would be able to lay down principles which could guide the world’s bankers if and when a general return to gold is decided on.. But the report, which is summarised -in the latest Home newspapers, reveals an amazing, and depressing variety of opinion, The;, majority report attributes the. present breakdown of the. international monetary system primarily to the economic disequilibrium caused by the War and maintains that monetary policy can play only-a limitedi part in bringing about recovery. The’majority believe that, at the p e- ; sent stage- of world development, the.; gold standard remains the beet available monetary mechanism and that its restoration should be the immediate object of those countries which have ; ; been forced off gold. If, however, the n-e-w gold standard .is to .work satisfactorily, three safeuards are necessary: (1) there, must be “a reasonable degree of freedom in the j movement ■of’ goods and -services’,’; (2) “there must be j a satisfactory solution of the .prohleim, of . reparation’s payments; and world debts.” (3) thebe - must be : on international agreement that gdld ; movements will not be prevented in future from making their, influence felt both in the country losing go-id, and in the country r-eceivng it. M.Albert Janssen, the .chairman o.f the Delegation, S r r Reginald Mant, and Sir Henry Strakosch, in a- dissenting .. note, disagree with both the diagnosis and the -remedies putp,-forward ~byq tjip,, majority.,, They . find ;tv m.aia ; causa of tile crisis in the' min.ldist ibution of gold reserves, i which began , eably in 1929 in consequence of repar-i . ation and war debt, payments..and the unwillingness of creditor countries to take payment in goods, Except- in France and the United States, this • started a process of deflation, which, so far, is has been .impossible to check.