GOLD STANDARD

Hokitika Guardian, 29 December 1932, Page 5

GOLD STANDARD

AFRICA’S MOVE

INDICATIONS OF DEPARTURE.

(United Press Association— By Electric Teiegraph—Copyright.'

LONDN, December 28. ' The! South African Government’s latest decision is the subject of much comment in the financial and editorial press columns. It id taken to mean a first step to an abandonment of the gold standard, which most of the commentators suggest would become advantageous to the whole Empire. The “Daily Express” says: Though South Africa, bv remaining on the gold standard, lias saved six hundred thousand a year in interest in her eighty million pounds of loans in London, her wool and fruit producers have suffered serious losses. If the South African pound comes to the' sterling level, the Rand gold mines revenue will probably be increased by twenty millions, half of which probably will be taken 1 in taxation to meet a budget deficit of- seven millions.

POSITION IN SOUTH AFRICA.

'(Received Dee, 29th. at 9.80 a.m.) CAPETOWN, December 28.

'Lhe Government's announcement to relieve the Reserve Bank of its oblige, lion to redeem its . notes in gold was timed for midnight, but it was known in London early in the afternoon. The official, reason was that the uncertainty resulting from the political situation, leading to- abnormally heavy purchases, in order to prevent crisis, of the first magnitude, made it essential to it alee immediate steps to protect' the gold resources. Traci© will feel the immediate benefit, as the maintenance of the gold standard is making the country bankrupt. It is expected that- export subsidies Will be continued for a few montlis to meet commitments incurred in the political crisis.

VIRTUALLY OFF GOLD.

GENERAL SMUTS PROPHECY.

(Received 9.35 a.m.) 4 CAPETOWN, December 28.

Mr Haver.ga explained that the purport of the Government notice was as follows: “We are virtually off gold. The banks will quote rates for exchange on the new basis. The circulation of gold internally ceases. The Union is now' similarly circumstanced to Holland, which is a gold country, without gold as the legal tender internally. The position is disappointing. There is no relief for primary producers in respect of exports.”

General Smuts describes the position as dislocated, and prophesies that the end is at hand. He appeals to supporters to remain steadfast, implying that he is not prepared to follow Mr Roos.