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Hokitika Guardian, 27 March 1933, Page 4

“T‘iie gold countries were the last to feel the coming of the depression, and the reason that they are now feeling it more severely than, the others is that a purchase from them involves payment in gold or in terms of gold,” ■says the Times Financial Review of 1932. “That is to say, if one wishes to purchase an article from a gold standard country, in the last resort one has to obtain gold to pay for it. Since gold is the dearest commodity to buy in a world in which everything else is cheap, it is obvious that every one endeavours to buy in a country which is ir't on the gold standard. Thus tho expert trade of the gold standard countries is quickly diminishing and unemployment rapidly increasing. It is true that tho expert trade of the paper currency countries is not increasing, tut it is Fling much less rapidly: in -ome eases export', are being relatively well maintained. Great Britain, the chief non-cold country, has heeir •able to alleviate the worst nains of the crisis through having kept in reserve untouched two devices of amelioration and relief which other countries liad already reed—namely, devaluation of iwrency 'n tc” ,v, r. of

gold and a protective tariff. . . When she did decide to use them they brought relief <at a moment when it had become urgent ai:d imperative. The protective tariff brought succour

to famished trades and industries when they were almost on the point of collapse. It lvduced imports, as also did the depreciation in sterling; but the latter at the same time stimulated exports. In combination these two factors were so large as to bring unquestionable benefit to the country.”