WORLD CURRENCY

Hokitika Guardian, 27 April 1933, Page 5

WORLD CURRENCY

DEVALUATION PLAN

REDISTRIBUTION OF GOLD

, United Press Association—By Electrio

Teiegraph—Copyright,)

WASHINGTON, April 25

It is understood that one of the plans iproposed by way of international currency devaluation, which is being lavoureu oy tlie U.S-. State Depaitine.iC, lias the following points:Tiie currencies should be devalued simultaneously.

me “leal value” of each currency should be taken as the devaluation gauge—by the “real” value being meant the price to which any currency would settle on international exchange if it were unsupported. devaluation mould aim toward an automatic gold redistribution, by fixing lower currency values in those countries with small gold stocks, like Britain and Germany, than in those countries with large gold stocks, such as France and the United States.

This, it is argued, would automatically siphon gold into the countries with the lower gold stocks.

Financial experts' have interpreted the British Chancellor, Mr .Neville Chamberlain’s latest budget announcement that the British exchange stabilisation of £150,000,000 would increase as indicating a renewed determination on the part of Britain to keep sterling from rising.

As it is now regarded as useless to attempt to peg sterling as against the dollar, it is expected that it will be contemplated by Britain that she will peg sterling against the gold standard countries —namely, France, Belgium, Holland and Switzerland. According to exchange experts, this possibly would result in the British exchange control drawing gold from these countries in the same manner as it- drew on American gold holdings earlier this year. It is asked whether this will not present the gold countries with the alternative of abandoning gold. There has been 2,199,000 dollars worth of gold shipped, under license, from America to Britain to-day. It is ■an initial step in- the repatriation of some of the 250 million dollars’ worth of ear-marked gold that was acquired here during January and February, through the operation of the exchange equalisation fund, before the suspension of American specie payments in March.

CANADA AND GOLD STANDARD

OTTAWA. April 24

The Minister of FiniabcS, Ml' Juntos, in n statement in ttie House, said that an Order-iii-Council had been pulsed two weeks ago suspending Urn redemption of Dominion notes in gold. An amendment to the Dominion Notes Act, passed a month ago, had authorised the Governor-in-Council to suspend redemption in gold whenever ]),g. deemed it advisable that the move was merely for the purpose of regularising tiie situation that had been in existence since Britain went off the gold standard. R There had been no redemptions in gold since that date, except in small quantities for personal purposes. The fact wa« that an embargo on the exportation of gold from Canada had applied as soon as Britain abandoned the gold standard. This nullified any advantage that might- be gained by securing gold for notes.