The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, OCTOBER, 30, 1933. THE PRICE OF GOLD

Hokitika Guardian, 30 October 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, OCTOBER, 30, 1933. THE PRICE OF GOLD

A writer in a- London paper refers "'itii interest to the mucii read question of the price of gold, particularly hi regard to its soaring m sale value, and the possibility of a fall in sale value. In his view, the effect of hoarding by nations and individuals i.s one emphatic cause of the rise, in pre-war days the value of gold in London in round figures was 80s, and 110 francs in Paris. Now the price is 130 s in London, 520 francs in Paris. At both .periods, the value of gold, in common with all commodities with a uniform standard of quality, has been based upon the price obtainable for the last unit required to meet the demands of buyers. Obviously the cost of labour and materials required for production hag risen, .and after allowance for a set-off, due to improved methods of working, would possibly have somewhat increased that nominal •price in any event, but the advance is mainly due to the increased demand arising from senseless hoarding in the West, and would have been greater had it not been mitigated by the East "getting out while the going is good,” and exchanged yellow metal for material comfort. It is believed that in course of time France and other gold standard countries will see that they are paying too dearly to the gold-producers for the very illusory advantage of being able to convert at vrill the obligations of the State at present recorded on paper, into a material which in itself can neither sustain nor destroy life, and which, maybe, they will also have to realise on a falling market, since it is hardly conceivable that the capacity and desire for hoarding will not be due to more intensive working in existing and yet to be discovered fields. In the meantime it is to be regretted that in common parlance the price of grid should be so -ultimately associated with the day to -day value of the franc, thereby creating the impression that the franc, which lias only recovered one-third of its 50Q per cent depreciation, is a vastlv superior standard to the pound, which is within 10 per cont of looking the dollar in the face. Since the foregoing was written, President Roosevelt has developed a gold manipulation oolicy, which, while not affecting directly the European market, still is a back ground which will have its influence on current world-price. The day then when the use of gold solely to the arts will again obtain, is further postponed, and on that basis prices are net likely to readilv decline. The advanced rate is most helpful to mining developments, and for a country so highly auriferous ns New 7yland is of outstanding benefit. The search for geld is assisting now in alleviating unemployment and its consequences' and tlmt is in itself, a service to the Dominion.