GOLD STANDARD

Manawatu Standard, Volume XLV, Issue 125, 30 April 1925, Page 6

GOLD STANDARD

MATTER FOR CONGRATULATION. EFFECT ON EXCHANGE RATES. (By Electric Telegraph.—Copyright.) Received April 30, noon. SYDNEY, April 30. Following the announcement of the return to tlio gold standard an informal meeting of representatives of the Associated J tanks was held to discuss the position. A formal meeting will be called in Melbourne to further consider the situation. It. is anticipated that one outcome will be a considerable alteration in the exchange rates at an early date. Though it was known that the Commonwealth Bank Board had advised the Federal Government to remove all restrictions on the export of gold as from May 1, the decision of the Government to fall into line with the British Government-, from yesterday, came us somewhat, of a. surprise to flic bankers. Some demand was made at the banks yesterday for gold for notes, but tlu* demand was not large. The Herald comments: “The return lo the gold standard is a matter for congratulation. We now enjoy a stable currency and an exchange which will fluctuate oily slightly more than before tlie war. The certainty is that tlio health of the commerce of the world and trade should improve. I t will be possible no v to take a long view in commerce and prepare for future development, and not be forced to bo content with the subsistence of the mouth. The rectification of tlie exchange rales should be announced before the week closes.” COMMITTEE’S RECOMMENDATIONS. Received April 30. 9.50 a.m. LONDON, April 28. Tho report of the Currency committee, to which Mr Churchill referred, expressed tlio opinion that the domestic circulation of gold was a luxury which was dispensable. It states: “Britain is not likely to afford it for a few years, but (lie established national Habib of using paper currency probably will bo sufficient to prevent the absorption of an appreciable quantity of gold into domestic circulation. If there is such a risk the committee is of the opinion that legislation will be essential to prevent tho abnormal circulation of gold till the gold standard is firmly established. Tho coinage of half sovereigns, in any case, should not be resumed.”

The committee recommends that as soon ns parity is restored the Bank of England be authorised to prepare for printing its own notes. The experience necessary to enable tiio amount- of the fiduciary issue to be lived should have been gained by 1927. and the transfer issue could be effected early in 1928 or perhaps before. — A. and N.Z. cable. NETHERLANDS’ DECISION. Received April 30. 9.40 a.m. THE HAGUE, April 28. ’The Government has announced that it is re-establishing the gold standard tomorrow. —A. and N.X. cable.