BOLSHEVIK GOLD; OFFICIAL PRICE

New Zealand Times, Volume XLVI, Issue 10614, 12 June 1920, Page 11

BOLSHEVIK GOLD; OFFICIAL PRICE

(To tie editor, "N.Z. Times.”)

Sir, —In refusing to accept gold in payment for “labour products” produced in civilised countries from the Soviet Government of Russia,' the Allies are. putting a very bjg amount of “purchasing power” into the hands of the Bolsheviks.

It is reported in tho Press that the "official” price of gold is declared to be £5 6s 6d per ounce. It would be interesting to learn what is the “official” price of gold as distinct from its “market price.” It was reported durixxg the war that in China gord sold as high as £8 per ounce, and I have no doubt that if sold in tho free markets of the world, the metal would fetch more than that figure in prosper-’ ous countries before the* demands of “pride and fashion” would be met. I do not know what arrangement (if any) was made by Mr Lloyd George with the JJhnk of England about the* “price” of gold when the British Govoronment “guaranteed” the face value of Bank of England notes handed out to the people in exchange for gold coin valued at tho “mint” at £3 ,17s IOJd pet ounce. This being the “minting price,” it consequently became the maximum “market price” of gold throughout the British Empire and the civilised world., Tf ever gold is “minted” and used as a “medium of exchange” (which I very much doubt), it will certainly be at a very much higher price, or the coin will all be melted down and sold at its “mar, kot price.”

If civilisation and “freedom” rules the world, the wages will ho high and the cost of production high, consequently tho "market price” will he high. Should “force’ got on top in the form of “Soviet” governments, the gold, if dug out at all, will be done by “slaves” without wages, and xhay bo “any price at all,?’ and “exchanged” at different prices in different countries.

Some time back I noticed that in London tho South African mine-owners wore urging the authorities to put up the price of gold at tho “mint” in order to keep the mines going on a “payable” basis, so that the “wealth” in the form of “share value” in gold mines would bo maintained. If gold is, or is not “minted,” the price of gold will rise before it can be produced under bigb wages conditions by nations enjoying individual freedom. If 1 no gold is produced the “stock on hand” will rise in “price”_ and “purchasing power,” irrespective of the price of any other commodity. Tho Allies are making a great mistake in refusing to take Russian gold, and- tho British authorities are also helping on the “forces of evil” by declaring any “official” price for gold while the Bolshevik possess a single ounce, or gold rouble. Tho proper policy to pursue to bring about tho “freedom” for which we have- been fighting is to “exchange” British Empire “labour products” for Russian gold at its past minting price, viz., £3 17s IOJd per ounce, and every man. woman and child "under the banner of “freedom” should wade in with all their strength to increase production within the Empire. I Vixen wo have won all the Russian gold, by trading, we should put it on tho world’s free markets in small quantities until it reaches fabulous prices. Tlxo Gormaxy gold could be won in tho same way, and moxxpy enough made to enable us to treat the, Gormans as liberally as we treated tho Boers aftei tho South African War. In the meantime tho gold should ho stored in London in charge of the Rank of England, but tho property of tho British Empire, and tho proceeds used to relievo the sufferings of humanity all over tho world, as it is! no use to us. It is no concern of ours how tho Bolsheviks obtained tho gold. Our business is to sec that they do not get tbo “unearned increment’’ between the “minting price” and tbo “official price,” not to mention its possible future “market, prico” and exchangeable value. Let tbo gold mines remain idle, ns there Is more important work to bo done in clothing and feed- 1 irxg God’s creature* all over the world. A, SANFORD. Auckland.