NO MORE PAPER MONEY.

Taranaki Daily News, 7 April 1920, Page 5

NO MORE PAPER MONEY.

REGAINING ROUND METALLIC BASIS. Commenting upon the Commonwealth Prime Minister's statement that the Government would put no more paper money 011 the market, the Melbourne Argus says:— Mr. Hughes' announcement in Sydney that there is to be 110 further issue of paper money will be read with feelings of relief. The inflation of the currency is one of the chief causes of high prices l , though some absurd people persist in the belief that a community can continue for an indefinite time to purchase their goods with the product of a small printing press. There are now on issue in Australia, notes representing a nominal vtilue of about £20,000,,000, apart from the notes normally required for legitimate currency purposes, and apart from the notes placed with flic hanks when the Government took over the gold held by the hanks. It is important that these redundant notes should be called in, and it is obvious that this must be done gradually. How the deflation is to be accomplished is a question for the Government to decide. The best expert advice should be sought, and the sooner Mr. Hughes announces his intentions the better. The beginning of a movement to "get back to the metallic basis" should have an immediate steadying effect upon trade and credit. Even the brief declaration made by Mr. Hughes should have a wholesome effect, and when a considered policy is put into operation a general fall in prices may be expected.