COLD SUPPLY.

Wairarapa Age, Volume XXXII, Issue 10594, 28 March 1912, Page 4

COLD SUPPLY.

The enormous increase ui the world's supply of geld, and the effect such i bias, and apparently will continue to j liave, oft the geenral level of prices, i is exercising the minds of economists. The question has been raised by Professor Irving Fisher, of Yale Univers-ity,-as to whether gold is proving it- J self to be- a satisfactory standard of value. His opinion is unfavourable to the claims of gold, and' is based on the obvious fact that the . rise of prices is causing disturbances in every country of the.-world. Professor Fisher proposes, .therefore, an international comraisisiion to discu&s the possibility «r fixing the value of gold coin in goid-iusing countries somewhat in | the way t.liat, the value of the rupee is now determined in India. It is suggested tliat on this principle gold coin could be maintained in some definite ratio to prices, provided a satisfactory index number of 'the latter could be obtained. The difficulties to be overcome in formulating such a scheme seem at first sight to be insuperable. Experience, however, is" irapidly being accumulated from experiments •in connection Wcilfli silverusing countries which have attempted io maintain, .theii 1 currency a-i a definite 'value in. relation to- gold. In disclosing the question, the. Economist remarks that whether such a scheme would work in the case of gold currency itself is -very problematical, Unit all will agree that it isi highly desirable to check the present depreciation of gold'.,