MAN-MADE GOLD.

Auckland Star, Volume LII, Issue 304, 22 December 1921, Page 7

MAN-MADE GOLD.

(To the Editor.) Sir,—-Should the Germans succeed in turning out gold at a very cheap rate it may not 'be sold at anything near the "price" of gold at the present time. It ia certain that the prico will be regulated "by-.the supply aud demand for "that commodity. Very little gold has been in circulation as a "medium of exchange" since the war started, when the State '•guaranteed" paper notes to exchange at Hβ face value, against all commodities. This avoided "panic" and banking, and all business waa carried on as well on paper as if gold was in circulation. Aβ gold yields no "interest" while in our possession it pays the 'banks 'better to hold some State guaranteed security th»t is yielding some interest, if only 4i I per cent. Should gold be produced at a "price" What Mr. Guneon may be tempted ■to pave our streets with ""bricks of gold," the invention or discovery could not do any permanent harm. Gold is now worth very much more than the "guaranteed" price or would be if the metal was freely offered in the markets of the world like all other metale. If the whole economic fabric of the world should be shaken to its foundations it would cause the world's inhabitants to open their eyes and revise all their currencies. Whatever the currency may be it should foe world-wide, so that no "conversion" would be needed when we are buying or selling goods to people having other methods of measuring the "value" being exchanged.—l am, etc.. A. SANPORD.