BACK TO THE GOLD BASIS?

Auckland Star, Volume LIII, Issue 86, 11 April 1922, Page 6

BACK TO THE GOLD BASIS?

The "Bulletin" of the Federation of British Industries makes the interesting statement that in the opinion of New York bankers the appreciation in sterling is a "forecast of the hold that Great Britain will have secured upon International trade before many months." One well-known American authority is quoted as saying that "the dollar is losing favour as the international currency of the world, and bankers a nd merchants alike are falling back again to sterling for settlement of foreign balances." There are distinct signs that the £ is rapidly returning to a gold basis. It has been stated of late that the continual rise in sterling hi America is a bad thing for Great Britain, as it must increase the cost of goods exported to America. This is only one side of the question, however, for every rise In the exchange movement lowers the price for imports of American products—a most important item to British buyers of American foodstuffs, cotton and other goods. ...J~- - Replying to a recent question in the House of Commons, the Chancellor of Ihe Exchequer said it was the intention of the British Government to permit the re-establishment of an unrestricted market for gold in London as early as the state of the exchanges would admit of this being done. He added that the question whether, and to what extent, the public would then return to the use of gold coins in.place of notes for ordinary purposes of currency was one which must "ultimately depend on the action of the community itself."