TRADE DEPRESSION.

Auckland Star, Volume LXI, Issue 309, 31 December 1930, Page 8

TRADE DEPRESSION.

GOLD STANDARD'S INFLUENCE

VIEWS

INTERNATIONAL ACTION NEEDED.

On the subject of the relationship existing between trade depression and gold, two speeches of prominent Englishmen are quoted in the November number of "The Economist."

The first, delivered by Sir Josiah Stamp before the Eighty Club, was concerned mainly with the broad implications of the gold standard. In the course of his speech. Sir Josiah was careful to say that the operation of the gold standard was not the only cause .ot trade depression —in fact, he half-seriously added, he could name no fewer than 18 different causes. He gave it as his opinion, however, that another fall of 20 to 30 per cent in the price level, coming on top of that of last year, would strike at the root 3 of all contractual relations throughout the world, and would even prove a serious danger to democracy itself.

Having thus shown a lay and political audience how serious and fundamental a question it was, he proceeded to discuss the gold standard, from the standpoint of what was the way out of the world's present troubles. He made the obvious point that it was a case for international action, and then added some well-timed t words of warning. It would be worse than useless to impute blame against any particular country for the difficulties whic had arisen. Progress must be slow and could not be hastened by bullying tactics directed against any nation or nations. The first" task was to create a wellinformed body of public opinion, and he welcomed the hard thinking being done at Geneva, London and in America. One of the great advantages of tie Bank of International Settlements was that it provided the world's central bankers with a "club," where they could meet together quietly, naturally and unostentatiously. On those lines, especially if the gold question were kept out of politics, there was hope that a common policy could be developed. The second speech was delivered by Lord d'A!f?rnon, before the Liverpool Chamber < \ Commerce. He wa3 critical

of the United States policy of demanding repayment of her debts, and at the same time impeding the*entry of goods by building up high tariffs. His address became more constructive when he urged that the British Government should initiate, without delay, negotiations with the principal gold-holding and gold-using countries, with a view to arresting the excessive enhancement in the price of gold which had already occurred, and which threatened to proceed further.