TOO INELASTIC.

Auckland Star, Volume LXIII, Issue 116, 18 May 1932, Page 12

TOO INELASTIC.

GOLD CURRENCY.

GOODS MORE SUITABLE.

FARMERS UNANIMOUS,

The question of currency reform was considered at the conference of the Auckland Farmers' Union yesterday afternoon. The consensus of opinion was that some currency based on the volume of exports should be adopted other than one on gold. . Tho mover of the remit was Captain H. M. Rushworth, M.P. for the Bay of Islands, and it read:—"That gold as a base for currency having proved unsatisfactory and resulted in vast overpayments of long term loans, whilst the currency base of the Dominion is even more unsatisfactory, tho currency of Now Zealand should be based on the average- index ligure of export commodities, as corrected by quantity of exports over a sufficient term of years to oive reasonable stability, and money should be issued or withdrawn in volume to secure payment for all services on a recognised standard." "Country after country has abandoned α-old as a standard," the mover said, "and so far as I know no move has been taken to create another base. If an anchor is used and it holds, then it is as ..•ood as anything else. Gold has been proved inelastic. We should use _ the volume of our exporting industries. Price indices should be taken over a period of years; he suggested from 1923 to 1929. Another speaker said that this new system would be an attempt to link the money system to real wealth. Increased Eduction was real wealth, he said but though production had been increased, under the old system there was no more money available. While the currency was under the power of the U yffi3Z£. meddle with it, said Mr. V.-G. Id". The control of currency should be in the hands of those responsible to the State. The remit was carried unanimously.