GOLD STANDARD.

Auckland Star, Volume LXIII, Issue 136, 10 June 1932, Page 7

GOLD STANDARD.

QUESTION OF RETURN.

League of Nations Experts Divided.

REPORTS ISSUED

(United P.A.—Electric Telegraph—Cop.vrijrli I)

(Received 1.30 p.m.) GENEVA, June 9. A return to the gold standard and the desirability of a rise in, the price level, aided by central banks, is advocated in the final report of the gold delegation of the League o£ Nations Financial Committee.

The return to the gold standard, however, cannot bo expected pending the restoration of a reasonable degree' of freedom in the movement of goods services, the settlement of reparations and war debts, and the establishment of certain guiding principles in the working of the gold standard.

The delegation considers that the rapid decline in prices beginning in 1929 cannot be attributed to deficiency in the gold supply, which has been adequate to support the credit structure required by world trade.

A minority report, signed by the chairman, M. Albert ' Jandsem, Sir Reginald Mant, and Sir Henry Strakosch, contends that the dominant cause of the breakdown was maladministration of the gold reserves beginning in 1929, and emphasises the practicability of restoring and maintaining gold prices at a suitable level, concerted, with, an attempt to restore wholesale prices to the 1928 level.