BACK TO GOLD.

Auckland Star, Volume LXIV, Issue 290, 8 December 1933, Page 7

BACK TO GOLD.

EXPERTS' DECISION.

U.S. Professors of Economics

Advocate Return.

INFLATION CONDEMNED

(United P.A.—Electric Telegraph—Copyright; (Received 2 p.m.) WASHINGTON, December 7. From Princeton, New Jersey, it is announced that 10 University professors of economics, including Professor Kemmerer, to-day advocated international improvement and an early return to the gold standard.

They expressed concern over the consequences of inflation, which would harm working people and persons and institutions with fixed income more than all others, though it would also be harmful to the nation as a whole.

The Treasury Department yesterday put at rest rumours that an issue of fiat money or some other method of currency inflation would be employed in meeting the maturities of 727,000,000 dollars of Government securities which fall due on December 15. /Tlie Treasury announced it would meet these obligations by offering one-year certificates of indebtedness for 050,000,000 dollars, carrying 2J per cent interest.

The rate is the highest the Government has paid since 1931, except during the bank crisis last March.

It is said at the Treasury that a financial survey showed that the certificates should be attractive to purchasers and heavy over-subscription of the issue was expected.

A later message states that an excellent reception is indicated for the Treasury certificate issue, and over-subscrip-tion is expected before the books close to-night.

Just wliat the effect of the gold buying programme had on the form of this issue was much disputed here to-day. Those favouring the programme stressed the case with which the issue was apparently disposed of and the low rate of interest, and those against stressed that tho certificates were only for a term of one year, and that the gold policy had caused the condition of the bond market where the Treasury had to use short-term credit or pay excessive interest.