GOLD OR SILVER.

Auckland Star, Volume LXV, Issue 39, 15 February 1934, Page 5

GOLD OR SILVER.

BASIS FOR CURRENCY. GREAT CHANGES PREDICTED. FOREIGN" IMPORT QUOTAS. "Concern is felt by business men a& ■well as by most farmers at the repeated suggestions of quotas on the export of our primary produce in New Zealand," stated Mr. Harvey Turner, the retiring president, in his address to the annual meeting of the Auckland Chamber of Commerce to-day. "We sincerely hope that the Home Government will not take any action | which would result in the restriction of our exports," Mr. Turner continued. New Zealanders are proud of being members of the great British Commonwealth, and our credit stands high, but it can only continue to do so if we pay our debts and honour our word. To do this New Zealand must pay approximately £10,000,000 per annum to England for Government and public body loans interest. If restriction of dairy produce imports is necessary to assist the British farmer, then surely we may hope that British statesmen will make such necessary restrictions from foreign countries which, to-day, supply a large portion of Great Britain's requirements, but in contrast to us neither pay their debts nor purchase anything approaching the proportion of the return trade that is done by New Zealand." Dealing with world finance Mr. Turner predicted that the present generation would undoubtedly see great ' change's. There had been a partial failure, he said, of the present system and some established system could not long be delayed. "Already we see signs of this in the urgent need expressed by world-leaders for stabilised currency; but, as the nations of the world have learned to break monetary and other as a matter of course, I believe stabilisation of currency can only be managed on some recognised gold or silver basis. Paper, money and bonds are too easily printed.

"Before 1 world trade can be restored, or even partially restored, the great barriers of exchanges, duties, embargoes, etc., raised by almost every country, will have to be greatly modified." "The trade position of the Dominion now manifests a substantial excess of exports over imports, which would be the healthiest of signs were it not for the fact that such a surplus is, under the provisions of the Banks Indemnity Exchange Act, likely to mean an embarrassment to the Government insofar as the Treasury is compelled to take over from the banks surplus fund's accumulating in London."