OUR LONDON DEBTS.
• In your leader to-niglit on "Bouncing the Ball - ' you state: "It (New Zealand) cannot suggest that any. action on the part of Britain has increased in the slightest particular the burden of debt"rests upon us." Surely when Britain Jback to the gold standard in 1925 that was a deliberate act of policy. Of that step,' Sir.-'J. M. Keynes said that it made a present of a thousand millions to the creditor class. True. Britain was driven off. the gold standard'later by the same-tornado which drove New Zealand to the higher exchange policy; but surely it was the act of Britain" in 1925- which chiefly added to our burden of debt. M. D. GRAY.
[The correspondent overlooks the fact that New Zealand's currency was on par with the British pound right up to the time when our exchange was raised during the depression to 10 per cent and later to 25 per cent. If the 1925 restoration of the gold standard in Britain created a case for revision of our debt agreements, that case disappeared in September, 1931, when Britain went off the gold standard again.—Ed.]
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Auckland Star, Volume LXVII, Issue 156, 3 July 1936, Page 6
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188OUR LONDON DEBTS. Auckland Star, Volume LXVII, Issue 156, 3 July 1936, Page 6
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