CURRENCY PROBLEMS.

Press, Volume LXVII, Issue 20272, 25 June 1931, Page 11

CURRENCY PROBLEMS.

lIXI IX EDITOR Or TUB MtBSB ire have been an infinite explanations offered for the Ate of world cbaos in comI venture to present a few actions from them, not so (ford information as to proision and perhaps assist tojhtenment. t panjandrums of finance—to niera, chief amongst whom ■man of the Bank of Eug;ht fit to reinstate the gold i I'JUS with the deliberate counteracting inflation, but bly had no idea of the e consequences which would ition has now got absolutely itrol, and unless drastic and il changes are made in the rrcney, the whole commercial be world is doomed to colx»tb public and private debts to be redeemed wholesale, sodcrn invention, the world's roduction has been enormousd in all its chief commodi- , cotton, base metals, silver, ~ but the one thing—gold—nave chosen as our standard t value, is stationary and cereaso in volume of produccouing decades. ciato tho position you need i one side of the scale the of property, including debts, jro*te,irf a! 1 gold standard tmmtvM, and on. the other side the itlto world's accumulated of course impossible to prater, but it probably Billion millions of pounds, I gold available for coin-' tfld is only about 2300 much aa a medium of exrid with the credit based , but as a measure of value. tad products offered for d and sold in terms of a with interest, rentß, j, etc. i, the wealth of the s, is property and com>e» the demand for gold a value rise, without any *e in quantity ot produoled and boarded by both dividuals, and is contaring from circulation: hat inflation of currency of prices of commodities ent proof that a shortage of currency' m ust' have' feet. Does anyone doubt rery of" a 'mountain of > at once depreci T J fgold'indraiW the price iities.aUround?.. . entirely misapprehend gold as something the' ner«r alters—they think afe'erent virtue.' Mr Beyiin, the other day in an able speech, said that Id was about &i per it co«]t that to produce—lOneeption. Much gold a £i* per ounce to prosequently such produ'ei■ • continued. Gold is I sterling per ounce bemakes about four sovegoid became as common lid still be worth £4 uace so long as it rethe realm, r to me three .possible e present'world malaise: wo, i.e., artificially fixvalues of gold with silig both, or either, legal sing gold and making sil:here is abundance, the urrency. mous increase in the illism would be most dificnt, and would probably manipulation in various noro practicable and less ict, I can see no fundait against it. •emely unlikely to hapbilities are all in the on. If gold were demonenot be lost as a form wealth, suitable for but it would become a lg and falling in price cr, as other commodities ms of gold.—Yours, etc., June 2itH, 1931. ITICAL PARTIES. >rtoa ot ras pbess I your sub-leader this % rt'Rret as deep as the doubt afforded to the who eanuot but regard welcome if unconscious i I have supported the b Mr Coates is toe indeed, is a personal •wn. and many are toe have spent "nder twof his honoured parents But I.fee] w'ro-be-iS attest mistake of his i»e Mr Forbes atld coOirnS OK arrangement v* l * you tito»eo to.call .itnr-

for one - thing is quite certain, and that is there is no room for three Parties" in' New Zealand politics. If present conditions continue, the Labour Party -will sweep the polls at the coming elections, for nine-tenths of the Civil servants, who have suffered the "cut," their wives, their sisters, their oousins. and their aunts, will plump for JLabour. ■ , , With Labour in office, the deluge will follow, and New Zealand will soon be a replica of Australia. We are hearing far too much'of what is 'go d for the Party," when the very existence • of- law and ■ order are being ►hreatenod. Macaulay sang of an ace when "none was for a party, but all were for the .State.'• lines which thp Reform Partv would do well to lav to heart A much older wet wrote ''Oiios I>f»"s vu{t dere nrius dementat"—further fo£d tor reflection. But "absit omen- Yours; eto " TE •K'OWOHEKE : Bnrwood. June 24th 1031 [We refer to this letter in our Leader columns.—: Ed., The Press.]