GOLD: PROSPERITY

Press, Volume LXX, Issue 21198, 23 June 1934, Page 19

GOLD: PROSPERITY

TO THH EDITOR OP THB PRESS. Sir, —I read "£1 Gold's" letter on "Gold: Prosperity," with great interest. Not that I agree that gold is essential to prosperity, but I do think that his suggestion that gold digging should be stimulated is practical politics. I think that for some years to come there will be nations who will be willing to part with their, products for gold. The gold market is about the only market that is not flooded, and why not take advantage of it while it lasts? When that market slumps it will be simple work to transfer the diggers to other work. To-day we have a market for the quantity of exports producedandit more than buys our importsandour overseas creditors seem fairly satis fied with the surplus money ™ ade as payment for interest and debts. bo we can consider ourselves in an economically sound position internationally. Seeing this is the case, and our export market is strained, why not keep our primary products at the present pitch for the time, and reach out in other directions? For instance, in gold digging and in developing our home markets. This can be done by finding openings for our surplus population. It does not matter so much what the openin" is, whether it is gold digging, manufacturing boots, etc., or sweeping up leaves on the lawn. What is of vital importance is that they should be all well paid. The payment

of wages can be effected bv the help of subsidies. The subsidies can be originated and supplied by the Central Bank. As I have said before, if the Government finds that there is too much money out, it can cease issuing new money for a time, straighten things up by taxation, and so reduce the excess. There is no reason whatever why the Government should not pay gold diggers, we shall say, 16s a day on the same conditions as it pays relief at the present moment.—Yours, etc.. KAYE HOE. June 22, 1934.