The Gold Rush

Press, Volume CVIII, Issue 31632, 19 March 1968, Page 14

The Gold Rush

Sir, —Some 12 months ago I wrote to an economist friend inviting him to formulate economic objections to the adoption by New Zealand of free trade and the gold standard. I realised that in the present temper of things he might feel embarrassed by the invitation. I therefore offered him a “get-out” with the supposition that the world at large would believe in the honesty of New Zealand’s declaration of uncompromising adherence to economic principle. He accepted the “get-out” by doubting the world reaction. The propaganda of interested parties has elevated the terms, “gold standard” and “free trade,” into the category, not merely of dirty, but absolutely unmentionable words. I am nevertheless willing to go on the record, not merely in their defence, but as the only available solution of our economic worries.—Yours, etc., DOUGLAS SEYMOUR. March 17, 1968.

Sir, —The recent announcement that the seven central banks no longer intend to supply gold to the London market or any other gold market has great implications. The question I would like to ask is: Does this announcement mean the western world has gone off the gold standard?—Yours, etc.,

BRUCE G. BARCLAY. March 18, 1968.

Sir,—While the heads of international banks are consulting in Washington we are being told that the outcome may be the setting up of an international credit corporation. The present system has broken down because the present creators of credit have pursued varying policies. Broadly speaking, their policies are a mixture of nationalism, profit motives, and a firm belief that constant work keeps the working man out of mischief. To bankers, money is the means by which they can enforce their policy, but to the common man it is the means by which he can satisfy his desires from the pool of wealth created by common efforts. Centralised control of credit gives power beyond national boundaries, hence world unrest. Democracy can succeed only when we learn to control the money system within our national boundaries, the smaller the better. We must cease taking Orders from Washington, London, Paris, Moscow, or even Timbuctu.—Yours, etc., W. B. BRAY. Leeston, March 18, 1968.