OBSTACLE IN WAY

Dominion, Volume 26, Issue 87, 6 January 1933, Page 9

OBSTACLE IN WAY

Economic Recovery MOVEMENTS OF GOLD Close Season Advocated (By Telegraph. —Press Assn. —Copyright.) London, Jan. 4. The Midland Bank "Monthly Review” advocates a close season, or “Hoover moratorium,” for gold movements. It says that since September, 1931, four European central banks showed a total gain of gold exceeding £3OO million, while the United States, Japan, and Germany lost £220 million. “The world is steadily moving toward a point when shipowners, especially on trans-Atlantic routes, will be almost as much occupied carrying gold backwards and forwards as moving goods from producer to consumer,” it states. “Even where gold is still standard, it has ceased to serve any useful monetary purpose. "Movements of such magnitude as mentioned cannot fail to have disturbing effects on public l psychology in gold standard countries, and place an obstacle in the way of all attempts at organised recovery. Therefore a Hoover moratorium would undoubtedly contribute greatly to the suecesful laying of the foundations of revival throughout the world. "Britain could make debt payments to the United States in gold almost indefinitely without any substantial effect on monetary conditions here, largely because there is so little demand for gold, while the available supply has been greatly Increased. . These conditions are due to so many countries leaving the gold standard, and would pass away in event of a general return to ■gold. "Consequently, the system of gold payments to America can be operated only as long as a nuniber of important countries remain off gold. This system defers indefinitely Britain s return to gold. There can be no general return to gold as long as American war debt payments have to be made in the form Britain necessarily adopted m December.”