NO MORE PAPER MONEY

Evening Star, Issue 17313, 29 March 1920, Page 6

NO MORE PAPER MONEY

REGAINING SOUND METALLIC) BASIS. Commenting upon the Commonwealth Prime Ministers statement that the Government would put no more paper money on the market, the "Argus' says: 3lr Hughes"s announcement in Svdney thai there is to bo no further issue" of paper money will be read with feelings of relief. The inflation of the currency is one of tha chief causes of high prices, though soma absurd people persist in the belief that a community can continue for an indefinite time to purchase their goods with the product of a small printing press. There are now on issue in Australia notes representiii" a. nominal value of about £20,000,000, apart from the notes normally required for legitimate currency purposes, and apart fiom°i-ho nctes placed with the banks when the Government tuok over the gold held by tha banks. It is important that these redundant notes should be called in, and ifc is obvious that this niust be done gradually. How the deflation is to be accomplished is a question for the Government to decide. The best expert advice should be sought, and the sconcr Mr Hughes announces his intentions tho better. The beginning of a move, ment to '-get back to the metallic basis" snould have an immediate steadying effect upon trade and credit. Even the brief dec.aration made by Mr Hughes should have ; wholesome effect; and when a considered policy is put into operation a general fall ii prices may be expected.