REMORSELESS DEFLATION

Evening Star, Issue 21130, 16 June 1932, Page 9

REMORSELESS DEFLATION

THE MONEY PROBLEM MR WINSTON CHURCHILL'S VIEWS (British Official Wireless.) Press Association—By Telegraph—Copyright. RUGBY, June 15. (K eceivcd Juno 16. at noon.) In a speech at a city luncheon today Air Winston Churchill welcomed the Government’s support for the proposal lo summon a world conference on the money problem, in order to arrest what he described as remorseless dollation. The tasks before the world conference, bo said, were to discover the best practical method by which the devaluation of commodities could be substantially arrested, and to invest the process with that authority which would command and hold the confidence of the most powerful States, and also the investing classes in every land. Referring to the enhancement in the price of gold, he said that everything else had fallen in a like degree. A remarkable feature had been the way in which the prices of all. these thousands of commodities had kept a steady relation with one another. They had marched forward together in orderly array. One commodity alone (gold) had broken from the ranks, and since it was at present our supreme measure, all the rust bad been cast down.

“Through the rise in the price of gold debtors everywhere arc required to pay 70 per cent, more than a few’ years ago. If this monstrous process continues it will shatter civilisation, as it has already shattered prosperity. War debts caused the disease, but the cancellation of reparations will not cure it. We must check the progressive devaluation of human effort in terms of gold; therefore I am glad that the Government favours a world monetary conference. Those who fear it ought to remember the stern fight the Australians and New Zealanders are making to preserve their solvency and honour. Governments may enforce sacrifices on all classes, but a fresh rise in the value of gold will wipe out all that they have done. The only solution is an international agreement to revaluate commodities and provide a stable measure for the exchange of services and goods.”