THE GOLD STANDARD

Evening Star, Issue 21630, 27 January 1934, Page 13

THE GOLD STANDARD

FRANCE S FAITH UNSHAKEN STABILISATION OF CURRENCIES URGED Press Association—By Telegraph—Copyright, PARIS, January 26, The report of the Bank of France for 1933 reaffirms faith in the gold standard, and asserts that the revival of international trade is impossible until the major currencies are stabilised. It urges the cheapening of, long-term credit and a reduction of production costs, to which the Government must contribute by lowering tfixes.; BRITAIN’S POSITION RT. HON. REGINALD M'KENNA’S yiEWS. (British Official Wireless.) . RUGBY, January 26. (Received January 27, at noon.) ■ Opposition to an early Veturn to a metallic basis for British, currency was expressed by the Rt. ,Hon. Reginald M'Kenna, chairman of the Midland Bank, at the annual meeting of shareholders. 1 He said that’the success of the ' policy of cheap and abundant money in maintaining a general ayerage of prices at a level which rendered production profitable, was beyond question. World trade might still be disorganised, exchanges, chaotic, and international •dealings accompanied by prohibitive tariffs, quotas, and other restructions, yet. notwithstanding all these obstacles, trade in Britain had for many months been making steady and gratifying progress. The international situation seemed unripe for restoration of a universal monetary basis, and the gain from universality was the only consideration which should be allowed, to tempt the country 1 back to the metallic standard. He urged that until the world learned how to secure exchange stability without jeopardy to the stability of purchasing ' power, Britain’s inflexible task should be to demonstrate that wise management of money, united with no fixed attachment to gold, was both practicable, and its result highly beneficial. /