GOLD STANDARD

Greymouth Evening Star, 14 March 1932, Page 5

GOLD STANDARD

BRITAIN’S POLICY EFFECTS. [BY CABLE —PRESS ASSN. —COPYBIGHT.] LONDON, March 11. In the House of Commons, Mr L. Hore-Belisha, for the Government, moved the precautionary re-enactment of the Gold Standard Amendment Act for a period of one year. He said that, happily, the prediction that going off the gold standard /would cause food exploitation had been falsified. Indeed many gold countries had linked their fortunes and prices with Britain’s, with the result that 59 per cent, of the food was now imported from non-gold countries. To that extent, possible damage to Britain’s household budget was restricted. Furthermore, the strength of Britain’s purchasing power abroad had induced some countries to adjust themselves to Britain’s purses. The wholesale prices of gold countries had fallen nine per cent., which further, restricted the area of the damage. Many foodstuffs, including Australian and New Zealand butter, were cheaper. The average reduction of all foodstuffs was ten per cent, compared with 1930. Mr Samuel urged that Britain should have the power to defend herself. The abnormal influx of gold forced on her might have peculiar results, even forcing her back to the gold standard if there were a flight from the franc or dollar. The Bill passed its second reading without division.