CLOSE SEASON

Gisborne Times, Volume LXXIII, Issue 11826, 6 January 1933, Page 5

CLOSE SEASON

- FOR GOLD AIOVF.AIF.NTS.

AIETAT. USELESS AS AFONEA

MIDLAND RANK. REVIEW

(UP \ hy Elec. Teh Copyright) LONDON, Jan. I.

The Midland Bank’s monthly r( " view advocates n dose season. or ‘■Hoover Moratorium”, for gold movements. It says:•'•Rincc September. 1932, four European central banks showed a total main in gold exceeding £300,000,000, while ilie' United States. Japan and Germany lost £220,000,000. The world is steadily moving towards a pomt when Idle shipowners, especially on the irons-Atlantic routes, will he almost ns much occupied in carrying gold backwards and forwards as m moving goods from producer to con-

sumer. “Even'where gold is still the standard it bus ceased to serve any useful monetary purposes. Movements of such magnitude as mentioned cannot fail to have disturbing effects on public psychology in gold standard conntrios and place an obstacle in tho way of all attempts at organised recovery. , “Therefore a 'Hoover moratorium would undoubtedly contribute greatly to tho successful laying of tho foundations of revival throughout the world. “Britain could make debt payments to the, United States in gold almost indefinitely without any substantial effect- on the monetary conditions there, largely because there-is so Utile demand fur gold, while the available supply has greatly increased. Those conditions are due to so ma.ny countries leaving the gold standard and would pass away in the event of a general return to the gold standard. Consequently, the system ol gold payments to America can be operated only as long as a number of important i countries remain off the gold. Tlds system defers indefinitely Britain’s return to gold.

“There 1 can be no general return to gold as long as the American, war debt payments have to be made in the form Britain necessarily adopted i» December.”