Grey River Argus WEDNESDAY, May 29, 1935. SELLING GOLD LIKE CHEESE.

Grey River Argus, 29 May 1935, Page 4

Grey River Argus WEDNESDAY, May 29, 1935. SELLING GOLD LIKE CHEESE.

It is unnecessary ti. accept every part of the Marxian analy sis to recognise the truth of tha' part of it which foretold a grow ing fight for markets. The coni' petition under capitalism is bal ing up trade not only witliiM par tieular political boundaries

where the one eliminates the other competitor; but in the wider sphere of international trade exporting is becoming only the more difficult as it is being influenced by competition. The present tendencies are towards a general export hold-up in the modern world. To-day the coun-

tries either threatening or threatened by war are till based upoa the economics of the exportation. In America, where the t'ourts have apparently upended the structure built to protect the worker, competition underlies the action of the capitalists who resist or oppose the (’odes. Their outlook is to the export no less than the internal trade, ami costs

are the consideration which will make the quashing of the N.I?.A. welcome to them. But it is the same thing in France, where a financial crisis is giving rise to a dictatorship over currency and economy. Belgium lately abandoned the gold standard because it was her only expedient in the

face of intensified competition in the world market. France is now attempting to avert doing the

same thing. Rather a good line on her chances, however, is given in characteristic fashion by the thrifty Parisians who are reported to be buying gold in ingots worth aver £2OOO apiece from rhe Bank of France. They, at least, reckon gold a more stable asset than the actual money current ’ll the country, so that it will be no surprise if France presently follows the example of Britain. America, Japan, Belgium and every other country -that has abandoned the gold standard. Holland and Switzerland would have to follow her. and that would be the end of the gold bloc. When Belgium left gold. Britain elapped on a steel tariff’ to counteract al once the advantage in export which devaluation gave to Belgium. There is, in face of the prospective ending of the “gold bloc,” the relic of the last gold standard, a growing propaganda for the establishment of a gold standard on the basis of the lowered value of currency. .No doubt, the idea is to have this restore tion of a gold standard after the lew countries remaining on gold 1 leave it. The object, in one case after' another, has been to utilise lhe abandonment of the gold standard heretofore as a means of competing on the world market more effectively. Yet many capitalists perceive this game is nearly played out. The receivers of interest in France are yet able to delay devaluation, but the exercise by the Government of dictatorial power over currency may be a preliminary to devaluation, despite the retention of gold to the value of a thousand millions sterling by the Bank of France. The propagandists for a ref urn to the old economic order, with its large scale international lending. lowering of tariffs, and a gold currency standard seek at the same tim e to obtain for indus trial capitalists a free hand, and to end Governmental interference with them. In America the Constitution has been interpreted to forbid the Federal imposition of regulation on industrialists to ensure better hours and condi-

tions of labour. That is calcul-l at ed to intensify competition abroad as well as at home. Western bankers ar e just now hoping ('liina may adopt a currency change that will link her with sterling, and that would thus facilitate larger exports to that conn, fry. -Japan, however, might prove a factor there, and it remains to be seen what will be the outcome. Underlying causes of instability in finance and trade may be several. but competition under a predatory economic system is the main one. Even Dominions at this moment are at variance in their competition for quotas of Britain’s meat trade, and the latest news of Australia’s dairy export trade indicates New Zealand is destined to find that country a stronger rival than ever before. One lesson of lhe many to be drawn is that the country whose economic system is based on export trading is to-day in a less secure position than the one which has not sacrificed its home economy in the battle on the world market. No country may remain a law unto itself, but the ethics of modeni capitalism with its production for profit, rather than for use, are increasingly coining into question, especially among th-. majority whose interest in the profit is only indirect. It was said that in 1914 half the fight was for markets. At any1 that is wlm* it is for to-day.