The Hawera Star. FRIDAY, SEPTEMBER 19, 1924. AMERICA’S HOARDING OF GOLD.

Hawera Star, Volume XLVIII, 19 September 1924, Page 4

The Hawera Star.

FRIDAY, SEPTEMBER 19, 1924. AMERICA’S HOARDING OF GOLD.

Uwllvttivil ererj ev«»uiug by 5 o’clock Id Hawer* Manaia. Normanby Okaiawa, Eltham. Fateh, Waverley, Mokoia, Wbakamara, Ouangai, Meretaero, Fraaer Road. and Otakeuo Manutabi. Alton, llurleyville, Mangatoki, Kaponga, Awatuna, Opunake,

One has read at times of people dying in poverty and squalor, while hidden away have been found large sums of money, which, had it been used, would have provided the owners with the comforts and necessaries required. The possession of money is not the all important thing, blit the use to which it is put. When the war was in progress and the Allies were desperately in need of munitions and foodstuffs, great contracts were placed in the United States, and for months there flowed eastward enormous quantities of goods made in America; in addition large loans were raised in the United States. When the war ended the United States had changed from a debtor to a creditor nation, and her people looked forward to the future with blight hopes, expecting that New York would become the world’s financial centre. Great sums of money have poured into the United States and she bolds at the present time more than half the gold of the world, the vaults of her banks being filled. It is easy to see the effect of hoarding gold. Currency is shortened and the means of exchange are restricted. Payments to the United States have impoverished the debtors, and they are unable to buy extensively from America. Moreover, America, has by her tariff walls and shipping laws, made it still more difficult for foreign countries to trade witli her, and, though holding such strong supplies of gold, unemployment

in the United States lias caused muchi anxiety. A great number of ships were! built by America ai few years ago, and it was stated that she intended to- capture the world’s sea trade, for which purpose folie Jones Navigation Act was brought forward. A recent cable message stated that a huge bonfire had been made of a number of the wooden ships, which had lain idle for months. New York has not superseded London as the centre of the world’s money market, and we do not think that it ever will. The British popitioii has been built up through generations,, and the integrity and honourable name gained by decades of consistent honest dealing cannot be taken away by the hoarding of gold in America, Britain would probabjy not have made the mistake which has been made in America, for it has for long been British policy to- lend again moneys repaid by the debtors, even in cases where the security has not been very attractive. Herein, lies the main difference between the financial methods of the two Countries. America requires the best security before lending; Britain takes risks, and is willing to trust her debtors to a far greater extent than America is. What America intends to do with her great hoard of gold remains to be seen, .but she must realise that the locking up of the means of exchange is not conducive to an expansion of trade, while the money if employed in Europe would enable tlie n ations to overcome many of the. very serious problems, which they are facing at the present time.. It is to he hoped that the lime is not far. distant when America willunlock her vaults, and lend to the nations some of the huge store of gold, which has been lymg idle and which can be of little practical value until it is employed again as the means of exchange.