MONEY PROBLEM

Hawke's Bay Tribune, Volume XXII, Issue 155, 16 June 1932, Page 7

MONEY PROBLEM

THE WORLD CONFERENCE MR CHURCHILLS SPEECH. TRIBUTE IO DOMINION EFFORTS. (British Official Wireless.) (Received 16, 12.30 p.m.) Rugby, June 15. lu a speech at a City luncheon today, Mr W inston Churchill welcomed Government support tor the proposal to summon a world conference on the money problem in order to arrest what he desenbed as "remorseless inflation.” lhe tasks before the world conierence were to discover the best practical method bj which the devaluation of commodities could be substantially arrested and to invest the process with that authority which would command and hold the confidence of the most powerful states and al'so of the investing classes in every land. INFLUENCE OF GOLD. Referring to the enhancement tn the price of gold, he said that everything else had also laden in like degree. A remarkable feature had been the way in which lhe prices of all these thousands of commodities had kept a steady relation with one another, lhey marched forward together in orderly array. One commodity alone,—gold — had broken from the ranks, and since it was at present our supreme measure, all the rest had been east down. Through the rise in the price of gold, debtors everywhere required to pay 70 per cent more than a few years ago, declared Mr Churchill “If this monstrous process continues,” he declared, "it will shatter civilisation as it has already shattered prosperity. War

debts caused the disease, but cancellation of reparations will not cure it. W e must check the progressive devaluation of human effort m terms of gold. Therefore 1 am glad that the Government favours a world monetary conference.

‘‘Those fearing it ought to remember the stern fight the Australians and New Zealanders are making to preserve their solvency and honour. Governments may enforce sacrifices on all classes, but a fresh rise in the value of gold would wipe out all they have done. The only solution is an international agreement to revaluate commodities so as to provide a stable measure for the exchange of services and goods.”