GOLD PAYMENTS

Hokitika Guardian, 6 January 1933, Page 3

GOLD PAYMENTS

| ■ ■*— J LONDON BANK’S REVIEW. | • LONDON, January 4. ! The (Midland Bank Monthly Rev.ew | .advocates <a close season or “Hoover Moratorium” fo r gold movements. It says • “Since September, 1931, four European central banks showed a total gain of gold exceeding three hundred million pounds, while the United States, Japan and Germany lost two hundred and twenty milVons. The world is steadily moving towards a point when .shipowners, especially th.> Trans-Atlantic routes, wUI 'be almost as much occupied carry’ng gobback war do and forwards, -a.s goods from producer to consumer. “Even where gold 1.-- still the etandnrd Jt has ceased to serve >any usefu.' monetary pi.rpose.. Movements of such magnitude ns mentioned cannot fail Lo have disturbing, effects on public psychology in gold standard countries, ami place obstacles, in the way of all attempts at organised recovery, therefore a Hoover moratorium would undoubtedly contribute greatly to the successful laving of foundations for a • revival .throughout th. e 'world. |

“Britain could make debt payments to the United State.? m geld almost indeffuitely, without any suletantial effect on monetary . conditions here, largely because there as so little demand for gold. while the available supplv Las greatly. increased. These conditions ar P due. to so m-any countries leaving the gold standard, and would pass away in tie event of a general return to gold, consequently the ’ system of gold payment?, to Ameiica can be operated only as ’ong as a number of important countiue.? remain off gold. This system defers indefinitely Britain',? return to gold. There can be no .general return to go] I as log ae the American war debt payments have to b e made in the form Britain necessarily adopted in December.” t - " 1