The Manawatu Daily Times The United States Dollar

Manawatu Times, Volume LVI, Issue 7103, 11 March 1933, Page 6

The Manawatu Daily Times The United States Dollar

The gold standard of the United States dollar is expressed in the statutory prescription that it shall contain 23.22 grains of fine gold. .In practice, the currency comprises notes issued by the Treasury, the Federal Reserve system and various national banks. The present unit of value of the United States was established by the first Coinage Act, passed in 1792, was slightly changed by Acts in 1834 and 1837, and has remained unchanged since then. Prices have fluctuated widely in these years and severe depressions have occurred. Twice, in the seventies and in the nineties, the gold standard was vigorously attacked as having responsibility for depressions and declarations were earnestly made to the effect that the country would be hopelessly ruined unless relief was given by abandonment of the gold standard. It was not abandoned or altered and each time, in a few years, the country was enjoying a new era of unprecedented prosperity.

The Illusion of Inflation

Many proposals for inflation of the currency or devaluation of the dollar as a means of raising prices have been advanced in the United States. Discussing the depreciation theory, the monthly bulletin of the National City Bank of New York says it may be assumed that the policy would not stop short of forcing the country off the gold basis, for there is little reason to think that anything less would produce any effect upon prices or business. “Human nature responds to like conditions in very much the same way at different times and this has been true in experiences with paper money,” says the writer. “If the country should be forced off the gold basis and the policy was carried far enough depreciation doubtless would become manifest in rising prices, but not, there is reason to believe, in uniform effects or orderly, enduring prosperity. The kind of rising prices that results from a fluctuating and depreciating currency does not make for general and sound prosperity. It affords no sure basis for business. It promotes speculation and eventually a stage of depreciation is reached which prompts the people to change their money for anything rather than keep it. Inflation does not create uniform or calculable results. It is a speculative, reckless, irresponsible policy, a policy of desperation.” The writer quotes the following from the Kansas City Star:—“Primarily inflation is like a balky and unruly horse. It simply refuses to be guided by the rider. At first it balks. The rider applies whip and spur and still it will not budge. Then of a sudden it bolts and there is no controlling it. "When it finally stops, it throws its rider and he is left flat on the ground.’ 1

Notice lias been received that tho Tourist Department has been given control of the Waiotapu thermal region, which hitherto has been under the jurisdiction of the Lauds Department (states a Kotorua correspondent). Mr. L. J. Bayfield, district manager of the Tourist Department, has strongly stressod tho advantages of bringing this important tourist attraction under unified control. Although one of the most remarkable thermal areas in the district, Waiotapu has boon sadly neglected for many years. It is only 20 miles from Kotorua, on tho Taupo road, and a visit is well repaid. The Champagne Pool and the terraces alone arc worth inspection. Mr. Bayfield is endeavouring to obtain a vote for its development

A sido of tho Salvation Army activities of which littlo is heard is the inquiry department. At the anniversary services of the South Wellington Corps last Saturday, Commissioner Cunningham reminded members of the uhoful service done through tho inquiry branch. Ho quoted a recent case off an inquiry from an old couple in Norway about a son, from whom they had not heard for 30 years. Tnc only clue given was that tho son was a seafarer and was engaged in a ship somewhere in New Zeland. Tho inquiry was put through the 400 centres of the Army in New Zealand, with the result that the Norwegian wanderer was located in a ship touching at Wellington, and was again put in communiy.Uio.fi with his parents*