ECONOMIC POSITION

Northern Advocate, 13 June 1931, Page 9

ECONOMIC POSITION

INTERESTING ADDRESS INFLATION OF THE PAST. RETRIBUTION AT HAND. (Special to “ Northern Advocate.’’) DUNEDIN, This Day. In his address .at the annual meeting of shareholders of the Perpetual Trustee Estates and Agency Company of New Zealand yesterday, tho chairman, Mr W. E. Reynolds, reviewed the economic position in the Dominion.

“Since 1024,” said Mr Reynolds, “and for some years previously, but not including the War years, New Zealand has been borrowing excessively at interest rates consistent with inflated currency, and is now being called upon to meet these interest payments under a deflated currency. Wo must suffer accordingly, sending forward double the quantity of produce we reckoned upon sending when w T e borrowed the money. We can only come into our own again when importations come down to values more in keeping with those our products are flow realising, and this will take some time.

“One important inference very clearly emphasised from the position made manifest today is that paper money can never legitimately be resorted to as a remedy, excepting in so far as it is supported" by gold, for the simple reason that it contravenes economic law. Gold costs, in labour and outgoing, about £4 an ounce to win, and is for convenience standardised at this price, whereas paper money costs practically nothing.

“Further, we may notice that, during the War and thereafter the pro-: duction of gold declined, principally because of the inflated cost both, of labour and material required in connection with winning it, and this decline is, I think, much to be deplored. We should always remember that gold is the only product in the world upon which a definite price is fixed. Therefore, as its standard value never alters, products on the average move up land down in accordance with tho quantity of gold available, and when prices of products are high the winning of gold is not always profitable, and, because the reverse applies, already we see signs of a revival of goldmining in the Dominion. Personally, I "would like to see the Government. doing much more than has yetbeen done in this direction.

“Beyond advocating this and also a cessation of further borrowing from resources outside the Dominion. I have no suggestion to make. It is for us, by expressions of hope and confidence, to contribute our share to the fooling of security, a feeling which will hasten the awaited improvement in trade. With this thought before us, we should move into the future full of hope and endeavour.”

GOLF

WOMEN’S PINAL

MISS WILSON WINS.

(Received 9 a.m.) LONDON, Juno 11

In the final of the British women’s open golf championship at Portmarnock, Miss Enid Wilson defeated Miss Wanda Morgan.

Miss Morgan, who was competing for the second time, was frustrated in her attempt to win the championship when she was bunkered at a critical hole.

Miss Wilson beat Miss Morgan, 7 up and (5 to play. In the semi-final Miss Morgan beat Miss Gourlay, who for the twelfth time has been frustrated in an attempt to win the championship.