THE VALUE OF GOLD.

New Zealand Herald, Volume LXVII, Issue 20626, 26 July 1930, Page 13

THE VALUE OF GOLD.

A WORLD-WIDE PROBLEM.

INQUIRY BY THE LEAGUE

(Received July 25. 7.5 p.m.) British Wireless. RUGBY, July 21

In the House of Commons the Chancellor of the Exchequer, Mr. Philip Snowden, was asked what steps he proposed to take to arrive at an international agreement for rationing and economising tho uso of gold, in order to stabilise its value in relation to commodity prices.

Mr. Snowden replied that the causes of the fluctuation in the value of gold were tinder consideration by a delegation from the Financial Committee of tlm League of Nations, which was expected to report to the League. This report would also, he had no doubt, be considered by the Committee on Finance and Industry which had been set up by the Government.

Mr. Snowden was also asked if he would make representations at the forthcoming Imperial Conference, with a view to rationalising and economising the gold supply. Mr. Snowden said he did not think it fell within the province of the Imperial Conference. It was wholly an international question.

Gold was quoted on Thursday at 85s Id per 07,. The chairman of the Midland P.ank, Limited, Mr. Reginald McKcnna, at the annual meeting in London in January referred to " the shortage in the world supply of gold," of which there would be a veritable famine were it not for tho economy practised by Ihe various countries. The non-meiallic currency in England in 1930 was about ten time's that in 1844—when England was the only country with a real gold standard but the stork of gold, £150,000,000. was only about 21, times that of 1844, between eCO.OCO.OOO and £60,000,000 Another economy was that the. gold stock was now concentrated in one central institution, and gold did not circulate. Isul. in a world sense gold was still the only real money.

The world product ion of gold last year was estimated bv Messrs. Samuel Mon tagu and Company at £83,500.000, of which the British Empire produced £59.600.000. The Transvaal producer! 53 per rent, of the whole supply. The firm expects (he present production to be maintained for about five years, and then a decline, with gathering force.