NOTES AND COMMENTS.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 10

NOTES AND COMMENTS.

f SUPERFLUOUS SOCIETIES, t "At irregular bub i'requent intervals » new associations aro formed with various t objectives. Their progenitors usually herald their birth in terms that have certain common characteristics; they are to be . strictly without party ties and open ■ to all men of good will, they are to be constructive and educative rather than i polemic, and to have as their sole aim the improvement of present conditions," the Times Trade Supplement remarked re- ; cently. " Then follows a period of active recruiting, possibly a dinner with many speeches, and then after an interval the publication of a report which bears a striking family resemblar.co to a score or more of others. Those whose business it is to keep in touch with these innumeraLlo bodies may be pardoned if they sometimes wonder whether any good purpose is served by this unending multiplication of associations, and whether their members could not have achieved more effective results by joining ono or other of tho existing bodies and devoting their time, money and ability to useful work under their aegis. . . . The complaint that some of th-3 older institutions arc moribund may in some cases bo true, but it would bo infinitely better if active men would devote thoir energies to their revivification rather than to starting fresh concerns with the result that none gets sufficient support to achieve any useful result. There is a great need for the reorganisation of business organisations." MONETARY GOLD STOCKS. Tho contention that tho fall in prices iias been caused by deficiency in the supply of monetary gold, mainly due to the "sterilisation" of largo amounts bv Franco and the Lnited States, and the consequent lack of "adequate amount of currency and credit," is contested in the monthly letter issued by the National City Bank ot New York. One of the most authoritative expositions of tho theory is the memorandum by Sir Henry Strakosch, published in July. The statistical evidence with he supported his arguments was confined to the period from 1925 to 1929, but tho American writer [ has made an elaborate analysis of gold J reserves in 1912 and 1930 and of banking statistics over tho last decade. Comparing tho United States ,stQck of gold in 1914 and 1929 with the amounts of loans, discounts and investments by banks, he shows that for every dollar of net addition to the country's gold stock there was 15.49 dollars of additional bank credit. He submits that tile use of gold at this ratio is not exactly "sterilisation." Statistics are presented of .gold reserves in 56 countries of the world, showing that stocks have nearly doubled since 1912, tho increase in 11 European countries having been 149 per cent., and in the two Americas, 136 per cent. Ai to the former, he observes that there has been no such increase in the, physical volume of trade of the leading European countries, or even in tho value of their (rade reckoned at tho higher money valuations of the post war years. One important factor in the large increase (179 per cent.) in tho United States has been the voluntary action of foreign banks, corporations and individuals in choosing New York as a place for tho employment of reserve funds.

REDISTRIBUTION OF GOLD. "I can see. how the world supply of gold ran be theoretically distributed among the gold basis nations on an equitable basis, but I do not see how this can be accomplished in a practical way," another American commentator remarks in a letter quoted by the Economist. "England, Germany, Japan and Italy undoubtedly are short of the amount of gold they should have, and the United States, France and Argentina have more than tliev require. To move the gold from the latter to the former would require the purchase of securities or goods by the latter from the former. Americans are not disposed at this time to take substantial additional amounts of foreign securities, for the reason that they can purchase equally desirable and profitable securities in their home markets, which they believe, over a period of years, offer better chances of enhancement than do the foreign securities. .. . The movement of gold from America, say, to Germany through purchase of goods could only come about if Germany shipped us more than we ship them, and that is a condition which, naturally, every American would bo loath to see happen, fso long as our trade balance is in our favour it is inevitable that the gold will move toward us instead of away from us. The only practical way which occurs to me oi getting the gold out of our hands and into the hands of Great Britain, Germany, Italy, etc., is through purchase bv us of European securities in largeamounts and over an extended period of time. This is a matter of education on the one hand and of satisfying our people on the other that the European securities are more attractive as to yield, safety of principal and ultimate hope of principal | gain than our own securities." | I FRENCH FOREIGN POLICY. A statement of flic principles on which the external policy of the French Government is based was made by M. Tardieu, the Prime Minister, in a speech at Alencon. lie said its foreign policy was not nn improvisation. It was not the I sport of personal or collective action, but was conceived, and carried out, by successive Governments with the permanent control and ratification of Parliament. Pho people of Franco were unanimous in their desire for peace,-and were strivng to organise it both politically and economically throughout the world, '.specially in Europe. Franco intended o continue the pursuit of this aim and iclieved still that the basis of this organ, sation was to be found in three factors—;ecurity, arbitration and disarmament. But to-day, as yesterday,. France delined to permit the order of these three erms to be inverted. Therefore, pending >rogress in guarantees by contract suplortcd by the necessary sanctions, she vould take such steps as her sovereignty uid protection demanded. "Within these imits no country during tho lust 10 ears had been so scrupulous as France u reducing land, sea and air armaments, so country had shown by neks its good rill for moral pacification and conciliation nore than Franco. They had tho impresion that their example had not been np- | ireciated, and they drew the necessary inerence. Without regret, and without ear, France would remain calm, strong nd watchful. The Government was lear in its mind that it bad neglected milling in this respect. It had been tho aithful defender of tho treaties which onstituted the foundations of pence, n tho cause of which it had lately, oneo gain, demonstrated its unity of action, t was tho view of the Government, also, s the interpreter of th'e country's will, hut. it would be imprudent ami altogether ; mistake to allow the asperities of do-! loslic controversy to hide from foreigners i he true face of France, confident in her j trengtk and her right. |