THE ECONOMIC SITUATION.

New Zealand Herald, Volume LXVIII, Issue 20924, 14 July 1931, Page 12

THE ECONOMIC SITUATION.

Sir, —Dr. Bolshaw is one of tho class of economists who maintain that the present-day depression is duo in some measure to the shortage of gold. With gold as a sole standard, this could easily be so, seeing that trade—and with it the necessity for gold coinage—increases at the average rate! of 2 per centum per annum, if statisticians are to be believed. I do not profess to a profound knowledge of the science of economics, but if tho theory enunciated by tho learned doctor is right, then every means possible of correcting the evil should be employed as soon as possible. This consideration induces me as a humble layman to formulate a remedy for what it may be worth. A large proportion of the gold production of the world is used unnecessarily in the manufacture of various articles, chiefly for ornament. I am writing this letter with a gold-fcrruled fountain pen, and pull out my gold watch and chain to learn the hour, whereas silver articles in lieu of those mentioned would just as effectively answer their respective purposes. Is it net possible for some outstanding institution, say, the League ot Nations, to submit a measure calling upon its members to pass an ordinance banning the use of gold in the manufacture of unnecessary articles, and further claiming the pre-emptive right to all virgin gold at par ? I have read that one-fourth only of the gold of the world is made into coinage. Here, then, is a possible remedy for the gold shortage,. Sacra Fames.