THE GOLD POSITION

New Zealand Herald, Volume LXVIII, Issue 20990, 29 September 1931, Page 9

THE GOLD POSITION

lEISII FREE STATE VIEW.

STERLING AND THE CURRENCY SEPARATION NOT FAVOURED. By Telegraph—Press Association—Copyright. (Received September '2B. 0.5 p.m.) Times Cable.. LONDON, Sept. 27. The Dublin correspondent of the Times states that Mr. W. T. Cosgrave, President of the Dail, speaking at Limerick, made the first authoritative statement of the Irish Free State's views regarding the pound sterling and the currency. The advocates ot complete independence have been urging the Free State to break away from sterling and convert the £6,000,000 which the Currency Commission holds in London into dollar securities. Mr. Cosgrave disposed of this suggestion by declaring that the separation of the currency from sterling would rob the Free State of its advantageous position in competing with foreigners, especially in the British markets. GRATE TIMES AHEAD. CAREFUL FINANCE NEEDED. SMUTS WARNS BRITAIN. LONDON. Sept, 'l~. General. .T, C. Smuts, when acknowledging the conferment on him of the freedom of York, said the financial situation must be retrieved. It would be disastrous for humanity if Britain's word lost its authority in the council of the nations. The British, owing to their honesty and integrity, had saddled themselves with burdens of which their competitors, by repudiating their post-war liabilities, had relieved themselves. The breaking point had to come. Britain would not fail in her duty, and must marshal the Empire's vast resources if the pound sterling were not to follow the mark. The Government must operate carefully devised schemes and not allow the move against deflation to go too far. Britain had tried to practise sound finance in a world which did not practise it. " You are in for a struggle as grave as any in your existence," he said, " but | [ would bet my bottom dollar that the | nation will pull through." | GOLD STANDARD LEFT. ; ! NORWAY AND SWEDEN. SUSPENSION OF OPERATION. ! j (Received September 2S, 7. Ij p.m.) LONDON. Sept. 23. | Norway and Sweden have suspended the i operation of the gold standard. | The City editor of the Daily Telegraph j says now that Norway and Sweden are | off the gold standard other Continental I countries may follow suit. Sweden especi- ! ally has feared the hoss of gold to France. I j Sweden's foreign trade has grown conj siderably in recent years and in 1929 had J a large favourable trade balance. She has J a large amount of capital invested abroad, j and on the other hand a large amount of I her securities are held abroad. The world j depression affected Sweden very severely, I and the margin between exports and imi ports was much narrowed in 1930. and there was a surplus ot imports. Norway j also has felt the depression, and her large | timber trade was severely affected, in part j owing to the Russian exports. The ship- | ping trade had a bad vear. ! AUSTRALIA BENEFITS. INTEREST OBLIGATIONS. I | LARCE ESTIMATED RELIEF. (Received September '2B, 8.-13 p.m.) MELBOURNE. Sept. 28. | The action of England in abandoning tile gold standard will relieve the real ! burden of Australia's interest obligations, according to Professor L. F. G;blin, actingi Commonwealth Statistician. Professor Giblin estimates that the relief will be 25 per cent., irrespective of what happens to the exchange rate. STEELING IN RUSSIA. VALUATION BY SOVIET. ROUBLE MERELY A SYMBOL. LONDON, Sept. 27. the Moscow correspondent of the Sunday Times says the Soviet refuses more than seven roubles 47 kopecks for the pound sterling. This roughly equals the price of 10 ounces of butter in the new Slate trading shops. Tile Soviet continues to " peg" the rouble, regardless of the soaring prices. The rouble, is merely a book keeping symbol and is not related to internal values.