THE GOLD STANDARD.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 14

THE GOLD STANDARD.

Sir, —The announcement that t' l9 British Government is seeking power to borrow £150,000,000 to purchase gold or foreign gold securities as outlined in th# recent Budget, will come as a surprise to those who imagined that as far.as Grc»t Britain was concerned, the gold standard waa abandoned for ever. In September last Great Britain merely suspended the gold standard temporarily and the depreciation of her currency only proves its true relationship to gold. At that tim» when all nations of the world becama nervous of their London credits, the suspension of the gold standard was tantamount to saying to them, if they could find a "better *ole" they could go to it, but, although they have fried during ths past six months, they have failed to find one, and have returned to the did "''o p and security. London's wonderful success in re-establishing her prestige as tho world's financial centre, and she is s ' that, is a great demonstration to tljo world of what a good name and credit means to any country. I believe that tho policy as outlined in the British Budget means a speedy return to the gold standard. Having cleared her external short-term Joans to America and France, and with her new tariff policy, which will have the effect of establishing 4 more favourable trade basis between herself and other countries,together wltn this suggested £150.000.000 of gold or gold securities, combined with £125.000,000 0 Rank of England gold reserve, Grea Britain is placed in the position of being able to Return to the gold standard en her own terms. Britain's prestige in t» B world of finance, along with her insurance, shipping and banking interests. « e * mands a speedy stabilisation of her exchange, and this can onlv be « on ® through a return, to the intrrnationa basis—gold. This may be questioned, 0 we have to face the position as we j" 1 it to-day, and not what we may like » be in the distant future. England sP 0 "- in this respect will, of course, affect au.* tralian and New Zealand currencies, they are linked with sterling, and it'y 1 assist very materially in the ment of an Imperial currency which take a prominent place in the discuss! , at Ottawa. Here again we feel the n in New. Zealand of a central reserve a who could advise the Government an country of the proper course to PJ* r ' and the need of such an institution ' e * . New Zealand without point of c° D with any great Imperial- system. J. Histor*