THE GOLD STANDARD.
Sir, —I doubt whether Mr. J. Hislop is quite correct in assuming that the British Government's action in taking power to borrow £150.000.000 with which to purchase gold or foreign gold securities heralds a speedy return to the gold standard. Rather, power is being reserved to "peg the exchange" at or about its present value, for at the moment a return to parity with the dollar is deprecated. Speculators, banking on a rise in sterling, are buying British securities and generally investing money in London. If the pound were to return to a gold basis now all the good resulting from going off the gold standard would be undone, ahd it is hoped that one dealer in exchange, having the resources of £150.000.000 and the ability to alter the bank rate as it thinks fit, will be able effectively to control tlio value of the pound. This policy was foreshadowed by the Economist in an article in the issue of March 12, entitled "The Pound and Policy," presumably written by Sir Walter Layton. Claude H. Weston.
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New Zealand Herald, Volume LXIX, Issue 21166, 26 April 1932, Page 12
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179THE GOLD STANDARD. New Zealand Herald, Volume LXIX, Issue 21166, 26 April 1932, Page 12
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