NOTES AND COMMENTS

New Zealand Herald, Volume LXX, Issue 21453, 29 March 1933, Page 8

NOTES AND COMMENTS

MASTERY OF MONEY " There are some people who say that civilisation is going to crash," said the Bishop of Manchester in a recent speech. " I cannot believe it. In the first' place, it means not only the failure of the human character, but the bankruptcy of human intelligence. It means also the abdication of Providence. Some of our economic theories are breaking down. Fifty years ago we were told by the economists that the possession of gold meant stability and prosperity for a country. To-day we have the spectacle of a great nation possessing much more gold than any other country in the world and yet having a very much larger number of unemployed, .proportionately, than any other country. What is the result of this breaking down of ancient theories ? 1 think it is that the world is beginning to S ce~and when it does see it will act upon its vision—that money, gold, is nothing apart from that for which it stands, the opportunity and privilege of spending, and the opportunity and privilege of earning; in other words, that money as a rate of exchange has a moral value."

SCIENCE AND THEOLOGY "The scientist recognises clearly that most of his theories and beliefs are working hypotheses, not ultimate truth; he looks forward eagerly to their being superseded and transcended," writes Mr. George Home in the Modern Churchman, •'the theologian, though giving verbal allegiance to this spirit, finds it difficult to be actively loyal to it. He is extremely slow to admit that a belief—an article in his creed —has been transcended, or in I some cases even contradicted. The scientist proclaims the truth as he sees it. The theologian proclaim# the truth as some venerable ancestor saw it. The scientist has faith. He knows that the admission of error, with the consequent destruction of a cherished theory, cannot impair the authority of science; on the contrary, such admission of error must ultimately strengthen and enhance its influence. The error only indicates the fallibility of the human mind. For both scientists and theologians the progress into all truth is illustrated by the words inscribed on the tomb of John Heniy Newman, 'ex umbris et imaginibus in lucem' ('Through error and illusion we advance into the light'). The theologian seems to lack this conviction." WORLD GOLD OUTPUT The annual bullion circular of Samuel Montagu and Company contains a statement showing the gold holdings of the various nations of the world at, or near to, the end of 1932. The grand total arrived at is £2,442,825,475 in gold pounds at 77s 10jd a standard ounce. Tho United States holding at the end of the year is shown at £832,200,000, and the 'French holding at £668,356,000, or together £1,500,556,000. This represents nearly two-thirds of the grand total. The British Empire holding is shown at £205,731,475, and the next largest holding i 3 that of Switzerland, £97,966,000. In connection with the grand, total it should be noted some countries include amounts held abroad in their holdings. The circular includes statistics indicating the position occupied by the British Empire with regard tu thu production of gold. It is estimated that world production of gold last year amounted to the record" total of £101,500,030 in gold pounds at 84s 11 Jd a fine ounce, against £94,300,000 in 1931. The British Empire's contribution to the total rose from £66,000.000 to £71,600.000, its proportion of tho total being little changed at 70.5 per cent. South Africa's proportion of the world total was slightly lower at 48.4 per cent, in spite of the Rand's record production.

INTERNATIONAL ECONOMICS "The discussion on the effects of the depreciation of currencies upon gold prices is not without its lessons," says Professor I). It. Copland, in concluding an article on the subject in the Sydney Morning Herald. "Measures of any kind aiming at merely under-cutting competitors must, in the absence of other influences, have some adverse effect upon the general price level. Similarly, restrictions on imports and exchange regulations by their effects upon tho volume of trade, will necessarily cause some reduction in the volume of output and possibly also in international price levels. In othor words, if each country is forced to take measures of selfpreservation regardless of the effects upon other countries, tho forces of deflation will continue to operate. What is required is an international agreement among the leading monetary centres to take measures to expand credit. Ultimately, the world will get out of tho crisis by some expansion of credit; but the longer action is delayed the more severe will the crisis become. This follows inevitably from tho efforts of each country to protect its own position. Jt, is scarcely an exaggeration to characterise this development as a survival of economic barbarism quite out of keeping with tho progress made in science and methods of production. The fundamental cause of continued deflation in the gold standard countries is the unwillingness or inability of the leading financial nations to come to some agreement. upon an international economic policy that will, counteract the depressing forces of economic nationalism."