THE SUPPLY OF GOLD

Otago Daily Times, Issue 21773, 12 October 1932, Page 8

THE SUPPLY OF GOLD

TO THE EDITOR. ’

Sir, —Now that the letters on monetary matters in your paper are becoming a bit threadbare, may I put forward a suggestion for your economists to think about? The world value of gold held by banks, lending institutions, etc.> is about £2,000,000,000. Let that be commandeered by the Government where held. The price of standard gold by international agreement to be then raised by one-quarter (its exchange value now exceeds that); the gold then reminted, with the added addition of one-quarter of alloy; and the banks, etc., to receive back their original holding in weight and value. The result would be that the Governments of the world would be the richer by about £500,000,000, and no one would be the poorer for the deal. There would be no deflation of values as with paper, and no inflation of gold, as its productive cost generally exceeds its value. New Zealand would be the gainer by about £2,000,000, and I think if but a quarter of that amount was allotted to the furtherance of tlie mining industry the funds would be available for such projects as the damming of the Clutha, etc. Perhaps this suggestion is too simple for your economists, but it. would go a long way towards relieving The present unemployment and depression.—l am, etc., Aurum.