THE WORLD’S CURRENCY

Otago Witness, Issue 4048, 13 October 1931, Page 28

THE WORLD’S CURRENCY

GOLD ALONE INSUFFICIENT

SILVER AS COMPANION. TORONTO, October 8. “ Gold alone as a basis for domestic currency and international exchange settlement is insufficient,'’ said the Minister of Trade and Commerce (Mr H. H. Stevens) in addressing the Empire Club to-day. He was convinced that fiduciary currency, while highly convenient for international trade iff times of peace and stability, was subject to too extreme fluctuations in periods of social and economic disturbance, consequently it could not be considered a reliable measure of values. Silver was the most vital element in trade structure, and still played an important part in the activities of a large portion of the world’s population. “ Restore silver to its ancient position, as companion with gold as the basis oi real and useable money, open once again the mints of the world to silver, and you will restore and stabilise the economic life of two-thirds of the human race and open to the nations of the Western civilisation those vast markets which by wanton action since 1873 have been gradually and surely closing to your trade,” he said. FIDUCIARY NOTE ISSUE. DISCUSSION AT CANBERRA. CANBERRA, October 9. The Federal Labour caucus refrained from expressing an opinion on the advisability of reintroducing immediately proposals for a fiduciary note issue and changes in control of banking. Mr Hollo way urged that such a course be taken, but Mr Sculliu expressed the opinion tha' it would be most unwise of the party to pass such a resolution. The meeting ended without a vote being taken. It is not expected that the motion will be brought before the party again. Mr Sculliu told the caucus that he believed that the British pound would shortly settle at 17s or ISs. and the possibility of a drop in the exchange to 2D per cent, would mean a reduction in the Government's commitments by £3,000,000 a year.