CONFIDENCE NEEDED.
To the Editor.
Sir _R ecen t letters in your columns raise the question of the gold standard and its relation to our problems of to-day. It does appear that the greatest real need is a restoration of confidence and that this would have a much greater benefit than any increase in, or transfer of, gold supplies. The countries at present suffering most from depression and unemployment are America and Germany, one supposedly suffering from an over-supply of the metal and the other from the lack of it.
During comparatively recent times the depression most comparable with the present was that of the early nineties during which period the Bank of England rate remained at 2 per cent, for two and a-half years and although the world stocks of gold doubled in the course of five years, prices of commodities fell consistently during that time. For us the chief necessity is undoubtedly to tackle our own problems and get production costs on to a basis that will result in a wider employment of labour. This can only be done by reducing costs of production and distribution whether in primary or secondary industry. Much has been made of high interest rates and surely a reduction of these would assist materially. Mr Forbes has been rightly credited with making a courageous move by reducing wages. The Government as the largest employer of labour was looked to for a lead.
As the Government is also the largest money-lender a sign of leadership in this direction is also looked for. So far in vain. In fact the opposite is the case. Continued borrowing at high rates by the Government is handicapping and penalizing every working man who desires to erect a home, very farmer and manufacturer alike.
Our country possesses workers superior to any in productive capacity and unequalled natural resources and if we get down to doing the job in hand with all our energy this fair land will emerge from this period of readjustment sooner than most.—l am, etc.,
PLOUGHBOY.
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Bibliographic details
Southland Times, Issue 21331, 27 February 1931, Page 5
Word Count
340CONFIDENCE NEEDED. Southland Times, Issue 21331, 27 February 1931, Page 5
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