A SIMPLE REMEDY,

Southland Times, Issue 21771, 28 July 1932, Page 9

A SIMPLE REMEDY,

To the Editor. Sir.—lt is said, “History will repeat itself.” After the Napoleonic Wars there was a trade depression similar to the present one. I understand the discovery of extensive gold fields lifted the world out of the depression which had afflicted it for a generation one hundred years ago. It is safe to say that in this respect history will not repeat itself. It is thought by many that the cancellation of International War Debts will remedy the present position but these debts are only a mite compared to the overwhelming debts of all countries to private capitalists. The only way to meet the situation apart from all round repudiation is by a continued increased supply of new gold. I beg to submit the following scheme: An international agreement whereby present weight of gold representing a sovereign to be reduced by one half. Necessarily, half of all gold stocks would have to be given up and dumped. A certain number of adjustments would be necessary such as concessions to countries without any gold supplies. In countries where no gold mining companies are in existence the state could claim a certain proportion of share value. Would not this plan be more effective than any mooted plans of managed currency or credit schemes?—l am etc., “SIMPLETON.”