GOLD FOR ENGLAND.

Sun (Christchurch), Volume I, Issue 159, 11 August 1914, Page 6

GOLD FOR ENGLAND.

To the Editor of THE SUN. Sir, — 11 Money is the sinews of war. J? England wants all the gold she ean get, and she wants it as soon as she can get it. We have about £5,500,000 of coin and bullion lying idle In the New" Zealand banks because, the Government has made the banknote a legal tender. All this gold really belongs to the Government and people of New Zealand, as the amount of the notes in circulation and the deposits payable on demand in gold far exceed that amount. Therefore the State ought to hold all the gold as part security against the liabilities of the banks. Of what use ia the gold in the banks? Could they protect it against privateers? And of what use would it be to the State if kept in the Treasury coffers and vaults? (Where are they?) Then, again, as there is about £1,700,000 of notes in circulation, there is probably as much gold coin' in the tills, cash-boxes, purses and pockets of the people. Most of this willsoon get into the banks, and will not get out again. So there is about six or seven millions of gold in New Zealand. Considering that the Scottish banks only keep a coin reserve of about thirty 'shillings per head of the population, and Ireland only about twenty: shillings, it is very strange that the New Zealand banks should have over five pounds a head! There is a law just passed to prevent anyone from exporting gold, under penalty of forfeiting it. It appears to me that a new Bank Act is wanted to compel the banks to pay all the gold they receive to the Government, Patriotu people talk about giving our last shil* ling and our last man to-defend the Empire! But why not • begin with five or six millions of -gold, that we do not want at present, and thereby we could reduce our public debt and the interest we have to pay? There would be danger in shipping the gold, but not more than in the same value of any . other cargo. It need not be sent in one ship or at One" time. There 'is more danger in sending men and horses. But very likely five or six millions of' gold, at would be of greater service to England than seven or eight thousand halftrained recruits. Moreover, -we require - enough men to defend this part of the Empire, and their first .duty is to; their homes. But' it would be disgraceful*to keep millions of goid locked up idle here when it is for the defence of the Empire.—l am, etc., D. MILES VEJtEALL. Swannanoa, August 8, 1914.