THE WOLD’S BIG WORRY

Taranaki Daily News, 1 September 1930, Page 7

THE WOLD’S BIG WORRY

LACK OF METALLIC MONEY

SILVER COUNTRIES SUFFER BUYING POWER RBDUGED STAGNATION FOR TRADE By Telegraph—Press Assn. —CopyrightRec 5.0 p.m. Vancouver, Aug. 30. ‘3 he world is interested in Australia's financial problems because what is handicapping Australia is also worrying the world,” says the Vancouver 'Sun in an editorial. “The left wing of the Australian Labour Party suggests repudiation of Australian debts, a live years’ moratorium and mobilisation of community credit. This is - the first official squawk that has been made ■by a responsible debtor nation, but it is a squawk that will be repeated round the Western world if there is not made quickly a realignment of the worlds credit and a reappraisal and rcapportionment of the world’s metallic money. “The silver and gold debt of Australia is serious. . Australia, however, with great producing areas, is proba'b y in a much better position to pay her debt than England. What is bankiuptin(T Australia is also bankrupting an ■paralysing all the big producing nations of the world—that is, lack of world buying power. What is causing lack of world buying power is the unsound distribution of world credit and the refusal of European bankers to recognise the necessity of restoring silver as one' to twelve in the world money token with o-dld. There is only ten billions of gold in the world, and through hoarding restrictions, embargoes and the mad scramble for gold the yellow metal is wetting into fewer and fewer hands. ° ‘•'China, India, South America and those countries that have only silver money have small world credit and have had the buying power of their silver money cut to 25 per cent, of the value, and are gradually being forced out of the market for world commodities. This reduction in the purchasing power of silver money countries is the reason why world trade is slackening off. That is why surpluses of _ goods are everywhere piling up and is the real reason why the world’s trade faces stagnation. “Must Australia go bankrupt, or will Australian surpluses again start moving to the world markets? How else Asia and other silver countties can England’s economic peril be averted? It has been sound business for the world to allow a small population _ like Australia to pile up a debt of six billions. Surely it is necessary and sound business for international bankers to restore silver and establish credits that will start world surpluses moving on towards millions of feet and backs that are brave and mouths that are hungiy among the billion people in Asia. “If the pound sterling is not to go the way of the French franc, the German mark and the Russian rouble, there is urgent need for international bankers and so-called world leaders to prove themselves worthy of their responsibilities.