FRANCE BLAMED

Taranaki Daily News, 20 November 1930, Page 9

FRANCE BLAMED

CAUSES OF DEPRESSION HOARDING OF GOLD RESERVE BUYING POWER AFFECTED HOPES FOR AN AGREEMENT of LORD BARNBY By Telegraph.—Press Association. Christchurch, Last Night. The hoarding of gold reserves by France and to a less extent by the United States is in the opinion of Lord Barnby, a member of the advisory council to the Economic Committee of the League of Nations, the chief reason for the present world-wide depression. He hopes for a recovery by an agreement through the Bank of International Settlements but insists that France stands in the way. “My experience on the advisory council to the League has definitely been disappointing and it seems that the earlier hopes of international agreement on economic problems are fading,” he said to a reporter to-day. “Our greatest failure is due to France’s attitude on the question of gold reserves. France’s attitude of accumulating gold is doing more than anything bo contribute to the present decline in world prices. “No doubt the general perplexity of falling prices is one important part -f the problem,’’ he continued. Commodity prices are declining in terms of gold, which is only another way of saying that there are insufficient .gold reserves. Until the production of gold is increased by new discovery, which is not likely, or by better distribution of available supplies, there is not much likelihood of improvement in world prices or of lifting of the depression. “The attitude of France is a serious handicap. Figures' show that the absorption of gold by France and the United States in the past two years has not only equalled normal new reserves but has depleted existing reserves. This withdrawal of gold is decreasing purchasing pow-er and bringing about a decline in prices. ‘‘There is hope for an agreement through the Bank of International Settlements which would bring together the heads of different banks of- the world and enable them to work out a policy to make better use of the reserves and bring about a return of better world prices. I sincerely hope that jthis may occur; but France is the difficulty.”