NEWS WELCOMED

Taranaki Daily News, 22 September 1931, Page 9

NEWS WELCOMED

‘BEGINNING OF RECOVERY’ "QUICKEST WAY SELECTED” GOVERNMENT HAND FORCED CONFERENCE SUGGESTED ACTION AMONG NATIONS By Telegraph—Press Assn.— Copyright. Rec. 7.50 pan. London, Sept. 21. Like many other startling events of recent months, Britain’s retreat from the gold standard came during the week-end. People who had been enjoying a rare glorious outdoor Sunday awoke to-day to find the city placarded with tidings which received unanimous approval, even the Beaverbrook and Rothermere Press regarding the pronouncement as a godsend. All the newspapers emphasise that there is no need for alarm. Indeed, the insistence on the “business as usual” motto was reminiscent of the early days of the war. Mr. Philip Snowden will to-night broadcast an explanation of the position. It is stated that Cabinet will meet daily this week. The effects of the decision abroad include a renewal in the speculation about war debts with strong feeling at Geneva that President Hoover should consider extending the moratorium for a further three years. Herr Schacht told the Daily Express correspondent at Berlin that the international revision of debts would be the inevitable outcome of the British crisis. Herr Schacht agrees with other German authorities that the collapse of the British gold standard involves the most serious danger to all Europe. NEXT MOVE FORECAST. . The Daily Herald says the Government has taken a wise step which should have been taken before. It will compel French and American bankers and the Governments to reconsider the whole problem of the gold standard. The next move obviously is an international conference to work out this and kindred problems. An unpleasant fact is that the naval trouble in the Atlantic Fleet has been mischievously magnified abroad and among some sensational papers in England, and has thus engendered loss of faith in Britain. Prompt corrective appreciations of the position were published next day, but the harm had been done. The avalanche had to be checked and the suspension of gold exports was the quickest way to do it. Sub-section three of to-morrow’s Act will give the Government power to take during the next six months any steps requisite to meet new difficulties, but will not be availed of if transactions continue to bo legitimate. The Daily Express in an article headed “Good News” says: “Nothing more heartening has happened in years. We are rid of the gold standard and now all can proceed with plans for a self-supporting Empire. This is the beginning of the real recovery.” The Daily Telegraph says: “It is certain Britain will return to the gold standard when the world is more normal. It is a moral certainty that Britain will not go off the gold standard alone. However, the consequences can be faced with fortitude and composure.” The Daily Mail says: “The temporary suspension of tho gold standard, which may be a complete suspension, will be a blessing to British industry.” The Financial News says: “The decision is unhappy but was a necessity.” MR. LLOYD GEORGE’S MESSAGE. Mr. Lloyd George in a message says: “If the nation remains steady and united we shall pull through all right. Our resources are quite adequate to meet the situation, but a faction fight among ourselves at this juncture would be unpatriotic lunacy. The mere threat has precipitated this second graver crisis. British commonsense if given the chance will find a way out.” The Times in a leader says: “The gold standard decision is regrettable but unavoidable. It has long been evident that events, especially abroad, pointed to the temporary suspension of gold payments. The economic blizzard which has been blowing throughout the world for more than two years has reached an intensity which has already driven most countries off the gold standard. The strain is especially felt by Britain, which is more deeply concerned in international trade and finance. “The fall in the price level has not only reduced the purchasing power of foreigners but has also made it impossible for them to maintain their debt payments to Britain. Every Continental belligerent has scaled down its obligations by devaluating its currency. Britain alone returned to the pre-war gold parity. If we had not indulged in reckless socialistic' practices, if France and America had not accumulated three-quarters of the world’s gold supplies, Britain would have succeeded in remaining on the gold standard.” The News-Chronicle says editorially that tho fall in the pound sterling will automatically reduce imports by raising their price, and the cost of living is likely eventually to increase. The silver lining to the cloud is that the very extent of the depression will compel at last international action to set world trade on a firm foundation.