ECONOMIC RECOVERY

Taranaki Daily News, 21 December 1931, Page 9

ECONOMIC RECOVERY

financial problems. AN OPTIMISTIC BANKER. Four events which he considered l essential for the recovery of the world were outlined by Mr. J. T, Grcfee, general manager of the National Bank of New Zealand, at the end of the year function of the Wellington Harbour Board.

Mr. Grose said that they were all seized with the gravity of the position of the world. He had read reports by economists and financiers until he felt like throwing them aside. It was a difficult and complex problem, but he believed that the world was moving toward better things. England had been forced off the gold standard as the result of difficulties in- connection with short-term - loans.. Some of the debtors could not pay her, and people who had lent money -on short-terms had become anxious.. As England was the financial centre of the world, there had been a great deal of short-term foreign money there, and this had. been withdrawn 1 . As a result, the drain on the gold reserves had been so severe that the gold standard had to be abandoned. However, there were factors that would make for the betterment of the position, and in his opinion the rehabilitating of the world depended on a sequence of events. The first of these would be a moratorium in respect of the payment of war debts, and they had already had an instalment of this in the way of war debts, and he did not think there were insuperable difficulties in the way of such an operation. Thirdly, creditor nations would have to stop amassing the gold of the world. Gold was the° final measure by which debts were paid, and that money would have to be lent on long-term loans. This had been England’s policy, and upon this policy she had built up her commercial supremacy. Fourthly, these, longterm loans would not be possible untilinternational tariff barriers were broken down. These four points were essentia! for the solution of the depression. He believed that England, in going off the gold standard, had taken a step that • ouTd ultimately lead to, a conference of the nations of the world, and that the results of this conference would be a gradual improvement of conditions.