CRASH OF PRICES

Taranaki Daily News, 17 June 1932, Page 7

CRASH OF PRICES

REMORSELESS DEFLATION

A DANGER TO CIVILISATION

WORLD CONFERENCE’S TASK

ARREST OF THE DECLINE

GOLD STANDS HIGH ALONE

British Wireless. Rugby, June 15. In a speech at a city luncheon today Mr. Winston Churchill welcomed Government support for the proposal to summon a world conference on the money problem in order to arrest what he described as “remorseless deflation. The tasks before the world conference were to discover the best practical methods by which the devaluation of commodities could be substantially arrested, and invest in a process which would give authority that would command and hold the confidence of the most powerful States and of the investing classes in every land.

Referring to the enhancement in the price of gold Mr. Churchill said that everything else had also fallen in like degree. A remarkable feature had been the way in which the prices of all these thousands of commodities had kept a steady relation with one another. They marched forward together in orderly array. One commodity alonegold—had broken from the ranks, and since it was at present our supreme measure, all the rest were cast down.

Through the rise in the price of gold debtors were required to pay 70 per cent, more than a few years ago, declared Mr. Churchill. If that monstrous process continued it would shatter civilisation, as it had already shattered prosperity. War debts had caused the disease, but cancellation of debts and reparations would not cure it. “We must check progressive devaluation by a human effort in terms of gold,” Mr. Churchill said. “Therefore I am glad that the Government favours a world monetary conference. Those fearing it ought to remember the stern fight that the Australians and New Zealanders are making to preserve their solvency and honour. Their Governments may enforce sacrifices on all classes, but a fresh rise in the value of gold will wipe out all they have done, ‘‘The only solution is an international agreement that will revaluate commodities and provide a stable measure for the exchange of services and goods.”