GOLD SUPPLY LOPSIDED

Taranaki Daily News, 10 November 1932, Page 5

GOLD SUPPLY LOPSIDED

PLEA TO RIGHT EXCHANGES

FORMER CHANCELLOR’S VIEW SPENDING POWER OF EAST MR. CHAMBERLAIN’S DOUBT '' British Official Wireless. Rec. 5.5 p.m. Rugby, Nov. 8. When the’House of Commons debate on unemployment entered the concluding stage .Sir Robert Horne, a former (Chancellor of the Exchequer, observed that, great service could be rendered the trade, industry and commerce of the .world if international exchanges were (put right. While there was a vast amount of gold in the world nearly three-quarters of it was in the hands of two countries and the others were denied the necessary supply. The problem was one of the great factors in the present situation. [Referring to the position of the pound. .Sir Robert said sterling prices were practically at the same level as when Britain went off the gold standard and the pound .now purchased more an commodities than it did five yeans ago. That was sufficient evidence that no one need be perturbed about the fall in sterling. He expressed the view that if silver once more were put in an appropriate position, in relation to the monetary system of the world industry and trade would benefit more than from any other single decision. UNEMPLOYMENT RELIEF. One measure of relief he advocated was State assistance to enable the Cunard company to proceed with the projected construction of its two giant liners. Sir Robert also suggested that the embargo on loan issues should be removed as early as possible. Sir Herbert Samuel ' (recently Home Secretary) expressed the hope that opportunity would be taken of the World ■Economic Conference to achieve definite results on tariff and other restrictions, monetary questions and other matters of world-wide interest. Mr. Neville Chamberlain (Chancellor of the Exchequer) concluded the debate, ■which he said had been most productive of ideas. While he could not agree with the desirability of many of the proposals made, there were others which ■would receive the careful consideration of the Government.

Mr. Chamberlain paid that though Sir Robert’s monetary suggestions were worthy of serious consideration, there was no certainty that a rise in the price of silver would increase India’s and China’s purchasing powers. If they /raised the price of silver to two shillings an ounce it was only equivalent to adding i100.W0.000 to the world’s gold total of £2,500,000,000, and therefore he Was not hopeful that (bimetallism'would (help the .present difficulties.