GOLD STANDARD OPPOSED

Taranaki Daily News, 29 January 1934, Page 7

GOLD STANDARD OPPOSED

BRITISH POLICY" A SUCCESS MANAGED MONEY BENEFICIAL MR. McKENNA’S ADVOCACY STEADY TRADE PROGRESS British Wireless. Rugby, Jan. 27. Opposition to an early return to a metallic basis for British currency was expressed by the Rt. Hon. Reginald McKenna, chairman of the Midland Bank, at the annual meeting of shareholders. He said that the success of a policy of cheap, abundant money was in maintaining the general average of prices at levels which rendered production profitable beyond question. World trade might still be disorganised by chaotic exchanges and international dealings, accompanied by prohibitive tariffs, quotas and other restrictions; yet, notwithstanding all these obstacles, the trade of Britain had for many months been making steady and gratifying progress. The international situation seemed unripe for the restoration of a universal monetary basis. The gain from a universal basis should be the only consideration which should be allowed to tempt a country back to the metallic standard. Mr. McKenna urged that until the world learned how to secure exchange stability without jeopardy to stability and purchasing power, Britain’s inflexible task should be to demonstrate that wise management of money, united with no fixed attachment to gold, was both practicable and its result highly beneficial.