FAILURE OF GOLD
"It is most regrettable that the Young Plan failed to retain the provision in the Dawes Plan for he automatic variation in the reparation payment, as specified in gold marks, in correspondence with considerable changes in gold prices. This is a principle which would have already, without controversy, substantially relieved the situation before the recent crisis —and it is obviously suitable for a much wider application," says Sir A. Salter, ex-Director of the Economic Section of the League of Nations, in the London Observer.
"When money is borrowed both parties intend that the goods and services lent should be repaid with interest —but neither side intends that, in addition to interest, the goods and services repaid should be immensely greater because of an accidental defeat of the measuring rod; and, at least for immense Government debts extending over several generations, gold has been shown to be a most defective measuring rod."
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Bibliographic details
Waipa Post, Volume 43, Issue 3354, 29 September 1931, Page 6
Word Count
154FAILURE OF GOLD Waipa Post, Volume 43, Issue 3354, 29 September 1931, Page 6
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