THE GOLD HOARDERS

Wanganui Chronicle, Volume 73, Issue 428, 20 November 1930, Page 7

THE GOLD HOARDERS

FRANCE AND AMERICA ROOT OF WORLD DEPRESSION LORD BARNBY INTERVIEWED [ Per Press Association. ] CHRISTCHURCH, Nov. 19. The hoarding of gold reserves by France, and to a lesser extent by the United States, is, in the opinion of Lord Baruby, a member of the Advisory Council to the Economic Committee of the League of Nations, the chief reason for the present world-wide depression. He hopes for a recovery by an agreement through the 15ank of International Settlements, but insists that Trance stands in the way.

“My experience on the Advisory Council to the League has definitely been disappointing, and it seems that the earlier hopes of an international agreement on economic problems are fading,” he said to a reporter to-day. “Our greatest, failure is due to France’s attitude on the question of gold reserves. France’s attitude of accumulating gold is doing more than anything else to contribute, to the present decline in world prices,” he continued. “Commodity prices are declining in terms of gold, which is only another wav of saying that there are insufficient gold reserves. Until the production of goid is increased by a new discovery, ■which is not likely, or by a better dis tribution of th- available supplies, there is not much likelihood of an improvement in world prices, or of a lifting of the depression.

“The attitude of France is a serious handicap. Figures show that, absorption of gold by France and the I nited State in the past two years has not only equalled the normal new reserves, but has depleted the existing reserves. This withdrawal of gold is decreasing the pur chasing power and bringing about a decline in prices. There is hope for an agreement through the Bank of International Settlements, which would bring together the heads of the different banks of the world and enable them to work out a policy tn make better use of the reserves, anil bring about a return of world prices; I sincerely hope that this may occur; but France is the difficulty.”