GOLD STANDARD AND STERLING

Wanganui Chronicle, Volume 76, Issue 302, 22 December 1933, Page 6

GOLD STANDARD AND STERLING

Sil-,—ll IS refreshing i 0 see that Mr. lingey’s scheme for utilising the sterling balances in London has drawn attention to the whole currency question and has brought forth letters in your phper such as “Sound Money's” in this morning’s edition. But after carefuly reading “Sound Money’s” letter it seems to me that he is more keen to trip up Mr. Tingey than to get information. For instance, he drags in the Douglas Credit System, which has nothing to do with Mr. Tingey’s argument. I must differ with “Sound Money” when he says that Mr. Tingey “cavils at the modern banking methods and yet in the long run admits that the principle of the gold standard is the right thing. ” Having always read with interest Mr. Tingey’s letters and articles on currency 1 have never known Mr. Tingey to cavil at our banking system either in his letters or in personal discussions, which 1 have had the pleasure of having with him over many years. Mr. Tingey always expresses admiration for our banking institutions, their management and services but objects to the system that controls our banking and bankers. Your correspondent “Sound Money ” suggests that Mr. Tingey has gone back to the gold standard. I do not read his scheme this way at all. His idea seems to me to be to use gold as a commodity which is not the gold standard practice. In Mr. Tingey’s scheme the value of gold is governed by goods and services, tinder the gold standard goods and ser vices are governed by gold. This may seem paradoxical, but such a system would surely be a decided improvement on a banking system that has leit the world reach the brink of chaos. I note your correspondent asks what ‘‘sterling” is and says any banker can tel! us. I have asked my banker and he cannot, and Gustav Cassels one of the greatest authorities on finance and banking—quoted by Mr. Tingey—stated that no one could tell him what sterling was now that Great Britain was off the gold standard. If “Sound Money” can tell us what “sterling” is I hope he will do so. His definition will interest manv.—l am, etc.. W. B. LANCASTER