GOLD

Wairarapa Daily Times, 23 January 1932, Page 5

GOLD

LOSS OF VALUE A BANKERS’ VIEWS. Press Association Electric Telegraph-Copyright RUGBY, Thursday. The well-known banker, Mr. F. C. Goodenough, made pointed remarks upon world currency and debt problems •when presiding to-day at the annual shareholders’ meeting of Barclay’s Bank. Referring to the fact that the payment of international debts in go-id was virtually impossible owing to a very large part of the available stock of monetary gold being concentrated in the United States and France, Mr. Goodenough said: —- “In these two countries heavy surplus JjtOdiS Of gold are largely deprived of their earning capacity. Unless some means can be found for gold to be circulated more freely, it would seem that gold will no longer be capable of being put to its normal use as the basis of currency and credit and as a measurement of world prices. “In that case gold will have lost its value, and those countries must inevitably be faced with enormous losses.”

Reviewing the world financial crisis, Mr. Goodenough said that British banks had been nble not only to meet the requirements of the crisis but also to give a helping hand in many directions, both at home and abroad, which had been of immense service.

The immediate cause of the crisis had been the fall in the gold prices of commodities and the fundamental causes were the problems of tariffs and the payment of war debts and reparations. If these could be dealt with effectively, a period of increasing prosperity could he anticipated. Regarding the British trade position, Mr. Goodenough described the outlook as more hopeful.— (British Official Wireless). PAYMENT IN GOODS. PREFERENCE TO GERMANY. LONDON, Thursday. Mr. Goodenough, in the course of his address, said that it was becoming increasingly clear that it was impossible for substantial war debts and reparations to be paid otherwise than in goods, which must therefore be allowed free access to creditor countries which had hitherto been receiving payment largely in gold. The position to which international trade had been reduced in the past two years justified the traditional free trade policy of Britain as a great creditor nation, but the exigencies of the moment demanded the protection of our markets.

The Empire could doubtless be strengthened by granting preferences on German articles.