RETURN TO GOLD

Wairarapa Daily Times, 11 June 1932, Page 5

RETURN TO GOLD

EXPERT CONCLUSIONS. CAUSES OF THE DEPRESSION. GENEVA, Thursday. A return to the gold standard and the desirability of a rise in price level aided by Central Bank are advocated in tlie final report of the Gold Delegation of the League’s Financial Committee. " A return to the gold standard, however,” it says, "cannot be expected pending the restoration of a reasonable degree of freedom in the movement of goods and services, a settlement of reparations and war debts, and the establishment of certain guiding principles in the working of the gold standard. ’ ’

The delegation considers that the rapid decline in prices, beginning in 1929, cannot be attributed to a deficiency in the gold supply, which has been adequate to suppoit the credit structure required by ; world trade. A minority report, signed by the chairman, Mr Albert Janssen, Sir Reginald Mant, and Sir Henry Strakoseh, contends that the dominant cause of the breakdown wms the maladministration of gold reserves, beginning in 1929, and emphasises the practicability of restoring and maintaining gold prices at a suitable level with a concerted attempt to restore wholesale prices to the 1928 level.