Wairarapa Daily Times [Established Over 50 Years.] THURSDAY, 14th MARCH, 1935. THE GOLD STANDARD.
Although Britain is no longer on the gold standard, London continues the most important gold market in the world. Russia in future will settle her debts with gold exported to London, instead of to the United States, and it is expected that Russia will shortly place large orders in Britain for machinery and plant on a cash basis. London will be the clear-ing-house again in the settlement of Russian payments. What is the ability of Russia to pay in gold? A monograph published by the School of Slavonic and East European Studies in the University of London states that if Soviet statistics are accepted without question, the gold reserve of the State bank is the equivalent of 85,000,000 sovereigns and the yearly gold production the equivalent of 12,000,000 sovereigns, rising by about 25 per cent a year; but, as the monograph points out, there are no definite or detailed data on the subject in official publications of the Soviet Union, and publication of data of this character has been prohibited since 1926. The important point is whether the gold is available. If it is, the English exporters will take it, but will not keep it. It is of no use to them otherwise than for what it will purchase in the markets of the world. It will add to the holdings of Central Banks, but most of it will be acquired by private individuals for hoarding. The price of gold, should stabilisation of currencies be achieved, will depend on the amount of each currency determined on by the respective governments if and when a gold standard is set up. Britain has stated through her representatives that she is in favour of returning to a gold standard, but when pressed the answer has been that the time is not opportune,
and there is little doubt that Britain is carrying with her in this intention the other countries of the sterling group.
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Wairarapa Daily Times, 14 March 1935, Page 4
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334Wairarapa Daily Times [Established Over 50 Years.] THURSDAY, 14th MARCH, 1935. THE GOLD STANDARD. Wairarapa Daily Times, 14 March 1935, Page 4
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