PRODUCTS & CURRENCY.

Waikato Times, Volume 112, Issue 18691, 18 July 1932, Page 11

PRODUCTS & CURRENCY.

(To the Editor.)

Sir, —I am Interested in the daily record of the price of gold in London as quoted by you, and I note the feeling of optimism arising out of the j better prices for butter and wool. I, ! however, have an uneasy feeling that I the better prices for products have a decided relationship to -the higher I value of gold and that it is simply a process of inflation we are experiencing—that the better prices are more apparent than real. I know we are off the gold standard. This Is shown by the fact that gold instead of being at standard price of £4 8s Hid per ounce, fluctuates daily, the latest available figure being upwards of £5 16s —a very substantial enhancement. If gold so fluctuates .so must sterling, for it has no standard of value, and our 'currency not being anchored to a stable foundation is in a -state of 'flux k ‘.l do not profess to be an expert on this matter, but it seems to me that our currency must 'have a standard of value —that there must be something to which it has a permanent relationship, otherwise we will drift to disaster as did Germany in the post war years. I have read the columns of print -contributed by those who pose as financial experts but I cannot get any “forrader," the contributors’ meaning seems to be hidden in a liaze of words —probably I am dense. To me the whole thing boiled down seems to -rest upon the one word—stability. . Lacking that there can be no guarantee of security. To what is sterling anchored? —I am, etc., PUZZLED.