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ocroasn 1, 1931 'ma cl~lAlzi.m"rl~:1‘owN ouaiinissi PAGE SEVEN

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Bri/tain’s Suspension'

lVhole Subject Of Gold Standard

And Its Effects

On World Com-

merce Discussed By Sir Thomas

_White, Canada

Canadian Press

’s War Minister

Finance, In Statement To

Following isthe full text of the

itatement to the Canadian Press of Bir Thomas White, Canada's Min- ster' of Finance during the War, on the abandonment of the gold standard by Great Britain:

“There is no blot upon Britain’s

financial escutcheon in going off the gold standard. In the course of ner hi.-.tory she me maintained it longer and more continuously than any other nation. Financial and economic crises arise from time to time which make it necessary for govemments to temporarily sus- pend the monetary standard which can be easily maintained in nor- mal times when trade and finance pursue a natural and ordinary course.

“Even before the war, owing to

psnics which occurred from over- speculation or economic disturb- ance, Britain suspended the Bank Act three times during the '10 years from 1844 to 1914.

“During the whole period of the

Great War and afterwards to 1925 Britain was oi! the gold standard, as were all the great nations of the world except United States. which diéi not enter the war until the spring of 1911 and which derived immense financial advantage from the War owing to the transfer from Britain and Europe of almost all the gold and liquid wealth which had been accumulated over gener- ations. The prodigious aggregate of this wealth found its way into the channels of American trade, in- dustry and agriculture of United States through the purchase by the allies of foodstuffs, munitions and other material required for the prosecution of the war.

When United States was engaged in her own war ofsecession from 1881 to 1865 she went of! the gold basis and did not resume gold pay- ments until 1819." <

The fact is that crises owing to war and hnancial panic even in time of peace, may necessarily force nations of the gold basis. After the conclusion of peace or the ces-

sation oi panic the exchange grad- ually improves until finally the gold basis can be safely resumed.

RESUMPTION PREMATUBE

"In my view Britain resumed the

gold basis prematurely in 1925. She should have waited until her ex- changes with the rest of the world clearly declared that the pound sterling was and was likely to be worth its nominal par value of $4.86 2-3 in gold. Resumption pre- maturely by Britain of the gold standard in 1925 resulted, in my opinion, in the ensuing depression in the coal industry and was the indirect cause of the general strike. The affect of the resumption was to deprive British coal and other producers of the slight advantage which they had in foreign markets and increase their labor costs, which did not fall with the rc- rumption of the gold standard.

“There is a great deal of mis-

understanding as to the meaning of a nation or the world being on a gold basis. There has never been in the world, and never will be, enough gold to represent more than |. fraction-and a very small friw- tlon-of the gigantic aggregate of its commercial and financial tran- llctions. The business of the world is carried on principally on credit scoured by goods and accumulated wealth other than gold and sun- ported by faith and conndence be- _tw_een men and nations. When the price level severely declines as it has during the put two years and nations lose oonndence in each oth- Of. distrust ml! olule the condi- tion which brought about the eus- penlion of the gold standard in Britain. What then is the use of the gold standard? Principaily to facilitate the opentions of inter- national trade and finance and to provide, not an absolute but a use- ful,servicesble cheek against undue Inflation in the intemal currencies

rar-wsu srrusrrou

"Before the war the gold of the

world was reasonably distributed among the nations and served both these purposes. If sterling or dollar exhanges rose or declined the ship- ment from one country to another of a small amount of gold easily corrected the fluctuation. The re- sult was thc stabilization of the currencies of the world so that merchants and others purchasing or selling goods in all parts of the globe could carry on their business with certatlnty as to the price they would pay or receive. At that time the pound sterling was the main intemational currency because its value, based on gold, was constant and not subject to fluctuation. Goods bought in Asia, South Am- erica, or other distant countries could be paid for by the draft on London. Now if the pound sterling had been od the gold basis the sel- ler would not know what price he would obtatin for his draft by the time it arrived in London. The re- sult of the stability of the pound sterling was to make Britain the great international financial clear- ing-house of the world, and she de- rived from this immense financial and commercial advantage. It was for this reason that she so greatly desired to get back on the gold bas- is in 1925 and since that yearshe has been gradually resuming her old position as the world‘s chief financial centre.

U. S. AND FRl\.\'(,`E

“Now since the war United

States and France have gradually acquired control of 65 percent. 'ol the gold reserves of the world; United States alone has nearly,” 50 per cent. This fact constitutes a profound change in gold distribu- tion and makes it increiisingly dif- ficult, if not impossible, for the European and other great nations to maintain the gold standard. The ideal situation would undoubtedly be for the currencies of the world to be on the gold basis with a dis- tribution of the world's gold re- serves which would make this pos- sible of continuance. But manifest- ly this cannot be done it United States continues to hold her pres- ent supply of gold.

“Great Britain's suspension of

the gold standard _ls one of the steps which must lead to a better distribution of the gold of the world. A great part of the gold held by United States is quite use- less to her. She does not need it for her internal finance and she does not,freely lend it abroad But if other great nations go oil the gold standard United States will be faced with the alternative of losing part of her world trade or lending her gold to promote her exports,

, - _ fe

EFFECT OF SUSPENSION

"Great Britain in the present

condition of the world, by suspend- ing the gold standard. will lose fmething and gain something. Bhe will lose something by reason of the adverse affect upon the pound sterling as a world instrument of credit. This will cause considerable derangement and disturbance of her financial relations with many countries, with consequential effect upon her external trade. because trade and nuance are so closely linked together. Departure from the gold basis does not, however, mean that the sterling draft on London will not still be used, sl- though not to the same extent, as world currency. Drafts on London will be bought and cashed by for- eign bankers having balances or credit in London. They will assume the risk of any reduction in value of the pound prior to payment in London. The foreign seller of goods will therefore know precisely what price ho can obtain and be able to make his bargain accordingly. In- yconveniencep however, will un- doubtedly occur and slreldl |11

of nations. ,some foreign countries the Ameri-

can dollar. which il on the (Old

. ‘i U O O

Blessing In Disguise our morning Shave,

l:.:;‘.°.;.“::.:“°.;.“.°.‘i.°:..::‘;.°.::;‘3 iS boldly S|10pWOl‘l1

ai' midnight”

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national exchange. The drop in the gold value of the pound sterling ,will increase to the British con- suming public the cost of food im- ported from abroad, and tend otherwise to increase the cost of living. The effect of the 20 per cent. discount now prevailing is precisely the same as if a general tariff of 20 per cent. upon all im- ports had been imposed by legisla- tion. Free trade Great Britain therefore is at the present moment a protectionist nation with a gen- eral tariff against all her imports of 20 per cent.

ADVANTAGES

“Now as to the advantages she

will derive from going off the gold standard temporarily. The drop in the value of the pound sterling will restrict the selling in the London market of British securities held by foreigners, because if they sell and desire to take the cash proceeds of their sales out of Britain, they are obliged to face the loss of the dis-

lcount upon the sterling which they

seek to exchange for the currency

lot’ their own countries if such cur- rency is on the gold basis or stands a less rate of discount than the

`pound sterling. What helped to

bring about the suspension ef thc gold standard in Britain was the fact that its maintenilnce facilitat- ed the sale by foreign holders of the proceeds (gold in reality) into foreign cllrrenciesf Suspension of the gold standard in Britain there- fore will tend powerfully to keep British money within Britain. The foreigner who sells his securities on

‘Ithe London market now will very likely leave the proceeds ln Londorl either on deposit or temporarily in- vested‘until exchange works higher.

The converse ol this is the selling

by the British holder of foreign se- curities on foreign exchanges. He will now be strongly influenced to sell, because if he sells, for example in New York, he can convert the dollars which he will receive into more pounds sterling than he could if the pound were worth its gold standard value of $4.86 2-3. This statement applies also to other na- tions whose exchange is at a dis- count, whose nationals hold stocks or bonds saleable on the exchanges of other nations such as France or United States, which are on the gold basis. The effect of this will be to take money out of United States and France-in other words, to as- sist in bringing Plmlit ii better dis- tribution of fl' 'l reserves of the world.

BENEFITS BRITISH -TRADE

“Then again the drop in the

pound sterling will stimulate the demand for British goods from abroad. The foreign buyer will be able to buy in the British market much more cheaply than in United States or France because he pays so much less for the pounds with which he makes his purchases. The British manufacturer, however, will have to pay more for his imported raw material. But on the other hand, his wage costs will be greatly reduced. For the time being at all events the British manufacturer will have a decided advantage in export trade over his competitor in a country which remains on the gold basis. With the restriction on certain of her imports and an in- crease in her exports, Britain's bal- bnce of trade should improve and this in time will improve the value of the pound sterling until its grad- ually again reaches a parity with gold. This conclusion assumes that Britain will balance her budget and be free from industrial trou- bles until her exchange rights it- sell.

"The exchange of a country in

normal times really declares its condition. A fall in exchange tends automatically to cure itself with- out interference through restrict- ing imports and increasing exports and forcing economy upon nations that have been living on a standard higher than they can support or whose govemments have nm reck- lessly into debt. The only effectual check upon public extravagance in modem moieties seems to be the difficulty of obtaining money. when budgets do not balance and exchange falls, the Ieimedy of strict economy is inexorably applied bot.h intemaily and externally. Britain has therefore to face the task of balancing her.‘budget and improv- ing hor trade balance by going temporarily of the gold standard

andgettiagdowntohcrdworkand

and get your money back.

“IM not trying to sell razors or razor blades. I don’t shave V and I don’f give testimonials. But I'd like to tell. you what I think of men who don’t shave carefully. I believe my opinion really means something because l’m a hostess in a night club and we girls must take them as they come. So we learn as much about men in a week as the average girl learns in a lifetime.

“Of course it really doesn’t make much difference to me, but you’d be surprised at the number of men who think their morning shaves will last until midnight and later. Along about 11 o’clock they’re nobody’s bargain and I wouldn’t dance with them if I didn’t earn my living that way.

"My experience has taught me that a man can’t be attractive along about the time the milkmao starts delivery, unless he takes a clean shave before he steps out for the evening. And speaking of milkmen-what I’ve said doesn’t apply to night club customers alone. Most men aren’t as particular about shaving as they should be. To get along with women a man should be clean shaven all the time."

Yes, few men shave as frequently or carefully as they should. Until now shaving may have been a somewhat disagreeable task. Now Gillette is manufacturing a fine new razor blade that can be used morning and night. without discomfort.

It never irritates or roughens the tenderest skin. Every blade is equally keen. Try the new Gillette on our guarantee. Buy a package and use a blade or two. If you don’t agree every shave is cool and pleasant, return the package to your dealer

nszons-me mpgs

1085 St. Alexander St., Montreal, Quebec

a somewhat reduced standard of living.

“If United States and France are

to compete with her in foreign markets," said Sir Thomas in con- clusion. "They will have to distri- bute a considerable part of their gold in giving credits abroad or cut down wages and their standard of living until they are on a parity in this respect with Britain-always provided, of course, that British in- `dustry ls as efficient as its compet- itors. The euspension of the gold standard by Britain was a neces- sary measure in the circumstances in which she found herself and will probably prove a blessing in dis- guise to herself and the world, be-

in bringing about a fairer distribu- tion of the gold reserves for the world-the mal-distribution of ,which is so largely responsible for ‘the fall in prices of commodities in all parts of the world."

Imported Goods From England Fixed At Par

ofr'i'Aws. ont., sept. 29-(By the

Canadian Press)-The value for duty purposes on all goods imlwft- ed into Canada from Great Brit- ain has been fixed at the par value er"s4.as 2-s w the pound sterling, notwithstanding prevailing rates of exchange onthe pound. ImD°'\‘U coming into the Dominion from Great' Britain, consequently, al- though they may be invoiced at values according to the reduced rate of exchange on the pound will be valued for duty purposes at the par. value of the pound. A

Action taken by the Dominion Govemment late today, Whlcll safeguards the revenue of the wim- try,, is set out in an order-in-oolllh eil officially approved in the foi- lowing terms:

cause more than anything else it ,> will cali a halt to the dropping! B°5T°N' M°‘“'- SW* 29- ‘MW ri le el for commodities' mm sociated Press)-Coast guard held-|

p ce v - umm trade and lndustry and assist ‘quarters was notified tonight after‘

ing Minister of National Revenue, is pleased, having regard to the disturbed condition of the rates of exchange between Great Britain and Canada, to order and direct that, in computing the value for duty of goods imported into Can- ada from Great Britain, the rate of exchange shall be fixed at $4.86 2-3 in the pound sterling, be- lrlg the par value thereof."

Motor Vessel V

Sends S. O.S. Call

Rex, a motor vessel, had sent out .ln S. O S. ~lh'»rtly after 5 o'c2ock.f The rrfssage wi; picked up it 'til'-i erhead, Long Island, N. Y., and re-I layed back to the coast guard. The| message read: "S. O. S. 34 miles; northwest of Sable Island, drifting southwest."

The Rex is a wooden schooner

with auxiliary motors, 102 feet long with 134 tons displacement. It

and is owned by the F. L. Davis company of Gloucester.

Sable Island is approximately 200

miles due east of the lower part of Nova Scotia.

N0 INFORMATION

(Canadian Press)

HALIFAX, N2 B., Sept., 29-TM

only vessel known to local shippml men which might have been the craft reported as having sent out an s. o. s.. from the vicinity °* Bible island this aftemoon is thc RMI, II, of Digby, N. S., which sailed from Lunenburg in ballast for Bt. Pierre, Miquelon, on sunday

tain Harold Jorgensen of Lunen- burg and carried 5 crew of n‘n¢.

was built at Essex, Mass., in 1908i

are now believed to have been the hlcck of ground .and some old

S. 0. S., heard at Riverhead, L. I-. were picked up faintly here and were thought to be the €ff0rl-S Of "an amateur fool‘ng aroulid,", it was said. The local Department of Marine had no information.

Anglican Women

To Extend Work

(Canadian Press)

felt in smile qllzirtcr.; Great Brit-

buildings in the old mining fov.'ii. ;l.ii`.> lnovu was 0111; fcmpo:'nl'y and

hvm, this prow-rtyv it was _-.,;~,l;1, :lint at me cud of six mouths it /.llcy will establish a p:\l'l: nnzi lyli ;\ii:~.il;1 ;~¢\-Wt Oncc mm-C 10 the E015 .)9nd_ .:,:l<lfi»l'<i. llc opposed this view

|‘ iqiilizilnilillig ilizlt at ilic mid of I _ ,xirll time "tile \\'l::dom of the .SUPPORTS WHITEIS ‘IEwP0l“ ‘y zll.o\x1"` \'.'i1\\lrl be dc-lnon.\:i:'.”ifr-rl. The

i MEDICINE HAT, Alia., Scpi.l"111'i1ri~iii‘r of lhe wid Slllillfy UV l'>3_(}3 the Canadian P.~cssi.-_;t‘-‘£0 linfzoiia llxllicc and United

- y . iculd is no longer a propel. n“.nS_§Si::f'.'s. \'.'.".:; lllnlli Calls? of the 'ure oi' value for money- <\ccol~cliil': 1'”-`-"`m d"l""’"mn‘ he COu"h‘d°d'

,io I3. K. Sandwell, noted Cnlmiliiiiip ‘economist who addressed ihc Crli-3 WH mm .odian Club here. Hc dcclnrcd it \\-;i< iq v.‘l‘L~\_JL“"i) ;"m;`qm; Lim Dmvinces .lime to realize that the gclrl sifiilil- " “ L th U soon

SAINT JOHN' N' B' Sept 30_`:il'd was or’ no rcal utlliiv ill coin “""‘ "5!`m;°"'v bu B to Y

The Dominion Board of the W men's Auxiliary of the Mission-

,I H ' ‘.~:~.ili-ii. mul he was compelled to

lncrcla le. F \__,k hmm,

o . ~~ ~

l He referred to Grout B..i......., _4 ; _ _ V ,H _ ,, r _

ary Society of thc Churclivof Eng- action in abundomm uw U H Dmllit Qillcy like you? risked a

land now in convintioii in Salnl

h ill not alone consider a

_ .'=j»'li;j.i.ilit.." 1llcli.l.

$mnda`d as (L dcmcflmn LL M _ “'l"l‘\' <l.rlll'L srrlll lo," replied the

‘lo n' :I1 L tend its wow for. ure.” The gcllcrnl coilccpiiriii of li. 4 "wif "`_lm\_ new po cy o ex = __ ,, H ,.._,~=~ -- »~ the inclusion of Social Service and.m°V°' he Said: “vas 5' “‘g“` “Hd ‘_‘ i “Blu rl dirt ilioy risk yOu to come

religious education, but will take up the recommendations of its President, Mrs. Gilbert Ferrabee, of Montreal, that it consider the need of simplification of its mach- ery, undertake through its Dorcas Department relief work in Sask- atchewan, lnclude ln its ilrogram. work for the Jews and provide the means for sending its representa- tives to important missionary con- ferences.

i Mrs. Ferrabcc, in her address,

'also announced that Miss Lordla Shaw, oi Saint John, Missionary on furlough from Japan, who is t0 address the convention, is belnil ggughf, gg the editor 0( Bn imp0l‘- tant Evangelistic newspaper in Japan. The W. A. is being asked W maintain Miss Shaw`s service but

:provide for their diversion to thb ‘new and most important channel. lm the offer, both Miss Shaw and the Anglican Diocese of mid-Jap-

_____.____.

EDITOR. BUYS I-`lSlllN'G PARK

night. She was commanded by CBD* MONTROSE' c"l°" Sgpt' 29'" ,

(U.P.)-William Allen White. K8"-

sls editor, probably will do his flsh~

Mun” 9° M an N0" g¢°f_|mg,'ing hereafter in Colorado. With a. ummm' to nprugnuuyes uf the group of Kansas associates he has Lunenburg shipping company. the|Pur¢l1\S¢d 160 “UCS °f land in Rex 11's agents at that port. The 'Childs Park above Lake City. The

motor vessel is owned by the Rex`group plans to esinbllsli a fishing ,

. "rho debut: oi His EX°=|1°°°¥, shipping company ti Digby, ina resort. rteptm from into city re- g the Governor General in Council, ‘fegigtei-eg there. vealed that white and his uso- C1131-lgttgtowii .

an are highly honored, it was said.

rolicous oiic. 'We ought to llc pm- :mf “_ me C_`u_,“,_n?.,

liouridly thuukfill," he soul. “tllnty _,Mk m,,,,. \.`,_),,M,.d me “.0u1d_be

the govcriililciit oi Grout Bl~ii.iiili_AM_A_. “ilu hu lu his Ewa “Ask has detaclisd its Currency from '.li~ limi ,H1 own dnmd mei..

igold stalldnrd." \ p __________

MD SHl1C1\\'0\1 <lCCl“Tl`d Uni it ‘VHS ln. .1-.si-l.ii._\i;..=.f.i‘.. l.l..i|n.~n¢.

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ILGQK WEILII.

WEAR WEILII.

What more do you want of a so'ck"?`.

Buy Yourself a few pairs. At 500, 75c, $1 and upwards, il|c_v’rr- the real thing.

F;r Sale ily EWS. Liili

H' i J

-4 ga-l LJ

Will

°n uw ‘l'°°°mme"d""°n °1 me “£4 l"°~"‘"v° 'kdm ‘mm which lent" ‘l°° had purchased . mu-

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