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Show Lop-Sided Gold Supply Caused Our Hard Times; Recovery Will Be Slow International Action Needed To Get World On Stable Basis, Says World's Foremost Economist; Maintain Cheap Money. By SIR JOKIAH STAMP Famous British Economist Judging by the experience of past depressions, we can hardly expect the present one to be over until April or May-next. May-next. , ... . . And even then, the recovery will be halting and slow. It will not gain much momentum until the beginning I of 1932. ' l'Hj-Kt Slims Here ' S On the signs of the present I think that substantial recovery I will come from your side firs', j What we need, of course, is to ' keep our fundamental condition.; rightly framed up'. -so Unit recovciy j will find us ready for action as it galn.s momentum. First of all, we ought to malntair. cheap money as long as possible, and not merely cheup money 'of a short charas'.er, but also ' money I lent for considerable periods. You are certainly doing your share of that in America. I should encourage, encour-age, eveiywhere governmental economy econ-omy and balanced budgets. ' Gold Is Lopslil.-it It Is my conviction that the lopsided lop-sided distribution of gold in the. world is the real reason for the depression. de-pression. Any excess of gold in any particular partic-ular country, compared with the general average can only bo held as the working of a gold standard for the whole world it' it is kept free from the influencing of prices Ln the countiy concerned1. I That means the total supply of j gold affeotlng prices is reduced and prices are eithei very low or ready to become very low the moment the impetus to woi Id trade and for-wi-rd-looking credit'is impaired. Mlju-.lilcf Is VniI,Cl " The potential position is often held in suspense for some time until un-til a change precipitates it and makes it actual. So, the mischief ' of the gold scarcity was working before the slump and is now of little importance. We are all very shy of speakinj of this problem internationally because be-cause we think we shall be treading I on each other's corns and anything that is said may place blame upon somebody, or impute some unworthy un-worthy or selfish motive. I do not take that view. I say that the interdependence of ! the world now is so strikingly 'ad- vsneod that it is not the fault of ! anybody If we have not elaborated our world currency system, so de-I de-I pendent upon gold, to the requisite : point of safety and accuracy. Max Schmeling's full name is Max Siegfred Adolf Otto Schmeling. |