Show GOLD SURPLUS MYTH I SAYS PROF CASSEL STOCKHOLM Nov 11 II P Talk iP-Talk Talk ola of ol ofa ofa a gold surplus Is a n myth since there I is a marked shortage of gold in the world Professor Gustav Cassel well well- known Swedish economist says in I commenting on the present gold stand standard ard and pr problem in the q quarterly artery review revie v issued by the Scandinavian Credit Company Ltd Normally Professor Cassel points out an adequate ate gold production I would correspond to 3 per cent of the I aggregate stock of gold in the world At the end of 1931 the total gold stock amounted to marks The normal output of gold during 1932 should therefore have been beer I about marks but amounted amount amount- ed cd to only or a shortage i of about Not counting the gold used for non non- monetary purposes Professor Cassel Casse nonI I points out the increase of the aggregate aggregate gate gold reserves of the central banks bank I and governments during the period I 32 1928 was while the thc 1 total of gold during the same sam period was not more than This he declares indicates that tha L the gold reserve absorbed not only r rall all the gold produced in the world but in addition The Thc shortage the professor finds is the result of an abnormally increased increased in creased demand for tor gold while th the fall in the level of commodity prices price S is proof positive that the world monetary mone mono monetary tary gold cold stock has been inadequate I Ito to cope with the enormously increased increaser I demand This has caused the value 0 of gold to rise abnormally in co S that have abandoned the gold standard standard stand ard by 50 per cent or more Professor Cassel strongly emphasizes emphasizes sizes the perils to the entire gold golc I standard system brought about b by p this state state state-of of affairs Those who desire desir to work for the restoration of the gold goic I standard should know the conditions 5 under which these those efforts could coun count counton on success and beware to taking their theli task too lightly he concluded |