Gold Is At The Crossroads

One Reason Why USA Will Not Have a Nazi Victory

DO any of our Pacific politicians, announcing complacently that New Guinea this year will produce £3,000,000 worth of gold, and that Fiji’s annual gold output is now £1,000,000 or thereabouts, ever pause to think of that gold industry in relation to the war issue?

Gold retains its value now only be cause the United States continues to buy all that is offered, at the rate of ??? dollars per ounce. USA continues to put all that incoming gold into “a hole in the ground” (Fort Knox, Kentucky), in the confident belief that, one day, the world will accept the enormous accumu lation at the calculated value.

But that gold will hold its value only if the Nazis are defeated, and, forced to accept world-wide economic condi tions dictated by the Allies. That might not happen in a compromise peace. One of the primary aims of the Nazis is to destroy the sovereignty of gold in inter national calculations affecting values.

If gold, as the world’s standard of value, should be dethroned —as it would be in the event of a Nazi victory or a compromise peace—an economic disaster of a magnitude without parallel in his tory, would descend upon the United States, The gold-mining industry gen erally would be wiped out; but that would be a small thing compared with what would happen in America.

The Americans are quite genuine in their determination to prevent the over throw of the democratic system by the mad dictators of Europe. But, even if they were not, they could not accept a Nazi victory, when that victory unques tionably would mean (in the immobili sation and devaluation of gold) the com plete disruption of America’s economic life.—R.

PROBABLY the most publicised island in the Pacific is Easter Island.

People who know nothing of Paci fic history have a vague impression of “the mystery of the Easter Island statues”. The island is again in the news as a suggested defence base for the United States Navy. However, the Chilian Government has vigorously pro tested that it has no such intention. The fact remains, nevertheless, that the Americans consider both Easter Island and Juan Fernandez as possible links in an aerial service that will eventually link both Australia and New Zealand with the American mainland. Should this take place, and it is quite possible, the Chilian Government should not be averse to collecting good dollars from tourists. “The mystery of the statues”

has definite publicity value.-

E.R.