6 JUNE 1931, Page 32


And now to return to Professor Cassel's exposition. In fairness, it must be recognized he was dealing not with the depression in Great Britain in particular, but with the World depression, and he was, therefore, justified in laying special stress upon the great fall in commodities which has been an accompaniment of that depression during the past eighteen months. It can also be admitted that during this period of eighteen months a good deal of disquietude was occasioned by the drift of gold to two countries— the United States and France—where there were already huge gold accumulations far in excess of legal require- ments so far as proportion of gold to Notes is concerned. This is what is sometimes referred to as the maldistribution of gold, the " mal " presumably meaning that the gold goes in directions where it is least wanted because of present huge accumulations both of credit and of gold, while other countries which stand in need of both are less amply supplied.