NOTHING NEW UNDER THE SUN (ALMOST)
28th April, 1925 : Britain is back on the gold standard. There is sixpence off the standard rate of income tax – it is now four shillings in the pound – and there is a great new national insurance scheme with the pension age reduced to 65. These were the highlights of the exciting Budget introduced today by Mr Winston Churchill. The Chancellor of Exchequer hailed the restoration of the gold standard as proof of Britain’s post-war recovery. It means that the nation is again committed to exporting gold when there is no other way of meeting debts abroad. Bank notes will still be used internally. To cheers, Mr Churchill told the House that Australia and New Zealand were also going to abolish the restrictions on the export of gold. The Australian Government sees the move as stabilising prices, strengthening reserves and regulating exchange. Australia’s gold holding is expected to reach about £57 million by the end of May.
[Committment to exporting gold when there is no other way of meeting debts abroad is fine, but if there is no more gold to export? The Australian Government then saw “the move as stabilising prices, strengthening reserves and regulating exchange” and so it will see in the near future. The supposed experts on the financial news channels will find themselves overwhelmed by history repeating itself.]