NEW ZEALAND: Cut Rate Money

New Zealand went off the gold standard with Mother Britain. But was that going far enough? Last week secretive, soft-spoken Premier George William Forbes thought not. Really drastic reflation, he decided, is necessary to tide his Dominion through Depression.

While the Premier was drafting a Treasury decree rumors began to fly. New Zealanders rushed to buy English pounds, found that their New Zealand pounds were already quoted at 9% below English. When the Forbes decree was published it officially pushed this discount to 25%, meant that 1¾ Dominion pounds would thereafter be...

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