The Case for a Rhodesian Gold Subsidy

I wish to divide my paper into three sections. First, it is necessary to deal with the position which gold occupies in the world. Secondly, I propose to relate this world position to Rhodesia and leading on from these two considerations I then wish to explain how I think a gold subsidy could be operated in this country. I propose to consider gold as money. It is true that the industrial use of gold is on the increase throughout the world and the special properties of this metal will no doubt result in an ever increasing industrial application because of its very special qualities. As modem industrial requirements become increasingly precise and sophisticated the indestructibility, malleability and high conductivity of gold will become industrially ever more important even at the high price which must be paid for it. John Lock defined money as “Some useless thing that men desire but which is useless in relation to living needs.” In other words Lock considered that money must be precious and ever since the beginning of time men have regarded gold as precious and desirable for itself. This in an emotional conviction rather than a rational idea but it is all the more real because it is based on emotion. In the most troubled and politically disturbed parts of the world today when ordinary people have lost confidence in almost every other means of exchange, gold retains its value and in many cases increases its value greatly. During the last war, agents parachuted into the Balkans and the Middle East were invariably supplied with gold and this was accepted for its value by friend and enemy alike.

A discussion paper on the need for the then Rhodesian government to subsidize gold production.