Page 70 - Demo

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Gold standard: key dates
8 January 1925
The Kemmerer-Vissering Commission Report recommends that the Union of South Africa return to
the gold standard “on a date not later than 1st July 1925”.
27 April 1925
Great Britain returns to the gold standard “in the form of a gold bullion standard”.
18 May 1925
The Union of South Africa rescinds its 15 December 1920 proclamation suspending
the “redeemability of the Treasury’s gold certificates”. This act returned South African on the gold
standard on the basis of the gold specie standard. The circulation of gold coin commenced in May 1925.
1929
The world descends into
the Great Depression, which lasted into the late 1930s.
It remains one of the longest economic downturns in modern history, underscored by deep cuts in industrial production, deflation, rampant unemployment, banking industry panic and socio-economic suffering. The previously employed found themselves homeless and queuing for food
in soup kitchens.
21 September 1931
Britain suspends the gold standard, three months before Governor Clegg’s retirement from the position. Britain’s actions “came as an unexpected shock to South African monetary authorities”.
13 November 1931
The SARB raises the Bank Rate from 5% to 6% “to protect the credit position of the country”.
20 November 1931
The Minister of Finance delivers an impassioned speech in the House of Assembly on the occasion
of a reading on the Finance Emergency Regulations Bill. The Minister reaffirms the Union government’s support of the gold standard and
the SARB as the custodian
of its maintenance. “The Government confidently expects, sir, that this House will affirm in no uncertain voice its determination not to
forsake the rock of stability for the quicksands
of inflation,” reads part
of the speech.
13 January 1932
The SARB releases a press statement about the gold standard and gives assurance it “has substantial exchange resources and is confident that it is able to handle the exchange position effectively”.