The Grondona system was sufficiently well-known during the 1950s to be the subject of debate in the British Parliament in 1958, when it was vigorously praised by supporters, as well as in the press. Examples of this support are given in this chapter, which show how those who took the time to study the Grondona system recognized its unique strengths and strongly recommended its adoption by government. Unfortunately, when the British government finally set up a committee in 1976 to consider the problem of commodity price instability, it was chaired by a long-term advocate of the international buffer-stock system advocated by UNCTAD. As Grondona predicted, the result was that the committee's report contained no substantive criticism of his system but merely reiterated the government's existing policy of continuing participation in UNCTAD negotiations – to no effect nearly half a century later.
Top16.1 Support For Grondona System In 1958
The following are some representative comments from some of the many highly supportive reviews of Grondona’s book “Utilizing World Abundance” published in 1958, as well as by some of the members of the British parliament from all political parties who spoke in favour of implementing Grondona’s proposal.
Financial Times
The simplicity of the system outlined by Mr Grondona is one of its major attractions. The objective of his proposals would be to help stabilize both commodity prices and the value of the national currency, so mitigating the sharp inflationary and deflationary movements which hinder economic growth. In principle, the system described in his book seems capable of achieving such an objective. It would encourage world trade and prosperity by linking currency values to commodities; it would help to stimulate investment in primary producing countries, and to increase production of raw materials at stable prices ... Mr Grondona’s constructive proposals should receive widespread discussion and investigation. (Financial Times, 1958)
The Times of London
Of all the proposals for increasing the stability of commodity prices Mr Grondona’s is much the most realistic and comprehensive, and goes furthest in making practical allowances for the difficulties ... it seems that on a sufficient scale the activities of valorisation would in their turn go far to determine the values of currencies. (Times, 1958)
Manchester Guardian Leading Article
Most schemes for commodity price stability suffer two weaknesses: they rely too much on altruism, and they call for more international co-operation than is readily forthcoming. On the face of it, the system outlined by Mr St. Clare Grondona in his book published today should overcome these difficulties. It is thought out in ingenious detail; and it could be a step towards a sensible commodity standard. (Guardian, 1958)
The Tribune
This devastatingly simple scheme to bring stability to prices by stabilizing those of basic commodities is so attractive ... and the benefits from its operation could be so great that it ought to be taken off the drawing board and sent to the workshop – in this case the Commons. (Tribune, 1958)