Printing Gold
. In a speech which was broadcast throughout America last Sunday, Sir Arthur Salter dwelt on this need for preparing the Conference programme. Amongst other matters he. explained a proposal which has an origin of sonic importance and possibilities of some interest. The suggestion is that the principal financial countries should co-operate in monetary policy by instructing the Bank of International Settlements (or some specially created institution) to issue a limited number of notes which would be accepted as gold by all the participating countries. Does this mean an international currency ? In a sense, presumably, yes, but that is not the immediate object. The object is—since the quantity of gold cannot be increased—to increase the equivalents of gold, under international management, to the point at which prices would be brought to a desired, agreed level. It would not, of course, do away with national currencies, but each country would be required to fix the value of its own money in relation to gold_ The advantage would be two-fold. The shortage of gold or its equivalents would be relieved ; and the central bank which controlled it would be a world bank, attending impartially to world requirements. It is to be hoped the proposal will go
forward to the World Conference.
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