Unlicensed Amateurs
SIR,—You appear to endorse the French solution to the world liquidity problem. But is there not a dilemma in that if the price of gold is raised only a little the problem will merely be palliated for a year or two—with consequent speculation in gold against the next price change—but if it is raised a great deal the results will be wildly inflationary?
Furthermore, changing the price of gold will result in large windfall gains for gold-producing and gold- hoarding countries, who are rich, and do virtually nothing for poor countries who need the extra liquidity far more.
DEREK BLOOM
Flat 3, 28 Roland Gardens. London. SW7
[The inflationary dangers from a substantial rise in the price of gold could be offset by an appropriate reduction on, say, existing dollar balances and credits. The poor countries need not liquidity, but trade and aid: the world needs liquidity to provide this.— Edito r. SPECIATOR.1
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