Addressing the shareholders of the Midland Bank on Tuesday, Mr.
McKenna said that the industrial promise of 1927 had been fulfilled. He had been hopeful last year, but he was more hopeful this year, though there was no justification for " unbounded optimism." The essence of his speech was an examination of the monetary policy of the United States under her present banking system. He said that although gold was still the nominal basis of most currencies the real determinant was the pur- chasing power of the. dollar. Although the world seems to be on a gold standard, it is actually on a dollar standard. " As long as conditions remain similar to those we know to-day America will be able to pursue her credit policy without regard to gold ,movements and to maintain control over the world level of prices."
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