BANKER'S OPINION.

Auckland Star, Volume LIX, Issue 23, 28 January 1928, Page 9

BANKER'S OPINION.

ROUNDLY CRITICISED. (Received 11.30 a.m.) LOXDOX, January 27. Mr. Gilbert Vyle, president of the Association of Chambers of Commerce, in a speech criticising Mr. Reginald McKenna's recent speech, said that no doubt New York would read Mr. McKenna's opinion with the greatest acclamation, but Mr. Vyle, as an Englishman, read it with dismay and regret, for Mr. McKenna had done harm to British traders. Many men equally competent, disagree with Mr. McKenna. — (A. and X.Z. and Sydney "Sun.") It was reported on January 24 that at the annual meeting of the shareholders of the Midland Bank, the chairman, Mr. Reginald McKenna. a former Chancellor of the Exchequer, said: '"The conclusion is forced upon us that in a very real sense the world is on a dollar America is able to control the world price level, first, because she can afford to lose large quantities of her huge gold stocks without the risk of her reserve falling below the legal minimum. Secondly, with her great wealth her central banking system can absorb large quantities of gold, which at the same time deprives it of credit-creating powers. This will continue so long as the present conditions exist. The United States has shown that while gold may be retained as the medium of international payments, it can be deprived of its function as the ultimate standard of value.