Reform Of Monetary System Urged

Press, Volume CVII, Issue 31539, 29 November 1967, Page 10

Reform Of Monetary System Urged

(NZ.PA.Reuter —Copyrightl

LONDON, Nov. 28.

“The Times” yesterday called for reform of the international monetary system to make it less dependent on confidence in the pound, the dollar, and gold.

In an editorial headed “Why Buy Gold?” "The Times” said that worry about the dollar last week jolted the London bullion market, the main centre for gold trading. It said, "almost as shrouded in mystery is the source of all last week’s demand. Zurich was the chief buyer—but this does not mean that the Swiss are now sitting on most of last week’s turn-over. “Gold is bought through Switzerland by nationals of many different countries who may leave it in accounts in private Swiss banks or take it home with them. Demand from the Arab countries usually comes through Switzerland in this way. Demand from the Far East, from

India and occasionally Communist China tends to come directly through London." “The Times” said that whereas distrust of sterling drove many of its holders into equally negotiable, interest-bearing dollars, distrust of the dollar had made most people feel happier holding their own currency or gold. It said the signs were that the United States would weather the storm arising from the scramble out of dollars into gold. “But the moral of the last week is the urgency of reforming the international monetary system to make it less dependent on confidence I in the currencies of Britain | and the United States, and on | a metal which is of inelastic supply and little intrinsic | value.”