WORLD’S PRICES
AMERICA ABLE TO CONTROL THEM
OWING TO HUGE GOLD STOCKS
BY TELEGRAPH.—PRES 3 ASSOCIATION. Copyright.
Loudon, January 24
“The conclusion is forced on us that in a very real sense the world is on the dollar standard,” declared Air. Reginald McKenna at the .Alidland Bank meeting. “America is able to control thb world price level, firstly because she can afford to lose large quantities of her huge gold stocks without the risk of the reserve falling below the legal minimum; secondly, because with her great wealth her central banking system can absorb large quantities, at the same time depriving it of credit-creating powers. This will continue so long as the existing conditions remain. Tht United States has shown that, while gold may be retained as a medium of international payments, it can be deprived of the function as an ultimate standard of value.”—A.P.A. and “Sun.”
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Bibliographic details
Dominion, Volume 21, Issue 100, 26 January 1928, Page 9
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147WORLD’S PRICES Dominion, Volume 21, Issue 100, 26 January 1928, Page 9
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