THE ALMIGHTY DOLLAR

Evening Star, Issue 19773, 25 January 1928, Page 6

THE ALMIGHTY DOLLAR

WORLD’S STANDARD OF VALUE BRITISH BANKER’S CONCLUSION. Press Association—By Telegraph—Copyright. LONDON, January 24. (Received January 25, at 11.20 a.m.) “The conclusion is forced on us that, in a very real sense, the world is on the dollar standard,” declared Mr Reginald MTvenna, the chairman at the Midland Bank meeting. He added that America was able to control the world price level, first because she could afford to Jose large quantities of her huge gold stocks without the risk of the reserve falling below the legal minimum, and secondly, with the great wealth of her central banking system she could absorb large quantities, at the same time depriving it of the credit-creating powers This would continue as long as the existing conditions remained. The United States had shown that while gold might be retained as the medium for international payments, it could be deprived of its function as the' ultimate standard of value.—A. and N-Z. and ‘ Sun ’ Cable.