THE DOLLAR STANDARD

Evening Star, Issue 19777, 30 January 1928, Page 5

THE DOLLAR STANDARD

REPLY TO MR M'REHKA

Press Association —By Telegraph—Copyright

LONDON, January 27. Mr Gilbert Vyle, president of the Associated Chambers of Commerce, m a, speech, criticised Mr Reginald M'Kenna. He said: “No doubt New York rend Mr M'Kenna’s speech with the greatest acclamation, but as an Englishman 1 read it with dismay and regret. Air M'Kenna has harmed British traders. Many men equally competent disagree with Mr M'Kenna. “ The conclusion is lorced on us that, in a very real sense, the world is on the dollar standard,” declared Mr Reginald M'Kenna, the chairman, at the Midland Bank meeting. He added that America was able to control the world price level, first, she could afford to lose large quantities ol her huge gold slocks 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.