HUGE GOLD STOCKS.

Manawatu Standard, Volume LIX, Issue 98, 25 March 1939, Page 9

HUGE GOLD STOCKS.

CONTINUATION OE STANDARD. WASHINGTON, March 23. The secretary of the Treasury (Mr Henry Morgcnthau), in a 25-page letter in reply to the Senate Banking Committee's request- for an exposition of the American position oil the gold question, said: “There need not he any fear that the metal, of which the United States now holds over 15,000,000,000 dollars, or more than half the world’s monetary stock, will cease to he the standard of value in international exchange, thus leaving the United States caught.’’ Mr Morgcnthau said that the United States was likely to receive approximately one billion dollars of gold yearly from abroad till conditions settle, hut that the inflow need not worry America. Recovery, he said, was the only cure- for the gold flow, and international recovery was the only means of correcting the maldistribution of the world’s gold. Mr Morgcnthau insisted that the President’s power to change the value of the dollar was essential to national security. The old monetary concepts no longer were tenable and it would lie ruinous to return to the old pre-Ncw Deal valuation.