THE WORLD PRICE LEVEL
CONTROLLED BY AMERICA. HUGE GOLD STOCKS. (Pres* AEsociatiOD—By Teiegrapii—Copjngm J LONDON. January 24. “ The conclusion is forced on u$ 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, because she could afford to lose large quantities of her huge gold stocks without She risk of the reserve falling below the legal minimum; and secondly, with the >rcat wealth of her central banl ing system she could absorb large quantities, at the same time depriving it of the creditcreating powers. This would continue as «? n g' a , s , t ' le existing conditions remained. The Lnitcd 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 Sydney Sun Cable.
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Bibliographic details
Otago Daily Times, Issue 20316, 26 January 1928, Page 9
Word Count
160THE WORLD PRICE LEVEL Otago Daily Times, Issue 20316, 26 January 1928, Page 9
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