POST-WAR FINANCE

Otago Daily Times, Issue 25173, 13 March 1943, Page 5

POST-WAR FINANCE

THE ROLE OF GOLD DISCUSSIONS IN LONDON (N.Z.P.A. Special Correspondent) (Rec. 7 p.m.) LONDON, Max'. 11. Although the London conference on post-war currency problems has not yet reached a definite decision, the Financial News states that the trend of the Allied governments’ opinion on the role of gold after the war is already fairly obvious. “It seems probable,” the paper says, “that the system likely to emerge is a limited gold standard. Currencies will be fixed at definite parities in relation to gold, which means that gold is certain to retain its function of common denominator for the measurement of values. What is more important is the suggestion that the European Allies intend to elaborate a system in which gold will play an active part. It is suggested that gold will be accepted in payments into an international clearing account, and the international clearing institution will have a gold reserve.

“In substance, gold will play a similar part to that between 1932 and 1939. Gold will be used for the settlement of trade balances, but ndt as a basis for internal credit structure. The main difference will be that gold movements will be through the intermediary of an international clearing system instead of for direct shipments-by debtors to creditors. Another probable difference will be that there will be no need for gold movements in connection with international movements of funds, since these will be under official control.”