THE FUND AND THE BANK

Otago Daily Times, Issue 26349, 2 January 1947, Page 6

THE FUND AND THE BANK

Sir, —I was surprised to find in your paper of Thursday last, under the above heading, with the sub-heading, Mr Nash on World Finance, the statement that “membership jn the International Monetary Fund does not involve a return to the gold standard." In a recent booklet entitled "This Fredoml ” (“The Great Betrayal”.), issued by the Service for Economic Action, Southsea (Eng.), we find the following: “To claim that Bretton Woods is not based on gold is intellectual dishonesty. Sterling linked to the dollar and the dollar linked to gold is a gold standard. ... To make gold the basis of trade negotiations is obviously to court international friction, for it limits buying and selling and is out of date. Our political leaders of all parties, hand in glove with the financial hierarchy, have gulled Parliament and people with the false statement that Bretton Woods Is not a gold standard, yet where foreign trade is concerned gold is the basis of all transactions. This must lead to economic restrictions which have been the major cause of World Wars I and 11. Without a sufficiency of gold no nation will be able to buy externally all it may require. “America has 28 billion dollars of monetary gold, of which 23 billions are in the vaults of Fort Knox, Kentucky. In speaking of America having 28 billion dollars, etc., the speech of an M.P. should be borne in mind ’. . . this gold does not belong to the American Government but to financiers, who are entirely irresponsible so far as any Government control is concerned.’ With gold the basis of ail international transactions, the least educated person can see that world economic power has been handed over definitely to the above interests. Again, to import goods, pay in gold, then export goods to the same country gives the exporting country the right to claim on the importing country’s currency, with which she can buy up industry, land, press, or spend it on propaganda. It enables one nation to ‘ muck about ’ with the political and economic life of another. Posesssed of a major holding in’ 1 gold the economic and financial dictator of the world will be America. Russia having an immense amount of unmined gold, the stage is set for a gold war. Should this happen, whichever side Great Britain joins, she will be In the cockpit.” I hope the publishing of the above will enlighten many more of your readers and that they will make it their urgent duty to themselves and their families to confer with their elected representative to Parliament at the earliest possible date. Not just leave it to the other fellow, but realise it is an individual responsibility.— I am, etc., A. S. M. Dunedin, December 30.