SILVER AND GOLD

Taranaki Daily News, 3 June 1933, Page 7

SILVER AND GOLD

COVERAGE FOR CURRENCY SUGGESTION BY AMERICANS SUBJECT FOR CONFERENCE WHAT PLAN WOULD MEAN PROBLEM OF SURPLUS GOLD By Telegraph—Press Assn.—Copyright. Rec. 11.25 p.m. New York, June 1. The American delegation to the London Conference will suggest, it is understood, that the central banks should endeavour to adopt a ?5 per cent, metallic coverage for currency in circulation, such metal being 20 per cent, silver to gold, says the Washington correspondent of the New York Times. A 25 per cent, coverage would be a decrease for the United States, which still maintains a 40 per cent, gold ratio, but would mean an increase for most other countries. If the plan were adopted the United States would have approximately two thousand million dollars gol! (about £400,000,000) unnecessary for note coverage.

What to do with the surplus—which if used for monetary purposes would make possible a note issue of 11,000,000,000 dollars (about £2,200,000,000) —is a problem which might possibly be ironed out by international agreement.