WILL STAY ON GOLD

Star (Christchurch), Volume XLIV, Issue 458, 20 May 1932, Page 1

WILL STAY ON GOLD

U.S. Banker Dismisses All Rumours. CONTROL OP PRICES. United Press Assn.—By Electrlo Telegraph—Copyright. WASHINGTON, May 18. Mr Eugene Meyer, a Governor of the Federal Reserve Board, confidently predicted that the United States would not go off the gold standard, when giving evidence before the Senate Banking and Currency Committee against a Bill demanding the control of price levels. “There is not the slightest doubt in the mind of any responsible official of the ability and the intent of the United States to stay on the gold standard. No nation has gone off except through necessity, and there is none that does not want to return to a metallic basis. Mr Neville . Chamberlain recently said that his country must return to a metallic basis.” Mr Meyer said that the Goldsborough Plan would do no harm. The United States alone could not control the world price level, especially in the face of conditions “more serious than we have ever known.” The House of Representatives, oti . May 2, passed the Goldsborough Bill instructing the authorities of the Federal Reserve Bank to restore and maintain prices at the level of 1926 or thereabouts by controlling credit and the volume of currency. Although opponents of the Bill expect that the Senate will defeat it or greatly modify it, fears of inflation are expressed in many quarters. Indeed, the next day the dollar exchange on the European markets suffered the sharpest break since the decline before Easter. French, Dutch, Swiss and Belgian money advanced beyond the gold point. The decline was attributed to the Goldsborough Bill. |