GOLD STANDARD

Wanganui Chronicle, Volume 87, Issue 61, 15 March 1943, Page 3

GOLD STANDARD

POST-WAR LIMITATION LIKELY London, Mar. 11 Although the London conference on post-war currency problems has not yet reached a definite decision, the Financial News expresses the opinion that tlie trend of the Allied Government’s opinion on the role of gold after the war is already fairly obvious. “It seems probable that the system likely to emerge is a limited gold standard.” says the Financial News. “Currencies will be fixed at definite parities in relation to gold, which means that gold is certain to retain its function of a comon denominator for the measurement of values. What is more important is a suggestion that the European Allies intend to elaborate a svstem in which gold will play an active part. It is suggested that gold will be acepted in payments into an international daring account, and an international clearing institution will have a gold reserve. In substance. gold will nlay a similar part to that between 1932-39. Gold will be used for a settlement of trade balances, but not as a basis of internal credit structure. The main difference will be that gold movements will be through the intermediary of an international clearing system instead ot bv direct shipments by debtors to creditors Another probable difference will be that there will be no need for gold movments in connection with international movements of funds, since these will be under official control.” ’ .