INFLOW OF GOLD

Wairarapa Times-Age, 25 March 1939, Page 7

INFLOW OF GOLD

HUGE STOCKS IN UNITED STATES. NO CAUSE FOR ALARM. B.v leicgiaph- Hi Association. • WASHINGTON, March 23. The secretary of the Treasury, Mr Morgenthau, in a 25-page letter in reply Lo the Senate Banking Committee’s request for an exposition of the American position on the gold question, said “there need not be any fear that the me’tal, of which the United States now holds over 15 000,000,000 dollars, or more than half the world’s monetary stock, will cease to be the standard of value in international exchange, thus leaving the United States caught.”’ Mr Morgenthau said that the United States was likely to receive approximately one billion dollars of gold yearly from abroad till conditions settle but’ that the inflow need not worry America. Recovery, he said, was the only cure for the gold flow, and international recovery was the only means of correcting the maldistribution of the world’s gold. . , He insisted that the President’s power to change the value of the' dollar was essential to national security. The - old monetary concepts no longer were tenable and it would be ruinous to return to the old pre-new deal valuation. U.S. DOLLAR. NOT TO BE DEVALUED AT PRESENT. WASHINGTON, March 24. The Secretary of the Treasury, Mi Morgenthau, stated today that the President had no present intention to reduce the price of gold from 35 dollars an ounce.