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n g u o tfio H S or c u r a r a DUBMUIICHUL mmucr Piglia by Suri E. Bopp bafor* Ih» M naneiftl Analyst« fcfcirtiy, May IO, 19M imamim s&jimm The nature of the problea !• Pro-war gold standard - How international equilibria* was aalntained B. Dislocations during the war and post-war period 1« 2« 3* C. Franco fro« 19*3 cent* to 2«5 cents (July 1926) Qeraany frot 23*6 to *02 par billion United Kingdoa fro« 4.87 to 3 * M (»or. 1920) Restoration« 1« Jfegland - Treasury Coaaittee appointed Juno 10, 1924 (£L equals 4*32) a« b. Bull speculation Tbo case of ooal In Brm»lX - Jun. 1925 British QQfcl 39 a h U U n g t 0. a. ooal *6.85 British toujft ¿Qg 8.42 IB i«78 9.50 2m Pranoe a« b* e» d* 3» So question of restoring pre-ear par Bear speculation Purchasing power parity fed of 1926 - $«045 Stabilisation rate - $«039 -2D. Defensa of restored parities 1. 2« 3« U« Tariffa Quotas Bilatéral agraeMots Why not restore at correct level? A* Iapossibility of aaoertalnlng 1« Sterling in 1925 a* b. (U 2* Vbat priœ indas to use a* b. o« 3« prices of international coaaodities in adjustaent Iholesale prioe» Bétail prioas What do price indexes aaan today? a* b* U* Tfeasury Coaaittee - 1¿% Cassel - 6% Keynes - 10% Price oontrols Ration!ng 1» Transition versus the long run G* Kecessity for flexlbillty in exohax^e rata* fbe international aonetary fuad A« Ag n a u nt of teehnioal experts B. Furpoaaa and palíelas -3Ca Subscription to the fund - #B bill loo quota - U. S* share 3/A billion Gold subscription equals J or 10 per oent of gold holdings. D* Transactions with tbs fund £« Par ralus of scaber currencies 1« As agreed with tbs ftand whan adaitted to acabership 2« Impressed in teras of gold 3« Mo change by fund without country's approval A* Meabers not to propose change except when in fundamental dieequilibriu* 5# Must bare approval of fund exoept for first 10 par esnt "In oonsidering a requested change* the fund shall taka into consideration tha ertrcae uncertainties prevailing at the tiae the parities of the currencies of the aeaber countries were initially agreed upon* 6« ?• Possible uniform change - if every »caber oomtry hawing 10 per cent of aggregate quotas approves Capital transactions A n d to be used only to a reasonable Mwunt - u 0« H* Apportionment of soarce currencies 1. Fund to propose equitable method of apportioning scarce currency 2» Fund to issue report on causes and reco— lenrlstions Management 1* Qovemed by board and an executive ocmmittee including representatives of the five countries with the largest quotas 2* Voting power closely related to quotas 3* Majority vote except a* b. I» Withdrawal 1« J* |t 4/5* ® vote to change quotas» and uniform change in gold value of member currencies Qy giving notice in writing Obligations of member eotatries 1» Sot to buy gold above parity or sell gold below parity 2« Sot to allow exehange transactions at rates outside range prescribed 3« Sot to Impo— restrictions on payment for eurrect international transactions or to engsge in discriminatory currency arrangements < wi arrangements remtriaticAS may be n a d o il i g M M i « f i b i Vmmmm
@FedFRASER