The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Outline of Remarks by M. Monroe Kimbrel for Southern States Conference of Certified Public Accountants June 15, 1964 The international liquidity position of the United States has declined steadily over the past decade and the nation's ability to finance sizable and persistent deficits in its inter national accounts has experienced a parallel reduction. Notwith standing these developments, the deficit in the balance of pay ments remains uncomfortably large. Moreover, there is no sound basis for confidence that significant further improvement can be expected within the framework of existing balance of payments policies. Briefly stated, Americans -- government, private business and individuals — have been spending, lending and investing more abroad than foreigners have been spending here. All of the obvious and relatively painless steps to secure balance of payments improvement already have been taken. And, for the most part, the full impact of these measures has been felt. Whether or not the remaining deficit can be eliminated through evolutionary improvement in the private sector of the economy is subject to some doubt. Moreover, the length of time for which the United States can continue to incur payments defi cits of the current magnitude without at the same time producing unmanagable strains on the international monetary system is also a source of concern. Evidence that the payments position is developing a stubborn ness with which the United States is not prepared to deal would be seriously damaging to the confidence in the dollar. In addition, ambiguities in the longer range trade outlook also raise questions -2- concerning the wisdom of relying too heavily on ultimate improve ment in the trade surplus as the financial solution to our payments difficulties. It is important that the United States intensify its efforts to secure additional balance of payments improvement in both govern ment and private capital accounts as well as to exert continued efforts in improving the international competitiveness of United States products. A sustained flow of economic and technical assistance to the developing nations is a worthy goal. Such aid payments, however, can not bestow benefits if, by virtue of the burden which they impose on the United States, they endanger that international monetary stability upon which the developing nations are so heavily dependent for their own economic progress and strength. The political and military objectives served by maintaining our defense commitments may or may not have changed in recent years but our ability to finance these commitments without jeopar dizing the international payments mechanism clearly has declined. The United States has no choice but to tailor its domestic economic policies to meet the needs for balance of payments improve ment. In the long run, these policies are identical to those which will serve our national objectives of sustainable economic growth and expanding job opportunities.
@FedFRASER