Evening star., 1925-05-24
AMERICA LAUDED
FOR AID IN BRINGING
STERLING UP TO PAR
Continued from First Page.)

from a low point of S319 as the value
OF its pound six years ago, and by
doeged persistence secs her reward
today in virtual achievement of par
exchange.
The Importance of this achieve
ment," continued DR. Miller, whether
1t be looked at from the point of view
of the world interest or of our ma
tional American interest, cannot easily
be exaggerated. The action recently
taken by the British Parliament in
ordering a restoration of the gold
standard and the re-esta tablishment of
London as free gold market was
promptly followed by similar action
in the self-governing commonwealth
of the British Empire and by coun-
tries in Europe that were awaiting
England's decision. The result is that
there are now only three of the
larger nationS-France, Italy and Rus
sia-that have still to swing into line
in making the gold standard prac-
tica1y universal and restoring it to
the primary position it occupied be-
fore the war as an international reg
ulator of money and exchange"
London was described by DR.. Miller
as the most important of the world
free gold markets in prewar days.
Her position, he said, was unique, and
as result the pound sterling attain
ed primary position as a monetary
unit among trading nations.
1T is not too much to say" he
added. that the successful main
tenance and the effective operation
OF the gold standard in pre-war days
was due largely to the skill with which
London conducted her banking and
monetary affairs in maintaining a
-lr rot nd hue h,,t
the gold standard in other gold-using
and gold-exchange standard countries"
Sees Better Trade.
DR.. MilIec~ is convinced that inter
national trade and finance can be
operated more safely as a result of
the restored gold basis in so much of
the world. He said that few things
added more to the hazards of trade
than a fiuctuating exchange.
The re-esta blishment of the pound
sterling as a dependable monetary
unit of international payment" he
went on, may, therefore, be expected
TO give substantial boost to interna-
tional trade from which we in the
United States may expect to be great
gamers.
Every one in the United States.
whether engaged in agriculture com
merce, industry or finance. will in
time feel, though he may not be
aware Of it, the stimulation that will
come with the restorati ton of the
worlds international machinery Of
exchange to the firm and, secure
basis of the gold standard.
Credit Will Improve.
1T may be also expected that. with
the removal of the dams which OBJ
structed the natural flow of gold from
country to country, credit will be
loosened and afford stimulation in
healthful and safe ways to trade
among the nations and industry
within them"
DR.. Miller feels that now is the time
for America to establish a firm grip
on her position as the worlds great
est gold center, yet he explained that
this country was unlikely to obtain
the steadying influence of the gold
standard on her affairs unless inter
national gold flows resumed a normal
course through the re-esta blishment Of
London as the next most important
free gold market.
With such an undoubted and i'm
portant interest at stake, DIR. Miller
said, the United States clearly has
an interest in promoting and assist
gold standard in England.
Will Advance Gold.
"And as the largest single holder of
the worlds stock of monetary gold"
he continued. I'VE in the United States
not only have an interest in the res
toration of the gold standard but a
duty to assist in it's restoration and
maintenance wherever conditions give
definite promise of success. 1t is for
this reason that our Federal Reserve
Banks have arranged to let the Bank
of England have some of their gold
should it be needed by the Bank of
England in the first stages of Eng
lands resumption of gold payments
and the practices of a free gold mar
ket. 1t does not seem likely at this
time that the Bank of England will
have much or frequent occasion to
draw on our gold supply, but past ex-
perience shows that difficulties may
be encountered in the early stages of
gold resumption, and that 1t is there
fore inadvisable not to be prepared to
meet them.
"The Bank of England and the Brit
ish government have therefore acted
wisely in arranging for American gold
credits to be drawn upon in case of
need, It was particularly thought ad-
visable to have an American credit
of impressive amount for the pur-
pose of discouraging in advance and
beating off and defeating any specu-
lative drives that might be made by
operators anywhere in the world
against sterling exchange, if such
drives should be attempted.'