Future Of Gold

THE Monthly Letter of the National City Bank of New York, for Decem ber, 1942, says that there is no rea son to suppose that central banks and Governments will give up the use of gold.

The bank advances three reasons in sup port of this contention: — (1) It is difficult to conceive of a mone tary system based upon anything but the precious metals commanding the confi dence of the people; monetary systems cannot be built upon “fancy theories,” but upon the way people think and behave. (2) Gold will be wanted by Govern ments for making international settle ments. Without gold for such purposes, the only alternative is strict control of all foreign trade, with continuation of all the paraphernalia of clearings, agree ments, blocked currencies, trade quotas, and the like, which were stifling inter national trade up to the war. (3) Gold will be wanted by Govern ments because of the huge vested inter est in it by the United States and the British Empire—the United States as the world’s greatest holder of the metal, and the British Empire, as the world’s greatest producer.

Mr. C. E. Pennefather, Advisor on Native Affairs, in Fiji, has been appointed a member of the Central Medical School Advisory Board.