European Stars And Stripes (Newspaper) - April 27, 1962, Darmstadt, Hesse Page 4 the stars and stripes Friday april 27, 1941 powerful Symbol for International Trade Gold what it Means to . And the world the United states is facing Fine of the gravest Gold crises m its economic history. Following is tha first of two articles which to Why and How Uncle Sam became entangled in thin Gold David Barnett Washington Nana Gold to artists and craftsmen is a soft heavy Metal of resplendent Lustre that is practically space scientists Gold is a Fine reflector of cosmic radiation thai to thin sheets provides a Good outer coating for space vehicles. To nuclear physicists Gold is so chemically stable that it makes a line plate far protecting valves in atomic Energy plants against acid corrosion under High pressure and elevated miners in Western United Stales Gold is a rare commodity sold at such a Low government set Price that it is hardly Worth extracting from the most americans monetary is a mystical substance once. Available in dimly recalled coins. And because Thi mystique extend throughout most of the world Gold according to under Secretary of the Treasury Robert v. Boosa la the Universal Mone tary Metal of timeless accept coins were introduced in the 6un Century . By Croesus the lydian King who even today is the Symbol of unlimited United slates went on the Gold Standard in 1879,under the Gold Standard most civilized countries fixed the value of their currencies in terms of Gold freely coined Gold and made paper Money fully redeemable in ail National currencies could be exchanged for a specified weight of Gold the currencies themselves were exchangeable at a fixed , the Standard operated As a Check upon easy or irresponsible monetary policies of government if Gold As a commod Ity became More valuable than the lace value of the Coin ways could lays be found to melt the coins War 1 and the great de pression killed off the Gold Standard in 1033. A Dollar i in Gold in the United states. But it is redeemable to Goto by Over Wnenta Only out be the United state. In 1922, the International eco nomic conference in Genoa passed what is it town a Resolution 9, recommending an International convention embodying some Means of economizing the use of Gold by maintaining reserves in the form of Torelto to called Gold Exchange it andante is what pretty much 6uldt International monetary Macenery today wit fein the Borders of the us.,the country is on a Gold Bullion tact. This last vestige of the Domestic Gold Standard requires together again St charts b. Trollinger and family the first Southern area come Soldier reunited with his family when or ident Kennedy lifted president 0�1ght d. Eisenhower s cutback on dependents in 1961, moves into quarters in the Perl Cher Forse hous ing area in Munich in n a crib which will to duplicated throughout Europe soon in Wake of the latent relax inf of the dependent travel ban. Members Are from left Troil Lierer mrs. Troller Irver holding a month old Robert Elbert 2 Charles jr., 7, and Karen 5. Army that 25 per cent of country s fed eral Reserve notes be secured by Gold Bullion. The average citizen does not see the Gold Bullion nor Gold certificates nor Federal Reserve notes. There Are some $48,000,000,000 in these notes which Means therein 4 claim of $12,000.000,000 on the . Horde of Gold Bullion. The Federal Reserve notes in turn Are used As a base for Ordinary commercial dollars. Thus one Gold Dollar is a ban for four Federal re Erve dollars which form a Bane for 24 Ordi nary Dollar. There is nothing sacrosanct about this percentage. It can be changed by Congress in 1945, the lawmakers dropped the Gold Back ing figure from 40 to 25 per cent. And there Are plenty of conserva Tive Bankers now such As Henry c. Alexander chairman of the Board of Morgan guaranty Trust and or. Roy l. Reierson chief economist of the Bankers trustco., who argut that the 25 per cent requirement should be Eli i administration is Little More Likely to try to change this percentage than to change the Price of Gold $35 an ounce plus a serv ice charge to till Central Banks and legitimate institutions. It won t Leouise old is a sym real value of the Dollar is based not on How it is priced in terms of Gold but on How it i priced in terms of goods and on Confidence that in these real terms the Money managers Are not going to devalue the Dollar. The Gold backing is psychologically related to that Confidence. The United states now holds some $10.600,000,000 in Gold bul lion the lowest level in 2s years. Of the total $12,000,000.000 is reserved by Law As backing for Federal Reserve notes and de bunks and other fiscal agencies in foreign countries hold some 511,000,000,000 in dollars. It general Heads a test Force Gen $ 1sion. Flt Irbid chief of dear test a jilt Tak Force an Aniny a near by proves Bat a Man Soho has spent helping Van wars and ape claim a in atomic weapons. Is a tall Tough athlete a Crow country raw i olympics with a broken ". He Hab he tar race that appointed commander fore a since then working frantically headquarter in a Tutt dirty Henr getting Liljar v a def 1?for the teat a years old saturday was born on the army Post of it Sill qkla., the son of a brigadier gears the United states has spent some sis.000,000,000 More overseas than it took i. The deficit in the International balance of payments was due basically to expenditures for military and Aid purposes by the government. The country be Timity exported More goods than it imported but during Inoff of this period the Central Banks of the foreign creditor nations were Happy to keep the Dollar rather than de manding Gold. In 1958, the so called from out flow gained headlines. The Basic conditions of International Trade did not change. One third of nil the world s Trade was cleared in dollars. But some of this country s creditors did demand a larger pro portion of Gold in their reserves. One reason was the shoring up by Gold of the currencies of Britain and the other newly prosperous countries of Western Europe. Britain for instance took Morthan half of the 51,400.000,000 in Gold that flowed out at the . In the first six months of 1958. Franco. Belgium and Italy it in creased the Gold backing of their currencies by cashing in Dollar for Gold. Some of the gom Drain salted from a Confidence in the Rale of Dollar. Some Bro Perm the us. Go through the races Ion with no drop in or prices and decided Tho but i value of the Dollar Mutt be Ging Down. This prompted the false con delusion hat the . Would sooner or later devalue the Dollar and probably october. 1960, the Price of Gold on the London open went from $35 in ounce to to i ounce. If the Dollar had born of valued holders of Gold thus would hav to profited. President Eisenhower made if Plain the value of the Dollar be defended. The Treasury ten cd to buy and sell sold at j3& an Kennedy admin is ration took additional action to maintaining the Dollar. Jacobsson says the current stress eth of the Dollar results it Tmarilyn from n conviction among european Bankers that the in. Mean to hold costs Down and to improve its competitive position lift world Trade. To Deal with speculation that ctn disrupt Normal Exchange channels a currency Pool Haab in set flip in the Hitt a National Mone tajik fund. At the an time an let to National Gold Pool it a Hig formed to stabilize the Price Gold on the London Market is Between mos and $311 Iff announce i under this arrangement cent Ftp Banks will use their Gold hoax ii to jump into the Market when dec Mand for rold threatens to Purt Finup the pries or when demand in dollars threatens to depress the Price. The objective is to keep fhe of Gold reasonably at the Price of $35 an ounce. 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