European Stars And Stripes (Newspaper) - April 28, 1962, Darmstadt, Hesse The stars and stripes Somr Doy april 28, 194$ but with International cooperation if con work Drain tedious paint tit process editor s note this thelast of two articles on the . Uart beset by troubles based on a dwindling Gold Reserve by David barn kit wast Angton Naka there is Gold on All continents of the Earth and in the problem is How to extract it profitably when the Price is pegged by the . Treasury and the International monetary system at 535 at ounce. If you processed a ton of sea water you would probably get about five cents Worth of quarters of the free world s annual production of $1.2 Futon comes ,4rom South Africa. In the tremendous hand mines there the Ore is hoisted from shafts two Miles deep. About 70 torn inst be removed to get one Pound of refined Gold. J the Cost squeeze has pushed 95 pet cent of the old mines out of production. Reliable statistics on Gold production behind the Iron curtain a not available. The Best Esti. Mate is that the soviet Union in i960, mined Gold Worth $396 million at the us Price. Some authorities Belleve the soviets have a Reserve Gold Worth $5 billion. the soviets go in to the free Market m they did feb. 16, to get foreign Exchange fax heir Gold they take a beat Tot because of the mine Cost information put together from soviet journals by a . Govern ment Agency indicates it costs the russians much More than $35 an ounce to extract the Gold. The Cost 9165 an ounce at the official rate of Exchange or $66 an ounce at the tourist one fourth of the mined Gold goes into jewelry Industry dentistry and other finery. Their so uses Gold Worth about $100 Zati Uon a year in these enterprises. Throst double the amount mined in this country. Johte is a Rop in the bucket compared to the Jold used As Nio teary backing the shifts from one country s Hole in another january 5280 million of the Treasury s Gold Reserve has been purchased and thus drained s a dollars held by foreign King institutions mostly in How awaiting burial in Congress is a proposal for paying an incentive of up to $35 an ounce to do Mesic miners. This would in effect up in Price the Treasury pays to . Miners to $70 an ounce while keeping the buying for Long Price to others at $35 an Kelly assistant Secretary 6f state Interior Points out Wii an Inocen Tyve of $35 an ounce Tow production might be doubled but at Thler doubled rate it Wold t&fee"42 years to replace from Domestic sources then one Reserve loss since 1957." Braes of Meairn Iwuh in banter of in measures to fact the incentive wow mow taut hot. Dot a with omd Domestic production 1 opposition to the proposal Tate department. Tfx to be misunderstood in fore where it might a re t aniodifie14ott, of i Jwj a Igi mfg Troia the 3ou throngs of Cus Tomer pack one of Hie Many tf.8. Armed forces military hopping centers in the european Ana. Emf limit the of amerlean facilities was recommended thin week by retiring to Sakub com Mander in cheer Gen Bruce c. Clarke tone of the important Way i which the military Community can help to alleviate the Gold problem. In an increased Drain on . Gold the $35 Gold Price is Che Symbol of the Dollar s integrity there is no serious consideration United states has accumulated through payments for uj3. Agri cultural surpluses sold under pub Lic Law 480. These Are not conver Tible into British pounds being Given to changing that Price. The United states As president i _ _ � a is. I y a in not Lis it i it t a rent 11 to to Tel Lruth. Besides in these Days of Man aged currency Exchange rates such a move would not help cure the major disease the imbalance , International accounts. Other governments would make compar Able shifts in the value of their suggestion periodically made and refused in Congress is the removal of the requirement that a 25 per cent backing in Gold be reserved for Federal Reserve notes and deposits. Removal would release some $12 billion in Gold stocks for settling International Kennedy pointed out last month still has 40 per cent of the free world s Gold , if nothing goes right and the Drain continues and the accounts. The administration is reluctant to request such a step be cause of its possible effects on the Confidence in the administration expects the Gold Iosim to continue this year. However says Secretary of the Treasury Douglas Dillon they should not be of a Slae or a Hawter to cause Gold reserves Are being used to buy time. By the end of 1963, the administration Hopes the Basic disease will be . Notes that the Gold out flow results because some coun tries the change part of their Dollar holdings for Gold to restore or maintain their varied Rule of thumb ratio of Gold to their total International reserves although ratios of that sort have less relevance a International cooperation becomes and the payments 3iysenv is this ratio system is responsible for the unusual situation obtaining on the first Quarter of this Yean the Fui outflow actually was larger than thai total deficit in the balance of payments. To Kielp in. Oils kind of situation the trea Suity. Plans to use some of its Stock of the corel irn currencies it has through _ Norall concern is Only with the Gold and not the More fundamental imbalance of Trade the Drain could be retarded by political Means. Britain could be persuaded As a close ally to hold less than 9ftper cent x f its reserves in Gold. Other cooperative allies could be persuaded to take similar stops. Or the United states could just slap an embargo on Gold ship ments. This would Fae a distasteful step for a government trying to persuade other countries to remove their currency outflow of Gold from this country is a symptom of the is. Deficit in its balance of International Adverse balance has been with the United states every year except one since 1950, but major Public concern did not mount until the deficit resulted in substantial exports of Gold in 1958, 1959 and last payments deficit last year amounted to nearly $2.5 Blahon. A Little Over a third of this $867million, was covered by Gold sales. To Core the Baste disease the country Mast Deal effectively with the payments imbalance. Tjie balance of payments is a composite of Many variables. A major part is the balance of Trade which compares merchandise exports with merchandise imports also involved in the payments balance Are service charges for such things As shipping and insurance payments of interest and on investments National movements of tourist travel and the one sided flow of dollars resulting from government action to support National than. 05 per cent of the plus for of the comes from Export of goods that is be reason Why l j " on increasing us. Dent Kennedy has an. Does not include Tia much amounts of Ilow Fin currencies Toel bounced hib Intenson of appoint an Export coordinator in the Commerce department who would develop Export targets by Industry and country and make sure . Government facilities would be used to help the exporters reach these targets. The key fact,11 says Dillon is that the United states can in this intensely competitive world win the Battle for markets Only by doing a better Job in restrain ing our own prices and imports of goods and services amount to Only 70 per cent of the minus Side of the payments Ledger. Any Overall increase in International Trade even based on cur rent divisions of markets thu would probably help the payments is where the administration s proposal for new Trade legis lation comes in. As Dixon put it All our efforts to put our producers in a position to better compete with foreign producer will be meaningless if High Taf Walls abroad keep our goods of foreign markets also on the minus Side of to balance picture is Money invested i by american firms in the developed countries abroad. Tourist travel contributes about$1 billion a year to the deficit. This can be reduced by Ali during More foreigners to travel it the United states the first line of attack on to deficit As Dillon Points out i curtail the outflow or dollars the government itself. Uncle Sam spent almost $3 lion for defense purposes Over last year. These heavy pay Meei went mostly to maintain and so i port american forces abroad. To offset some of this the sense department is Nego Talfor increased purchases by t foreign allies of . Mil equipment and services. The tips expected to go to $1 billion year double the figure for 1961 expenditures by military civilian personnel Ami their pendent overseas have been tailed. One Early step in Tate direction was an order prot trally eliminating the shipment of dependent overseas this abandoned this week. It in much of � hardship Pendents used personal and went anyway. The main responsibility righting the deficit says Dii lies in our own hands in sustained efforts of government business and labor. But the com ration of other free countries to also essential if we Are to a stronger International Finard system. That system must be Pable not Only of supporting nourishing expanded Trade the free nations but also of standing the strains and press efs that Are an inevitable part fress in this restless world the results of our efforts far have been Good enough of justify Confidence that we join made the right Start they Are k0f so Good As to justify complacency. Part of our improvement1961 came from palliative palliative must be continued1 1963. But the cure has also to work and it an be a cure As Long As we recognize it can be neither simple nor i utopian ism Tom kid col Ridgway p. Smith or. Usa i kit col John j. Caulfeild Usan. At Hoto Rutnett Aumi d. Rank Sydney Miami of of Many control Adhit Hmer a. Gobi. Not Jack Bui sports Ralph Kwidd nature dwt wet 1c 753m Faro Todt air tit tit my 741 two he Flygt 041s?-i73, mlt�-j34 Lilion c dam. C 14313, m 7393, my 7-3m07 Fth do by Hoytt c 46fl. Rommich Muny i. Kraft c 43395 04$72 bulb i to to Cunt c 764410 news Indab South of if my a Nav. Or Vilna 1333, Tut 471, 472 it 0300-28481 Marci Paris. Mort. F. Geml not cd 3400. 4 mod Rui a clix 3-90. To j7j3 030i7-77w c f furl so Bustle Glo h Votaw Feio it was into me Day Tisnad Jena All wifi foal Mil dih tort of Ciquia Fket off is in dad to too 8.hj Park Al my it or to def of uck my hah i it c 8419 to fso-75-73, my u
