Regional President Speech

nguotfioHS or curara DUBMUIICHUL mmucr Piglia by Suri E. Bopp bafor* Ih» Mnaneiftl Analyst« fcfcirtiy, May IO, 19M Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis imamim s&jimm The nature of the problea !• Pro-war gold standard - How international equilibria* was aalntained B. Dislocations during the war and post-war period 1« Franco fro« 19*3 cent* to 2«5 cents (July 1926) 2« Qeraany frot 23*6 to *02 par billion 3* United Kingdoa fro« 4.87 to 3*M (»or. 1920) C. Restoration« 1« Jfegland - Treasury Coaaittee appointed Juno 10, 1924 (£L equals 4*32) a« Bull speculation b. Tbo case of ooal In Brm»lX - Jun. 1925 British toujft British QQfcl 0. a. ooal ¿Qg IB i«78 39 ahUUngt *6.85 8.42 9.50 2m Pranoe a« So question of restoring pre-ear par b* Bear speculation e» Purchasing power parity fed of 1926 - $«045 d* Stabilisation rate - $«039 3» Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 2 - D. Defensa of restored parities 1. Tariffa 2« Quotas 3« Bilatéral agraeMots U« Why not restore at correct level? A* Iapossibility of aaoertalnlng 1« Sterling in 1925 a* Tfeasury Coaaittee - 1¿% b. Cassel - 6% (U Keynes - 10% 2* Vbat priœ indas to use a* prices of international coaaodities in adjustaent b. Iholesale prioe» o« Bétail prioas 3« What do price indexes aaan today? a* Price oontrols b* Ration! n g 1» Transition versus the long run G* Kecessity for flexlbillty in exohax^e rata* U* fbe international aonetary fuad A« Agnaunt of teehnioal experts B. Furpoaaa and palíelas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - 3 - Ca Subscription to the fund - #B bill loo quota - U. S* share 3/A billion Gold subscription equals J or 10 per oent of gold holdings. D* Transactions with tbs fund £« Par ralus of scaber currencies 1« As agreed with tbs ftand whan adaitted to acabership 2« Impressed in teras of gold 3« Mo change by fund without country's approval A* Meabers not to propose change except when in fundamental dieequilibriu* 5# Must bare approval of fund exoept for first 10 par esnt "In oonsidering a requested change* the fund shall taka into consideration tha ertrcae uncertainties prevailing at the tiae the parities of the currencies of the aeaber countries were initially agreed upon* 6« Possible uniform change - if every »caber oomtry hawing 10 per cent of aggregate quotas approves ?• Capital transactions And to be used only to a reasonable Mwunt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis - u - 0« Apportionment of soarce currencies 1. Fund to propose equitable method of apportioning scarce currency 2» Fund to issue report on causes and reco— lenrlst ions H* Management 1* Qovemed by board and an executive ocmmittee including representatives of the five countries with the largest quotas 2* Voting power closely related to quotas 3* Majority vote except a* 4/5* ® vote to change quotas» and b. uniform change in gold value of member currencies I» Withdrawal 1« Qy giving notice in writing J* Obligations of member eotatries 1» Sot to buy gold above parity or sell gold below parity 2« Sot to allow exehange transactions at rates outside range prescribed 3« Sot to Impo— restrictions on payment for eurrect international transactions or to engsge in discriminatory currency arrangements |t <wi arrangements Digitized for FRAiSgEMR Mi «f ibiVmmmm remtriaticAS may be nadoil http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Karl R. Bopp (1944, May 9). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19440510_karl_r_bopp

@misc{wtfs_regional_speeche_19440510_karl_r_bopp,
  author = {Karl R. Bopp},
  title = {Regional President Speech},
  year = {1944},
  month = {May},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19440510_karl_r_bopp},
  note = {Retrieved via When the Fed Speaks corpus}
}