Salt Lake Telegram | 1931-09-21 | Page 1 | Gold Standard, Used Widely, Explained

Gold Standard Used j Widely Widel y Explained 1 By the Associated Press F The Tile gold standard of exchange is normally in use b by virtually virtu all ally every cry civilized nation of the world It It is predicated on the I II I fact that paper money of a country's bank of issue is 15 redeemable I In gold old on demand 0 The Thc suspension of gold cold payments in Great Britain means 0 that tile the Bank of England is not bound now under an act of ot I II I parliament of 1925 to buy gold bullion bulHon of or stipulated standards for I 3 pounds 17 shillings s 1014 10 r pence per troy ounce The act of II I I parliament in effect resulted in the thc British pound sterling being I equivalent normally to I In IU the British foreign exchange market recently with the I pound sterling available below its gold parity in relation to other I II I currencies it has Ib been cn profitable for banks to acquire sterling sterlin 1 1 pounds in the market convert them into gold old at parity and then I convert the gold Into other currencies by exporting the gold I The pound sterling was pegged in New v York durin during the war warI I at nt It reached this artificial height by means of securities I sale of oC dollars held by British citizens 1 In 1919 It was decided to remove the support and the sterling I dropped until finally in 1919 1910 it hit a new low of I The gold old standard has lias been adopt adopted cd by almost every country I since the war I