Show Dollar Takes Another Fall The second devaluation of the dollar since 1934 and the first since 1972 took place on February 12 12 1973 The value of the ounce Of gold is now now officially 42 22 an n ounce a ten percent reduction reduction tion in ln the gold value of the dollar In Ih April of 1972 the value of gold was raised from 35 to 38 an ounce which was a a little over ten percent Th The chief effects of the latest move will win b be 1 to make mak the price of American Amer ican scan expo export products cheaper and more competitive abroad while American goods and services produced or rendered render ed with with the the e help of imported products such as electronic commodities and manganese textiles automobiles and other crude and manufactured goods will wiD be dearer Also Americans traveling abroad will win receive less currency in exchange ex change for dollars which will wID be another help in reducing the drain of dollars to foreign countries But in all of this there Is Is one significant significant sig sig- sig fact one one unavoidable conclusion conclusion sion slon which demand emphasis Devaluation Devaluation Devaluation Deval Deval- is a a palliative not a n sure cure Ure It Itis Itis Itis is a Band Aid not not an n operation The dollar will continuo continue tobe in trouble at home From inflation arid and abroad from gluts so long as the Congress refuses to put our financial house bouse In order Enormous domestic deficits and vast payment balance deficits are the root causes of f the dollar problem Paper gold in foreign relations and spending programs in domestic affairs will not substitute for thrift or simple tic Something eventually will have to give including foreign resistance to American exports and investments Some economists are predicting an old fashioned recession That surely would be the worst curse of all There is sufficient knowledge of economics to enable us to live within our means and still avoid a recession |