New Factor Determining - the Value of Gold London, Jan. 24, "The world to-day is on a dollar standard," declared Mr. Reginald 'McKenna to-day, when, as Chair-presiding at the annual meeting of the Midland Bank, Ltd London, he remarked' that America was able to control world price levels because her gold stocks were so great, that she could afford to lose large quantities without any risk of her gold r low the legal mini central banking system was constituted, that it had given her great wealth, She could absorb Jarge quantities of gold and at the same time deprive it of its credite creating powers, The development of the central bank policy of the United States hnd shown that gold, while it might te retained as a medium for making international payments, could be deprived of its ion as the ultimate standard ive. American price levels Were not affected by gold mover ments, but were controlled by tha policy' of the reserve banks in exe anding or contracting credit, Cone sequently, it was not the value: gold in America which determined the value of the dollar, but the Value of the dollar which determined the value of gold. Although gold was still the nominal basis of most currencies, the real determinant of ts of the general level of throughout the world, was the purchasing power of the dollar,—Reater,
Text read from the printed page and cleaned; old type leaves the occasional error.