The Hague, July 8.
The gold standard can no longer function effectively because/there are many countries which do not possess gold, Dr. Walther Funk, Reich Minister of Economics, told the Netherlands press here yesterday. He is visiting The Hague in an effort to negotiate a German-Netherlands trade and economic agreement.
"Now that gold has disappeared from many countries," he said, "the foundation has been laid for a new monetary system; that of entire nations with organized labour, Formerly the financial centers could influence the entire world, but now this influence-is no longer accepted by countries not possessing gold."
He stressed thát the United States is "none too happy" with the huge amounts of gold being amassed within her boundaries. "They will either have to leave their gold untouched or they will have to face inflation, "which would be disastrous for the entire world" he said.
He praised the Bank itor: International Settlements.because it afforded directors of all circulation banks an opportunity to ' exchange views freely.
Dr. Funk emphatically denied that Germany was on the verge of intation. "This is impossible in an authoritarian state," he said. "If this should happen, the country would have ceased to be authoritarian."
Dr. Funk said-his visit to the: Hague was to demonstrate to the world that Germany is not only interested. in south-eastern Europe, but would "also much appreciate close Felatioris with the nations of Western- Europe.
Text read from the printed page and cleaned; old type leaves the occasional error.