§ 59. Sir Nicholas Grattan-Doyleasked the Chancellor of the Exchequer whether he is aware that Sweden during the War refused to accept gold in payment for goods on the grounds that Sweden was not sure that other countries would, after the War, accept gold in payment for foreign goods purchased by Sweden; will he endeavour to obtain guidance whether the United States Government will accept large volumes of gold from Britain in payment for goods should Britain in time of war be able to offer only gold as the 559 means of payment for goods and services from the United States of America, or dollar exchange, bought with gold, for use as payment for British purchases from other countries?
§ The Chancellor of the Exchequer (Sir John Simon)According to my information, it is not the case that Sweden during the War refused to accept gold in payment for goods. The obligation of the Riksbank to accept gold at a fixed price was suspended on 8th February, 1916, but it continued to receive gold, though at a lower price. In other words, the Swedish currency was allowed to rise above its nominal gold value. I am not disposed to accept the view implied in my hon. Friend's question that gold appears likely to lose its importance as a medium of international exchange. In any case, I should not consider the course of action suggested in the second part of his question as appropriate.
§ Mr. MacquistenIs the right hon. Gentleman not aware that the world can never give up gold unless we are sure that we are all going to be honest, and that will not come in our time?
§ 60. Mr. Liddallasked the Chancellor of the Exchequer whether, in order to increase confidence in the sterling exchange position, he will give a rough estimate of the total of our short-term obligations to overseas creditors and the amount, in the hands of the responsible British authorities, of gold available as a reserve against those obligations?
§ Sir J. SimonI am not in a position to give my hon. Friend any formal estimate and it is very difficult for this purpose to draw the line between short-term obligations to overseas creditors, such as deposits and bills, and foreign holdings of British securities which might be realised and the proceeds withdrawn, putting the same strain on the exchanges as the withdrawal of a foreign deposit. From such evidence as is available I am, however, satisfied that any increase in our liabilities in the last six years, which includes the increase in our liabilities to other parts of the Empire, has been far more than covered by the growth in our reserves.