§ 42. Mr. Stokesasked the Chancellor of the Exchequer whether, in view of the great disparity between the price of gold for monetary purposes fixed at £8 12s. 3d. per fine ounce under the International Monetary Fund and the free market price of £22 10s., he will take whatever steps he may consider necessary to obtain a revision of the price fixed under the International Monetary Fund so as to accord more closely to free market prices.
§ Sir S. CrippsNo, Sir. I cannot accept the inference that the price of gold in certain limited markets is a true indication of the price for monetary gold.
§ Mr. StokesWould not the right hon. and learned Gentleman agree that the free market price would probably be a great deal higher than £8 12s. 3d. per fine ounce? Is not it one of the first provisions of the International Monetary Fund that members are bound to follow a policy which will ensure full employment? As the United States is clearly not doing that, surely that alone is cause for revision.
§ Sir S. CrippsThe price is, of course, fixed by the United States Treasury, and not by the International Monetary Fund.
§ Mr. StokesIs not my right hon. and learned Friend aware that he is entitled to revise it, if members of the Fund do not live up to their obligations?
§ Sir S. CrippsThe Fund cannot revise; it is up to the United States Treasury.
§ Colonel Crosthwaite-EyreDoes not the Chancellor think, particularly in view of the position in South Africa, that it would be most wise for him to press for some revision of the gold price?
§ Sir S. CrippsNo, Sir, not at the moment.