§ 60. Mr. Stokesasked the Chancellor of the Exchequer under which clause of the International Monetary Fund it is laid down that the United States Treasury fixes the selling price of gold.
§ Mr. JayThe price of gold in the United States is determined by the gold content or par value of the dollar which is fixed by United States law. Under Article IV of the Fund's Articles, the par value cannot be altered except after consultation with the Fund.
§ Mr. StokesYes, but that is not the Question I asked. I asked the Chancellor 661 of the Exchequer if he would say who fixes the price of gold. He said it was the United States Treasury, under the International Monetary Fund. I have searched the International Monetary Fund rules, and I cannot find under which rule this is done. Now I am asking the Economic Secretary if he will tell me.
§ Mr. JayIf my hon. Friend is asking who fixes the American price of gold, then I must say I do not think that it is strictly the responsibility of His Majesty's Government to answer. As a matter of fact, however, it is the United States Government who do so.
§ Mr. StokesI asked under what rule of the International Monetary Fund is it laid down that the United States Treasury fixes the price of gold, and I have had no answer.
§ Mr. JayIt is by the Gold Reserves Act, 1934, of the United States of America that the United States Government, with the consent of Congress, fix the monetary price of gold. By agreement, at the time of the setting up of the International Monetary Fund, the United States Government also undertook not to alter the price without consulting the Fund. I hope my hon. Friend is satisfied with that.
§ Mr. StokesDoes my hon. Friend mean that the United States agree not to alter it without consulting themselves? That is all it really amounts to.